<SUBMISSION>
<ACCESSION-NUMBER>0000718937-05-000030
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20050428
<ITEMS>2.02
<ITEMS>5.02
<ITEMS>7.01
<FILING-DATE>20050504
<DATE-OF-FILING-DATE-CHANGE>20050503
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>STAAR SURGICAL CO
<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>05796527
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1911 WALKER AVE
<CITY>MONROVIA
<STATE>CA
<ZIP>91016
<PHONE>6263037902
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1911 WALKER AVE
<CITY>MONROVIA
<STATE>CA
<ZIP>91016
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>STAAR SURGICAL COMPANY
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k042805_staar.htm
<DESCRIPTION>8K 04/28/2005 STAAR
<TEXT>
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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>UNITED STATES <BR>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C. 20549 </FONT></H1>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=3>FORM 8-K </FONT></H1>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>CURRENT REPORT </FONT></H1>

<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </FONT></H1>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>Date of Report (Date of earliest event reported): April 28, 2005 </FONT></P>

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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=3>STAAR SURGICAL COMPANY </FONT></H1>

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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>(Exact name of registrant as specified in its charter) </FONT></P>

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<TD align=center width="33%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware</FONT></TD>
<TD align=center width="33%"><FONT face="Times New Roman, Times, Serif" size=2>0-11634</FONT></TD>
<TD align=center width="34%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95-3797439</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=1>&nbsp;&nbsp;(State or other jurisdiction</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=1>(Commission File Number)</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=1>(I.R.S. Employer Identification No.)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=1>of incorporation or organization)</FONT></TD>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=1></FONT></TD></TR>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>1911 Walker Avenue,&nbsp;Monrovia,&nbsp;California,&nbsp;&nbsp;&nbsp;91016</FONT><BR><FONT face="Times New Roman, Times, Serif" size=1>(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code) </FONT></P>
<BR>
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<P align=center><FONT face="Times New Roman, Times, Serif" size=2>(626) 303-7902 </FONT><BR><FONT face="Times New Roman, Times, Serif" size=1>(Registrant&#146;s telephone number, including area code) </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </FONT></P>


<P><FONT face="Times New Roman, Times, Serif" size=2>[&nbsp;&nbsp;&nbsp;] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT>
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<P><FONT face="Times New Roman, Times, Serif" size=2>[&nbsp;&nbsp;&nbsp;] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>[&nbsp;&nbsp;&nbsp;] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) </FONT></P>

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<P><FONT face="Times New Roman, Times, Serif" size=2>[&nbsp;&nbsp;&nbsp;] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></P>

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<P><B>Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Results of Operations and Financial Condition.</B> </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On April 28, 2005, STAAR Surgical Company (the "Company") issued a press release announcing its financial results for the quarter ended April 1, 2005. A copy of the press release is attached as Exhibit 99.1 to this Report and is incorporated herein by this reference. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On April 28, 2005, the Company held an earnings conference call to discuss the financial results for the quarter and the year ended April 1, 2005. An archive of the webcast of the conference call has been posted on the Company's website at www.staar.com. A transcript of the conference call is attached as Exhibit 99.2 to this Report and is incorporated herein by this reference. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in Item 2.02 of this Current Report on Form 8-K, including the exhibits incorporated by reference, is being furnished, and 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 deemed 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. </P>


<P><B>Item 5.02&nbsp;&nbsp;&nbsp; Departure of Directors or Principal Officers; Election of Directors; <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appointment of Principal Officers. </B></P>


<P><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expansion of Board and Election of New Chairman </B></P>


<P>&nbsp;</P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On April 28, 2005, the Board of Directors of the Company (the "Board") elected Don Bailey to serve as director and Chairman of the Board of the Company. Don Bailey will hold a newly created seat on the Board resulting from an increase in the size of the Board from five members to six. Of the Board's three classes of directors, he will serve in Class 1, and accordingly will serve until the annual meeting of the stockholders in 2008 or until his successor is elected and qualified. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Concurrently with Don Bailey's election as Chairman, David Bailey resigned from the position of Chairman. He will continue to serve as director and as President and Chief Executive Officer of the Company. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors has determined that Don Bailey will be an "independent" director under the rules of The Nasdaq Stock Market. He has been appointed to serve on the Company's Audit Committee and Nominating, Governance and Compensation Committee. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Don Bailey and David Bailey are not related. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B>Resignation of Principal Accounting Officer and Appointment of New Principal Accounting Officer</B> </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; John Bily, the Company's Chief Financial Officer and Principal Accounting Officer, resigned from his position on April 28, 2005. Deborah Andrews was appointed to serve as Principal Accounting Officer and interim Chief Financial Officer on April 28, 2005. Ms. Andrews, 48, has served as the Company's Global Controller for four years and has been employed by the Company for ten years. </P>


<P><B>Item 7.01&nbsp;&nbsp;&nbsp;&nbsp; Regulation FD Disclosure.</B> </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On April 28, 2005, the Company published a press release announcing its changes in board membership and management. A copy of the press release is attached to this report as Exhibit 99.3 and is incorporated herein by this reference. </P>


<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information in this Item 7.01, including the exhibit incorporated by reference, is being furnished, and 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 deemed 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. The furnishing of the information in this Item 7.01 is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.
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<P><B>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and Exhibits.</B> </P>


<P>(c) Exhibits. </P>

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<TH><FONT face="Times New Roman, Times, Serif" size=1>Exhibit</FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH></TR>
<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=1>Number </FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1>Description of Exhibit</FONT></TH></TR>
<TR vAlign=bottom>
<TD align=center width="15%"><FONT face="Times New Roman, Times, Serif" size=2>99.1</FONT></TD>
<TD align=left width="85%"><FONT face="Times New Roman, Times, Serif" size=2><A HREF="f8k0428earnrls.htm">Press release dated April 28, 2005.</A></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>99.2</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><A HREF="f8k0428transcript.htm">Transcript of earnings conference call held on April 28, 2005.</A></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=center><FONT face="Times New Roman, Times, Serif" size=2>99.3</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><A HREF="f8k0428mgmtchg.htm">Press release dated April 28, 2005.</A></FONT></TD></TR>
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<H1 align=center><FONT face="Times New Roman, Times, Serif" size=2>SIGNATURES </FONT></H1>

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<P><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>

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<TD width="10%"><FONT face="Times New Roman, Times, Serif" size=2>Date:</FONT></TD>
<TD width="40%"><FONT face="Times New Roman, Times, Serif" size=2>May 2, 2005 </FONT></TD>
<TD width="50%"><FONT face="Times New Roman, Times, Serif" size=2><B>STAAR SURGICAL COMPANY </B><BR><BR><BR>By: /s/ David Bailey <BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>David Bailey <BR>President and Chief Executive Officer </FONT></TD></TR>
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<TYPE>EX-99
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<FILENAME>f8k0428transcript.htm
<DESCRIPTION>8K 04/28/05 CONFERENCE CALL TRANSCRIPT EX99.2
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<BODY><P align=right><FONT face="Times New Roman, Times, Serif" size=2>Exhibit 99.2 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>STAAR Surgical Company </FONT></H1>

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<A NAME=A002></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Transcript of Conference Call <br>April 28, 2005
</FONT></H1>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Good
afternoon ladies and gentlemen,  and welcome to the STAAR Surgical 1st Quarter Result
 Conference Call.                            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 the star followed by the zero. As a reminder,  this  conference is being
 recorded                            today,  Thursday,  April 28, 2005. I would now like
to turn the  conference  over to Doug Sherk with the EVC
                           Group, please go ahead sir. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Doug Sherk: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Thank  you,  operator.  Good  afternoon  everyone,  thank you for  joining
us this  afternoon  for the STAAR                            Surgical  Conference  Call
to reveal the  financial  results for the 1st quarter of 2005 that ended April 1,
                           2005. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                             </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The news
release  reviewing the 1st quarter results as well as a separate release  regarding the
appointment                            of a new Chairman of the Board, and senior
 management team changes crossed the wire this afternoon  shortly
                           after the market closed. </FONT></TD>
</TR>
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<BR>


