<SUBMISSION>
<ACCESSION-NUMBER>0001141218-03-000132
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20030731
<ITEMS>12
<ITEMS>7
<FILING-DATE>20030806
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>STAAR SURGICAL COMPANY
<CIK>0000718937
<ASSIGNED-SIC>3851
<IRS-NUMBER>953797439
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0101
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-11634
<FILM-NUMBER>03827109
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1911 WALKER AVE
<CITY>MONROVIA
<STATE>CA
<ZIP>91016
<PHONE>8183037902
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1911 WALKER AVE
<CITY>MONROVIA
<STATE>CA
<ZIP>91016
</MAIL-ADDRESS>
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<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>staarjuly038k.txt
<DESCRIPTION>CURRENT REPORT ON FORM 8-K
<TEXT>




                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


        Date of Report (Date of earliest event reported): July 23, 2003



                             STAAR SURGICAL COMPANY
             (Exact name of registrant as specified in its charter)



         Delaware                        0-11634                95-3797439
(State or other jurisdiction)     (Commission File Number)   (I.R.S. Employer
of incorporation or organization)                            Identification No.)



1911 Walker Avenue, Monrovia, California                            91016
(Address of principal executive offices)                          (Zip Code)



                                 (626) 303-7902
              (Registrant's telephone number, including area code)



<PAGE>


Item 7.  Financial Statements and Exhibits.

      (c) Exhibits

Exhibit Number      Description
--------------      -----------

   99.1             Press Release dated July 31, 2003.

   99.2             Transcript of  presentation  given by David Bailey and John
                    Bily at a  conference  call  conducted  by  STAAR  Surgical
                    Company on July 31, 2003.

Item 12. Results of Operations and Financial Condition.

      On July 31, 2003, STAAR Surgical Company issued a press release announcing
financial  results for the second fiscal  quarter of 2003. A copy is attached as
Exhibit 99.1 to this report and is incorporated herein by this reference.

      On July 31, 2003, STAAR Surgical Company held an earnings  conference call
to discuss  the  financial  results  for the second  fiscal  quarter of 2003.  A
transcript of the  presentation  given by David Bailey and John Bily in the call
is attached to this report as Exhibit  99.2 and is  incorporated  herein by this
reference.

      The  information  in this  Current  Report  on  Form  8-K,  including  the
exhibits,  will not be treated as "filed" for the  purposes of Section 18 of the
Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the
liabilities  of that  section.  This  information  will not be  incorporated  by
reference into a filing under the Securities Act of 1933, or into another filing
under the  Exchange  Act,  unless  that  filing  expressly  refers  to  specific
information in this report.



                                      -2-
<PAGE>



                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


Date:  August 6, 2003            STAAR SURGICAL COMPANY

                                 By: /s/ John Bily
                                     ___________________
                                     John Bily
                                     Chief Financial Officer




                                      -3-
<PAGE>


                                  Exhibit Index

EXHIBIT NUMBER      DESCRIPTION
--------------      -----------

      99.1          Press Release dated July 31, 2003.

      99.2          Transcript of  presentation  given by David Bailey and John
                    Bily at a  conference  call  conducted  by  STAAR  Surgical
                    Company on July 31, 2003.










                                      -4-



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>staarjuly038kex991.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 99.1
                                                                    ------------


Press Release                                     Source: STAAR Surgical Company

STAAR Surgical Reports Second Quarter 2003 Results


Thursday July 31, 4:04 pm ET


International  ICL(R)  Sales Up 38% in Second  Quarter  Gross  Profit  Margins
Improve  for  Fifth  Consecutive   Quarter  Company  Devotes   Additional  R&D
Resources to ICL

MONROVIA,  Calif.,  July 31  /PRNewswire-FirstCall/  -- STAAR  Surgical  Company
(Nasdaq:  STAA - News),  a  leading  developer,  manufacturer  and  marketer  of
minimally invasive  ophthalmic  products,  today announced financial results for
its second quarter which ended July 4, 2003.

Total  product sales for the quarter were  12,950,000 up 8% from the  comparable
period one year ago.  Total revenue for the quarter was  $12,951,000  up 7% from
$12,088,000  reported in the same period one year ago.  The  difference  between
total revenue and product sales are royalties generated from previously licensed
technology that terminated as of March 31, 2003.

Gross  margins  improved for the fifth  consecutive  quarter and continued to be
above 54% which  compared  favorably  with the 49.8% reported in the same period
one year ago.  Comparable  operating  expenses (which exclude charges related to
subsidiary  closures  during the  second  quarter  of 2002)  increased  by 3% to
$8,013,000 million, compared with the same period one year ago and reflect a 41%
increase in spending  for research and  development  as well as increased  costs
related  to  clinical   and   regulatory   activities.   However,   general  and
administrative  expenses were down 3.5% in the quarter from second  quarter 2002
levels primarily as a result of a decrease in legal fees and other  professional
services.

Net loss for the quarter was $1,115,000,  or $0.06 per share. This compares with
a net loss of $3,909,000  million, or $0.23 per share during the same period one
year ago.  During the second quarter of 2002, the Company  incurred a $1,225,000
charge in conjunction  with subsidiary  closures that were primarily  related to
the  recognition of deferred  losses  resulting from the  translation of foreign
currency statements in U.S. dollars. Without the charge, net loss for the second
quarter of 2002 would have been $2,684,000 or $0.16 per share.

For the six-month period ended July 4, 2003, total sales were $25,729,000, up 9%
from the  comparable  six-month  period  of 2002.  Total  revenues  for the same
six-month  period of 2003  increased 8 % from the same period of 2002.  Net loss
per share for the six-month  period ended July 4, 2003 was $0.10, an improvement
from the net loss of $0.29 per share reported  during same period for last year.
Without the costs related to the subsidiary closures, net loss for the six-month
period ended June 28, 2002 would have been a loss of $0.27 per share.

"During the second quarter,  international  sales remained strong,  particularly
with the ICL," said David Bailey,  President and CEO of STAAR  Surgical.  "Total
international  sales were up 19% from the  second  quarter of last year and were
led by a 38% increase in ICL sales.  International  ICL sales were also impacted
favorably by an increase in Toric ICL sales. In addition, year to date ICL sales
also improved with revenues up 42% from the same period last year.

                                       1
<PAGE>

"The U.S. market continued to be challenging during the quarter,"  continued Mr.
Bailey. "Despite a 3% decline in U.S. sales as compared to the second quarter of
2002,  we were  encouraged  that  sales were  actually  up 3%  sequentially  and
further,  that the second quarter  year-over-year  comparison was more favorable
than the  yearly  comparison  for the first  quarter  of 2003,  when U.S.  sales
declined 6%. We continue to generate  operating  efficiencies,  which led to our
fifth consecutive  quarter of gross profit margin improvements and we believe we
are well positioned to capitalize on a recovery in the U.S. IOL market.

"Once again, unit sales of our specialty Toric and Collamer  one-piece lenses in
the U.S. grew during the quarter.  In fact, growth in unit sales of the Collamer
one-piece  lenses have  accelerated  both  sequentially  and year over year.  In
addition we are working on the  introduction of an improved  injector system for
the  three-piece  Collamer  lens that we believe  will  eventually  help us grow
market share in the U.S.," he said.

"ICL  development  continues  to  reach  and  surpass  milestones,"  Mr.  Bailey
continued.  "Obviously, the biggest news of the quarter was the FDA's acceptance
of our ICL PMA with an expedited review status.  We believe we are on track with
the timeline that we outlined for  shareholders  during the first  quarter,  and
would   expect  to  be   included  on  a  panel  this  year  with  a  target  of
commercializing the ICL in the U.S. early in 2004.

"We also continued to gain additional mindshare among the scientific and medical
communities  with  the  publication  of two  significant  articles  based on two
different studies.  Among other findings, the articles highlighted the efficacy,
safety,  predictability  and overall  better  image  quality that the ICL offers
compared  with LASIK.  Another  important  outcome of one of the studies was the
creation of a mathematical  model whereby  doctors and patients will now be able
to generate an actual image that will pictorially  illustrate the superior image
quality that the ICL offers over LASIK.  We believe that image  quality is a key
component of postoperative  patient  satisfaction and will encourage patients to
choose ICL as their vision correction procedure."

During the second quarter, the Company completed a private placement transaction
to  sell   1,000,000   shares  of  newly  issued   common  stock  and  collected
approximately  $830,000  for the  repayment of notes and loan  obligations  of a
former officer and director of the Company.  The Company also recently announced
that  early  in  the  third  quarter  of  2003  it  had  additionally  collected
approximately  $2,300,000  for the  repayment of notes and loan  obligations  of
another  former officer and director of the Company.  Over the past year,  STAAR
has secured the  repayment  of about $5.2  million of a total of $7.2 million in
loans to former  officers and  directors.  $3.1 million was received in cash and
the  remaining  $2.1  million  was  settled  through the return of shares of the
Company's common stock.

