Disturbing Self-Dealing By Repudiated Echo Directors Forces Platinum To Exercise Contractual Right To Call Special Meeting; Tow

   Disturbing Self-Dealing By Repudiated Echo Directors Forces Platinum To
  Exercise Contractual Right To Call Special Meeting; Town Hall Meeting Also

PR Newswire

NEW YORK, July 10, 2014

NEW YORK, July 10, 2014 /PRNewswire/ -- Platinum Management (NY) LLC and
certain affiliates ("Platinum"), the largest stockholder of Echo Therapeutics,
Inc. (NasdaqCM: ECTE) ("Echo" or the "Company") owning approximately 20% of
the Company's outstanding Common Stock, sent a letter to the Company today
exercising Platinum's contractual right under the December 10, 2013 Stock
Purchase Agreement between Platinum and the Company to cause Echo to call a
meeting of stockholders to vote to lift the "blockers" limiting Platinum's
voting power.

If the stockholders vote in favor of lifting the blockers, Platinum would wind
up with the power to vote approximately 30.34 % of the Company's shares, based
on current publicly available information. Although Platinum has refrained
from exercising this right before, even in connection with its resounding
proxy contest victory, the inexplicable and damaging recent conduct by
directors Vincent D. Enright, William F. Grieco and James F. Smith (the
"Lingering Directors") leads Platinum to believe that future action to remove
the Lingering Directors for cause is likely necessary. To that end, Platinum
announces it is scheduling a stockholders' forum for Friday July 18 at 10 a.m.
at 152 West 57^th Street, 54^th Floor, for stockholders to come together and
share their views on the future of the Company. Platinum invites the
Lingering Directors to present their plan for reversing Echo's death spiral
that has taken place under their stewardship of the Company. Platinum will ask
for a similar presentation from the two recently elected non-conflicted
stockholder supported directors (the "Independent Directors"), who were
elected by overwhelming margins at the Company's 2014 Annual Meeting. Platinum
will provide its opinion on the two plans and invites stockholders to comment
on the plans as well. In addition to the all-important strategic plan for
turning around the Company, anticipated subjects include the continuing
conflicted conduct of the Lingering Directors and the deeply troubling
fee-shifting bylaw they unilaterally adopted over the heated objections of the
Independent Directors. The meeting will be webcast for those investors who
cannot participate in person. Stockholders interested in attending the webcast
should register at https://www3.gotomeeting.com/register/181404134.

As stockholders are aware, at Echo's recent June 19, 2014 Annual Meeting, the
stockholders of Echo overwhelmingly elected Platinum's director nominee,
Shepard M. Goldberg, to the Board of Directors. The certified election results
show that Shepard M. Goldberg received 5,391,044 votes to the 1,607, 692 votes
received by former director and interim CEO Robert F. Doman. That nearly four
to one vote margin was much more than a rejection of the now departed CEO—it
was the stockholders' powerful repudiation of the regime of the Lingering
Directors. On the night before the Annual Meeting, when the full extent of
stockholder support became apparent, Mark Nordlicht, Managing Member, Chief
Executive Officer and Chief Investment Officer of Platinum, sent a private
email to the Lingering Directors suggesting that the time had come for them to
do the right thing for stockholders and resign. Mr. Nordlicht cited the
$500,000 of precious Company funds squandered on a public proxy fight that
mathematically, based on investor communication, the Lingering Directors were
aware they had no chance of winning from the start, and excessive cash
compensation and equity granted by the Lingering Directors to themselves at
levels whereby stockholders—who paid for their shares—had suffered losses in
excess of 80 percent. Sadly, the Lingering Directors, over the vehement
objections of the Independent Directors, reacted by giving themselves a gold
plated indemnity package and adopting a worst-in-class fee shifting bylaw
without stockholder approval, all for their obvious personal benefit.

Mark Nordlicht stated, "Platinum believes that a qualified new CEO should be
hired without delay and added to the Board as a Director. Platinum asked that
this action to be taken in a public letter to stockholders nearly a year ago
but were rebuffed by the Lingering Directors until recently. The excuse
provided by the Lingering Directors was the Company did not have the resources
at the time to attract a qualified candidate. The Lingering Directors had no
issue with resources though to increase their annual cash compensation to over
$250,000 with an additional $450,000 paid to the failed interim CEO, $500,000
for the proxy fiasco and countless other expenses for high priced lawyers to
generate investor unfriendly bylaw changes and massively increased D&O
insurance expenses. The Lingering Directors should resign and the remaining
three directors should select two new, entirely independent directors with no
connection to either Platinum or the Lingering Directors. In the interim, the
Company can take the steps needed to right a ship that has been damaged due to
the performance of the Lingering Directors. Then the newly constituted Board
can get down to the pressing task of turning around Echo for the benefit of
all stockholders."

Mark Nordlicht continued, "This recent stockholder vote represented a
tremendous mandate for immediate and concrete change, and was a true victory
for the future of Echo. But the Board's disturbing decision to squander still
more of the Company's remaining resources on ill-advised increases in director
indemnification and abusive 'loser pays' bylaw changes shows a stunning
disregard for the will and interests of the stockholders. We now have no
choice but to demand publicly the immediate resignations of Messrs. Enright,
Smith and Greico from the Board, and to prepare for a future in which
stockholders may need to remove those entrenched directors for cause if they
refuse to do the obviously right thing."

Stockholders who are interested in attending the webcast are encouraged to
register at:

Stockholders who are interested in further information concerning the webcast
can contact Platinum at et@platinumlp.com.

SOURCE Platinum Management (NY) LLC

Contact: John Ferguson, 203-658-9400
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