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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If you
 haven't  received  a copy of the  releases  and  would  like to do so,  please  call our
 office  at    415-896-6820 and we'll get one to you immediately. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                          </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  Additionally,  we
have  arranged for a taped replay of this call which may be accessed by phone.  The
replay                            will take effect  approximately one hour after the
call's conclusion,  and remain in effect through midnight
                           Pacific Time on Thursday,  May 5th, for seven days. The dial
number to access the replay is  800-405-2236 or                            for
international callers  303-590-3000,  both numbers need a pass code of 11028553 and the
pound sign. This                            call is being  broadcast  live and an archive
 replay will also be  available.  To access the web cast go to
                           STAAR's web site at www.staar.com. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>          </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 the expected cash burn for the full
                           year 2005.  There are risks and  uncertainties  involved in
these statements and they include our ability to                            implement
 our  cost-saving  strategies,  and realize our  expected  savings.  They also include
our limited                            capital  resources;  the  success of our  efforts
to realign  our  management  team;  and the results of our
                           response to FDA  observations;  as well as our ability to
reverse the decline in domestic sales of IOLs; our                            ability to
successfully  introduce and gain market acceptance of our redesigned three-piece Collamer
IOL and                            insertion  system;  our ability to maintain or enhance
our existing  product sales and gross profit margins,                            and
reduce compliance expenditures;  the need to obtain regulatory approval for new products;
the acceptance                            of new  products by medical  practitioners  and
 consumers;  the rapid pace of  technological  change in the
                           ophthalmic industry;  our ability to compete with major,
larger ophthalmic  companies;  general domestic and
                           international  economic  conditions;  access to  financing;
 and other  factors  beyond the control of STAAR                            Surgical
Company,  including those details from time to time in STAAR Surgical  Company's reports
filed with                            the SEC. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STAAR Surgical
 Company assumes no obligation to update these  forward-looking  statements to reflect
future                            events or actual outcomes, and does not intend to do so. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Now, I'd
like to turn the call  over to David  Bailey,  President  and  Chief  Executive  Officer
 of STAAR                            Surgical Company. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Thank you, Doug. We have a lot to cover today,  including our 1st quarter
performance,  FDA status regarding                            the ICL  approval,  the
progress of our  three-piece  Collamer  lens,  the changes in our senior  management
                           leadership team, and the changes we've made at board level to
enhance corporate governance. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                             </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Let me
start with the changes we've made at the senior  management  level, and introduce Deborah
Andrews who                            is being promoted to Vice President and Principal
 Accounting Officer,  and has agreed to become interim CFO
                           with John  Bily's  resignation.  Deborah  has been with  STAAR
for 10 years and has made a very  significant                            contribution  in
the areas of finance and  financial  compliance,  and her new title is well  deserved.
 I'm                            delighted  that  Deborah has also  agreed to take on the
interim CFO role and you will be hearing  more from                            her later
regarding the 1st quarter performance. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The other
key  change we  announced  was the  appointment  of  Charles  Kaufman  in the new role of
 General                            Counsel.  We are  delighted  that  Charles has joined
the Company and feel this new internal  position  will
                           strengthen  us going forward as well as lowering  costs in
certain key areas.  Charles is very familiar with                            the Company,
 having worked with STAAR as an outside  attorney at Sheppard  Mullin over the last four
years.                            He brings a wealth of  experience  with the added bonus
of having  worked in Japan,  and being very familiar                            with the
 Japanese  language.  This will help us as we move to make our  Japanese  venture  with
 Canon more                            productive and profitable.  Given the issues we
have been facing,  we feel that Charles will provide us with
                           improved operating efficiency in the future. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> On the
business  front,  international  continues to do well, and we have good reason to expect
that it will                            continue to do well.  Toric ICL sales as a
percentage of total ICL sales continue to accelerate,  with total
                           sales  growing  30%  versus  prior  year and 115%  over the 4th
 quarter.  This  has  been  achieved  despite                            aggressive
marketing of the Iris Claw Lens by AMO and Ophtec.  Controlled  international  rollout of
the new                            multi-focal  lenses by Alcon and AMO is not  affecting
 that growth,  because those lenses are targeted at a
                           different  patient  group.  As these products  rollout in the
U.S.,  they will grow the number of refractive                            procedures  and
 increase  practice  revenues  significantly.  We  believe  this  will  help the  growth
 of                            refractive overall and further develop the market for the
ICL technology. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  We  expect
 new  regulatory  approvals  over the course of this year to provide  additional
 traction  to the                            international  business and the ICL
business,  in particular.  We're  optimistic of Korean  approval for the
                           Toric ICL in the 2nd  quarter,  and  approval  for both the
ICL and the Toric  ICL in China  during  the 4th                            quarter.
 Given the  opportunity  for refractive  growth in these Asian markets,  we've relocated
one of our                            most successful  specialists to the region in order
to manage the distribution  channel and the rollout more
                           effectively.  We will  back-fill  his position in  Switzerland
 to ensure our  momentum in existing  markets                            continues  with
both the ICL and the  Preloaded  IOL. The latter is growing well and we expect to launch
the                            aspheric  version of the  preloaded  silicon  lens,  late
3rd  quarter  in the EU region.  This will open up                            additional
 opportunities  ahead  of our  planned  move of  production  of at  least  part of this
 range of                            preloaded  ICLs to our  facility in Monrovia  from
our JV in Japan  resulting in  significant  costs of good
                           improvement. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> At  the
ESCRS in early  September,  we are planning a unique,  live surgery
 session.  We have                            asked the organizers to allow one of our
users to perform  bilateral  Toric ICL surgery during one of the 15
                           minute live-surgery  sessions.  The surgeon is doing this
routinely in his existing practice and reported on                            his
outcomes at the recent ASCRS meeting in Washington.  They are incredible!  Let me
quantify.  In the U.S.                            clinical trial 95% of patients had
20/25 best corrected visual acuity before surgery,  and achieved the same
                           acuity with no correction in place after they'd had the Toric
ICL surgery.  We believe the  technology  will                            continue to do
well for two reasons.  It is compatible  with modern-day  surgical  techniques and, two,
it's                            compatible  with the  requirements  of a  modern-day
 refractive  center in terms of  outcomes  and  patient
                           profitability.  The Toric ICL builds on all of this by adding
the customized outcomes,  the ultimate goal of                            any large
commercial refractive center. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Regarding the
U.S.  approval  for ICL, we continue to work  diligently  with the two key groups  within
the                            agency.  The  Office of Device  Evaluation  will issue any
 approvable  letter for the ICL and the Office of                            Compliance
who are concerned with audits of our facility, particularly in Monrovia. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> The dialogue
with ODE around  approvability  hits a critical  milestone in early May, when we expect
to have                            all  outstanding  questions  submitted  to STAAR by
ODE.  This  process  has taken  longer than we had first
                           hoped, but there seems to be a mutual willingness to close out
open items in the very near future. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On the
 compliance  front,  we have had no formal  communication  with FDA since our  meeting on
the 27th of                            January when they informed us that the Collamer
 material  issues had been addressed to their  satisfaction.
                           This  involved  seven of the 36  observations  originally
 made by the  inspector.  Since that date, we have                            continued
our internal work in  anticipation  of re-audit and believe we'll be well  prepared.  We
are being                            guided in our efforts by internal  and  external
 audits,  and  believe we have done  everything  reasonably
                           possible to prepare for a re-audit.  There can,  however,  be
no  guarantees  and,  hence,  I do not want to                            speculate on
when ICL will be approved. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> For the
Toric ICL, however,  and the U.S. trial in particular,  I can provide an update.  Within
the next 60                            to 90 days, we expect to have the data in-house to
complete the trial and to begin  compiling the submission                            for
the FDA. As we have stated in the past,  the delays in the ICL  approval  have  shortened
 the  timeline                            between  approval of the two products.  I would
 reiterate,  the outcomes with this lens are exceptional and
                           are truly  customized,  and in  general,  that avoids the need
for  additional  surgery.  Re-treatments  are                            dramatically
reduced versus other treatments. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Our main challenge with the business overall is the  decline in U.S.  sales.  Delays in the
ICL and the                            compliance  overhang have  exacerbated  this
trend. As we have stated,  the key in the short-term to turning
                           this around is to roll out the new  Collamer  three-piece
 lens with  injector  which we showed at the ASCRS                            meeting and
is on track to meet our Q2  deadline  for  rollout.  Based on the  clinical  feedback so
far, we                            expect this  product to meet our  anticipated  goal of
a $3 to $5 million run rate after the first 12 months                            have
launched.  Based on these numbers,  we would expect a meaningful  impact to U.S. sales in
our total P&amp;L                           by the 4th quarter. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  We  will
 continue to control  expenses  very  tightly,  particularly  in the U.S.  and  consider
 additional                            structural changes if our cost-saving  initiatives
do not meet our stated goals.  Deborah has been given the                            task
of working with me to drive  inefficiency  out of the U.S.  business.  Our financials
