Additional Quarterly Information

SANTA CLARA, Calif., Oct 26, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- Align Technology, Inc. (Nasdaq: ALGN), the inventor of Invisalign®, a proprietary method of straightening teeth without wires and brackets, today reported financial results for the third quarter of 2005. Total revenues for the third quarter of 2005 were $50.9 million, compared to $45.8 million in the third quarter of 2004, an increase of 11.1 percent.

"We continue to make solid progress in product development and manufacturing systems initiatives," stated Thomas M. Prescott, Align Technology's President and CEO. "Our commitment to creating long-term value for our customers, shareholders and employees is reflected in our drive to make Invisalign the treatment of choice for straightening teeth."

The net loss for the third quarter of 2005, as reported on a GAAP basis, was $1.5 million, or loss per share of $0.02. This compares to a GAAP net profit of $3.3 million for the third quarter of 2004, or diluted EPS of $0.05 per share. For comparison purposes, this also compares to a non-GAAP net profit of $4.7 million for the third quarter of 2004 or non-GAAP diluted EPS of $0.07. Non-GAAP net profit excludes the effects of stock-based compensation. The reconciliation of the GAAP to non-GAAP measurements for net profit (loss) and EPS is set forth below within Align Technology's financial statements.

As of September 30, 2005, Align had $79.6 million in cash, cash equivalents, and marketable securities, compared to $70.0 million as of December 31, 2004.

Align Webcast and Conference Call

Align Technology will host a webcast and conference call today, October 26, 2005 at 10:00 a.m. EDT, 7:00 a.m. PDT, to review the third quarter of 2005 results and discuss future operating trends and guidance. To access the webcast, click on "Webcasts & Presentations" on Align Technology's Investor Relations web site at http://investor.aligntech.com . To access the conference call, please dial 201-689-8341 approximately fifteen minutes prior to the start of the call. If you are unable to listen to the call, an archived web cast will be available beginning approximately one hour after the call's conclusion and will be available on our website. Additionally, a telephonic replay of the call can be accessed by dialing 877-660-6853 with account number 292 followed by # and conference number 151234 followed by #. The replay may be accessed from international locations by dialing 201-612-7415 and using the same account and conference numbers referenced above. The telephonic replay will be available through 5:30 p.m. EST on November 3, 2005.

About Align Technology, Inc.

Align Technology designs, manufactures and markets Invisalign, a proprietary method for treating malocclusion, or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, Invisalign significantly reduces the aesthetic and other limitations associated with braces. Invisalign is appropriate for treating adults and older teens. Align Technology was founded in April 1997 and received FDA clearance to market Invisalign in 1998.

To learn more about Invisalign or to find a certified Invisalign doctor in your area, please visit www.invisalign.com or call 800-INVISIBLE.

Contact: investor relations, Barbara Domingo of Align Technology, Inc., +1-408-470-1000, or investorinfo@aligntech.com; or press, Shannon Mangum Henderson of Ethos Communication, Inc., +1-678-417-1767, or shannon@ethoscommunication.com, for Align.

