<SUBMISSION>
<ACCESSION-NUMBER>0001299933-05-005865
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20051103
<ITEMS>2.02
<ITEMS>7.01
<FILING-DATE>20051109
<DATE-OF-FILING-DATE-CHANGE>20051109
<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>051191091
</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>htm_8211.htm
<DESCRIPTION>LIVE FILING
<TEXT>
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<TITLE> STAAR Surgical Company (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	November 3, 2005
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	STAAR Surgical Company
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	Delaware
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	0-11634
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	95-3797439
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	1911 Walker Ave, Monrovia, California
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	91016
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_________________________________<BR>
	(Address of principal executive offices)
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___________<BR>
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	Registrant&#146;s telephone number, including area code:
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	626-303-7902
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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<!-- CoverPageRegistrant END --><P><FONT 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>
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<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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<B>
	Item 2.02 Results of Operations and Financial Condition.
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On November 3, 2005, STAAR Surgical Company (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2005. A copy of the press release is attached as Exhibit 99.1 to this Report and is incorporated herein by this reference. <br><br>On November 3, 2005, the Company held an earnings conference call to discuss the financial results for the quarter and the nine months ended September 30, 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. <br><br><br><br>
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	Item 7.01 Regulation FD Disclosure.
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STAAR's conference call on November 3, 2005 included a discussion of the Company's recent proceedings with the U.S. Food and Drug Administration ("FDA"), including the audit conducted by the Los Angeles Branch of the FDA Office of Compliance between August 29, 2005 and September 14, 2005 and the the Company's pre-market approval application ("PMA") for the STAAR Myopic VISIAN ICL(TM).  An archive of the webcast of the conference call has been posted on the Company&#x2019;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.
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	SIGNATURES
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	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 hereunto duly authorized.
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	STAAR Surgical Company
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	&nbsp;&nbsp;
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<I>
	November 9, 2005
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<I>
	By:
</I>
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<I>
	/s/ David Bailey
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	&nbsp;
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	Name: David Bailey
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	Title: President and Chief Executive Officer
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	Exhibit&nbsp;Index
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	Exhibit No.
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	Description
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	99.1
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	&nbsp;
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Press release dated November 3, 2005.
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	99.2
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	&nbsp;
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Transcript of conference call held on November 3, 2005.
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt">STAAR Surgical Reports Third Quarter Financial Results<BR>
Thursday November&nbsp;3, 4:00 pm ET<BR>
Third Quarter Operating Cash Usage Down 55% Year-Over-Year</FONT>



<P align="left" style="font-size: 12pt; text-indent: 4%">MONROVIA, Calif., Nov. 3  &#151; STAAR Surgical Company (Nasdaq: STAA &#151; News), a leading
developer, manufacturer and marketer of minimally invasive ophthalmic products, today announced
financial results for its third quarter ended September&nbsp;30, 2005.


<P align="left" style="font-size: 12pt; text-indent: 4%">Net sales for the third quarter were $11,647,000, a decrease of 4% when compared with
$12,140,000 for the same quarter last year. Changes in currency did not have a material impact on
the third quarter 2005 net sales.


<P align="left" style="font-size: 12pt; text-indent: 4%">The decrease in net sales was due to a $1.0&nbsp;million or 19% decrease in U.S. sales, principally
IOLs, primarily due to concerns over the receipt of a letter from the FDA on July&nbsp;5, 2005 that
stated that STAAR was still not in compliance with Quality Systems Regulations. This decrease in
U.S. sales was partially offset by a $527,000 or 8% increase in international sales.


<P align="left" style="font-size: 12pt; text-indent: 4%">During the third quarter, international VISIAN ICL&#174; (ICL)&nbsp;sales increased 14% compared with
the third quarter of 2004 and represented 9% of total sales for the quarter. In addition,
international sales of the Company&#146;s preloaded silicone IOL increased 66% and represent 11% of
total IOL sales compared with 6% in the third quarter of 2004.


<P align="left" style="font-size: 12pt; text-indent: 4%">&#147;Throughout the third quarter we continued to focus on executing the key components of our
long-term growth strategy including building further market share and awareness for our ICL
products,&#148; said David Bailey, President and CEO of STAAR Surgical. &#147;At the recent American Academy
of Ophthalmology (AAO)&nbsp;meeting in Chicago, which attracts many of the world&#146;s foremost
ophthalmologists, we hosted an educational course on ICL surgery. The session was well attended and
provided us an opportunity to retrain 150 surgeons on ICL surgery. We continue to see interest in
our technology and believe that attendance at forums like the recent AAO event demonstrates the
enthusiasm that continues to exist despite the lack of U.S. approval.


<P align="left" style="font-size: 12pt; text-indent: 4%">&#147;While timing of any approval for our VISIAN ICL by the Food and Drug Administration (FDA)
remains uncertain, we continue to communicate with the Agency,&#148; continued Mr.&nbsp;Bailey. &#147;As we
disclosed earlier in the third quarter, the FDA determined that our pre-market approval application
for our VISIAN ICL is approvable subject to the satisfactory outcome of its inspection of our
Monrovia, California manufacturing facilities, methods and controls. On September&nbsp;14, 2005, the FDA
concluded its inspection of our facility and issued three Inspectional Observations on FDA Form
483, one of which was annotated as &#145;corrected and verified.&#146; Following this interaction, we
submitted our responses to the two outstanding observations on October&nbsp;11, 2005. We continue to be
encouraged by our interactions with the FDA and believe that the approval status for the ICL is
progressing.


<P align="left" style="font-size: 12pt; text-indent: 4%">&#147;International sales grew 15% year-to-date and represented 63% of total sales for the period.
This growth was fueled by the strength of our ICL and Toric ICL (TICL), and preloaded silicone IOL
products,&#148; continued Mr.&nbsp;Bailey. &#147;We believe that the continued penetration of our existing markets
along with additional approvals of the ICL and TICL, including the pending approval in China, will
support future international sales growth.&#148;


<P align="left" style="font-size: 12pt; text-indent: 4%">Net sales for the nine-month period ended September&nbsp;30, 2005 were $39,236,000 up 4% compared
with $37,733,000 for the comparable period of 2004. Excluding the impact of changes in currency,
net sales for the nine-month period ended September&nbsp;30, 2005 were $38,621,000 an increase of 2%
compared with the same period of 2004. For the nine-month period ended September&nbsp;30, 2005, total
ICL sales grew 38% compared with the similar period of 2004. Excluding the impact of changes in
currency, ICL sales increased 37%. Preloaded silicone IOL sales grew 110% during the first nine
months of 2005 compared with last year and 105% excluding currency. Year-to-date preloaded silicone
IOL sales represented 10% of total IOL sales. Net loss for the third quarter of 2005 was
$3,302,000, or $0.13 per share, compared with a net loss of $2,268,000, or $0.11 per share, for the
same period last year. Net loss for the nine-month period ended September&nbsp;30, 2005 was $7,750,000,
or $0.33 per share, compared with a net loss of $6,948,000, or $0.36 per share for the same period
last year.


<P align="left" style="font-size: 12pt; text-indent: 4%">&#147;We are focused on turning around our U.S. cataract franchise and believe that the recent
introduction of our three-piece Collamer IOL and injector system will have a positive impact on
sales starting in the fourth quarter of this year,&#148; continued Mr.&nbsp;Bailey. &#147;The U.S. cataract market
is highly competitive and during recent periods several factors have contributed to the declines we
have experienced in this business. We believe that with the compliance issues largely behind us, we
can address many of those factors and reverse the decline. Until this happens, we believe that
sales of our Collamer three-piece IOL will continue to increase, but in the short term may not
offset the sales declines in our other cataract products. We are convinced that an FDA approval of
the ICL will restore STAAR&#146;s reputation as a provider of leading-edge ophthalmic products.&#148; STAAR
exited the third quarter with approximately $15,054,000 in cash, cash equivalents and short-term
investments compared with $9,312,000 at December&nbsp;31, 2004. The Company used approximately
$1,209,000 for operating activities during the third quarter, which is 55% below the Company&#146;s cash
usage of $2,710,000 during the third quarter of 2004 and 12% below the $1,376,000 cash usage level
for the second quarter of 2005. Approximately $335,000 was invested in the purchase of property and
equipment during the quarter. The level of cash used for operating activities during the quarter
was at the lowest level since the second quarter of 2003. The Company continues to believe cash
used in operating activities for the full year 2005 will be comparable to or lower than the $8.8
million used in 2004. STAAR&#146;s bank debt at the end of the second quarter of 2005 was approximately
$1,702,000. Total current liabilities, including the bank debt, were $10,744,000.