 already  reflect                            this activity, but we will be relentless in
the pursuit of our cost reduction and efficiency programs. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Turning  to
our last call,  we announced we were working with Morgan  Stanley to explore  strategic
 options.                            This activity continues and will be ongoing with a
focus on maximizing shareholder value. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  At  the
Board level, I am very pleased with the changes we have announced  today.  These changes
are aimed at                            keeping STAAR at the forefront of current
corporate  governance  trends. To have attracted outside directors
                           of the caliber of Dave  Schlotterbeck and Don Bailey to STAAR,
is very exciting and gives us a much stronger                            platform  from
 which to build  shareholder  value.  I would  reiterate  at this  point  what's in the
press                            release,  that there is no relationship with Don and
myself, same surname, no relationship.  I am pleased to                            be
handing over the  chairmanship to Don, and will ensure that he is close enough to the
operational  issues                            to  communicate  effectively  with
 shareholders.  Don has the  time to  devote  to the  Company,  with  his
                           background,  experience and successful  track record,  he will
provide a very valuable  perspective for both                            myself and other
operational managers. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> In  addition,
 Don will  provide  other Board  members with a unique,  independent  perspective,  as
well as                            playing  a major  role in the  evaluation  of  various
 strategies  we are  currently  studying  to  enhance
                           shareholder  value.  We look forward to his  contribution.  I
would now like to hand over to Deborah  before                            opening up for
questions. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deborah  Andrews:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Thank  you,  David.  Although  I've  been with  STAAR  for 10 years,  for many
of you this will be our first  introduction.  For today's call
I'll be focusing on some key financial measures of the Company. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  In addition
to the  regulatory  issues we face,  of uppermost  concern to us is cash flow and
 reversing the                            trends that led to the going concern  opinion
and subsequent  financing.  Our efforts have already  resulted
                           in a lower  than  projected  cash burn for  operating
 activities  during the 1st  quarter of  approximately
                           $900,000,  with cash flow from  operating  activities
 totaling  $2.5  million  for the 1st quarter of 2005,                            versus
 $3.1  million  for Q4 2004,  and $2.7  million  in Q3 2004.  This  has been  achieved
 through  cost                            containment  efforts  in the U.S.  and from our
 international  operations  which  generated  more cash than
                           anticipated. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We continue
to gain  traction in  international  markets with the ICL which grew 30% over the 1st
quarter of                            2004, and 115% over the 4th quarter of 2004.  The
ICL now represents 10% of consolidated, worldwide sales. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Our Swiss
 facility is realizing 64% standard  margins on  distributor  pricing based on increased
 sales of                            ICLs and  Toric  ICLs.  As a  result,  they were
 able to pay down  their  line of  credit  with UBS by $1.2
                           million, while retaining availability under the line. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sales of
preloaded  injectors are also gaining  momentum  internationally  and have really made an
impact in                            our  Australian  subsidiary  based on premium
 pricing.  Preloaded  IOL sales now  represent 15% of total IOL
                           sales for the Company.  They are beginning to made inroads in
Germany  where we have a very strong  cataract                            franchise. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> International  sales
now represent  63.5% of the Company's  total sales, up from 59.2% in the 1st quarter of
                           2004 and 61.2% in the 4th quarter of 2004. Of perhaps  greater
 significance  is the fact that ICL sales now                            represent 16% of
total international sales and growing. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Although the
ICL and the preloaded  injector are doing well for our Swiss facility,  the decline in
Collamer                            IOL sales in the U.S.  has  forced  our Swiss
 subsidiary,  who  manufactures  the  product,  to reduce  its
                           workforce in response to the lower  demand.  This action,
 taken in March 2005,  is expected to rollout over                            the next
four  months and should  result in savings of  approximately  $250,000  this year or
$500,000 on an                            annualized basis. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The most
 significant  issues  that we face in terms of cash flow have been and  continue to be in
the U.S.,                            where total sales declined 10.1% from the 1st
quarter of 2004, and 8.1% from the 4th quarter of 2004. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit
has been significantly  eroded by lower volumes of IOLs,  increased overhead and reduced
yields                            due to compliance  activities  that took place in the
2nd half of 2004. We are pleased that gross profit did                            not
fall below its 4th quarter 2004 level of 47.2%, and believe that with  manufacturing
 improvements  that                            have been  introduced  and  increased
 volume,  we will begin seeing at least some marginal  improvement  in
                           manufacturing  costs in the 2nd  quarter.  The  launch of the
 three-piece  Collamer  IOL will also  improve                            absorption of
overhead in Monrovia and will begin to help improve unit costs as volume increases. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Significantly, there
was little impact to gross profit by overall  changes in average selling price between
                           the 1st quarter of 2005 and the 1st quarter of 2004. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From an
expense  standpoint  in the U.S. we  previously  announced  various  cost-saving
 measures that were                            implemented  in the 1st  quarter  which we
expect to total $3 million  annually.  We believe  that we are on
                           track with these cost  reductions and continue to take other
measures  throughout the  organization to drive                            out
 discretionary  spending.  The  previously  announced $3 million target did not include
the reduction in                            Switzerland, I referenced earlier. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Our biggest
risk to achieving our cash flow forecast is in the continued  decline in U.S. sales, but
as Dave                            referenced,  we believe that with the rollout of the
 three-piece  Collamer IOL and  injector,  this has the
                           potential  to offset any  underlying  sales  decline in the
U.S. and drive sales growth as we exit the year.                            This will
have a significant  impact on U.S. cash flows which will add to the already  positive
trend we see                            in international. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Looking  ahead,
we are not providing any revenue  guidance for the 2nd quarter during today's call.
 However,                            I can tell you that based on the 1st quarter
 results and our actions to reduce costs,  we expect total cash
                           burn for 2005 to be at or below the cash burn of 2004, which
was $9.6 million  excluding the proceeds of the                            private
placement.  I would now like to hand over to Dave to open up for questions. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
              Thank  you,  Deborah.  Just  before  we open up for  questions  I'd  just
 like to  briefly  comment  on the                            international business. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                          </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> As  you
will appreciate,  STAAR's progress in the U.S. is dependent on the FDA approvals  whereas
this is not                            an  impediment  overseas.  Although we will not
see the  potential  for ICL full  realized in  international
                           until we have the positive  effect from an FDA approval in the
U.S., the business is nonetheless  performing                            very
 satisfactorily  as is the  cataract  segment of that  business.  In Quarter 1 '05 we
achieved  revenue                            growth of 8.3%  versus  prior  year.  In the
 quarter,  as  Deborah  said,  we were cash  flow  positive  in
                           international and to finish we expect to replicate,  indeed
 substantially  exceed, that type of performance                            in the U.S.
market as and when ICL has approval.  I would now like to open up for questions. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 one on your  pushbutton  phone. If you would like to
                           withdraw  your  question,  please  press the star  followed by
the two.  You will hear a  three-tone  prompt                            acknowledging
your selection.  Your questions will be polled in the order that they are received. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>If you're
using  speaker  equipment,  you will need to lift the handset  before  pressing  the
numbers.  One                            moment, please, for our first question. </FONT></TD>
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<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Our first
question comes from Joanne Wuensch with Harris Nesbitt, please go ahead. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           Hey guys.  Deborah, congrats on the promotion. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deborah Andrews: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Thank you. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           Um-- </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Hey Joanne, I'm sorry I missed you at ASCRS. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           That's ok.  In terms of the  three-piece  Collamer  in the U.S.,  you're
 still  targeting  it for a 2nd                            quarter launch.  We're roughly
a month into the 2nd quarter.  Tell me what--do you need FDA approval,  do you
                           need to build inventory, what are the steps between today and
a successful launch in the next few months? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             We're  building  inventory,  we've  increased  the shifts -- increased  the
 overtime,  and we'll double the                            shifts,  so that we're
building IOL  inventory.  We've been carrying out clinical  evaluations  prior to the
                           ASCRS and subsequent from the ASCRS,  and we have some final
steps just to sign-off  documentation  and pull                            things
together,  and we would expect to release the product into inventory in May, and continue
the rollout                            thereafter.  So, it's well into the Quarter 2
target that we said, Joanne, so we're almost there. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           But, I mean, do you need to get FDA approval for this? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Oh, no,  that--this  product is,  already has  regulator  approval.  The
 injector  system was 510K  approved                            mid-last  year.  The lens
 enhancements  that we've made were year-end  submissions,  so there's no approval
                           barrier;  they've all been  overcome.  So, it really is just
the internal  quality  sign-offs and the design                            file sign-offs. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           Ok, while we're on the FDA topic --I know you don't want to set  timelines for
approval for the ICL, but can                            you give us a little qualitative
information of where you are in your discussions? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yeah, I think focusing on ODE which is the Office of Device  Evaluation,