As part of their review of historical financial reporting, STAAR's new auditors,
McGladrey & Pullen,  LLP, are  evaluating the past  accounting  treatment of the
notes,  including  prior reserves taken against income in 2000 and 2001 totaling
$3.6 million,  and the treatment of certain  interest on the notes.  At present,
the results of this evaluation are unknown. The final determination could result
in no  changes,  or it could  affect the timing of past  accruals,  or result in
non-cash charges, and corresponding credits, to various items on STAAR's balance
sheet or income  statement  for current or  historical  periods,  including  the
financial data reported by STAAR today.  STAAR is currently  consulting on these

                                       2
<PAGE>

issues with McGladrey & Pullen,  LLP and with BDO Seidman,  LLP,  STAAR's former
auditors,  who advised STAAR in the original accounting treatment of the officer
and director notes. Any changes that might be made in accounting  treatment will
not affect the  availability  of the cash received on repayment of the notes for
STAAR's working capital and general corporate needs.

STAAR exited the second quarter with  approximately  $8,414,000 in cash and cash
equivalents  on its balance  sheet  compared  with  $1,009,000 at the end of the
fourth  quarter of 2002.  STAAR had  $3,062,589 in debt at the end of the second
quarter.

Looking ahead, Mr. Bailey offered the following  outlook for the full year 2003.
"We  believe  we  will  continue  to  generate   double-digit  sales  growth  in
international  markets  while the U.S.  market will remain a challenge  until we
bring  to  market,  perhaps  late in the  third  quarter,  our  state of the art
injector  system for the  three-piece  collamer IOL product.  We believe our new
injector  system  will begin to  meaningfully  impact IOL sales  starting in the
beginning of 2004.  Overall,  we believe we can achieve sales growth in the high
single  digits to low double  digits for the full year compared to 2002. We will
continue to remain vigilant about expenses,  but with the accelerated regulatory
review  progress  on the ICL for the U.S.  market,  we will  ramp up  sales  and
marketing  expenses over the next two quarters in  anticipation of a robust 2004
launch  for the  product.  As a result,  we now expect  operating  profitability
during the first half of next year, assuming a 2004 U.S. launch of the ICL."

Conference Call

The Company will host a conference  call and webcast  today  Thursday,  July 31,
2003 at 4:30 p.m.  Eastern Time to discuss  second  quarter  results and current
corporate  developments.   The  dial  in  number  for  the  conference  call  is
800-257-1836  for  domestic  participants  and  303-262-2140  for  international
participants.

A  taped  replay  of the  conference  call  will  also  be  available  beginning
approximately  one hour after the call's  conclusion  and will remain  available
through 11:59 p.m. Eastern Time on Friday, August 1, 2003 and can be accessed by
dialing  800-405-2236 for domestic  callers and  303-590-3000 for  international
callers,  using passcode 544651#.  To access the live webcast of the call, go to
STAAR Surgical's website at www.staar.com and select  Investors/Media then go to
the  Calendar  of  Events.  An  archived  webcast  will  also  be  available  at
www.staar.com until the release of the Company's third quarter 10-Q.

About STAAR Surgical

STAAR  Surgical is a leader in the  development,  manufacture  and  marketing of
minimally  invasive  ophthalmic  products  employing  proprietary  technologies.
STAAR's  products are used by  ophthalmic  surgeons and include the  Implantable
Contact  Lens(TM) as well as  innovative  products  designed to improve  patient
outcomes for cataracts and glaucoma.

About the STAAR Surgical's ICL

STAAR  Surgical's ICL is a phakic  refractive  lens that is currently  under FDA
review for approval in the U.S. The current  submission is for the correction of
myopia,  or  near-sightedness,  in the range of -3.0D to -20.0D.  The Company is
presently  enrolling  candidates in the clinical trial for the hyperopic ICL for

                                       3
<PAGE>

the  correction  of  far-sightedness,  as well as the Toric ICL,  which  reduces
myopia combined with astigmatism.

The ICL Pre-Market Approval  Application (PMA) has been accepted for substantive
review by the U.S.  Food and Drug  Administration  (FDA) and has been granted an
expedited  review  status.  The official  filing date for the ICL PMA was May 8,
2003.

STAAR's ICL has  received  the CE Mark  approving  use in the  countries  of the
European  Union,  is approved for sale in 37 countries and has been implanted in
more than 30,000 eyes worldwide.  If granted  approval by the FDA, STAAR will be
allowed  to  market  the  ICL  in  the  United   States  for  the  reduction  of
near-sightedness.

Safe Harbor

All statements in this press release that are not statements of historical  fact
are forward-looking statements, including any projections of earnings, sales, or
other financial items, any statements of the plans,  strategies,  and objectives
of management  for future  operations,  any statements  concerning  proposed new
products,  services or  developments,  any statements  regarding future economic
conditions  or   performance,   statements  of  belief  and  any  statements  of
assumptions  underlying  any of the  foregoing.  These  statements  are based on
expectations  and  assumptions  as of the  date of this  press  release  and are
subject to numerous risks and uncertainties, which could cause actual results to
differ materially from those described in the  forward-looking  statements.  The
risks and uncertainties  include the need to obtain regulatory  approval for new
products, acceptance of new products by medical practitioners and consumers, the
rapid pace of technological change in the ophthalmic industry,  general domestic
and international  economic conditions,  and other factors beyond the control of
STAAR  Surgical  Company,  including  those  detailed from time to time in STAAR
Surgical  Company's  reports filed with the Securities and Exchange  Commission.
STAAR Surgical Company assumes no obligation and does not intend to update these
forward-looking statements.

                                       4

<PAGE>


                             STAAR Surgical Company
                 Condensed Consolidated Statements of Income
                      (In 000's except for per share data)
                                    Unaudited

                             Three Months Ended        Six Months Ended
                            July 4,     June 28,     July 4,     June 28,
                              2003        2002         2003        2002

    Sales                   $12,950     $12,008      $25,729     $23,639
    Royalties                     1          80           48         180
      Total revenues         12,951      12,088       25,777      23,819

      Total cost of
       goods sold             5,895       6,064       11,742      12,083

    Gross profit              7,056       6,024       14,035      11,736

      General and
       administrative         2,218       2,298        4,504       4,699
      Marketing
       and selling            4,421       4,500        8,582       8,502
      Research and
       development            1,374         977        2,551       2,054
      Other charges               0       1,225            0       1,225

        Total selling,
         general and
         administrative
         expenses:            8,013       9,000       15,637      16,480

    Operating loss            (957)     (2,976)      (1,602)     (4,744)

    Total other expense         180       (575)          425       (694)

    Loss before
     income taxes             (777)     (3,551)      (1,177)     (5,438)

    Income tax provision
     (benefit)                  315         304          644       (627)

    Minority interest            23          54           42          95

    Net loss               ($1,115)    ($3,909)     ($1,863)    ($4,906)

    Net loss per share      ($0.06)     ($0.23)      ($0.10)     ($0.29)


    Weighted average
     shares outstanding      18,112      17,163       18,228      17,161


    Proforma Loss Per Share

    Net loss per share     $(1,115)    $(3,909)     $(1,863)    $(4,906)

    Other charges                --       1,225           --       1,225
    Income tax benefit           --          --          ---       (958)

    Proforma loss
     per share             $(1,115)    $(2,684)     $(1,863)    $(4,639)

    Proforma net loss
     per share              $(0.06)     $(0.16)      $(0.10)     $(0.27)

                                       5

<PAGE>


                             STAAR Surgical Company
                      Condensed Consolidated Balance Sheet
                                   (in 000's)


                                                   July 4,       January 3,
                                                    2003           2003
                                                  Unaudited       Audited

    Cash and cash equivalents                      $8,414         $1,009
    Accounts receivable, net                        6,932          5,992
    Inventories, net                               11,874         11,761
    Prepaids, deposits, and other current assets    2,586          2,958
    Deferred income tax                                --             --
      Total current assets                         29,806         21,720
    Investment in joint venture                       461            462
    Property, plant, and equipment, net             6,682          7,438
    Patents and licenses, net                       8,566          9,038
    Goodwill, net                                   6,427          6,427
    Deferred income tax                                --             --
    Other assets                                      174            280
      Total assets                                $52,116        $45,365

    Notes payable                                  $3,063         $5,845
    Accounts payable                                4,439          4,394
    Other current liabilities                       4,799          4,386
      Total current liabilities                    12,301         14,625
    Other-long term liabilities                        86             89
      Total liabilities                            12,387         14,714
    Minority interest                                 162            100
      Stockholders' equity - net                   39,567         30,551
      Total liabilities and equity                $52,116        $45,365

CONTACT:  Investors,  Douglas  Sherk,   +1-415-659-2285,   or  Jennifer  Cohn,
+1-415-659-2289,  or Media, Sheryl Seapy,  +1-949-640-4515,  all of EVC Group,
for STAAR Surgical Company.

Source: STAAR Surgical Company


                                       6

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>staarjuly038kex992.txt
<DESCRIPTION>TRANSCRIPT
<TEXT>
                                                                    EXHIBIT 99.2
                                                                    ------------


                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 1






                                 STAAR SURGICAL

                              Moderator: Doug Sherk
                                  July 31, 2003
                                   3:30 pm CT


Operator:        Good afternoon,  ladies and gentlemen. And welcome to the STAAR
                 Surgical second quarter 2003 earnings conference.  At this time
                 all participants are in a listen only mode.  Following  today's
                 presentation,  instructions  will be given for the question and
                 answer session.  If anyone needs  assistance at any time during
                 the conference, please press star followed by the zero.