<P align="left" style="font-size: 12pt; text-indent: 4%">Gross profit margin was 44.6% for the third quarter of 2005 compared with 50.2% for the same
quarter last year and 47.5% reported for the second quarter of 2005. The decline in gross profit
from the third quarter of 2004 was due to an overall decrease in average selling prices of IOLs,
changes in geographical and product mix, and higher IOL unit costs due to the allocation of fixed
overhead across fewer units produced.


<P align="left" style="font-size: 12pt; text-indent: 4%">Selling, general, and administrative expenses for the third quarter of 2005 increased
$338,000, or 4%, compared with the third quarter of 2004 and were slightly below expenses in the
second quarter of 2005. The increase compared with the third quarter of 2004 is the result of
$640,000 in reserves recorded against promissory notes of a former director of the Company due to
the former director&#146;s default under the notes and information, received during the quarter, that a
mortgage the Company holds as collateral may be compromised. Notwithstanding the reserve, the
Company believes that there is an obligation to repay the full amount of principal and interest on
the notes, and will continue to pursue full repayment. Aggregate principal and interest owed to the
Company was $1.9&nbsp;million as of September&nbsp;30, 2005, against which the Company has reserved $1.2
million.


<P align="left" style="font-size: 12pt; text-indent: 4%">Excluding the reserve of the note, selling, general, and administrative expenses decreased
$302,000 due to lower marketing and selling and research and development expenses stemming from
cost reduction measures taken during 2005. This decrease was partially offset by an increase in
general and administrative expenses due to increased professional fees and insurance costs. General
and administrative costs increased 8% compared with the third quarter of 2004 but decreased
slightly compared with the second quarter of 2005.


<P align="left" style="font-size: 12pt; text-indent: 4%">Marketing and selling expenses decreased 5% compared with the third quarter of 2004 and were
10% lower than expenses incurred in the second quarter of 2005. The Company also decreased its
research and development expenses by 17% compared with the third quarter of 2004 and 13% compared
with the second quarter of 2005.


<P align="left" style="font-size: 12pt">Conference Call


<P align="left" style="font-size: 12pt; text-indent: 4%">The Company will host a conference call and webcast today, November&nbsp;3, 2005 at 5:00 p.m.
Eastern Time to discuss the Company&#146;s third quarter 2005 results and recent corporate developments.
The dial-in number for the conference call is 800-366-7417 for domestic participants and
303-262-2191 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&nbsp;p.m. Pacific Time on Thursday, November&nbsp;10, 2005 and can be accessed by dialing
800-405-2236 for domestic callers and 303-590-3000 for international callers, both using passcode
11041715#. 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.


<P align="left" style="font-size: 12pt">About STAAR Surgical


<P align="left" style="font-size: 12pt; text-indent: 4%">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 VISIAN ICL 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
41 countries and has been implanted in more than 40,000 eyes worldwide. It is currently under
review, but not yet approved, by the FDA for use in the United States.


<P align="left" style="font-size: 12pt">Safe Harbor


<P align="left" style="font-size: 12pt; text-indent: 4%">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 the outcome of our
proceedings with the FDA Office of Compliance, which could delay the approval of the VISIAN ICL and
result in restrictions on our ability to continue our business as well as harm to our reputation
and stock price, 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, our ability to reverse the decline in domestic sales of IOLs, 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 our control, including those detailed from
time to time in our reports filed with the Securities and Exchange Commission. STAAR assumes no
obligation to update these forward-looking statements to reflect future events or actual outcomes
and does not intend to do so.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="46%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CONTACT<BR>
Investors<BR>
EVC Group<BR>
Douglas Sherk, 415-896-6820
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
Media<BR>
EVC Group<BR>
Steve DiMattia, 646-277-8706</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 12pt">Jennifer Beugelmans, 415-896-6820


<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" colspan="17">STAAR Surgical Company</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" colspan="17">Condensed Consolidated Statements of Income</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" colspan="17" style="border-bottom: 1px solid #000000">(In 000's except for per share data)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">Three</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">Nine</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">Months</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15">Months</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="15" style="border-bottom: 1px solid #000000">Ended</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Sept 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Oct. 1,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Sept 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Oct. 1,</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">39,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,733</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cost of goods sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,450</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,043</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,978</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,197</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,097</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,564</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">General and administrative</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,321</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,143</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,898</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,406</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Marketing and selling</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,290</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,884</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,615</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Research and development</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,274</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,533</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,023</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,882</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other charges</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">640</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total selling, general
and administrative
expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,187</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,551</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25,903</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Operating loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,328</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,090</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,293</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,339</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other income, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">238</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Loss before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,097</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,065</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,620</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(6,101</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Income tax provision</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">210</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">203</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,152</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">818</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(22</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($3,302</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($2,268</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($7,750</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($6,948</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Basic and diluted loss per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($0.13</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($0.11</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($0.33</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">($0.36</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Weighted average shares outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24,797</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20,550</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19,281</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->

<DIV align="center">
<TABLE style="font-size: 9pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="14%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD nowrap align="left" colspan="25">STAAR Surgical Company</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD nowrap align="left" colspan="25">Condensed Consolidated Statements of Income</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD nowrap align="left" colspan="25" style="border-bottom: 1px solid #000000">(In 000's except for per share data)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">&nbsp;</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23">Three</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">Nine</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23">Months</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19">Months</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="23" style="border-bottom: 1px solid #000000">Ended</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="19" style="border-bottom: 1px solid #000000">Ended</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Sept 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Oct. 1,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">% Change</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Sept 30,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">Oct. 1,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">% Change</TD>
</TR>
<TR style="font-size: 9pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Geographic Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">United States</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,393</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,414</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-19</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">14,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">16,224</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-11</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Germany</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,072</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,001</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,071</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">8</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Australia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">751</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">471</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">59</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,299</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">63</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,431</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,254</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,589</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,352</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">28</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">39,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Product Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Cataract</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">10,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,084</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-5</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34,731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">34,171</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">2</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Refractive</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">997</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">14</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,915</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">38</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Glaucoma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">116</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">180</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-36</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-25</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 9pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">11,647</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD nowrap align="right">-4</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">39,236</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">37,733</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">4</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">3
<!-- PAGEBREAK -->

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">STAAR Surgical Company</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Condensed Consolidated Balance Sheet</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">(in 000's)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">September 1,</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000">December 31,</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2005</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">2004</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD colspan="13" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audited<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="9" align="left">&nbsp;&nbsp;&nbsp;&nbsp;<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 1px solid #000000">&nbsp;<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash, cash equivalents, and short-term
investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">15,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,312</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accounts receivable, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,217</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Inventories, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,084</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Prepaids, deposits, and other current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,789</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,969</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,753</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,582</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Investment in joint venture</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">283</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Property, plant, and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,509</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Patents and licenses, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,040</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Goodwill, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,534</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,534</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">131</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">169</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">55,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">51,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,702</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,781</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,313</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,162</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,744</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,479</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Other-long term liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">632</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,449</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,111</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Minority interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Stockholders&#146; equity &#150; net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,801</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37,840</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 10pt">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Total liabilities and equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">55,250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">51,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 14pt"><B>STAAR SURGICAL COMPANYThird Quarter 2005 Conference Call<BR>
November&nbsp;3, 2005, 2:00 p.m., Pacific Standard Time<BR>
Moderator: David Bailey</B></FONT>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 14pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><FONT style="font-size: 12pt">Operator</FONT></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Good afternoon, ladies and gentlemen, and welcome to the STAAR Surgical
third quarter 2005 earnings conference call. At this time, all participants
are in a listen-only mode. Following today&#146;s presentation, instructions will
be given for the question and answer session. If anyone needs assistance at
any time during the conference call, please press the star followed by the
zero. As a reminder, this conference is being recorded today, Thursday,
November&nbsp;3, 2005.