 who are the people who would issue                            an approvable  letter,  we
have an early May timeline  where we would expect to get any and all  outstanding
                           questions  over the file from them,  and I think its fair to
say that we don't expect too many or them to be                            of a
 particularly  substantive  nature.  We expect to answer those very quickly and we have
talked to them,                            and there  seems to be  willingness  on both
sides to try and get things  closed  off  fairly  quickly.  So,
                           whilst I cannot give absolutes,  there is an absolute early
 commitment in May to have any and all questions                            back from
them.  We will turn those  around  very  quickly  and,  based on what we've seen in the
past,  the                            turnaround  and the close-out has been pretty
quick,  once we've had the  questions.  So, I would be looking
                           to be for next month, May, to be a critical period with that
ODE activity. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                         </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  On  the
compliance  front,  we expect  re-audit -- that could be at any time -- it could be
tomorrow.  We are                            just pursuing our internal  activity,
 bolstered by internal  audits and external people auditing us to make
                           sure that we're in the best shape  possible.  So for
 compliance,  it's a little bit more difficult to put a
                           timeline on, but  literally  they could come  tomorrow to
re-audit,  if they choose to re-audit,  and that's                            what we've
expected.  That's about as specific as I can be on the compliance front, Joanne. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Joanne Wuensch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           Ok, thank you very much and good luck. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey and </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Deborah Andrews:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
           Thank you. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you.  Our next question comes from Kate Sharadin with Pacific Growth Equities, please go
ahead. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Hi everybody. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Hey, Kate. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            You think you could  clarify,  Dave, you said the  re-audit  could
 happen  any time.  What's the                            difference between you guys
requesting a re-audit and them just showing up, I'm a little confused there? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yeah,  FDA can come and re-audit any company at any time,  particularly  in
the situation  we're in. So, I'm                            being  advised that they
could,  just to reiterate  what I've said on prior calls;  they could choose not to
                           re-audit and take further  action  against the Company.
 Obviously,  we've not seen that.  They can re-audit                            at any
time,  or they can accept a request from us to have a re-audit,  and it really is in
their,  uh, it's                            up to them what they do; we don't have much
control over that. So  therefore,  as we've said in the past, we
                           set out a route  which  used the time  effectively  to
 internally  prepare  for what we  believe  will be a                            re-audit
and that's what we're doing, Kate. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                          </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> But we could be re-audited  at any time,  and we could go and ask for a re-audit.  At
the moment,                            our approach  has been to use the time to work
very  diligently,  internally  with our new team to make sure
                           that we're in the best possible shape,  and feel that we've
made huge progress in that regard,  both closing                            out the items
 from the last  audit  and  generally  improving  our  systems,  and using  those
 systems  to                            demonstrate and verify compliance,  such as the
whole project around the three-piece Collamer which is under
                           the new design control system. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok, do you, so are you, is plan then, is your strategy,  do you guys have
something on the calendar that you                            say,  "OK,  we're  going to
work  through  everything  and this is kind of our goal  that we would  actually
                           request"  or are you just kind of -what you say using the
time,  I'm just  trying to figure out if there's a                            goal in
mind for yourselves to ask them to come back or if that's just not a good idea in your
mind? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             The internal goal is to work as hard as possible which is what we've done
and then to get verification  from                            our internal audits and,
using external  people.  We've used two groups -- Quintiles and King &amp; Spaulding --
                           to give us the  confidence  that we're  truly  ready for a
re-audit.  Even if we request  the  re-audit  and                            that's not
an  unreasonable  strategy,  there's no  guarantee  that it will occur in the  timeframe
we would                            want, Kate.  So, it's a little uncertain even if have
a solid strategy and I believe we do. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate  Sharadin:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Since you do have some, you know, some sort of counsel on some of the
stuff, your  consultants,                            etc.,  are they  telling you
what might the FDA be doing right now? I mean,  it sounds like,  obviously,
                           it's in their court;  it's in your court in terms of you guys
continuing to pursue things,  but with respect                            to them
 contacting you or showing up or whatever,  what's--what's  going on, on their clock
right now do you                            think, best guess? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             It's difficult to say, even the experts find  difficulty in answering  that.
The most solid comment I've                            had is that the longer time
goes on, the more likely there is for a re-audit. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             And that,  that could occur any time.  I mean the longer the time  that's
gone on since the last audit,  the                            more chance there is of a
re-audit  which could occur at any time.  That's--I know that sounds  vague,  Kate,
                           but we've taken the best advice  possible  and that,  in
essence,  is the advice  that's  being  given.  The                            longer the
time goes on, the more chance there is of a re-audit. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok, ok. I'll move on. I'm curious on the  multifocals, you know
we're  familiar  with what's  going                            on there and know it's
different--a  different sort of target audience,  but I think you made a comment about
                           how some of the effort  here as well as  overseas  would
 perhaps  drive the  refractive  business.  Can you                            comment on
that a little bit further? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yeah,  I think  generally  there's a move to  refractive  surgery  within
 the eye.  Intraocular  refractive                            surgery.  And that's being
driven by phakic implants and by the newer multifocal  implants.  You know in the
                           U.S.  I think,  with the new  approvals,  that's  going to
occur  more and  more.  I think  the  multi-focal                            implants of
which I'm very  familiar  and have been  involved in, are  generally  targeted at the
people who                            have presbyopia and the cataract market,  but the
pricing that they're giving them is clearly focused at the
                           presbyopic  market and the very early cataract  market.  So, I
think that will drive  refractive,  that will                            drive  more
 surgeons  into  refractive  intraocular  surgery,  and  they  will  want to look at
 additional                            modalities to extend that refractive  range.  And
the ICL falls right into that,  given that it gives them a
                           refractive option for patients in the mid-20s up to presbyopic
age or further if they choose to. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            So just turns the attention then on the, on the whole landscape of
intraocular.  So that's what you're                            saying? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yes. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yes, absolutely. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok, um-- </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             The more tools the doctor has to exploit that refractive market, the more
it's going to grow overall. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok,  and just  finally,  you're  growth,  ICL growth in  international,  are
you guys  generally  quoting on    dollars,  right?  Basically,
 growth in dollars and is there, is there anything to say on any change in ASPs
                           for, you know, units or is it pretty steady? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             It's pretty steady.  We invoice in dollars,  or we have, so there's no
currency  impact and ASPs,  actually,                            are up. We've  actually
had some price  improvement.  And the margin that Deborah  quoted,  the 64%, is on a
                           distributor business.  So, that's very healthy. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate  Sharadin:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Ok,  so will the ASP then kind of tick up if we start to see Toric and
 particularly  if we get  Korea,  and                            then we get both
Chin--you know, China myopia to--? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             I think you could expect that, as the mix of Toric increases, the price will
push  for sure. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Kate Sharadin: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
            Alright, thanks very much. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Thanks Kate. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you our next--my next question comes from Larry Haimovitch with HMTC, please go ahead. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Good afternoon, David. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Hey Larry. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Sorry I missed you at ASCRS,  too, I know you had a very busy schedule.  Just to reiterate your comments                            about the Toric ICL; I was at
several of the papers that were talking  about the Toric ICL and I talked
                           to one doctor  afterwards  and he said, I can't quote him
exactly  because the word was a four-letter  word,                            but he said
it was something  unbelievable,  the results.  So I certainly concur with your comments
on that.                            I wanted to clarify your  regulatory  path --
 sounded like you were saying that the one-year  follow-up
                           period  for that  group  comes up pretty  soon.  Did you say
that you will file  with  that  data,  once the                            one-year data
is available and can be compiled into finishing up the PMA? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Good question, Larry.  We need 125 primary eyes with one-year of follow-up. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Um huh. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             At the moment,  uh, we've got data on a number of eyes and a number are
 scheduled,  so that within 60 to 90                            days from now, we expect
the one-year data on the whole 125 primary eyes  in-house.  Once we have that data,
                           could  be as soon as 60  days,  could  be as long as 90  days,
 then we can  begin  compiling  the  file for                            submission to
FDA, and that usually takes a few months. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Right. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             And then, we would submit.  And we always said that we would want an
approvable  letter,  or approval of the                            ICL before we