                 As  a  reminder,  this  conference  is  being  recorded  today,
                 Thursday,  July  31st,  2003.  I would  now  like  to turn  the
                 conference over to Doug Sherk with EVC. Please go ahead, sir.

Doug Sherk:      Thanks,  operator and good afternoon,  everyone.  Thank you for
                 joining  us for the - this  afternoon  for the  STAAR  Surgical
                 conference call to review the financial  results for the second
                 quarter that ended July 4th, 2003.

                 If you have not  received a copy of the  results  news  release
                 that was  issued at  market  close  today  and would  like one,
                 please call our office at  415-659-2285  and we'll send you one
                 immediately.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 2


                 Additionally, we have arranged for a taped replay of this call,
                 which may be  accessed  by phone.  This replay will take effect
                 approximately  one hour after the call's  conclusion and remain
                 in effect through tomorrow night,  Friday,  August 1st at 11:59
                 pm  Eastern  time.  The dial in number to access the  replay is
                 800-405-2236 or for international  callers  303-590-3000.  Both
                 need to use the pass code 544651 # sign.

                 In  addition,  this call is being web cast live with an archive
                 replay also  available.  To access the web cast,  go to STAAR's
                 website at www.staar.com. The web cast archive of the call will
                 be  available  until the  company  releases  its third  quarter
                 results.

                 Before we get  started,  during the  course of this  conference
                 call the company will make projections or other forward-looking
                 statements  regarding future events including  statements about
                 its domestic  sales,  the planned  submission of its FDA filing
                 for implantable  contact lenses and the company's beliefs about
                 its revenues and earnings for the full year ending December 31,
                 2003 and December 31, 2004.

                 We  wish  to  caution  you  that  such   statements   are  just
                 predictions and involve risks and uncertainties. Actual results
                 may differ  materially.  Factors actually - excuse me - factors
                 that may affect  actual  results are detailed in the  company's
                 filings the SEC  including  its most recent  filing of Form 10Q
                 and 10K.

                 In addition, the factors underlying the company's forecasts are
                 dynamic and subject to change and  therefore  the forecasts are
                 to be only as of the date they are given.  The company does not
                 undertake  to update  them;  however,  they may choose to do so
                 from time to time.  And if they do so they  will    disseminate
                 the updates to the investing public.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 3


                 Now I'd like to turn the call over to David  Bailey,  President
                 and Chief Executive Officer of STAAR Surgical Company.

David Bailey:    Thanks,  Doug  and  good  afternoon,  everyone.  Thank  you for
                 joining us for the STAAR  Surgical  second  quarter  conference
                 call. With me today is John Bily, our Chief  Financial  Officer
                 and Deborah  Andrews,    our Global  Controller along with Nick
                 Curtis, our Sales and Marketing VP for the United States.

                 Today  I'm  going to start  off the call  with an update on our
                 progress during the second  quarter.  John will then review our
                 financial  performance and then we'll open up the floor to take
                 any questions.

                 Once again our financial performance during the quarter was led
                 by the continued growth in our international  sales,  which was
                 highlighted  by a 38%  increase  in the ICL unit sales year-on-
                 year. We are pleased with the progress that we continue to make
                 and believe that it illustrates  our commitment to successfully
                 executing our long-term strategy.

                 Total  product  sales grew nearly 8% to almost $13 million from
                 quarter two '02 levels. For the fifth consecutive  quarter, our
                 gross profit margins improved to 54.5%.

                 Our net loss increased  slightly versus quarter one to a loss 6
                 cents per share reflecting the ramp up of investment in R&D and
                 expenses  related to clinical and regulatory  issues  primarily
                 the ICL filing. Although we are still showing an operating loss
                 for the quarter, it was $2 million less than the operating loss
                 in quarter two '02.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 4


                 During the first half,  international sales grew 19% versus the
                 same period in 2002 and represented  approximately 54% of total
                 revenue.  We believe that we are seeing a meaningful ramp up of
                 European Toric ICL sales, which helped generate this growth.

                 We  continue  to  generate  increased  international  operating
                 efficiencies,  which  resulted in an increase in  international
                 gross margins. International gross margins were up 12% from the
                 second  quarter of 2002 and up 8% overall  when we exclude  the
                 impact of foreign exchange.

                 In Germany,  which remains our biggest  market beyond the U.S.,
                 after adjusting for exchange, gross margins grew by 8% from the
                 second quarter versus last year's second quarter. In Australia,
                 one  of  our  fastest  growing  markets,   they  were  also  up
                 significantly.

                 Sales in  Germany  were up 28% from '02 levels and ahead by 32%
                 for the six months  year-to-date.  Exchange effects contributed
                 significantly to this  outstanding  growth but even discounting
                 this  there  was  growth  in  the   business  net  of  currency
                 movements.

                 On the domestic  front, we faced another  challenging  quarter;
                 however, we believe we are beginning to see a bottom out on the
                 sales  decline.  Sales in the U.S.  were down 3% from 02 2002 -
                 (I'm sorry) quarter two 2002, which was a vast improvement over
                 prior quarter on quarter  comparisons.  Eleven percent  decline
                 quarter  four  '02  and  a  6%  decline  in  quarter  one  '03.
                 Critically,  U.S.  sales  were up by 3% in  quarter  two versus
                 quarter one.

                 We  have  committed  to turn  around  the  U.S.-based  cataract
                 business  during the second half of this year.  To do this,  we
                 need to gain  traction for IOL sales in this  market.  Although
                 not yet  occurring  across the board,  we are  beginning to see

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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 5


                 strong trends in our speciality lenses, the collamer plate lens
                 and the Toric silicone product, which tend to both be premiumly
                 priced.

                 The modest  growth  trend we  reported in quarter one for these
                 products   has   accelerated   significantly   in  quarter  two
                 comparisons  versus quarter  two last year, with unit growth at
                 31%.  Each  of  these  unique  products  is  trending  up  very
                 positively,  not  only  in  yearly  revenue  in  units  shipped
                 comparisons, but also in sequential comparisons.

                 This growth was partially offset by a decline in silicone plate
                 lens sales due to market  decline  coupled with some  cartridge
                 delivery  issues.  The same issues also  hindered the growth of
                 our three-piece silicone franchise and are frustrating.

                 All efforts  have been  expended to solve the  inserter  issues
                 during quarter two. We firmly believe we have a robust solution
                 to the plate delivery  issues and expect to gain back some lost
                 business  in  the  third  quarter.  Overall  we  expect  to see
                 silicone  lens  growth  in  the  second  six  months  of '03 as
                 compared to the first half.

                 Regarding  the collamer  three-piece  injector,  our  targeted,
                 target  date for  launch has been  delayed  from  September  to
                 November reducing the anticipated positive sales impact in '03.

                 This  system  as  I've  reported  in the  past  has  been  very
                 challenging   to  develop   due  in  part  to  the  unique  and
                 proprietary  characteristics of the collamer material.  We have
                 however made huge  progress  and are  confident of launching an
                 injector that gives an acceptable delivery this year.
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 6


                 Despite this, all  indications  point to a positive sales trend
                 emerging in the U.S.  market  during the second half. I want to
                 reiterate that the issues that we are having with the injectors
                 have been identified, targeted, and are solvable.

                 As we have  stated  previously,  the  growth  in the U.S.  will
                 underscore an acceleration of future  company's  profit growth.
                 Despite all of the good news on the ICL, and there's  been much
                 of it, we remain  determined  to rebuild and fully  exploit the
                 potential of our cataract  business in the U.S.  Although  this
                 should be classed as work in  progress,  I believe  the numbers
                 are  indicating  that  we are  beginning  to turn  this  into a
                 reality.

                 During the quarter,  we continued to strategically  control and
                 manage  expenses  but have  planned  increases  in two specific
                 areas.  With the ICL PMA,  we were  determined  to deliver  the
                 strongest  possible  file  to  the  FDA.  This  clearly  had  a
                 significant payback in terms of achieving an expedited review.

                 As a result,  R&D  expenditure  during the quarter was up 16.7%
                 sequentially.  We  planned  for this  expenditure  to  continue
                 during the third  quarter at a rate roughly  comparable  to the
                 second   quarter  as  we  move   towards   panel  and   prepare
                 accordingly.

                 The second cost factor was our work on improved  injectors  for
                 our IOL's. Having identified all of the issues at hand, we took
                 a conscious decision to accelerate spending in order to get the
                 issues behind us and move our IOL business  forward at a faster
                 rate. Conversely,  I'm therefore please to note that once again
                 we decreased our general and administrative  expenses both year
                 over year and sequentially.

                 As you know, we have made a commitment to our shareholders that
                 we  will  diligently  work to  collect  all  monies  due to the
                 corporation.  Earlier  this month we were  pleased to  announce


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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 7


                 that we had collected in full a $2.3 million loan owed to STAAR
                 by a former officer of the company. This repayment along with a
                 successful  private  placement  that we  completed  during  the
                 quarter  allowed  us  to  strengthen  our  financial   platform
                 tremendously.

                 We also  want  you to know  that  with the  appointment  of new
                 auditors in mid-June, the new firm McGladrey & Pullen has begun
                 their review of our historical  financial  reporting, including
                 the  past  accounting   treatment  of  loans  to  officers  and
                 directors  that  were  granted  as far  back as  1991.  I would
                 emphasize  that  there have been no new loans to  officers  and
                 directors under the new management team.