<P align="left" style="margin-left:24%; font-size: 12pt">I would now like to turn the conference over to Jennifer Beugelmans of the
EVC Group. Please go ahead, ma&#146;am.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">J.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Beugelmans</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, operator, and good afternoon, everyone. This is Jennifer
Beugelmans with the EVC Group. Thank you for joining us this afternoon for
the STARR Surgical conference call to review the financial results for the
third quarter of 2005. A news release reviewing the third quarter results
crossed the wire this afternoon shortly after the market closed. If you
haven&#146;t received a copy of the release and would like one, please call our
office at 415-896-6820 and we&#146;ll get one to you immediately.



<P align="left" style="margin-left:24%; font-size: 12pt">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&#146;s conclusion and remain in effect for seven days. The dial-in
number to access the replay is 800-405-2236 or for international callers,
303-590-3000. Both numbers need a pass code of 11041715 and the pound key.



<P align="left" style="margin-left:24%; font-size: 12pt">This call is being broadcast live and an archive replay will also available.
To access the webcast, go to STAAR&#146;s website at <U>www.staar.com</U>.



<P align="left" style="margin-left:24%; font-size: 12pt">Before we get started, during the course of this conference call the company
will make projections or other forward-looking statements regarding future
events including statements about sales and the company&#146;s beliefs about its
revenues and net earnings for 2005. We wish to caution you that such
statements are just forecasts and involve risks and uncertainties. Actual
results may differ materially. These risks and uncertainties include the
company&#146;s ability to implement cost saving strategies and realize expected
savings, the outcome of the company&#146;s proceedings with the FDA, the ability
to energize sales of cataract products, the ability to maintain product
sales and gross profit margin 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, 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 STARR&#146;s reports filed with the SEC.



<P align="left" style="margin-left:24%; font-size: 12pt">In addition, as the factors underlying the company&#146;s forecast are dynamic
and subject to change, these forecasts are assumed to be realistic only as
of the date they are given. The company doesn&#146;t undertake to update them.
However, they may choose to do so from time to time and if they do, they
will submit the updates to the investing public.



<P align="left" style="margin-left:24%; font-size: 12pt">Now I&#146;d like to turn the call over to David Bailey, President and Chief
Executive Officer of STAAR Surgical Company.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, Jennifer. It has been a very productive quarter for the company
with important developments around the FDA and major trade shows in Europe,
the U.S. and Asia. I&#146;ll take the opportunity to remind and update investors
of developments in each of these areas.



<P align="left" style="margin-left:24%; font-size: 12pt">As expected, international sales increased 8% in the quarter, reflecting
continued strong sales of our implantable refractive lens products which we
call the ICL and the TICL. In addition, the upward trend in sales of our
preloaded lenses continued with an increase of 65% versus prior year
quarter.



<P align="left" style="margin-left:24%; font-size: 12pt">We&#146;ve realigned and simplified our international cataract business in line
with our strategic focus on proprietary in-house technology. We are planning
to extend the preloaded product line over time and are taking steps to
reduce product cost. Margins on preloaded lenses are increasing as we begin
to increase our average selling prices through the sale of these products to
our own affiliates in Germany and Australia. A phased rollout of the
threepiece Collamer lens will occur over the coming months which we expect
to boost international cataract sales.



<P align="left" style="margin-left:24%; font-size: 12pt">As anticipated, the ICL franchise grew over prior year, but lower than Q2
due to the seasonality and the extended summer vacations throughout Europe.
The franchise is up 38% year-to-date versus prior year. We are seeing the
anticipated rebound from the summer lull in late September and October with
growth rates coming back in line with this year-to-date average. Successful
presentations at trade shows in Europe and Asia in September and October,
respectively, are helping drive the increase.



<P align="left" style="margin-left:24%; font-size: 12pt">During the ESCRS meeting in early September, we had a very successful user
group meeting for 69 physicians in Lisbon ahead of the main Congress. They
came from all over the world including some surgeons from the U.S. who are
eagerly awaiting the approval in that market. The presentations were
exceptionally well received and they are driving increased demand for the
Toric ICL in particular.



<P align="left" style="margin-left:24%; font-size: 12pt">The live surgery on the last day of the ESCRS meeting was a spectacular
success for STAAR. Dr.&nbsp;Erik Mertens from Belgium performed bilateral phakic
implant surgery with the TICL. It took him 13 minutes in total to deliver a
customized outcome for the patient. This kind of customized outcome linked
to the excellent profitability of this particular procedure is driving TICL
uptake in many international markets.



<P align="left" style="margin-left:24%; font-size: 12pt">For the 9&nbsp;month period, sales of TICL alone have increased from a little
over half a million dollars in &#145;04 to $1.1&nbsp;million in &#145;05. At the same time,
ICL has continued to grow with combined sales of the two products reaching
10% of our total company revenues year-to-date. We see increases in almost
all markets.



<P align="left" style="margin-left:24%; font-size: 12pt">To add additional momentum, we were pleased to report a user meeting for the
Toric ICL in Korea at the national meeting in early October. As we reported
last quarter, we are seeing trends towards customized use of the TICL and
sales results of both refractive products demonstrate that they have
certainly not been relegated to the high myopia segment of the market nor
the high cylinder segment alone.



<P align="left" style="margin-left:24%; font-size: 12pt">In addition, we are seeing expanding both ICL and Toric ICL sales in more
countries and see a broadbased increase. As evidence for this geographical
diversification, our current top five markets for the ICL and TICL now
account for 71% of ICL sales year-to-date, down from 74% in the prior year
and 56% of TICL sales year-to-date, down from 59% year-to-date in 2004.



<P align="left" style="margin-left:24%; font-size: 12pt">We now generate revenue from the ICL in 39 countries and from the TICL in 36
countries and continue to expect both products to be approved in China some
time during the fourth quarter.



<P align="left" style="margin-left:24%; font-size: 12pt">Penetration rates as a percentage of the myopic population or as a
percentage of the Lasik procedures remain low in most areas, giving ample
opportunity for expansion with both products. Based on the inherent
limitations of Lasik, we are targeting penetration rates of 10% of annual
Lasik volume in any particular country.



<P align="left" style="margin-left:24%; font-size: 12pt">Our highest current penetration rate as a percentage of Lasik procedures is
Switzerland, with a little under 4% Lasik penetration. On average worldwide,
we are only one-half of 1% of Lasik. If we achieve the 4% penetration in our
current top four markets, sales would increase $8&nbsp;million or 280%. If we
achieve the 4% in the U.S., sales in this country alone would be in excess
of 50,000 units annually, representing revenue of approximately $35&nbsp;million.
If we were to obtain the same penetration rate in China after approval,
annual sales would be 24,000 units or roughly $12&nbsp;million based on current
pricing.



<P align="left" style="margin-left:24%; font-size: 12pt">As you can see, just by applying the already achieved penetration rate in
one of our current markets, we have huge potential for growth. This
increased penetration will not come immediately, but we expect final U.S.
approval for the ICL to spur additional international uptake of the product.



<P align="left" style="margin-left:24%; font-size: 12pt">On the FDA front we have reached a critical milestone this quarter with the
issuing of the approvable letter and the re-audit of Monrovia by FDA. Before
discussing the re-audit in more detail, I&#146;d like to remind investors of the
milestones that have been achieved of late.