submitted the Toric ICL. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Ok, so, until, until the ICL either gets approvable or approved you won't file
the Toric ICL. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             I think that's correct, but my timings look to be reasonably sequential. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Um huh. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             To  reference  my  comments on May with ODE,  and 60 to 90 days for the data
and some time to compile.  That                            could flow quite nicely.  So,
I'm quite, I'm very pleased with that. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Um huh,  you lead to my next  question  which is ODE and the ICL.  First
 question  is, you went to panel in                            October of '03 if I
recollect  correctly.  And I'm just surprised  that,  that it's not until May of '05
                           that all the issues related to the approval,  ex-compliance in
California,  are not complete.  Now did I, is                            there something
I'm missing here, David, orhas it indeed taken that long? </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             You're not missing  anything,  Larry.  It's taken that long and it's a
lot longer than we  believed.  I                            think there's no doubt that
the compliance  issues have probably  slowed things down even with ODE,  because
                           we know they've been asked to comment on many of the
compliance observations, and that has taken ODE's time. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Yep. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             So, for example,  on the material issues which accounted for seven of the 36
observations,  we know ODE, how we're asked to comment and
helped provide  guidance on that and that's what we were pleased  about.  So,
                           no doubt,  they've had extra work as a result of the
 compliance  issues and generally that will slow things                            down.
 So, I think,  you know,  it's  taken  longer.  I don't  necessarily  think  that it's
 because of any                            fundamental  problems  with the file. We have
had  interesting  discussion  which would  indicate that we've
                           dealt with things pretty quickly and well. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Um huh. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             And,  as I said,  there  seems to be a  willingness  based on our
 conversations  to try and bring this to a                            conclusion. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Ok. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             And, you know there's a school of thought that would say ODE would not give
 approval  before  compliance is                            resolved.  There's also a
school of thought that says sometime  they will and any approval  would be subject
                           to resolution of compliance. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Right. </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             So, maybe it's a  combination  of factors.  But,  net,  net, you know,
 clearly we would have hoped it would                            take a lot less-- </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Yeah. </FONT></TD>
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<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             --time and there's  nothing that we've seen in the  dialogues  with ODE that
would  indicate  that there's a                            major problem with the product. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         One more  follow-up  question with regard to what you just  commented on, I'll
jump back in queue,  and that                            is, is there  anything
 significant  about an approvable  letter before  compliance in California is cleared
                           beyond,  hey that feels good;  it says  Washington  is happy
with us, which is obviously a good thing from a                            feel-good
standpoint,  but is there anything practically valuable, uh, that we should say if we see
that, we                            go "Wow,  isn't that great news"  beyond the fact
that well,  now,  ODE is happy with the file.  I mean,  is
                           there some more significance beyond that, David? </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             I would be pleased to have an approvable letter-- </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Well, we all would be pleased </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             --completion compliance issues, Larry. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Yeah, but, but, but still you've got the compliance.  I mean if you've got an
approvable  letter in a month,                            but the  compliance  issues in
 California  were still ongoing it would be a limited  feel-good,  I guess is
                           the way to say it. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Uh, correct. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry Haimovitch:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
         Ok, very good, just wanted to clarify your thoughts on it.  Thanks so much,
David. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Thank you. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you.  Our next question comes from Tyson Halsey with Halsey Advisory Management, please
go ahead. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Hello. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tyson Halsey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             I'm glad to see that you guys are making good success on reducing  your
 operating  expenses and it was nice                            seeing you at the ASCRS,
 David.  You  mentioned in your  comments  that Don Bailey has a  successful  track
                           record.  Can you tell us a little bit more about Don Bailey
and his track record? </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David  Bailey:</FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Yeah.  Don Bailey is Chairman of Comarco  which is a U.S.  public  company.
 He used to run that  company as                            president  and CEO. We were
 delighted  that having come on the Board.  Clearly he's got a strong  knowledge
                           of  running a U.S.  public  company  and we set  about  late
last  year  strengthening  the Board  with that                            particular
 skill base.  And the first step was bringing  Dave  Schlotterbeck  on board who has an
excellent                            track  record,  but one in the medical  device
arena.  I think Don's got a very strong track record,  not in
                           the medical device arena,  but  nevertheless,  somebody who's
run a U.S. public company and is also chairman                            of that same
 public  company.  So, he has a good  background  in terms of being the  chairman of the
public                            company that he used to run as president and CEO.  So,
I think that's only going to help. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                         </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  In  1998,
he was elected Chairman of Board and then assumed that non-executive  role, but prior to
that he had                            run  Comarco  which he joined in 1980,  and he
became CEO in 1990.  So that,  during  his 10 year  tenure at
                           Comarco he clearly  developed  significant  skills in strategy
 development  and execution;  he did a lot of                            change
 management,  business  building,  acquisitions,  divestiture  of certain  segments  of
that  balance                            sheet--of  that  business,  and  good  balance
 sheet  management,  and  oversaw  some  significant  gains in
                           shareholder  value.  So with that track record,  I'm hopeful
that STAAR  shareholders  will be excited about                            the
contribution that Don can make to the Company. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tyson Halsey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             What were his gains for his shareholders? </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Uh, I don't have them quantified, but pretty significant. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tyson Halsey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Last  question.  When I was at the ASCRS I think I ran into somebody
that gave me the  impression  there                            might be an  approval  of
the ICL in China  this  summer.  I guess I was  mistaken,  is that  correct?  Your
                           comments said in the 4th quarter? </FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             I can't comment on what people told you at ASCRS,  but our current  position
is that we feel that that could                            be in early 4th quarter  with
Toric ICL in Korea  earlier  than that.  In fact,  we estimate  sometime  this
                           quarter, Q2. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tyson Halsey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             How do the  economics  on that play out?  That's a split  situation  with
Canon  STAAR and how large is that                            market in China? </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             The market in China is huge. The LASIK market  currently is about 800,000
 procedures in China.  In terms of                            this approval,  it's for
the STAAR Surgical product, and we would move forward with  commercialization.  And
                           as I said in the call, in anticipation  of that,  we've
actually moved somebody to the region to manage that                            rollout
and that's  already  beginning in terms of training  courses,  etc. So, very excited and
good,  good                            potential.  And obviously,  as we said in the
past, Asia represents a highly myopic market with  significant
                           astigmatism.  So I think  the--I'm  excited  about  getting
 Toric  approval  in  Korea  to  build on our ICL                            approval,
 and I'm excited  about both  products in China.  Although  the bu--and it helps,
 although  it's a                            huge geography a lot of the volume is
focused on specific  centers,  so that we can get reasonable  coverage
                           with certain specific high volume centers, and hopefully build
the business nicely from there. </FONT></TD>
</TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tyson Halsey:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Thank you for your time. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you. Ladies and gentlemen,  if there are any further questions,  please press the star
followed by the                            one on your pushbutton phone now. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                           </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As  a
reminder,  if you're using speaker  equipment,  you will need to lift the handset  before
 pressing the                            numbers. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                           </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Management, we
have no further questions.  Do you have any concluding comments? </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>David Bailey: </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
             Excellent,  no, just thank you everybody for  participating -- some
excellent  questions and we look forward                            to making further
progress during the 2nd quarter.  Thank you very much. </FONT></TD>
</TR>
</TABLE>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operator:  </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Thank
you.  Ladies and gentlemen, this concludes the STAAR Surgical 1st Quarter Results
Conference Call. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                           </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Once  again,
 if you'd like to listen to a replay of  today's  conference,  please  dial
 1-800-405-2236  or                            303-590-3000,  and enter the pin code
11028553.  Once again,  if you'd like to listen to a replay of today's
                           conference, please dial 303-590-3000 or 1-800-405-2236, and
enter the pin code 11028553. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>                            </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=82%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We thank
you for your participation.  You may now disconnect. </FONT></TD>
</TR>
</TABLE>
<BR>