                 At present  the  results of this  evaluation  are  unknown  but
                 McGladrey  & Pullen  has  raised  three  issues  that  they are
                 working closely with BDO Seidman to resolve. They are complex -
                 extremely so - but I'll try and elaborate.

                 Over the past two  years  as we have  communicated  often,  the
                 company has worked closely with our auditors and legal advisors
                 and taken  exceptional steps to secure and collect these loans.
                 As a result of our efforts we've  collected $5.2 million of the
                 total $7.2 million in loans to former  officers and  directors,
                 and we're aggressively pursuing the remaining $2 million.

                 There are three issues.  In 2000 and 2001,  we booked  reserves
                 against  income that resulted in a $3.6 million  charge against
                 earnings, and we may or may not have to reverse those reserves.

                 Secondly  we have  treated  as  interest  income  approximately
                 $321,000 in interest  from these  loans that was  collected  in

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                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 8


                 cash by STAAR.  And there is now a question as to whether  this
                 interest income should be treated in a different manner.

                 Thirdly, while legally the loans were structured and treated by
                 the company as full recourse  loans,  there is a question as to
                 the  characterization  of the  notes  as  non-recourse  from an
                 accounting  perspective.  This  characterization in turn brings
                 into question variable accounting treatment and the calculation
                 of imputed compensation expense.

                 We  recognize  that  this  issue  is  confusing  and as of this
                 afternoon  we've given you the best  available  information  we
                 have on the  issue.  However,  we have been  assured by the new
                 auditors  that if  there is a charge  recorded  as a result  of
                 their  decision,  it  will be a  non-cash  charge  and  related
                 specifically to notes from former officers and directors.

                 We  will  report  to you on  this  development  as  soon as the
                 decision is reached. It is not an operational - I say it is not
                 operational  in nature and should not  detract  from the strong
                 operational progress we are making at the company.

                 Moving on to that progress,  with the successful  collection of
                 loans to officers and  directors  as well as the proceeds  from
                 the private placement,  we now have the cash to ensure, through
                 effective  execution in the U.S.,  that the ICL will  represent
                 the next paradigm shift in refractive surgery.

                 While we continue to have significant and continued interest in
                 partnership   opportunities   and  are  fully   exploring  that
                 interest,  we are as we  speak  actively  executing  a plan  to
                 market  the ICL  ourselves  within  the  U.S.  For  competitive
                 reasons we will not be  discussing  the  specifics of this plan
                 but  we are  actively  engaging  the  organization  to  execute
                 against it.
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                          Page 9


                 We   continue   to  make   steady   progress   in  growing  our
                 international  business and we're  certainly - we've  certainly
                 improved our cost  structure.  We also now believe that we have
                 begun to see the beginnings of an up trend in the U.S. business
                 based on the growth  achieved  in quarter  two this year versus
                 quarter last year.

                 We expect to see more improvement throughout the second half of
                 the year.  With our cost  strategies  firmly  aligned,  we will
                 continue    to    focus    significant    resources    on   the
                 commercialization  of the  ICL  and the  Toric  ICL.  So let me
                 quickly  update  you on some  exciting  developments  that have
                 occurred during the second quarter.

                 Clearly  the most  exciting  news of the  quarter was the FDA's
                 acceptance  of our PMA for the ICL.  On May the 8th,  2003,  we
                 filed  the PMA and on July the 1st,  we  received  notification
                 that the FDA had not only  accepted our PMA but also granted us
                 an expedited review status.

                 This  expedited  review  covers  myopia in the  range  -3.0D to
                 -20.0D.  Without going into details,  I can tell you that we're
                 already  experiencing  the burden of work that  results from an
                 expedited  review.  We  believe  that  this  action  by the FDA
                 further underscores our belief that the ICL represents the next
                 paradigm shift in refractive surgery.

                 With all of this  activity,  I'm confident  that we will exceed
                 our stated  goal of getting to panel by  November of this year.
                 Please be aware that the September panel has been cancelled and
                 tentatively rescheduled for early October.

                 Also during  quarter  two,  the ICL was the subject of two peer
                 review  journal  articles.  Both  of  these  articles  compared

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                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 10


                 various  post-operative  outcomes  in ICL  patients to those of
                 LASIK  patients.  We are  pleased  with  the  results  of these
                 studies indicated that the ICL post-operative clinical outcomes
                 were  significantly  better than LASIK. These objective studies
                 underscore the results of our three-year  data,  which showed a
                 99.4% patient satisfaction rate.

                 In July,  a new study  compared  ICL to LASIK and  demonstrated
                 that patient satisfaction with the ICL is a result of a sharper
                 image  and less  haze  than is seen  with  LASIK.  This is well
                 demonstrated  on  STAAR's  new  website,  which I hope you will
                 visit.  Remember what you see there will be used by ICL doctors
                 as they counsel patients on the merits of the two procedures.

                 As our research base grows, we are  increasingly  excited about
                 the potential for the ICL and the Toric ICL. We currently  have
                 new ICL approvals  pending in Taiwan and Australia.  We're also
                 working hard to gain  extended  approvals  for the Toric ICL in
                 both Korea and Canada. Our stated goal is for our international
                 refractive business to double in 2003 versus prior year.

                 Approval  of the  ICL in the  U.S.  would  allow  us to  pursue
                 significant  revenue   opportunities.   Our  most  conservative
                 estimates,  which  assume  sole  U.S.  marketing  by STAAR  and
                 minimal market  penetration rates indicates that we could see a
                 revenue impact of $47 million per year.

                 Once approved,  we expect to launch a dynamic focused marketing
                 effort to support our  products  within the U.S.  market.  This
                 will include a standardized training program as we have used in
                 international  along with the  recruitment  of direct  employee
                 proctors  to  ensure  the  systematic   training  programs  are
                 successfully rolled out.

                 Overall we are  delighted  with the progress we are making with
                 the ICL both domestically and internationally.  We know we were

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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 11


                 the first to submit a PMA to the FDA and  continue  to  believe
                 that we will be the first to market  with a phakic  lens in the
                 United  States.  We also  believe  that we have the only phakic
                 lens  to be  granted  an  expedited  review  and  believe  that
                 compared to the  nearest  competitor  we have third  generation
                 technology   that  is  compatible   with  modern  day  surgical
                 techniques.

                 We do not envision that doctors will, despite strong marketing,
                 be  long-term  supporters  of a product that takes them back 15
                 years in  surgical  technique,  takes  three  times  longer  to
                 perform, and gives an atheistically displeasing outcome for the
                 patients.

                 In  summary,  the second  quarter  was yet  another  successful
                 quarter for STAAR. We continue to make significant  progress in
                 our  road  map to  commercialization  of the ICL in the  United
                 States.  At the same time, we built additional market share for
                 the ICL and the Toric ICL internationally.

                 The base  cataract  business  is  looking  much  stronger, with
                 accelerating  sales trends on the new  technology  IOLs  in the
                 critical  United States market.  Our gross margin  improvements
                 are solid with  opportunity for acceleration as cataract market
                 share builds in the U.S.

                 All of these  achievements  resulted in  increased  interest in
                 STAAR  Surgical from the  investment  community, with increased
                 analyst  coverage  and  critically  the entry of STAAR into the
                 Russell  2000  Equity  Index.  We look  forward to sharing  our
                 continued  progress with you throughout the year. At this time,
                 I'm going to hand over to John to recap in a little more detail
                 on the financials.
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 12


John Bily:       Thank you,  David.  The financial  fundamentals of the business
                 continue to improve.  Gross  profit  margins  improved  for the
                 fifth  consecutive  quarter.  SG&A expenses for Q2 and year-to-
                 date 2003 were favorable to prior year.

                 STAAR  continues  to  fund  and to  grow  our  R&D  investment.
                 Interest  expense  and debt  have been  significantly  reduced.
                 Working  capital  management is on track.  Manufacturing  costs
                 have  been   favorably   impacted   by  yield  and   efficiency
                 improvements.  And the  company  today has over $10  million in
                 cash.

                 Let me briefly recap Q2 and year to date financial results. Net
                 sales for the  second  quarter  were  $12,950,000  up 7.8% over
                 prior year quarter. For the year to date period, the sales were
                 $25,729,000,  an increase of 8.8% over prior year.  In the U.S.
                 market,  sales  declined  3% during the  quarter and 5% for the
                 year to date period.  The rate of U.S. sales decline  continues
                 to diminish as David mentioned earlier.

                 International  sales grew 19% for the  quarter  and 23% for the
                 year-to-date  period.  Sales  in  our  German  subsidiary  were
                 favorably impacted by the effect of currency.

                 The ICL and Toric ICL grew 38% in the quarter.  STAARVISC sales
                 increased 21% in Q2.  AquaFlow  sales  declined 9%.  Speciality
                 lens sales  increased 18% and silicone lens sales  declined 19%
                 during the second quarter.

                 For the year to date  period,  the ICL and  Toric ICL grew 42%.
                 STAARVISC  sales  increased to 34% and AquaFlow  sales declined
                 16%. Speciality lens sales increased 11 and silicone lens sales
                 declined 15%.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 13


                 (Gross)  profit  excluding  royalty  income for the quarter was
                 $7.1  million;  a $1.1 million or 19% increase over prior year.
                 Gross  margin was 54.5%,  a full six margin  point  improvement
                 over prior year quarter.  Year to date gross margin was 54.4, a
                 5.5% improvement over the prior year, year to date period.