<P align="left" style="margin-left:24%; font-size: 12pt">Following the audit of Monrovia in August and September of 2004, we
responded to the noted observations in November&nbsp;2004. We met with compliance
in January this year, but received no formal feedback until the letter in
July of 2005 which indicated continuing dissatisfaction with the company&#146;s
compliance status and gave us ten calendar days to provide a written update
for the agency. We met the deadline with a comprehensive response that
followed up on our commitment to comply with both the letter and the spirit
of the regulations.



<P align="left" style="margin-left:24%; font-size: 12pt">During our last conference call we obtained the approvable letter, which
mirrored the recommendations of the October&nbsp;2003 panel outcome in terms of
the range of recommended approval, minus 3 to minus 20 diopters in the age
range of patients 21 to 45. This approval was, as expected, conditional on
successful re-audit of our Monrovia facility.



<P align="left" style="margin-left:24%; font-size: 12pt">On Monday, the 29<sup>th</sup> of August, a team of three inspectors from
the L.A. district arrived at STAAR Monrovia to begin re-audit. We had no
advance notification of their arrival. Before arriving it was clear that
they had studied our voluminous response to the July 5<sup>th</sup> letter
in detail and so began by going through each and every one of the 27 open
prior observations from the 2004 audit in detail along with our responses.
The FDA team was very thorough, highly professional and very objective.



<P align="left" style="margin-left:24%; font-size: 12pt">We then had a chance to share with the auditors the work we had collectively
carried out under our compliance initiative which covered all three sites,
all product lines and was based on a comprehensive plan designed to make
STAAR&#146;s quality standards world class.



<P align="left" style="margin-left:24%; font-size: 12pt">After this extensive review, all prior observations were closed and we
received three new observations on Form&nbsp;FDA 483. One observation was
completed and verified at close of the audit and for the other two items, we
submitted what we believe to be a comprehensive response within the 30&nbsp;day
deadline on October&nbsp;11, 2005. This response demonstrated implementation of
our corrective actions to resolve the two remaining Form&nbsp;483 items.



<P align="left" style="margin-left:24%; font-size: 12pt">We await to hear from the agency as to whether our response is adequate on
these two remaining items. Under normal circumstances we do not believe this
audit outcome would hold up in new approval for a PMA of products.



<P align="left" style="margin-left:24%; font-size: 12pt">Our company is now moving out of the crisis mode and into transition mode,
shifting at least some of our internal resources to forward-looking activity
and away from retrospective compliance efforts which for some groups, such
as R&#038;D, are now essentially complete. We are confident this will have a very
positive impact going forward without distracting from our goal of achieving
world class quality standards.



<P align="left" style="margin-left:24%; font-size: 12pt">No one should underestimate the amount of resource and effort that has gone
into the compliance effort and activity over the last 22&nbsp;months. We made it
all encompassing for all aspects of the organization. With at least some of
this resource realigned, we will begin to see significant goforward momentum
in product development with the short term goal of turning around the U.S.
cataract franchise.



<P align="left" style="margin-left:24%; font-size: 12pt">While the realignment of resources will allow us to return to normal
relative to R&#038;D, production and sales, the culture of compliance that has
been created at STAAR will ensure that we stay in compliance as we move
forward.



<P align="left" style="margin-left:24%; font-size: 12pt">We have developed a go-to-market strategy to move quickly in the U.S. once
the VISIAN ICL receives approval. We invested in marketing programs two
years ago and this investment has not been lost. We intend to use our
existing infrastructure, direct proctors in combination with independent
salespeople, to take the product to market in a controlled fashion with a
focus on surgeon training and quality outcomes.



<P align="left" style="margin-left:24%; font-size: 12pt">We have 861 surgeons who have gone through Phase 1 training and are ready to
be proctored. We held a re-training at the recent AAO meeting for 150
surgeons who had received their didactic training over one year ago. We
finished this session by showing a video of Dr.&nbsp;Mertens&#146; live surgery at
ESCRS. The audience was transfixed to watch elective bilateral topical
surgery performed in such a short time.



<P align="left" style="margin-left:24%; font-size: 12pt">From a resource point of view, we have five proctors on staff ready to roll
out the ICL and, as Deborah will report in a moment, our cash burn continues
to moderate, giving us enough cash at the current burn rate for 18&nbsp;months.
The aim would be for each proctor to work with two surgeons per week doing
proctoring to generate ten billable implants.



<P align="left" style="margin-left:24%; font-size: 12pt">Throughout the AAO we continued to experience strong interest in our
technology and believe this interest is indicative of the enthusiasm we&#146;re
building. As soon as we receive final approval for the ICL, we plan to
submit the Toric ICL for approval, the data for which remains very positive.



<P align="left" style="margin-left:24%; font-size: 12pt">For the U.S. cataract business our challenges continue. A number of factors
combined to impact sales during this quarter. There is no doubt we got off
to a bad start after receiving the compliance letter from the FDA on July
the 5<sup>th</sup>,which created negative publicity for the company. The
three-piece Collamer lens is beginning to give us more face time with
doctors, particularly since the validation of the lens with our popular
three-piece silicon lens delivery system which has a very competitive 2.8
millimeter incision size.



<P align="left" style="margin-left:24%; font-size: 12pt">We placed 40 hospital consignments, but usage uptake is being delayed by a
number of factors including the leverage being exerted on the standard
cataract business by competitors who, as they roll out their multifocal
products, require customers to use a certain number of standard
non-multifocal lenses. This, along with an interruption in surgeries in some
major accounts due to hurricanes in the southern United States, put
considerable pressure on our U.S. business this quarter. A viscoelastic
recall initiated by our OEM supplier, Anika, also negatively affected U.S.
sales during the quarter. Despite all of this, we are confident the
three-piece Collamer lens will do very well in the marketplace and will have
a meaningful financial impact in the fourth quarter.



<P align="left" style="margin-left:24%; font-size: 12pt">Overall, the FDA compliance issues delayed the execution of our plan to
achieve 40% of total revenues from the ICL franchise by 2005. Based on all
of the above activity, the foundations are in place to put us back on track
to achieve this goal within two years following ICL approval in the United
States. This is one of the key components of our longterm strategy.



<P align="left" style="margin-left:24%; font-size: 12pt">The other key component is a healthy and vibrant cataract franchise. We have
the foundation for this in international and will now move aggressively to
strengthen the offering in the U.S. where we have the opportunity for
business expansion and volume increase at significant gross margin.



<P align="left" style="margin-left:24%; font-size: 12pt">Our longterm plan is sound, the delays in execution are behind us and we&#146;ll
move forward in earnest in the same way we tackled the compliance challenges
with the FDA.



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;ll now hand it over to Deborah to give us more on the financials.


<P>
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    <TD width="1%">&nbsp;</TD>
    <TD>Andrews</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, David. I&#146;d like to provide some additional detail regarding the
highlights of our financial results for the three- and nine-month periods
ended September&nbsp;30, 2005.



<P align="left" style="margin-left:24%; font-size: 12pt">For the third quarter net sales were $11.6&nbsp;million. This is down 4% from
last year&#146;s third quarter results. While we anticipated a sequential decline
in sales due to seasonality, particularly in Europe, U.S. sales decreased
19% quarter-over-quarter.



<P align="left" style="margin-left:24%; font-size: 12pt">The factors contributing to this decrease included the receipt of the July
5<sup>th</sup> letter from the FDA and the negative publicity that followed,
a recall of our third-party supplied viscoelastic which oftentimes is
bundled with our IOLs, concerns over the outcome of the FDA re-audit, the
effects of recent hurricanes on our customers and sales reps in the
Southeast which is our largest cataract market, and the recent CMS ruling
that permits Medicare- covered cataract patients to receive higher cost
multifocal products by paying the differential between the reimbursed cost
of the IOL procedure and the amount charged by the physician.