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<A NAME=A004></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>END </FONT></P>


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<FILENAME>f8k0428earnrls.htm
<DESCRIPTION>8K 04/28/2005 EARNINGS RELEASE EX 99.1
<TEXT>
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<BODY><P align=right><FONT face="Times New Roman, Times, Serif" size=2>Exhibit 99.1 </FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="20%"><FONT face="Times New Roman, Times, Serif" size=2><B>CONTACT:</B></FONT></TD>
<TD align=left width="40%"><FONT face="Times New Roman, Times, Serif" size=2><B>Investors</B></FONT></TD>
<TD align=left width="40%"><FONT face="Times New Roman, Times, Serif" size=2><B>Media</B></FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>EVC GROUP</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>EVC GROUP</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Douglas Sherk, 415-896-6820</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Sheryl Seapy, 415-272-3323</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Jennifer Beugelmans, 415-896-6820</FONT></TD></TR>
</TABLE>


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<A NAME=A002></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=3><b>STAAR
Surgical Reports First Quarter 2005 Financial Results</b> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#151; International Visian ICL
Sales Increase 30% </b></FONT></P>


<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#151;
Preloaded Silicone IOL Sales Grow to 9% of Total IOL Sales </b></FONT></P>

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<A NAME=A003></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>
&#151;Company to Ship 3-Piece Collamer Injector System in Second Quarter</b> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MONROVIA, Calif., April 28
/PRNewswire-FirstCall/ &#151; STAAR Surgical Company (Nasdaq: STAA), a leading developer,
manufacturer and marketer of minimally invasive ophthalmic products, today announced
financial results for its first quarter ended April 1, 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total product sales for the first
quarter were $13,678,000 compared with $13,569,000 for the same quarter last year and
$13,951,000 for the fourth quarter of 2004. Excluding the impact of changes in currency,
first quarter 2005 total product sales were $13,363,000, a decrease of 1.5% compared with
the first quarter of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During the first quarter,
international ICL sales increased 30% compared with the first quarter of 2004 and 19%
compared with the fourth quarter of 2004. In addition, international sales of the
Company&#146;s preloaded silicone IOL continued to increase and grew to 9% of total IOL
sales compared with the first quarter of 2004 when they were 3% of total IOL sales. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net loss for the first quarter of
2005 was $2,338,000, or $0.11 per share, compared with a net loss of $1,299,000, or $0.07
per share, for the same period last year and a net loss of $4,384,000, or $0.21 per share,
for the fourth quarter of 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STAAR exited the first quarter with
approximately $5,276,000 in cash, cash equivalents and short-term investments compared
with $9,312,000 in cash and cash equivalents at December 31, 2004. The Company utilized
approximately $2,600,000 for operating activities during the first quarter, which is
approximately $900,000 below the Company&#146;s previous estimate of $3,500,000. To
minimize interest expense, the Company used $1,200,000 during the quarter to pay down its
line of credit with UBS. Total cash used during the quarter was $4,000,000. Currently, the
Company believes total cash flow for 2005 will be at or favorable to 2004 levels. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STAAR&#146;s bank debt at the end of
the first quarter of 2005 was approximately $1,800,000. Total current liabilities,
including the bank debt, were $11,500,000. During the second quarter of 2005, the Company
sold 4.1 million shares of its common stock in a private placement transaction resulting
in $14.35 million in gross proceeds. The Company plans to use the proceeds for general
working capital purposes. As a of result of this financing, the Company&#146;s independent
auditors re-issued their opinion on the Company&#146;s financial statements for fiscal
2004 to remove a qualifying paragraph that expressed substantial doubt about the
Company&#146;s ability to continue as a going concern. The Company has re-filed its annual
report on form 10-K to reflect the removal of the qualifying language. Gross profit margin
was 47.2% for the first quarter of 2005 compared with 53.9% for the same quarter last year
and equal to the 47.2% reported for the fourth quarter of 2004. The decline in gross
profit from the first quarter of 2004 was primarily due to higher unit costs as a result
of manufacturing process changes and reduced volume and a shift in geographical and
product mix. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Selling, general, and administrative
expenses for the first quarter of 2005 increased $194,000, or 2%, compared with the first
quarter of 2004 and decreased $1.9 million or 18%, compared with the fourth quarter of
2004. The increase compared with the first quarter of 2004 is the result of an increase in
general and administrative expenses due to increased professional fees, insurance
premiums, and Board travel expenses which were partially offset by decreased marketing and
selling and research and development expenses. The $1.9 million decrease in selling,
general, and administrative expenses compared with the fourth quarter of 2004 is due to a
decrease in general and administrative costs associated with the implementation of the
Sarbanes-Oxley Act of 2002, many of which did not recur in the first quarter of 2005,
decreased marketing and selling expenses and a decrease in other charges which included a
$500,000 reserve against the partially collateralized notes of a former director. </FONT></P>
<!-- MARKER PAGE="sheet: 3; page: 3" -->