                 Gross  margin  improvements  were the  result of  reduced  cost
                 structures in our manufacturing  facilities,  production yields
                 and efficiency  increases,  and significant  growth in the high
                 margin ICL product  lines.  These  improvements  were partially
                 offset by the  unfavorable  mix due to decline in the U.S.  IOL
                 business, which as we said before operates with a significantly
                 higher  gross  margin  percentage  than the  international  IOL
                 business.

                 General and  administrative  expenses in Q2 were $2.2  million,
                 3.5% below  prior  year.  Year to date G&A  expenses  were $4.5
                 million,  4.2% favorable to prior year.  Reduced legal expenses
                 and  professional   services  and  generally   tighter  expense
                 controls contributed to the favorable performance in G&A.

                 Sales and  marketing  expenses  during  the  quarter  were $4.4
                 million,  $1.8 million  below prior year.  For the year to date
                 period,  expenses we $8.6 million, a less than 1% increase over
                 the prior year period.

                 Spending for R&D, clinical and regulatory  activities increased
                 in the second  quarter.  Spending was $1.41 - $1.4 million,  up
                 $400,000  or 41%  over  the  prior  year  quarter.  Accelerated
                 activities  during the second  quarter  included the completion
                 and  submission  of the U.S.  ICL  clinical  study,  Toric  ICL
                 clinical  activity,  and  lens  insertion  systems  development
                 program.

                 Total  SG&A and R&D  spending  for the  second  quarter  was $8
                 million.  Excluding  the effect of a $1.2 million restructuring
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 14


                 charge in 2002, results were $240,000 or 3% over prior year. On
                 a year to date  basis,  total  SG&A and R&D was $15.6  million,
                 (380) or 3% increase over prior year.

                 Total operating expenses excluding R&D are below prior year for
                 both the quarter and the  year-to-date  periods and reflect the
                 company's  success  in  reorganization  and in  cost  reduction
                 activities.   The   increase  in  R&D  spending  is  result  of
                 significant   activities   associated   with   the   successful
                 submission of the U.S. ICL clinical  study,  Toric ICL clinical
                 programs and a broad and in depth  review of STAAR's  portfolio
                 of lens insertion systems.

                 Operating  loss for the quarter  was $1 million  compared to $3
                 million in the prior year. On a comparable  basis and excluding
                 restructuring  charges, the operating loss in the prior quarter
                 was  $1.8  million.  The year to date  operating  loss was $1.6
                 million, $3.1 million favorable to prior year.

                 On a comparable  basis and adjusting for  restructuring  costs,
                 prior year to date operating  loss was $3.5 million.  Excluding
                 restructuring  the  operating  loss for the quarter and year to
                 date  period was  $800,000  favorable  in the  quarter and $1.9
                 million favorable to the prior year year to date.

                 Other income and expense for the quarter was $800,000 favorable
                 to  prior  year  due to a  reduction  in  interest  expense  of
                 $100,000  and  a  favorable   exchange   gains  and  loss  with
                 comparison of $500,000.

                 For the year to date period,  other income and expense was $1.1
                 million  favorable due to reduced  interest  expense,  interest
                 income on notes  collected  from prior  officers and directors,
                 and  favorable  exchange  gains and  losses.  Again as in prior
                 quarters,  the company  recorded no income tax benefits on U.S.
                 entity net operating losses.
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 15


                 Net loss for the quarter was $1.1 million or 6 cents per share.
                 Net loss for the prior year  quarter  23 cents per share.  On a
                 comparable  basis,  net loss in the prior year was 16 cents per
                 share adjusting for restructuring costs of $1.2 million.

                 For the year to date  period,  net loss was $1.9  million or 10
                 cents per share.  Net loss for prior year to date period was 29
                 cents per share.  Again on a comparable  basis, the net loss in
                 the prior year was 27 cents per share  excluding  restructuring
                 costs and one time U.S. income tax benefit.

                 Cash flow from operating  activities  was $500,000  negative in
                 Q2,  which was $300,000  favorable  to the prior year  quarter.
                 Significant  yearly insurance  payments and the (ASCRS) meeting
                 were the primary factors for the negative cash flow quarter.

                 Cash from  investing  activities  was $700,000  positive,  $1.1
                 million  better than prior year and primarily due to collection
                 of notes from prior officers of the company and $7.7 million in
                 reductions in spending for property, plant and equipment.

                 Let  me re - let me do  that  once more.  Cash  from  investing
                 activities was $700,000 positive in the quarter and that's $1.1
                 million better than prior year. And that's  collection of notes
                 from prior officers of the company of $700,000 and reduction of
                 spending for property, plant and equipment of $200,000.

                 Cash from financing  activities was $7.8 million  positive,  $9
                 million from our private  placement,  $1 million  proceeds from
                 stock  options  and $2.2  million  used to pay down  debt.  Net
                 increase in cash for the quarter was $8 million.  At the end of
                 quarter two, STAAR had $8.4 million in cash and $3.1 million in
                 notes payable.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 16


                 Clearly   the   first   half  of  2003  has  seen   significant
                 improvements  in the  fundamentals  of the business both from a
                 P&L  operating   prospective  and  on  the  balance  sheet.  As
                 mentioned  above,  cash at the  end of  quarter  two  was  $8.4
                 million and today after the collection of $2.3 million in notes
                 (puts)   that  over  $10   million.   STAAR's   total  debt  is
                 approximately $3 million and at very favorable interest rates.

                 I'll  spend a minute on some  guidance  for the  balance of the
                 year.  STAAR had  previously  forecast high single digit growth
                 for the year based on sales of $47.9  million  in 2002.  We are
                 still comfortable with this estimate.

                 We had also given  guidance,  which  indicated that the company
                 would be  profitable  at some point and time in the second half
                 of the  year.  Additionally,  we had  indicated  that an annual
                 incremental  spend of $2.5 million  would be required to launch
                 the ICL and take it to market in the U.S.

                 With the  acceleration  in and the optimism within the approval
                 process in the U.S.,  we have taken the decision to  accelerate
                 this expenditure.  This strategy will add $1.1 million in sales
                 and  marketing  expenses in the second half of 2003.  This will
                 ramp up in the third and fourth quarters of '03.

                 For 2004, our estimate for the incremental expenses for the ICL
                 remains  the  same.   As  a  result  of  this  change  and  the
                 acceleration  of the ICL launch  expenses,  we will not achieve
                 profitability   in  the  second  half  of  2003  as  previously
                 indicated.

                 Now some investor relation highlights, STAAR will be presenting
                 at the Adams,  Harkness  and Hill  Summer  Seminar on  Tuesday,
                 August  5th in  Boston.  And we will be  visiting  investors  -

<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 17


                 various  investors  around the country the following  week. I'd
                 like to now turn the call back over to David.

David Bailey:    Thanks,  John, very comprehensive.  I'd now like to open up for
                 questions  and we'll  summarize as usual with some  milestones,
                 which investors can use to judge performance for quarter three.

Operator:        Thank you,  sir.  Ladies and  gentlemen,  at this time, we will
                 begin the question and answer session.  If you have a question,
                 please  press  the  star  followed  by the 1 on your  touchtone
                 phone. If you would like to cancel the polling process, you may
                 press the star followed by the 2.

                 You will hear a three tone prompt  acknowledging  the selection
                 and your  questions  will be pulled in the order  that they are
                 received.  If you are using speaker equipment,  please lift the
                 handset before pressing in the numbers.

                 Our first  question  comes from (Joanne  Roonch) with  (Harris,
                 Smith, Fitzgerald). Please go ahead, ma'am.

(Joanne Roonch): Good  afternoon,  everybody.  So many good questions or so many
                 questions  to ask,  first could you just address the decline in
                 AquaFlow  sales?  We  expected  that it be a  little  bit  more
                 positive this quarter.

David Bailey:    Yes. As I said in the main script, this is a great product with
                 excellent outcomes in the clinical area. But it needs dedicated
                 resource to maintain a momentum of growth  because the learning
                 curve is relatively steep.

                 Just to recap,  year-to-date,  units were down 16% versus  last
                 year but with a much lower rate of unit decline only 3% when we
                 compare the quarter two quarter two comparison.
<PAGE>
                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
                                                             07-31-03/3:30 pm CT
                                                            Confirmation #544651
                                                                         Page 18


                 The  problem  has been that  over the last  three  months,  our
                 already  limited  proctoring  resource  for  AquaFlow  has been
                 stretched and somewhat distracted with other critical activity.
                 As a result,  surgeon proctoring,  a key component of the sales
                 mix, has slowed. This is particularly  critical,  as the target
                 surgeon for  AquaFlow  does not  immediately  overlap  with our
                 regular custom base - customer base.

                 We have plans to realign  focus,  but only after we have turned
                 the  corner on our IOL  business  in the U.S.  For the  moment,
                 field   evaluations  of  the  new  injector   systems  and  the
                 recruitment  and training of select direct sales reps is taking
                 priority.  The clinical  evaluations of the new injector system
                 allows me for  example to say we were very  confident  we had a
                 robust  solution to the plate  haptic  delivery,  and so that's
                 paying off dividends.