<P align="left" style="margin-left:24%; font-size: 12pt">The decrease in U.S. sales during the quarter was partially offset by an 8%
increase in international sales. The ICL and TICL grew 14% compared to the
same quarter last year and represented 9% of consolidated worldwide sales.
We also continue to see positive trends in our preloaded IOL sales in
international markets.



<P align="left" style="margin-left:24%; font-size: 12pt">During the quarter, preloaded sales were up 66% and, similar to the second
quarter, represented 11% of total IOL sales compared to 6% in the third
quarter of 2004. Gross profit margins on preloaded injectors improved as we
capitalized on a release in Australia where the product realizes a higher
average selling price than it does in Europe.



<P align="left" style="margin-left:24%; font-size: 12pt">For the first nine months of this year, total product sales grew 4% to $39.2
million. Growth during the first three quarters of the year was driven by
strength in international markets with our ICL and preloaded silicone IOL
products. International sales now represent 63% of the company&#146;s total
sales, up from 57% in the first nine months of 2004.



<P align="left" style="margin-left:24%; font-size: 12pt">As a result of the year-to-date sales strength of the ICL and TICL, our
Swiss facility has paid down a total of $1.3&nbsp;million on its line of credit
with UBS while retaining borrowing availability.



<P align="left" style="margin-left:24%; font-size: 12pt">Gross profit margins were 44.6% for the third quarter of 2005 compared with
50.2% in the third quarter of 2004. The decline in gross profit margin was
due to an overall decrease in average selling prices of IOLs, changes in
geographical and product mix and higher IOL unit cost due to the allocation
of fixed overhead across fewer units produced based on the declining sales.



<P align="left" style="margin-left:24%; font-size: 12pt">Total SG&#038;A expenses for the third quarter were $8.5&nbsp;million. Excluding the
$640,000 reserve of notes receivable of the former director of the company,
SG&#038;A decreased $302,000 due to lower marketing and selling and research and
development expenses stemming from cost reduction measures taken during
2005. This decrease was partially offset by an increase in general and
administrative expenses due to increased professional fees and insurance
costs.



<P align="left" style="margin-left:24%; font-size: 12pt">Regarding our cash flow, our cost-cutting initiatives continued to allow us
to improve cash flow for the quarter and nine-month period. During the third
quarter we reduced cash use for operating activities over the third quarter
of 2004 by $1.5&nbsp;million. For the nine-month period, we&#146;ve reduced our cash
use for operating activities to approximately $5.1&nbsp;million, a decrease of
$580,000 compared with the same period last year.



<P align="left" style="margin-left:24%; font-size: 12pt">Building upon the strong improvement we made to operating cash during the
second quarter of this year, the third quarter is now the best quarter we&#146;ve
had since Q2 2003. Although we expect an increase in cash used in operating
activities for the fourth quarter based primarily on trade show expenses
incurred during the quarter, we are optimistic that for the full fiscal year
we can improve upon 2004 cash flow results.



<P align="left" style="margin-left:24%; font-size: 12pt">On the topic of cash flow and resources, I&#146;d like to spend a few minutes
discussing our position. Up until recently, STAAR&#146;s resources were
overwhelmingly devoted to improving our compliance standards and procedures
and a significant portion of our R&#038;D budget was spent on compliance. We
believe that we&#146;ve made tremendous progress in creating a culture of
compliance at STAAR and that maintenance of our new compliance regime will
require a lower level of resources. As a result, we believe that we will be
able to refocus these resources to other areas, in particular product
development, without increasing our overall budget.



<P align="left" style="margin-left:24%; font-size: 12pt">Similarly, if we receive approval for the ICL in the United States, we
believe we are well positioned to execute our gotomarket strategy without
having to raise additional funds. As David has outlined for you, we continue
to plan for a slow, controlled launch which will require an increase in
incremental spending of approximately $2 to $2.5&nbsp;million, possibly less, as
previously discussed.



<P align="left" style="margin-left:24%; font-size: 12pt">In addition, we also began investing in our marketing programs approximately
two years ago and despite the delay in approval for the ICL in the U.S.,
these investments are still valid. We also have made similar strategic
investments in inventory which have also reduced the level of spending
required for the launch. Based upon these dynamics, we believe we will be
well positioned to execute our strategies involving compliance, the ICL
launch and new product development utilizing existing cash resources.



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;d like now to hand over to David to open up for questions.


<P>
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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thanks, Deborah, for the comprehensive review. Operator, we&#146;d like to open
up for questions now if we may.


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    <TD>Operator</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">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, press the star followed by the two. You will hear a
three-toned prompt acknowledging your selection. Your questions will be
polled in the order they are received. If you are using speaker phone
equipment, you will need to lift the handset before pressing the numbers.



<P align="left" style="margin-left:24%; font-size: 12pt">Our first question&#146;s from Kate Sharadin with Pacific Growth Equities. Please
go ahead with your question.


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    <TD width="1%" nowrap align="right">K.</TD>
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    <TD>Sharadin</TD>
</TR>

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<P align="left" style="margin-left:24%; font-size: 12pt">Hi, Dave, Deborah.


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    <TD>Management</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Hi, Kate.


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    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;m just curious, Dave, if there was some hurdle due to the bad publicity
with the July 5<sup>th</sup> letter, will this hinder or can you tell if it
will hinder at all the three-piece launch that we&#146;re expecting to come out
this quarter and to have that positive impact that we&#146;ve been anticipating?


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    <TD width="1%" nowrap align="right">D.</TD>
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    <TD>Bailey</TD>
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</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I think we shouldn&#146;t underestimate the overall hangover particularly in the
U.S. of the compliance issues, both in terms of the publicity that it
generated and in terms of the ammunition it&#146;s given the competitors because
they&#146;re being very vocal to present to doctors all the information and to
put into question whether we&#146;d ever get the ICL approved or whether we&#146;d
ever survive as a viable company. So we face that issue over a significant
period of time.



<P align="left" style="margin-left:24%; font-size: 12pt">I think the July letter was right at the beginning of the quarter and there
was a lot of negative publicity around that correspondence and a lot of
frantic activity from the competition, as we learned when we were at AAO.



<P align="left" style="margin-left:24%; font-size: 12pt">I don&#146;t think it&#146;s new, it&#146;s been existing all the time. But I think as we
look forward, then the news that we&#146;re making good progress on that
compliance front, particularly when we look the outcome of the audit that
occurred during the quarter, then it puts all those issues into perspective,
particularly the fact that all of the prior observations were dealt with and
we came out of the audit with three new observations, one of which was dealt
with and two, which was a very normal outcome from a company in a normal
situation. I think that will slowly change that operating environment, plus
obviously we hope for the VISIAN ICL approval which will fundamentally take
us forward.



<P align="left" style="margin-left:24%; font-size: 12pt">Overall, a negative cloud. We&#146;re looking forward to putting that firmly
behind us, particularly with the ICL final approval that we&#146;re hoping for.
But I think it is helping us as we had the AAO meeting to get the facts
around where we stood as a company, the facts around the audit outcome and
the facts around what the Collamer three-piece product can do in terms of
the sub-3 millimeter incision and the quality of vision with it.



<P align="left" style="margin-left:24%; font-size: 12pt">I think the slow pickup is partly the hangup, but also this activity that we
saw all coming together in the third quarter where some of our major
accounts were affected in volumes because of the hurricane issues and also
the activity, particularly of Alcon, with the multifocal that captured
business from almost everybody on base IOL business. They trained something
like 2,000 surgeons and every one of them that used the multifocal had a
requirement to use some base lenses.



<P align="left" style="margin-left:24%; font-size: 12pt">Going forward as I said, those things affected us, but the three-piece we
expect to have a meaningful impact on the business in Q4. Pickup&#146;s been a
little bit slower for those reasons, but longer term I think the prospects
for it are as good as I always thought they were, which is a $3 to $5
million contribution in a 12month period.


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    <TD>Sharadin</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">I believe you had some line extensions that you were working on or that were
underway. Are those things that are more into &#145;06?