<HR color=gray noShade SIZE=5>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As announced earlier, as part of its
cost reduction strategy, during the quarter the Company reduced its direct sales force
which will result in an approximate $1 million in annualized cost savings, although the
impact of this cost savings will not be fully realized until the second quarter of 2005.
During the quarter, the Company successfully reduced its total marketing and selling
expenses by 2% to $4.85 million compared with the first quarter of 2004 and by
approximately 15% compared with the fourth quarter of 2004. The Company reduced its U.S.
marketing and selling expenses by 13% compared with the first quarter of 2004, in part,
due to reduced commissions on lower sales, but also due to an overall strategy to control
spending. However, much of the benefit of the U.S. expense reduction was offset by the
negative impact of currency on international marketing and selling expenses. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and development expense for
the first quarter of 2005 was comparable to the first quarter of 2004 and the fourth
quarter of 2004 at $1,300,000, reflecting a return to normalized levels of expense
compared with the second and third quarters of 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company also recently announced
that Charles Kaufman has joined STAAR in the newly created role of General Counsel,
Corporate Compliance Officer. Mr. Kaufman was formerly a member of the Corporate Practice
Group at Sheppard Mullin Richter &amp; Hampton, LLP and served as STAAR&#146;s outside
counsel. In his role as Corporate Compliance Officer, Mr. Kaufman will oversee all
compliance activities at STAAR. As a result of this new role, the Company believes that it
will be able to further reduce expenses associated with corporate governance and
compliance activities as well as begin to reduce legal and professional services expenses
compared with first quarter levels. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;We remain committed to
enhancing shareholder value and believe that we have taken some critical steps that will
allow us to reach this goal,&#148; said David Bailey, President and CEO of STAAR Surgical.
&#147;As we announced separately today, we have made some important changes to our senior
management team that we believe will position us well to execute on our overall strategic
plan. With Charles leading our corporate governance, compliance and legal departments, we
believe that we will be able to increase efficiencies and reduce costs associated with
these activities. Furthermore, with the successful implementation of several cost-saving
initiatives during the first quarter, we believe that we are on track to realize our goal
of achieving $3 million in annualized savings. In addition, with Don Bailey assuming the
position of Chairman of the Board, I am excited that I will now be able to focus my time
on overseeing the implementation of our operational strategies. With this appointment, and
the dividing of the responsibilities of the chairman and the chief executive officer, the
Board has demonstrated its commitment to the highest standards of corporate governance as
well as its commitment to increasing our ability to successfully manage the complex set of
challenges we face. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;During the quarter, we
continued to work toward approval for our Visian(TM) ICL by the Food and Drug
Administration, but unfortunately timing is still uncertain,&#148; continued Mr. Bailey.
&#147;As we announced in March, we are encouraged that the Office of Device Evaluation in
Washington, DC has decided to allow our trial investigators to continue enrollment of up
to 75 eyes each month in the ICL clinical investigation while the pre-market approval is
pending. During the American Society of Cataract and Refractive Surgery (ASCRS) symposium
we made several notable podium and general session presentations on the ICL and the Toric
ICL that were very well received. Based upon our conversations with surgeons that attended
the meeting, they remain excited about the potential approval of the ICL because they
believe that the technology will be very beneficial to their patients. In addition, they
are very interested and impressed with the most recent Toric ICL results, which have been
very positive. Internationally we continue to see demand grow for both lenses and with
approvals in additional geographic regions expected later this year, we believe demand
will further increase.&#148; &#147;Similar to last quarter, domestic IOL sales remain
challenging,&#148; continued Mr. Bailey. &#147;Sales of our silicone and Collamer IOLs
were down 11.7% during the first quarter of 2005 compared with the same period last year.
However, we continue to post strong sales of our Preloaded Injector and based upon our
recent activity at the ASCRS, we are very encouraged about the opportunities for our
three-piece Collamer IOL. In the week prior to the ASCRS meeting ophthalmic surgeons
conducted the first surgeries in a clinical setting with the new system. During the ASCRS
meeting, we provided surgical demonstrations using the product and have received a lot of
very positive feedback regarding the quality of the lens and injector system. Further
clinical evaluations are taking place this week and we are currently building our
inventory to position us to begin shipping the lenses and injector system in the second
quarter. We continue to believe that the introduction of both will greatly enhance our
competitive positioning within the domestic cataract market.&#148; Conference Call The
Company will host a conference call and webcast today, April 28, 2005 at 5:00 p.m. Eastern
Time to discuss the Company&#146;s first quarter 2005 results and recent corporate
developments. The dial-in number for the conference call is 800-762-8779 for domestic
participants and 480-629-9571 for international participants. A taped replay of the
conference call will also be available beginning approximately one hour after the
call&#146;s conclusion and will remain available through 11:59 p.m. Pacific Time on
Thursday, May 5, 2005 and can be accessed by dialing 800-405-2236 for domestic callers and
303-590-3000 for international callers, both using passcode 11028553#. To access the live
webcast of the call, go to STAAR Surgical&#146;s website at www.staar.com. An archived
webcast will also be available at www.staar.com. About STAAR Surgical STAAR Surgical is a
leader in the development, manufacture and marketing of minimally invasive ophthalmic
products employing proprietary technologies. STAAR&#146;s products are used by ophthalmic
surgeons and include the revolutionary VISIAN ICL(TM) as well as innovative products
designed to improve patient outcomes for cataracts and glaucoma. STAAR&#146;s ICL has
received CE Marking, is approved for sale in 37 countries and has been implanted in more
than 40,000 eyes worldwide. It is currently under review by the FDA for use in the United
States. Safe Harbor All statements in this press release that are not statements of
historical fact are forward-looking statements, including any projections of earnings,
revenue, cash or other financial items, any statements of the plans, strategies, and
objectives of management for future operations, any statements concerning proposed new
products and government approval of 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 our ability to implement our cost savings strategies and realize our expected
savings, our limited capital resources, the success of our efforts in realigning our
management team, the results of our response to FDA observations, our ability to reverse
the decline in domestic sales of IOLs, our ability to successfully introduce and gain
market acceptance of our redesigned three-piece Collamer IOL and insertion system, our
ability to maintain or enhance our existing product sales and gross profit margin and
reduce compliance expenditures, 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, our ability to compete with much larger
ophthalmic companies, general domestic and international economic conditions, access to
financing and other factors beyond the control of STAAR Surgical Company, including those
detailed from time to time in STAAR Surgical Company&#146;s reports filed with the
Securities and Exchange Commission. STAAR Surgical Company assumes no obligation to update
these forward-looking statements to reflect future events or actual outcomes and does not
intend to do so. </FONT></P>


<!-- MARKER PAGE="sheet: 3; page: 3" -->



<HR color=gray noShade SIZE=5>
<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->
<A NAME=A006></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;STAAR
Surgical Company <br>Condensed
Consolidated Statements of Income (In 000&#145;s except for per share data) </b></FONT></P>








<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=6><FONT face="Times New Roman, Times, Serif" size=1>Three Months Ended</FONT>
</TH></TR>
<TR vAlign=bottom>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=1>April 1,<BR>2005</FONT>
</TH>
<TH><FONT face="Times New Roman, Times, Serif" size=1></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=1>April 2,<BR>2004</FONT>
</TH></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left" WIDTH="56%"><FONT face="Times New Roman, Times, Serif" size=2>Sales</FONT></TD>
<TD ALIGN="left" WIDTH="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left" WIDTH="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT face="Times New Roman, Times, Serif" size=2>13,678</FONT></TD>
<TD ALIGN="left" WIDTH="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right" WIDTH="1%"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD ALIGN="right" WIDTH="7%"><FONT face="Times New Roman, Times, Serif" size=2>13,569</FONT></TD>
<TD ALIGN="left" WIDTH="4%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Cost of goods sold</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,228</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>6,252</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Gross profit</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>6,450</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>7,317</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Selling, general and administrative expenses:</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;General and administrative</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,350</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2,069</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Marketing and selling</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>4,852</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>4,936</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Research and development</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,283</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,285</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total selling, general and administrative expenses</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>8,485</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>8,290</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Operating loss</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(2,035</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(973</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total other income, net</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>206</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>190</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Loss before income taxes</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(1,829</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(783</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income tax provision</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>517</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>485</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Minority interest</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(8</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(31</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net loss</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(2,338</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,299</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Net loss per share</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(.11</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>(.07</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="bottom" >
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>Weighted average shares outstanding</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>20,675</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD ALIGN="right"><FONT face="Times New Roman, Times, Serif" size=2>18,407</FONT></TD>
<TD ALIGN="left"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>
</TABLE>
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<HR color=gray noShade SIZE=5>
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<A NAME=A007></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;STAAR
Surgical Company <br>Condensed
Consolidated Balance Sheet (In 000&#145;s) </b></FONT></P>