                 So what we've done,  (Joanne),  is realigned our  objectives on
                 AquaFlow  and our  short-term  goal is to halt the  decline  on
                 AquaFlow  in the  second  half.  So that's a clear goal just to
                 prevent - stop the  decline.  And then once we get all of these
                 injector evaluations and we free up proctoring resource,  we'll
                 be able to put more push behind AquaFlow.

                 I should  also point out at that - with the ramp-up of ICL that
                 John indicated,  we'll be bringing in a proctoring force, which
                 we've started to recruit now. And although  that  proctoring is
                 going  to be  directly  focused  on ICL,  it will  give us some
                 leeway to get increased proctoring on AquaFlow.

                 But  there's no doubt that this  quarter is really  highlighted
                 the pull that we're  getting on the base business and that base
                 customers and AquaFlow,  which is a different customer base. So
                 the short-term plan is to stop the decline.  It's disappointing
                 but it's understandable given our priorities that we've set.
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(Joanne Roonch): Okay.  What is the  chance  that  the  collamer  injector  gets
                 delayed not from  September to November  but from  September to
                 February or some later date?

David Bailey:    I think  that is very low.  As I said in my text,  we've made a
                 huge amount of progress.  I'm very  cautious on this because it
                 has been  challenging.  But I'm pretty solid with those revised
                 dates  and the  whole R&D  group  are  behind  that.  And we've
                 actually added some additional resources;  you saw both from an
                 expenditure point of view both variable expense and people cost
                 to make sure we get over those hurdles.

                 So I'm pretty - you can never be 100% sure,  (Joanne),  but I'm
                 very  confident  with  those.  And  we've  added  resource  and
                 increased expenditure to make sure the delivery is absolute.

(Joanne Roonch): Okay. Two more questions and then I'll get in queue.  The first
                 is you said you  think  you will do better  than  getting  on a
                 November panel. Is that a roundabout  way of saying you believe
                 you're on an October panel?

David Bailey:    I don't know, (Joanne).  I'm just very confident we've - having
                 gotten the expedited  review and all the activity  that's going
                 on,  which as I said is - there's a lot.  The - I will beat the
                 estimates that we'd always talked to, which was November.

                 And nothing's  firm yet. That October panel is  provisional  as
                 indicated on the FDA website but clearly  we're  pulling  every
                 stop out to get to an earlier  round in the later panel review.
                 Nothing is confirmed, however.

(Joanne Roonch): Okay. Finally, I recognize the guidance you gave for the second
                 half of the year.  High single  digits in that revenue and that
                 you will not get to break-even during the year.

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                 Could you please be more  specific what to expect for the third
                 quarter and what to expect for the fourth quarter?

David Bailey:    I think  you  (must) - I think we -  inline  with the  previous
                 guidance, we've tried to stay fairly general and give everybody
                 a  framework  to work  within  rather  than  specifics  for the
                 individual  quarters.  And I think - I'd want to stay with that
                 guidance, (Joanne).

                 I think based on what we've said the low  single-digit  growth,
                 the fact that  we're  going to  absolutely  increase  sales and
                 marketing by $1.1 million over the two quarters,  it's going to
                 ramp up more in fourth quarter. We expect flat AquaFlow. That's
                 the goal.  That should give  people,  you know, a good range to
                 work within.

(Joanne Roonch): Okay.  Thank you very much.

David Bailey:    Thanks, (Joanne).

Operator:        Our next question  comes from Kate Sheridan with Pacific Growth
                 Equities. Please go ahead, ma'am.

(Kate Sheridan): Hi there everybody.

David Bailey:    Hey, (Kate).

(Kate Sheridan): Actually just what was the  FX  contribution on a dollar basis,
                 John?

John Bily:       For the quarter?

(Kate Sheridan): Yes.
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John Bily:       We think the FX was something right around a million dollars in
                 the quarter.

(Kate Sheridan): Okay.

John Bily:       Mostly in Germany, if not all in Germany.

(Kate Sheridan): Right.  Okay.  And then...

John Bily:       (Is that what you need?).

(Kate Sheridan): ...maybe  this is sort of taking  (Joanne)'s  question that was
                 giving us something to work with. We've got some - I think some
                 expense information but I think most of us are probably looking
                 at some, you know,  fairly gradual  increases in gross margins.
                 Can you give us an idea of where you  might  exit,  maybe  even
                 just where the next couple of quarters fall out?

John Bily:       Well, clearly up.

(Kate Sheridan): Yes.

John Bily:       Let me...

David Bailey:    Yes,  (Kate),  just  while  John  looks for that I just want to
                 emphasize  that ICL  sales  are not  particularly  affected  by
                 currency because it's out of Switzerland.

(Kate Sheridan): Right.

David Bailey:    And it's  dollar  invoicing.  But just to make that point while
                 John was checking some...
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John Bily:       Yes,  all of our - yes,  most if not all of the  currency is in
                 Germany.

(Kate Sheridan): Okay.

John Bily:       And not ICL related.

(Kate Sheridan): Right.

John Bily:       Well, we're going to go up and if you look at the first half of
                 the year,  (Kate).  You know, we're going to improve on that by
                 at least a couple of percentage  points - somewhere between two
                 and three percentage points.

(Kate Sheridan): Okay so that by the end of the fourth  quarter then exiting the
                 year up from here?

John Bily:       Right.

(Kate Sheridan): Okay. Okay. Well,  that'll be helpful.  And just curious on the
                 ASPs I mean I see the decline in IOL's but I'm  wondering  what
                 ASPs are doing specifically?

David Bailey:    ASPs, (Kate), broad brush are doing reasonably well because  as
                 I said the speciality lenses are growing,  which command that -
                 a much higher price. So ASPs overall in the U.S. are holding up
                 pretty well and so in, you know,  gross  margin is improving in
                 the U.S.

                 ASP for ICL is actually  getting pushed up slightly as we start
                 to sell more Toric ICL's, which sell for a premium. But overall
                 on   the   silicone   lenses,   ASP's   holding up really well-
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                 reasonably well. Although as we indicated we were losing market
                 share  on the  base  business  and the  speciality  lenses  are
                 actually  taking  ASPs  up by  somewhere in the region of a 30%
                 premium.

(Kate Sheridan): Okay.

David Bailey:    Thirty to 35% premium.

(Kate Sheridan): Okay.

David Bailey:    Collamer  to  silicone  and  about  the  same  on  the  Toric's
                 silicone.

(Kate Sheridan): Okay.  All right and then,  Dave, you just - you made up a pass
                 at the $47 - the $47 million ICL  potential  opportunity  and I
                 was just wondering if that was sort of (the first) year or once
                 you get to,  you  know,  out of the gate and then on a run rate
                 per year?  And then if that's  the case sort of when do you get
                 to that point after the roll out?

David Bailey:    Yes.  I  think  that  $47  million  is   consistent   with  the
                 presentation  I've given to, you know,  investors  showing  the
                 potential  at low  penetration  rates that's the .6 and .8 that
                 we've talked about. I think, you know,  that's obviously a ramp
                 up number.

                 In terms of an  absolute  growth in ICL,  now we have the - our
                 plans  firmed up I think we're going to be - we'll give - we'll
                 wait to give more  guidance  on that  absolutely,  (Kate).  But
                 that's surely a ramp up number.

(Kate Sheridan): Okay.  So there's like...
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David Bailey:    And,  you know,  as with  international,  we'll go for a steady
                 ramp up over  time  with  solid  outcomes.  They must be highly
                 successful  in the markets where we've done it but I think that
                 from the get go it's  going to be faster in the U.S.  given the
                 interest we're seeing in the products, assuming of course we do
                 get approval.

(Kate Sheridan): Okay and then this last thing and then I'll leave.  I'm curious
                 about  the   trends  in  Europe   with   respect  to  the  ICL,
                 particularly  with the  Toric.  And was  wondering  if with the
                 Toric are you  gaining new  surgeons  now that you have that to
                 offer or it sort of the  same  few  people?  I've  talked  to a
                 couple  over there not a lot but just if you could give us some
                 feel for that - how that - help us out?

David Bailey:    Yes.  The first  thing I would say we got CE Mark in  December.
                 And there is a 60-day  lead-time  to  fulfill an order to set -
                 that's the delivery promise.  So, you know,  effectively you're
                 only  launching  towards late first quarter  against the orders
                 that you're generating.

                 We're seeing some trade-up where customers are adding the Toric
                 ICL to their  usage and that's  replacing  ICL.  But I do think
                 we're starting to see new customers  being attracted to the ICL
                 because of the dual  benefit.  You know,  being able to correct
                 two  procedures in one. But the early  adopters to be fair, are
                 more existing users than purely new users.

(Kate Sheridan): Okay.  Fine.  Thanks very much.

David Bailey:    Thanks, (Kate).

Operator:        Our next  question  comes  from  (Jason  Bedford)  with  Adams,
                 Harkness and Hill. Please go ahead, sir.
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(Jason Bedford): Hi, guys.  Just a few quick  questions and I hate to do this to
                 you.  But just any word on  Taiwanese  approval for the ICL and
                 just are the  questions  going  back and  forth or  what's  the
                 timeline there?