ALIGN TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
                                 Three Months Ended     Nine Months Ended
                               September   September   September September
                               30, 2005    30, 2004    30, 2005   30, 2004
    (in thousands, except
     per share data)
    Revenues                   $50,866     $45,766    $155,961   $129,175
    Cost of revenues            14,975      14,922      47,073     42,565
    Gross profit                35,891      30,844     108,888     86,610
    Operating expenses:
    Sales and marketing         21,315      13,884      61,498     40,555
    General and administrative  11,715       8,263      30,949     25,196
    Research and development     4,400       4,846      14,658     11,750
    Total operating expenses    37,430      26,993     107,105     77,501
    Profit (loss)
     from operations            (1,539)      3,851       1,783      9,109
    Interest and other income
     (expense), net                326        (217)         28       (619)
    Provision for income taxes    (303)       (316)       (926)      (843)
    Net profit (loss)          $(1,516)     $3,318        $885     $7,647
    Net profit (loss) per share
      - basic                   $(0.02)      $0.06       $0.01      $0.13
      - diluted                 $(0.02)      $0.05       $0.01      $0.12
    Shares used in computing net profit (loss) per share
      - basic                   61,788      60,319      61,509     59,703
      - diluted                 61,788      64,055      63,129     64,298
    ALIGN TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (unaudited)
                                          September 30,     December 31,
                                               2005             2004
    (in thousands)
                         ASSETS
    Current assets:
    Cash and cash equivalents                $77,354          $69,659
    Restricted cash                              265              303
    Marketable securities, short-term          1,990               --
    Accounts receivable, net                  29,155           28,809
    Inventories, net                           3,594            2,852
    Other current assets                       5,039            5,211
     Total current assets                    117,397          106,834
    Property and equipment, net               24,326           21,702
    Other long-term assets                     3,291            2,176
      Total assets                          $145,014         $130,712
       LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
    Accounts payable                          $3,653           $3,361
    Accrued liabilities                       28,870           23,481
    Deferred revenue                          19,705           16,257
    Debt obligations, current portion            417            1,849
     Total current liabilities                52,645           44,948
    Other long term liabilities                   54               25
     Total liabilities                        52,699           44,973
    Total stockholders' equity                92,315           85,739
      Total liabilities and
       stockholders' equity                 $145,014         $130,712
    ALIGN TECHNOLOGY, INC.
    NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
    Use of Non-GAAP Financial Information
    To supplement our condensed consolidated financial statements presented on
    a GAAP basis, Align uses a non-GAAP measure of net profit (loss), which is
    adjusted to exclude certain costs and expenses and any associated tax
    effects of such adjustments.We believe that our non-GAAP net profit (loss)
    gives an indication of our baseline performance before other charges that
    are considered by management to be outside of our core operating results.
    In addition, our non-GAAP net profit (loss) is among the primary
    indicators management uses as a basis for our planning and forecasting of
    future periods.The presentation of this additional information should not
    be considered in isolation or as a substitute for net profit (loss)
    prepared in accordance with generally accepted accounting principles in
    the United States of America.
                                 Three Months Ended     Nine Months Ended
                               September   September   September September
     (in thousands,             30, 2005    30, 2004    30, 2005   30, 2004
      except per share data)
    Revenues                    $50,866     $45,766     $155,961   $129,175
    Cost of revenues             14,975      14,784       47,073     41,710
    Gross profit                 35,891      30,982      108,888     87,465
    Operating expenses:
    Sales and marketing          21,315      13,770       61,492     39,920
    General and administrative   11,715       7,754       30,943     22,588
    Research and development      4,400       4,206       14,658     10,448
    Total operating expenses     37,430      25,730      107,093     72,956
    Profit (loss)
     from operations             (1,539)      5,252        1,795     14,509
    Interest and other
     income (expense), net          326        (217)          28       (619)
    Provision for income taxes     (303)       (316)        (926)      (843)
    Net profit (loss)           $(1,516)     $4,719         $897    $13,047
    Net profit (loss) per share
      - basic                    $(0.02)      $0.08        $0.01      $0.22
      - diluted                  $(0.02)      $0.07        $0.01      $0.20
    Shares used in computing net profit (loss) per share
      - basic                    61,788      60,319       61,509     59,703
      - diluted                  61,788      64,055       63,129     64,298
    ALIGN TECHNOLOGY, INC.
    RECONCILIATION OF GAAP NET PROFIT (LOSS) TO ADJUSTED NON-GAAP NET PROFIT
    (LOSS)
    (unaudited)
                                 Three Months Ended     Nine Months Ended
                                September   September   September September
    (in thousands)               30, 2005    30, 2004    30, 2005  30, 2004
    Calculation of non-GAAP net profit (loss) excluding special items:
    Net profit (loss)           $(1,516)     $3,318       $885     $7,647
    Items:
    Stock-based compensation expense included in: (A)
     - cost of revenues              --         138         --        855
     - sales and marketing           --         114          6        635
     - general and administrative    --         509          6      2,608
     - research and development      --         640         --      1,302
    Non-GAAP net profit (loss)
     excluding special items    $(1,516)     $4,719       $897    $13,047
     (A)Stock-based compensation expense represents the amortization of
    deferred stock-based compensation recorded in connection with the granting
    of stock options to employees and non-employees.

SOURCE Align Technology, Inc.

investor relations, Barbara Domingo of Align Technology, Inc., +1-408-470-1000, or
investorinfo@aligntech.com; or press, Shannon Mangum Henderson of Ethos
Communication, Inc., +1-678-417-1767, or shannon@ethoscommunication.com, for Align

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