<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>April 1,</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>December 31,</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1> 2005   </FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2005</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Audited</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=64% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cash and cash equivalents</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  3,401</FONT></TD>
        <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  4,187</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term investments</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,875</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,125</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accounts receivable, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,385</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,217</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Inventories, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,459</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,084</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Prepaids, deposits, and</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;other current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,465</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,969</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28,585</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,582</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investment in joint venture</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>125</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>125</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Property, plant, and equipment, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,870</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,163</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Patents and licenses, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,280</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,400</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Goodwill, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,534</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,534</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>151</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>169</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Total assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 47,545</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 51,973</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notes payable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  1,839</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  3,004</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accounts payable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,376</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,313</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,239</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,162</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,454</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13,479</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other-long term liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>647</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>632</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,101</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,111</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Minority interest</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Stockholders' equity - net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35,430</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37,840</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Total liabilities and equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 47,545</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 51,973</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<DESCRIPTION>8K 04/28/2005 PRESS RELEASE EX 99.3
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<P align=right><FONT face="Times New Roman, Times, Serif" size=2>Exhibit 99.3 </FONT></P>

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<TD align=left width="20%"><FONT face="Times New Roman, Times, Serif" size=2><B>CONTACT:</B></FONT></TD>
<TD align=left width="40%"><FONT face="Times New Roman, Times, Serif" size=2><B>Investors</B></FONT></TD>
<TD align=left width="40%"><FONT face="Times New Roman, Times, Serif" size=2><B>Media</B></FONT></TD></TR>
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<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>EVC GROUP</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>EVC GROUP</FONT></TD></TR>
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<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Douglas Sherk, 415-896-6820</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Sheryl Seapy, 415-272-3323</FONT></TD></TR>
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<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Jennifer Beugelmans, 415-896-6820</FONT></TD></TR>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><b>
Don M. Bailey Named Chairman of the Board of STAAR Surgical; <br>Company Announces Senior Leadership Transition </B>
 </FONT></H1>


<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#151;John Bily Resigns as Chief Financial Officer; </b></FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#151; Deborah
Andrews Named Vice President and Interim CFO </b></FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&#151; Charles
S. Kaufman Named to Newly Created Position of General Counsel </b></FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B> </B>MONROVIA, Calif., April
28 /PRNewswire-FirstCall/ &#151; STAAR Surgical Company (Nasdaq: STAA), a leading
developer, manufacturer and marketer of minimally invasive ophthalmic products, today
announced that Don M. Bailey, 59, has been appointed an independent member of the board of
directors and will succeed David Bailey, 48, (no relation to Don Bailey) as Chairman of
the board of directors. David Bailey will remain President and Chief Executive Officer of
the Company as well as a member of the board of directors. The addition of Don Bailey
expands the STAAR board to six directors and strengthens the Board of Directors&#146;
commitment to corporate governance and alignment with the interests of shareholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company also announced today a
transition in its senior leadership team. John Bily, 58, has resigned as chief financial
officer to pursue other business interests and he will be replaced on an interim basis by
Deborah Andrews, 48, who most recently was the Company&#146;s Global Controller. In this
transition, Deborah has been named Vice President, Principal Accounting Officer. A search
for a new chief financial officer has been initiated. In addition, Charles S. Kaufman, 50,
a member of the Corporate Practice Group of the law firm Sheppard Mullin Richter &amp;
Hampton LLP, has joined STAAR as the company&#146;s first General Counsel. &#147;I am
delighted that Don Bailey has agreed to join our Board,&#148; said David Bailey. &#147;He
brings to our Company a vast amount of public company and government related business
operating experience as well as a strong reputation for creating shareholder value. Don
will provide our other board members with a unique, independent perspective as well as
play a major role in the evaluation of the various strategies we are currently studying to
enhance shareholder value. In addition, to keep STAAR at the forefront of corporate
governance trends, we have taken the opportunity of Don joining our board to fully
separate the chairman of the board and chief executive officer positions and Don will be
assuming my responsibilities as chairman of the board. The entire Board looks forward to
his contributions,&#148; added Mr. Bailey. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Don Bailey is currently non-executive
Chairman of the Board of COMARCO, Inc. (Nasdaq: CMRO), as well as an independent investor
in and adviser to various start-up and existing businesses. He joined COMARCO in 1980 and
became CEO in 1990. In 1998, he was elected chairman of the board and assumed the
non-executive chairman role in 2000. During his ten-year tenure as CEO of COMARCO, Mr.
Bailey developed significant skills in strategy development and execution, change
management, business building, acquisitions and divestitures, balance sheet management,
and oversaw significant gains in shareholder value. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;STAAR Surgical has tremendous
potential for shareholder value creation,&#148; said Don Bailey. &#147;I&#146;ve followed
the Company for a period of time as an independent shareholder and look forward to working
with David and the other members of the board to maximize STAAR&#146;s opportunities for
success,&#148; he added. &#147;I would also like to acknowledge the contributions and
commitment of John Bily during his tenure with STAAR,&#148; continued David Bailey.
&#147;Our entire organization wishes him the very best and appreciates Deborah&#146;s
willingness to serve as chief financial officer on an interim basis while we conduct an
extensive and thorough search. At the same time, we welcome Charles Kaufman as a new
member of our senior management team. Charles has worked with STAAR during the past two
years as part of our outside legal counsel team, so he knows our issues and needs. We will
be consolidating our corporate governance, compliance, and legal activities under
Charles&#146; leadership and expect that as a result, our overall use of outside
consultants will decline, resulting in a decline in cost of operations in these areas.
Charles brings an added benefit to our team of having extensive experience with Japan, as
well as being proficient in the language, which should benefit our efforts to build our
Canon STAAR joint venture,&#148; said Mr. Bailey. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>About STAAR Surgical </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>STAAR Surgical is a leader in the
development, manufacture and marketing of minimally invasive ophthalmic products employing
proprietary technologies. STAAR&#146;s products are used by ophthalmic surgeons and
include the revolutionary VISIAN ICL(TM) as well as innovative products designed to
improve patient outcomes for cataracts and glaucoma. STAAR&#146;s ICL has received CE
Marking, is approved for sale in 37 countries and has been implanted in more than 35,000
eyes worldwide. It is currently under review by the FDA for use in the United States. Safe
Harbor All statements in this press release that are not statements of historical fact are
forward-looking statements, including any projections of shareholder value creation, any
statements of the plans, strategies, and objectives of management for future operations,
any statements concerning proposed new products and government approval of 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 results of our response to FDA
observations, our limited capital resources, the success of our efforts in realigning our
management team, our ability to energize sales of our cataract products, ability to
maintain product sales and gross profit margin and reduce compliance expenditures, 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, our ability to compete with much larger ophthalmic companies, general domestic
and international economic conditions, access to financing and other factors beyond the
control of STAAR Surgical Company, including those detailed from time to time in STAAR
Surgical Company&#146;s reports filed with the Securities and Exchange Commission. STAAR
Surgical Company assumes no obligation to update these forward-looking statements to
reflect future events or actual outcomes and does not intend to do so. </FONT></P>


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