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">No, we took the incision size down. We worked on making the lens compatible
with our most popular injector of the three-piece silicon which
coincidentally took the incision down to 2.8 millimeters. Many of our users
and past users are very familiar with that system and so it improved the
learning curve with the product, the loading curve, etc. That&#146;s now out
there. We were promoting that heavily at AAO so that platform is there.



<P align="left" style="margin-left:24%; font-size: 12pt">That was the immediate line extension, that&#146;s out there and is available to
those 40 accounts that have the consignments. We expect to just continue
rolling that out.


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    <TD>Sharadin</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">And on that consignment issue, how much product is out there? What&#146;s the
time on the shelf normally? How should we think about that? I want to get
more on that.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">How much product is out there? It&#146;s available in 40 hospitals with a
consignment. We also have the reps out there demonstrating, and as I said in
my main text, the product is certainly giving us more face time with
doctors, and that allows us obviously to also put the current situation with
regard to compliance into context with the doctor.



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;m pleased with that placement rate. I would like to see the consignment
usage go up and that&#146;s the thing that&#146;s probably picking up slower than we
anticipated, but we&#146;ve got a good run at it. AAO was a very good time to get
the message out about the 2.8 millimeter, get the message out about the
audit and dispel some of the more extreme rumors that were out there and I&#146;m
confident we&#146;ll start to see more usage as we move forward.



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;m as optimistic as I always was about the product. I think quarter three
we just got hit with a number of issues particularly in the U.S. that held
us back a little bit.


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    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

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<P align="left" style="margin-left:24%; font-size: 12pt">And were the ASPs, I know there&#146;s been a little bit of a trend on them
declining. Did we see a further decline in the quarter or what&#146;s the trend
been if you can give us maybe for the last year?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We&#146;ve seen some. With increased competition and us trying to hold our ground
you&#146;re going to see price erosion. As we indicated, we&#146;re actually seeing
price expansion on the preloaded in international and we&#146;re seeing good
pricing on the three-piece Collamer as that starts to move.



<P align="left" style="margin-left:24%; font-size: 12pt">We&#146;re seeing price compression on silicon in the lower ranges, 4% kind of
impact and we&#146;re seeing some price compression on the plate Collamer which
we&#146;ve had out in the market for while. So low-digit price pressure in those
areas, but some counteracting trends in international and as three-piece
would pick up in the U.S., that actual price expansion would help us. Normal
given the circumstances where we&#146;re under a lot of competitive pressure and
hopefully we can start to bring that back as we change the mix in the U.S.,
but that&#146;s going to take time because we have been hit.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;ll ask one more and then I&#146;ll get back in queue. Sorry. Last quarter you
talked about the usage dropping down from 8 diopters to 7 diopters
internationally. Do you have any knowledge of surgeons using the ICL on
lower myopes, specifically below 7 diopters, that you know of?


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Yeah, we see some of that particularly with the Toric.


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    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

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<P align="left" style="margin-left:24%; font-size: 12pt">And is it 6? 5? Are you hearing in the lower like 3, 4? Just curious.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Yeah, some people do, relatively low level, they tend to start in the higher
ranges. But I think of significance as I said in my prepared remarks, our
overall bell curve of sales clearly indicates that we&#146;re not just relegated
to the high myopia and high cylinder segments of the market, and over time
we would expect to build on that trend. But we&#146;re not relegated up there and
certainly different users have a different profile of where they feel
comfortable, where they feel their limits of Lasik is. There&#146;s no
prescriptive formula for that, for an individual surgeon it tends to vary.


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    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thanks very much. I&#146;ll get back in line.


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    <TD>Operator</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. Our next question comes from Joanne Wuensch with Harris Nesbitt.
Please go ahead with your question.


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    <TD width="1%">&nbsp;</TD>
    <TD>Jessica</TD>
</TR>

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<P align="left" style="margin-left:24%; font-size: 12pt">Hi, this is actually Jessica here for Joanne. How are you?


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Hi, Jessica. How you doing?


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<P align="left" style="margin-left:24%; font-size: 12pt">Good, thanks. I just had a couple of quick questions. The refractive sales
were just a little bit lighter than we had expected. I know there&#146;s a lot of
seasonality going on overseas, but were there any other dynamics that you
saw, competitive or anything else that might explain that?


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">No, not in Q3. It really was just the seasonality so we weren&#146;t surprised,
it was in the range. The interest is still very strong. Nothing significant
there. Hence why I said that in late September and October we saw the growth
rates start to come back to what we&#146;ve been seeing for the remainder of the
year. So I think it was seasonality, nothing exceptional.


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    <TD>Jessica</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Okay, great. And the phenomena with the multifocal IOLs, how long do you
think it&#146;ll take before that isn&#146;t impacting you too much anymore? Is that
really just a one or two quarter thing or is that going to be prolonged?


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">The activity in Q3 was pretty frantic around the competition and I think
you&#146;ll see it in part through Q4, but probably less so than we saw in Q3.
The multifocals will erode the overall cataract market, but the estimates I
believe are reasonable.



<P align="left" style="margin-left:24%; font-size: 12pt">The U.S. market is worth about 2.8&nbsp;million procedures in total and maybe
300,000 of those may transfer over a 12&nbsp;month period to multifocal and that
for us, in the fourth place in the market, that still gives us 2.5&nbsp;million
units to go after to get some growth which to my mind is very significant
given our low market share.



<P align="left" style="margin-left:24%; font-size: 12pt">I think there&#146;s still plenty for us to go after with the right products and
I believe the Collamer three-piece is at least one of those products. And I
think the impact we saw in Q3 was extremely exceptional. It will hurt us a
little bit in Q4, but I would expect us to get a pick up from where we were
in Q3 because not all the effects are coming together and then less so after
that. Because once the doctors are trained and they&#146;ve tried some of the
multifocals, they&#146;re past that and there&#146;s no more leverage there, or less
leverage given that it&#146;s companies with huge leverage like ALCON.



<P align="left" style="margin-left:24%; font-size: 12pt">So more of a Q3 event, a little bit of the tail end Q4 and then leveling off
after that, creating a slightly reduced market for standard cataract lenses,
but still a very big market at 2.5&nbsp;million.


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<P align="left" style="margin-left:24%; font-size: 12pt">Perfect. Thank you very much.


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">You&#146;re welcome.


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    <TD>Operator</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. Our next question comes from Al Kildani with SF Capital. Please
go ahead with your question.


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    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Good afternoon.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Hey, Al. How you doing?


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    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Good. How are you? Sorry if I might have missed this in the prepared
comments, but with regard to the FDA, what specifically is the next step
we&#146;re waiting for? I&#146;m wondering if there&#146;s some statutory timeline by which
time we expect to have some form of answer from them, whether it be on the
inspection or the approval, etc.?


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">There isn&#146;t really an exact timeline they&#146;re working to as far as I&#146;m aware.
We would expect to hear whether our response on October&nbsp;11<sup>th</sup> to
the two remaining observations was adequate and then as I said, that audit
outcome with three observations, one annotated, two to follow, is a very
normal outcome from a normal audit for a company in a normal situation and
you wouldn&#146;t expect that to hold up a PMA for a new product.



<P align="left" style="margin-left:24%; font-size: 12pt">I think everything&#146;s with FDA, and we just wait to hear from them exactly
the next step, whether it&#146;s a response to say our two responses were
adequate or whether it&#146;s a final approval for the product. We just wait and
see and the timeframe is with them.


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    <TD width="1%">&nbsp;</TD>
    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">How would you characterize then the two remaining observations that you
addressed on October&nbsp;11<sup>th</sup> in terms of ... were they ones that
were relatively straightforward to address or are there a lot of questions
that surround whether your response might have been adequate or not?