David Bailey:    Honest, that's a very timely question.  What - I'm - first  off
                 I have to say  I'm  very  frustrated  with  Taiwanese  approval
                 because we expected it before now. But we were able to actually
                 get  a  meeting  with  the   Taiwanese   authorities,   or  our
                 representative, was last week. Yes, late last week.

                 And it was really  clear  during that meeting - two things were
                 very clear. One was that the SARS issue,  which I really hadn't
                 factored  in from this  point of view,  had taken a toll on the
                 health  authorities in Asia with the Ministries of Health being
                 in turmoil and numerous head count changes.

                 And that delayed a lot of the  processing  of  applications  in
                 Taiwan in particular. I don't know the details in Korea because
                 we didn't have a pending  approval  during this  process.  We'd
                 already gotten the ICL approval.

                 So that caused  chaos and I know that the number of companies -
                 specifically in ophthalmology - that are in the same situation.
                 During that meeting,  we met with a pretty senior  person,  the
                 section chief, and he confirmed that both SARS and some process
                 changes  relatively  minor had  caused  delays in the  approval
                 process for a number of  products  including  the ICL.  And his
                 estimate  was that the  average  delay and I repeat an  average
                 delay was at least six months.

                 And so based on that  meeting  where we went through the detail
                 of what  they had and  anything  else  they  needed,  which was
                 fairly limited, we would revise our approval date  to  say late

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                 this year.  So that  really is quite out of most  recent  news,
                 (Jason).

(Jason Bedford): Okay. That's fine. And then when do you expect to hear from the
                 FDA regarding a panel  meeting,  you know, if you were to be on
                 the panel meeting in October, when would you expect to hear?

David Bailey:    It would be some time in about the third week of August.

(Jason Bedford): Third week of August.  Okay great and then, finally,  you know,
                 you mentioned  your  intention to  distribute  the ICL yourself
                 here in - or have STAAR do it here in the U.S. Have you stopped
                 discussions with partnerships? Are you still open to that?

David Bailey:    No as I said in the main text,  there's  considerable  interest
                 and we continue to explore  that  interest but we're locked and
                 loaded on a direct campaign.  And we're actively recruiting and
                 hence, while we've added in that additional expenditure,  which
                 I think is the right  move,  since  we've  got the  accelerated
                 review.

(Jason Bedford): Okay.  Great.  Thanks, guys.

Operator:        Our next question comes from (Vivian Wolf) with (Costman Fund).
                 Please go ahead.

(Vivian Wolf):   Dave,  so  should  we read  into  that  that  there is indeed a
                 possibility  of getting final  approval on that before year end
                 in the U.S.?
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David Bailey:   (Vivian),  I couldn't be that  specific.  I really  couldn't be
                 that  specific.  I mean  there's  a  tentative  panel  date  in
                 October.  We've got an  accelerated review.  We've got  frantic
                 activity going on. And...

(Vivian Wolf):   We have optimism.

David Bailey:    ...that, you know, we'll see.

(Vivian Wolf):   And we have  optimism.  That's good. Do you - just one question
                 there's  an update  from  CMS   out  on some of their  hospital
                 rates today and I wasn't - I haven't seen  anybody  write about
                 whether  that  affects  the IOL  business  but do you  have any
                 information on that?

David Bailey:    I'm not familiar with that, (Vivian).

(Vivian Wolf):   Okay.

David Bailey:    We'll  have to have a look  at that  and get  back to you if we
                 may.

(Vivian Wolf):   Okay,  well that was just  earlier out today and I haven't seen
                 anything on the ophthalmic side so it may not.

David Bailey:    Nick  and I are  looking  at each  other.  We're  not  aware of
                 anything but we'll be happy to have a look at that and give you
                 any comment after.

(Vivian Wolf):   Okay.  Thanks.  I'll come back in the queue.

David Bailey:    Great.
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Operator:        Ladies and  gentlemen,  if there's  any  additional  questions,
                 please  press  the  star  followed  by the 1 on your  telephone
                 keypad.  As a  reminder,  if you're  using  speaker  equipment,
                 please lift the handset before pressing the numbers. One moment
                 please for the next question.

                 Our next  question  comes from (Larry  Hemovich)  with  (HMGC).
                 Please go ahead, sir.

(Larry Hemovich):Good afternoon, gentlemen.

David Bailey:    Hi, (Larry).

John Bily:       Afternoon, (Larry).

(Larry Hemovich):Actually a question  for Nick,  I didn't  realize he was there.
                 I'm  delighted he is. Hi, Nick.  Can you give us any updates on
                 the  marketing  and sales  front?  I know you've  been  working
                 extremely  hard to improve the selling and marketing  effort in
                 the  field.  Is any - any  qualitative  and  quantitative  data
                 points you have for us, Nick?

Nick Curtis:     Yes,  having  a hard  time  hearing  you  there a  little  bit,
                 (Larry),   but  I  completed  my  relocation  from  Chicago  to
                 California a couple of weeks ago. And so that's  positive.  I'm
                 here now for good.

                 We've restructured the sales and marketing  department.  And in
                 fact we physically moved the departments together, which really
                 I think from an accountability  and a productivity  perspective
                 really,  you know,  bringing the  departments  together is very
                 positive.
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                 We do have a new head of marketing  and this person - she's got
                 a tremendous  experience in refractive surgery. And we've got a
                 new  director  of sales,  which  really is helping us provide a
                 much better support to our regional managers in the field.

                 As a result  of the ICL,  you  know,  we've -  there's  so much
                 excitement  surrounding  that that it's  created a pretty  keen
                 interest in our company and so we've had a lot of people coming
                 to us that are interested in careers at STAAR.

                 I'm looking to continue to strengthen the marketing  department
                 on - with  specific  strong  product  directors  in some of the
                 product  areas so we can really  focus in the  various  product
                 areas and have someone accept responsibility for those specific
                 areas.

                 The  relationships as far as between  corporate  management and
                 field management I think is really very much improved and we've
                 spent a lot of time really trying to develop that  relationship
                 as well as to really articulate our goals and sort of align our
                 goals much more in the field.

                 I think that - I think we've really made some good  progress in
                 that regard. In fact, I'm really encouraged in that regard. And
                 I feel like the  region  managers  are really  revitalized  and
                 pretty  committed  to  growing  their  business.  I think  they
                 realize  with  the ICL  that a  strong  profitable  company  is
                 critical to their futures and long-term success there.

                 So, you know...

David Bailey:    And I think quantitatively,  you know, as I said, Nick grew the
                 sales  quarter two versus  quarter one modestly 3% but that was
                 growth. And the rate of decline versus prior year quarter's has
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                 decreased  significantly as I indicated.  So I think, you know,
                 Nick's making a lot of changes not just underscores it.

                 The other  thing I would say to  investors  is Nick is actually
                 going to be in  attendance  at the - some of the meetings  next
                 week, so people will have an  opportunity to question and delve
                 and get into that detail a little bit more.

(Larry Hemovich):Next, a couple - a follow-up question.  Can you tell us who the
                 new hires - the key hires are the director of sales and head of
                 marketing are?

Nick Curtis:     Pardon me?

(Larry Hemovich):Can you identify  who the new hires are that you talked  about?
                 The new  director  of  sales  and the  director  - the  head of
                 marketing?

Nick Curtis:     Yes,  in  the  marketing   side,  Darcy  Smith  and in the - as
                 director of sales, Rick Prell.

(Larry Hemovich):Darcy's  already  been  with the  company  so but Rick is a new
                 addition?

Nick Curtis:     No, Rick  was actually  with the company on the marketing  side
                 and he has a lot  of  sales  management  -  very  strong  sales
                 management experience.

(Larry Hemovich):So what I'm hearing you say is you've promoted some people from
                 within?

Nick Curtis:     Yes. And like I say  restructured  when we put the  departments
                 together  so it  really  has  increased  our  efficiencies  and
                 really,  you know, we're not having to go out and incrementally
                 spend in certain  areas we looked  through and really have been
                 pretty strict with our budgets.
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(Larry Hemovich):Okay.  Thank you.

Operator:        Our  next   question   comes  from  (Koya  No)  with   Presidio
                 Management. Please go ahead.

(Van Brady):     This is (Van Brady).  Dave, I have a question for you that came
                 up as a  result  of my  having a  conversation  with one of the
                 analysts that was - been very involved with LASIK early on. And
                 I asked him about procedure and it was his opinion he felt that
                 many of the  doctors  that  have been  comfortable  with  LASIK
                 would kind of weigh  pretty  heavily just what risks there were
                 long-term  in   introducing  a  foreign  body  in  the  eye  in
                 particularly  as much as there  hadn't been any real  long-term
                 results with it.

                 Is this - how much of an issue  is this in your  dialogue  with
                 practitioners et cetera for the long-term uptake of the ICL?

David Bailey:    Yes. Hi, (Van).  It's a great  question.  Unfortunately I think
                 you'll get  different  answers from  different  people but I'll
                 have  a shot  at  that.  First  off,  if  you're  going  to put
                 something  in the eye,  you've got to be sure that it's  highly
                 biocompatible   and  is  not  going  to  create   any  kind  of
                 inflammatory  reaction.  And the ICL is made in that sense from
                 what we regard as a perfect material.