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Well, first off any observations we take hugely seriously given our focus on
compliance. Both of them were important areas, but ones that we felt we
could address very robustly and very quickly and in fact some of the
activity was already underway as part of our compliance project. As I said
in my prepared remarks, we were in a very fortunate position that when we
did reply on October&nbsp;11<sup>th</sup> we were able to verify some of the
action items that were indicated in the response, so we were able to provide
concrete evidence that we&#146;ve moved the action plan forward to correct that
individual item and that&#146;s much, much better than being able to say this is
our plan to address it. We always feel now it&#146;s important to say here&#146;s our
plan to address it and we&#146;ve done X, X and X to execute against that plan,
and we were in a position to do that on both of them.


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    <TD>Kildani</TD>
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</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Okay, that&#146;s helpful. A little bit of a clarification. Maybe I&#146;ve mixed up
comments on different products but the three-piece Collamer, has that
actually been launched or is that still held up?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">No, it&#146;s launched, it&#146;s out there. We improved the injection system to take
it down to a 2.8 millimeter incision. We&#146;re actively selling the product. We
launched that lower incision size at AAO and we have consignments of those
lenses in 40 hospitals available for use in those facilities.


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    <TD width="1%">&nbsp;</TD>
    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Now I know you were talking about three-piece Collamer. Okay that makes
sense.


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    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Yes, it was three-piece Collamer.


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    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">And finally, the revenues in Q3, normally a tough quarter in general in this
business, but you also had some other special circumstances that hit you in
the quarter. Can we think of this as a trough level in revenues or could
there be some more downside vulnerability?


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    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Andrews</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We believe that the third quarter again is typically our lowest quarter in
terms of sales during the year. Fourth quarter historically has been a very
strong quarter for us and so we definitely believe we&#146;ll see improvement
during the fourth quarter this year.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Al, as the balance of the business has changed to 63% of our total revenues
coming from international, that&#146;s the right number to use.


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    <TD>Andrews</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Correct.


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Then the seasonality hits the international business more so your trough
becomes larger. We&#146;d expect, as Deb says, Q4 to pick up from there and as I
said, we&#146;re seeing a pick-up already in international in September and
October.


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    <TD width="1%">&nbsp;</TD>
    <TD>Kildani</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you.


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    <TD width="1%">&nbsp;</TD>
    <TD>Operator</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, sir. Our next question comes from Tyson Halsey with Halsey
Advisory and Management. Please go ahead, sir.


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    <TD>Andrews</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Hi, Tyson.


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    <TD>Halsey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Hello. One of my questions is do you see the multifocal helping, potentially
getting more doctors to be operating in the eye and perhaps opening up the
market?


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    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
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</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I think we&#146;ve said on previous calls that we believe the future of
refractive surgery was going to move into the eye, and I think that&#146;s what
you&#146;re seeing both in terms of phakic implants and multifocals. These
multifocals are not new, they were first introduced a number of years ago.
The exact designs have improved a little bit, but they have been around for
a while.



<P align="left" style="margin-left:24%; font-size: 12pt">To your question, yes, it does two things. It puts more surgeons doing
refractive surgery in the eye and that&#146;s what the ICL is, an intraocular
refractive procedure. And secondly, in the U.S. critically it also puts into
place in a number of practices a refractive up-sell marketing program.



<P align="left" style="margin-left:24%; font-size: 12pt">So a traditional cataract practice that wants to go into multifocals needs
to gear themselves up to sell patients to a refractive option and an
incremental spend refractive option. That&#146;s essentially what we had as part
of our marketing plan for the ICL.



<P align="left" style="margin-left:24%; font-size: 12pt">There&#146;s no doubt those practices we go to that have adopted multifocals in
the practice from a base cataract business will have already built a
mechanism to allow them to sell a refractive procedure to patients coming in
the door albeit cataract patients versus refractive patients that we&#146;d be
going after with the ICL.



<P align="left" style="margin-left:24%; font-size: 12pt">I think it&#146;s helpful in that regard, yes, and it&#146;s not unanticipated in
terms of going intraocular with refractive procedures. But, yes, I think it
can help us.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Is it safe to say from looking at the quarter, where I think a lot of people
are kind of focusing on this 14% international ICL growth, that perhaps
you&#146;re growing 25%-30% in one month and zero the next and by the end you
were back up closer to the 30%-38% that&#146;s been the year. There was I think
you said a long summer vacation or something along those lines because ...
Could you elaborate? Was there that kind of volatility? Did you see that
kind of swing or was it more of a consistent 14%?


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">You always expect that lull in the summer. We warned of it on the last
conference call and I think critically, as I said in my prepared remarks, we
saw in late September and October growth rates coming back in line with the
year-to-date average.



<P align="left" style="margin-left:24%; font-size: 12pt">The 14% doesn&#146;t concern me. It&#146;s the year-to-date growth that I think you
need to look with a business that has seasonality like that.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Andrews</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">That&#146;s typically what we end up doing after the third quarter because the
seasonality does have such an impact on that quarter in particular.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">You said the country where you had the highest penetration was Switzerland.
It&#146;s not South Korea?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">No, absolutely not and I focused on those numbers to give investors an
indication of the potential for the business. If you take Switzerland which
has a relatively low number of Lasik procedures and then you take the total
phakic implants sold in Switzerland and the ICL in particular and Toric ICL,
we get a penetration rate of 3.8% of those Lasik procedures and that&#146;s much
higher than we have in some of our biggest markets such as Spain and Korea.



<P align="left" style="margin-left:24%; font-size: 12pt">Obviously our marketing goal is to drive those larger markets to that
number. And as I indicated, if you take the top four markets at the moment
that we have of which Switzerland is not one of them, and we achieve that
penetration rate of just under 4%, it would add $8&nbsp;million to the business
from those four markets. I paint that picture just to give investors a
feeling for what opportunity there is out there for us based on what we&#146;ve
already achieved in one country.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I think we&#146;re all kind of focused on that or looking at that. I&#146;ve gotten
feedback from talking to some people. Do you have some international
surgeons where in fact 30% of their business or upwards of that number are
ICLs?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I don&#146;t know about 30%. I wouldn&#146;t like to comment on that, but certainly we
see some users getting into the 10% target range that I indicated as the
limits of Lasik positioning for the product.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">For you to grow, it sounds like you need to get more doctors, not doctors to
penetrate it more because those who are using it are adopting it pretty
quickly and moving down the bell curve.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I think it&#146;s a combination of both. I mean we have a very strong market in
Spain where we have a lot of users, so the opportunity is to get them to
adopt the limits of Lasik concept and move up towards that 3.8% penetration
and then onwards towards the 10% and that gives us significant opportunity
there.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Do you think you&#146;ll be in a position somewhat like what ALCON did in terms
of saying you can have a multifocal, but you&#146;re going to have to put in some
of our basic IOLs, where you&#146;re able to say you can be one of the first
doctors that we&#146;re proctoring, but we&#146;d like to see you use a few more
three-piece?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Any company that has a dominant market share in any segment (I remember this
from my J&#038;J days with Ethicon) make the rules. We don&#146;t quite have the
ability to make those rules in the way that an ALCON can.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">T.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Halsey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. Sounds like you guys are doing well and good luck on the FDA
approval.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thanks, Tyson.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, sir. Our next question comes from Bill Nassif. Please go ahead
with your question.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nassif</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Actually I have three quick ones that relate to some of the past problems.
One is what is the status of our involvement with this investment banker?
And, secondly, where do those lawsuits stand that are sitting out there on
the horizon? And, can you tell us a little bit about our relative position
vis-a-vis the competition for the ICL?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Bill, I&#146;m going to ask Charles to comment on the Strike lawsuit first.
Charles is our in-house legal counsel so he&#146;s in the best position to give
everybody an update on that.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Kaufman</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Bill, the securities class action lawsuit does remain pending. We do have
some additional preliminary proceedings that we can report on. You referred
to lawsuits. Actually they were recently consolidated into one suit in the
Central District of California.