                 The real  comparison is whether you attack  the  window  to the
                 eye - the cornea,  which is anatomically  perfect. It might not
                 have enough  refractive power but it's  functioning  perfectly.
                 And what are the risks  associated  that - with that versus the
                 risks of putting an implant in the eye.
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                 Now from  STAAR's  point of view,  we  believe we have the best
                 technology,  the best lens,  and the best  material to minimize
                 the risks of  putting  a lens in the eye.  And so on that - and
                 certainly our clinical data shows that.

                 Putting aside the patient  satisfaction  levels in terms of the
                 quality of the  outcomes  and the fact that people can see more
                 lines on the chart  than they could  often  with their  glasses
                 before - over 50% of them fall into that category.

                 You have - we have clearly  looked during the clinical trial at
                 inflammatory  reactions,  side effects,  complication profiles,
                 and  we  feel  very  good  about  those.  I mean  any  surgical
                 procedure  has risk and can result in  complications.  The real
                 question is what's the balance of risk versus benefit. And that
                 has to be weighed  for both a corneal  based  procedure  and an
                 intraocular procedure.

                 What I can tell you is that there is a significant  move within
                 ophthalmology  that  says  refractive  surgery  is  going to go
                 inside the eye of one form or another,  surgeons  are very keen
                 to look at  implants  going in towards  to the eye rather  than
                 staying on the cornea.

                 It's amazing how five years ago a corneal based procedure would
                 have - was when I introduced LASIK in Europe, the corneal based
                 procedure  was viewed as  extremely  radical.  Ophthalmologists
                 were always taught to leave the cornea intact.

                 So for sure there's  concern over going inside the eye. I think
                 we've got an exceptionally well performing product, which has a
                 low  complication  profile  versus the benefits and therefore I
                 think people will choose to do that.
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                 And I think  people  will now - once  you get a phakic  implant
                 approved in the U.S.  people will have a comparison,  they will
                 have an  alternative,  they will have an option to the  current
                 corneal  procedures.  And  they  will be  able to see in  their
                 patients the differences.

                 And I think as I've said, an intraocular  procedure with an ICL
                 will hold up very well in terms of a low  complication  profile
                 and excellent  outcomes.  Sorry,  (Van),  a long answer to your
                 question  but  hopefully  that  gives you a feel for my view on
                 that.

(Van Brady):     Well, okay, Dave, thanks very much.

David Bailey:    Welcome.  Thank you.

Operator:        Our next question is a follow up question  from (Vivian  Wolf).
                 Please go ahead.

(Vivian Wolf):   Hi,  this is to both Nick and  Dave.  Nick,  with the  injector
                 really delayed until it looks like November,  is it fair to say
                 that most of the growth or all the growth  comes  from  the OUS
                 market?

                 And if I look at the projections that you had given earlier for
                 the  international  refractive  business  to  double,  if  it's
                 running up - what was it running up in the  forties  year-over-
                 year,  up 42% year over year? I mean for you to make a doubling
                 implies a very healthy growth rate coming out of Q4 so I'm just
                 wondering if you could both comment on those two assumptions?

David Bailey:    Well,  let me just  reiterate - related to your question let me
                 just reiterate a couple of points I made and then Nick may want
                 to comment.  We do expect some growth in the base IOL  business
                 in the U.S. in the second half versus the first half.
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                 And that growth is come - going to come from a continuation  of
                 a positive trend on the speciality lenses.

                 And  then  a  stemming  of  the   decrease  on  the   silicone,
                 specifically  the plate,  and  actually  gaining back some lost
                 business  on that.  That's  going to come  because we do have a
                 robust fix to those  injector  issues,  which is going to drive
                 incremental.

                 The injector  that's delayed it really gives an acceleration to
                 the growth rate on the  speciality  lenses  because it makes us
                 competitive with the three-piece  collamer and the growth rates
                 I quoted are based on only the  one-piece  collamer.  So you're
                 going to increase dramatically the growth rate once we get that
                 injector.

(Vivian Wolf):   So is the injector - the new injector on the silicone  that you
                 introduced  I  think  in - late  in Q2 is  that - what  kind of
                 response are you seeing from that in the market?

David Bailey:    Well as I said in my text,  (Vivian),  we  introduced  that and
                 then on both that  injector  and the one for the plate,  we had
                 inconsistency   of   lubricity.   So  we've  got  to  fix  that
                 inconsistency of lubricity on both for you to see the merits of
                 the...

(Vivian Wolf):   On both - on the silicone and the collamer?

David Bailey:    On the silicone for the three-piece and on the silicone for the
                 plate.  And we  expect - we have a fix for  that and we  expect
                 that to give us real growth on silicone in the second half.
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                                                            Confirmation #544651
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                 We also expect  continued  growth with the  collamer  plate and
                 then  that  will  get  accelerated  when we come  out  with the
                 three-piece injector, which is the one that's being delayed. So
                 the real  downside  or risk that  we're  looking at is the fact
                 that we've been delayed on that  three-piece  injector by a few
                 months.

(Vivian Wolf):   Okay. And then on  international,  Dave, are you still - I mean
                 the  fourth  quarter  has to be a hell of quarter to double the
                 international refractive business?

                 David  Bailey:  Yes, I mean we're  expecting a lot from the ICL
                 internationally. We've put a lot of work in. We had good growth
                 in  the  first  six  months  despite  the  fact  we  know  that
                 refractive procedures slowed down in Asia because of that whole
                 SARS thing. And we also know that it slowed down in some of the
                 hotter  European  countries  like Spain and Italy,  that that's
                 starting to pick up.

                 We also know that we've done reasonably well in some markets to
                 bring them back like South  Africa and then we're  taking  some
                 steps in two  countries  in  particular,  which  is  Italy  and
                 France,  where  we've had some  growth  but we know  we've been
                 limited because of the distribution  channel we're move - we're
                 using.

                 So we're going - we've  actually  started to open up additional
                 channels in those two  countries  so that the product can reach
                 its  full potential.  So yes it - there - we've got a lot going
                 on and we're expecting a lot, (Vivian).

(Vivian Wolf):   Okay.

David Bailey:    But the interest in the product and the results  we're  getting
                 now  with  the  repositioning  on  the V4 and the fact  that we
                 have the  Toric  all augur  well  for growth. Whether we'll get
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                                                                  STAAR SURGICAL
                                                          Moderator:  Doug Sherk
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                                                            Confirmation #544651
                                                                         Page 36


                 exactly a doubling  remains to be seen but  certainly  we'll be
                 pushing out to get that.

(Vivian Wolf):   Okay.  Fair enough.  Thank you.

David Bailey:    Thanks, (Vivian).

Operator:        Ladies and gentlemen,  if there's any final  questions,  please
                 press the star followed by the 1 on your telephone keypad. As a
                 reminder,  if you're using speaker  equipment,  please lift the
                 handset before pressing the numbers.

                 At this time, it looks like we have no further questions.  I'll
                 turn the  conference  back over to David Bailey for any closing
                 comments. Please go ahead.

David Bailey:    Thank you. Thank you for those very strong  questions.  In line
                 with  prior  calls,  I'll just  finish up by  reiterating  some
                 milestones for investors to use going forward. For the ICL, our
                 next  milestone  is obviously  going to panel.  We expect to be
                 reviewed in the very near future.

                 You should  continue  to look for ICL  approvals  in Taiwan and
                 Australia  but as I  explained  Taiwan is delayed as well as an
                 expansion of the  Canadian and the Korean  approvals to include
                 the Toric ICL.

                 We also recommend that you watch for new peer review  articles,
                 which will  further  build the case for the ICL  against  other
                 procedures and against other phakic implants. For the Toric, we
                 aim  to close  enrollment  in the U.S.  study by the end of the
                 year and that's well on track.  The silicone  IOL's expected to
                 begin  gaining  back  lost  plate  business  as I  answered  to
                 (Vivian)'s  question  and to gain  overall  market share in the
                 second half.
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                                                          Moderator:  Doug Sherk
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                 For the  Collamer,  expect the growth rate to continue  pending
                 the introduction of the three-piece collamer injector by the AA
                 in November. After which we would expect to see an acceleration
                 in the current growth rates.

                 Look for the phased  introduction of a limited number of direct
                 sales  people in the U.S. to further  strengthen  the sales and
                 proctoring efforts and for our consequential  incremental spend
                 as we indicated.

                 We will be further  strengthening  international sales channels
                 as I talked to in Europe, particularly in Italy and France. All
                 of this is aimed at removing  limitations for growth of the ICL
                 and the Toric ICL in these markets. Expect increased proctoring
                 activity  for the  AquaFlow  to halt the sales  decline we have
                 seen in the first month - six months, sorry.

                 That's a great product that delivers  exceptional  outcomes but
                 once - but which demands dedicated  resource as I had indicated
                 in one of the answers to the questions.  And see us continue to
                 make overall progress with the business. And we look forward to
                 updating you on that progress on future  calls.  Thank you very
                 much.

Operator:        Ladies and gentlemen,  this concludes the STAAR Surgical second
                 quarter 2003 earnings  conference.  If you would like to listen
                 to a  replay,  you may  dial  1-800-405-2236  or  international
                 participants  may dial  303-590-3000  using  pass code  544651.
                 Thank you again for your  participation  on today's  conference
                 and you may now disconnect.


                                       END


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