<P align="left" style="margin-left:24%; font-size: 12pt">We had filed a Motion to Dismiss the complaint and that Motion was denied by
the District Court on September&nbsp;19<sup>th</sup>. And while that denial
permits the case to proceed, the Court&#146;s order in denying our Motion limited
the statements of STAAR that can be used or challenged in the future
litigation, and the effect of that limitation narrowed the class of
plaintiffs in the class action to potentially purchasers of STAAR securities
between October&nbsp;6, 2003 and January&nbsp;6, 2004, which is a significantly
narrower time period than was in the original compliant.



<P align="left" style="margin-left:24%; font-size: 12pt">We filed a Motion just recently requesting certification of the court&#146;s
order for interlocutory appeal, so we&#146;re going to appeal the denial of our
Motion to Dismiss, and we intend to continue vigorously defending against
the claims in the lawsuit.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">On the Morgan Stanley one we still work with Morgan Stanley, but we have
nothing to report in that regard at this point in time. And then on the
competition, Bill, I&#146;m assuming you mean competition in relation to phakic
implants?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nassif</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Yes.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">What I would say here is that all along we had the belief which was
expressed on numerous conference calls that the competitive product, the
Artisan, or iris claw, or whatever you want to call it is not a competitive
product in terms of incision size. It&#146;s not compatible with the modern day
refractive practice where doctors are focused on quality of outcomes and
aesthetics and I think that&#146;s borne out in the market. Frankly, doctors tell
us quite categorically they don&#146;t want to use the product. They will wait
and use an alternative rather than move forward and use it, even the ones
who are enthusiastically engaged with the companies that sell those
products.



<P align="left" style="margin-left:24%; font-size: 12pt">In the U.S. it&#146;s done very little and it&#146;s frustrating for those people who
would like to use a phakic implant that they still don&#146;t have access to the
ICL, and they express that constantly. I think in terms of the competition
they&#146;re desperately trying to bring forward a foldable version to bring the
incision size down, but they have some major challenges with that as we&#146;ve
seen in international.



<P align="left" style="margin-left:24%; font-size: 12pt">I think really we&#146;ve taken the competition to the next step in international
with the Toric and so they&#146;re continually having to play catch up. They were
trying to play catch up with the incision size, with the base product, now
they&#146;ve got to play catch up on the toricity with our Toric ICL.



<P align="left" style="margin-left:24%; font-size: 12pt">They also have to play catch up on our delivery times which as I said on
last quarter&#146;s call we&#146;ve excelled at. We&#146;ve delivered in a very timely
manner the Toric and that&#146;s helping us build the business. I know the
competitive delivery times are way down even when they can get the product.



<P align="left" style="margin-left:24%; font-size: 12pt">I think we&#146;re leaving the competition behind in that regard, but I&#146;m keen to
get the product to market in the U.S. and keen to bring the Toric so U.S.
surgeons can experience it in the kind of environment where a small incision
product that can be used topically with bilateral in 13 minutes as we&#146;ve
seen, is really the kind of product I believe they would want in their
refractive practice.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nassif</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">David, about a year and a half ago at a shareholders&#146; meeting you and I were
discussing this and the word monopoly came out of my mouth and not yours,
but our competitor of this product that competes was a very weak competitor
and you had stated that you considered we had a four-year head start on the
competition. Then at our last quarterly meeting or about that time you told
me you didn&#146;t think they had gained any ground and what I&#146;m hearing from you
today is that you think maybe they have lost ground. Is that accurate or
not?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">They certainly haven&#146;t gained any ground and they may well have lost ground.
To get competitive in the U.S. they need to go to a foldable product. I
believe that would involve a separate clinical trial which I&#146;m not aware has
been started.



<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;m just focused on our product, what it can do. I think what we&#146;ve seen in
the marketplace is verification of what we&#146;ve said and we just look forward
to focusing on our product and rolling it out. Okay?


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Nassif</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thanks, Bill.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, sir. Our next question comes from Mark Malcolm. Please go ahead
with your question.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you very much for taking my call. A couple of things on that. I
understand in Singapore you&#146;re looking at a new ICL design in trial. Is that
correct?


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">No, we just recently got approval for the ICL and Toric ICL in Singapore and
we have no clinical activity occurring in that market.


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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Also I thought I had read a report regarding with Nidek that you&#146;re looking
at some kind of collaboration regarding your preloaded.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">In Japan our joint venture company, Canon Staar, has entered into a
potential relationship with Nidek, which I was very supportive of, which
puts Nidek&#146;s acrylic lens in our preloaded system for sales in the Japanese
and the Chinese market. That would be what you&#146;re referring to, Mark.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Yes, that&#146;s the one-piece acrylic that they have. And you had indicated
earlier, a quarter or two ago, that you were still looking to bring the
preloaded to the U.S. in what, third quarter of next year?


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I wouldn&#146;t want to give a timeline on that because we have been delayed
because of the focus on compliance, but certainly as I indicated, the goal
is to bring that worldwide. The goal of the arrangement with Nidek is very
simple. It&#146;s to make our joint venture profitable in Japan. We&#146;ve had some
challenges there, but with the pick up of the preloaded we&#146;re starting to
see some earnings coming through from there and our focus is to continue
with that. So entering the acrylic market in Japan which is a dominant
segment was an important step for our joint venture company.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And a final question regarding the aspheric silicone lens that use, you
launched in September in Japan. Are there plans to get that to the U.S. any
time within the next year?


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">There are plans to bring that into international and that was one of the
line extensions that I referred to in my prepared remarks. Certainly
bringing preloaded product to the U.S., it would be advantageous to bring in
aspheric preloaded silicone. The exact timeline I wouldn&#146;t like to predict
at the moment, but certainly aspheric would make us more competitive. We do
have that opportunity.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you very much for answering my questions because you do seem to have a
fairly robust R&#038;D moving forward that people keep forgetting about.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">As we said, if I look back over the last year, Malcolm, probably 80% of
R&#038;D&#146;s time was focused on compliance activity. A lot of that is now being
completed and it allows R&#038;D to focus on the goforwards. As I said in my
prepared remarks, we&#146;re determined to tackle this innovation in the U.S.
cataract market in the way we tackled the compliance issues and given the
technology we have in-house, I think we have a tremendous opportunity there
and we now have the opportunity to move it forward.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Again, thank you very much. One last question. Your study you released
nearly two years ago on information regarding comparison of ICL versus
Lasik, do you have anything ongoing regarding comparison to the Wavefront
Lasik that has claimed to be much better?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We do not, but we have a number of people who&#146;d like to do those
comparisons. At the moment our positioning is one of having a product that&#146;s
complementary to Lasik, hence the limits of Lasik positioning that I
referred to earlier, and that positioning is allowing us to be very
successful,so I&#146;m comfortable with that for the time being.



<P align="left" style="margin-left:24%; font-size: 12pt">Wavefront Lasik is certainly superior to standard Lasik, but it is much more
tissue hungry so the limitation of standard Lasik becomes an even more
limiting factor when you&#146;re trying to use Wavefront Lasik, for example,
corneal thickness.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Malcolm</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you very much.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, sir. Our next question comes from Marvin Sperling with Broadfin
Capital. Please go ahead.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Hi, Dave. How are you?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Hey, Marvin. How you doing?


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Good. I have a couple of little housekeeping questions I want to ask. First
of all, can you bring us up to date or at least me up to date on what&#146;s
happening with the approval processes of the ICL or TICL in various
countries in Asia?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We&#146;re in the final stages with China for the ICL and the Toric ICL.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And that&#146;s going to be at the same time?


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Yeah, the two we would expect simultaneous, yes. We&#146;re hoping for Q4 with
always the caution that it&#146;s difficult to predict regulatory timelines. But
the interaction with that agency says that the Q4 timeline looks reasonable.
We have some other ones in process, but not kind of imminent, they would
probably come next year. And those markets are more South American- based
and a few smaller ones in Asia.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I see back in May the Toric ICL was approved in South Korea. Is there any
color you can give us on the traction there?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">They had a user group meeting in October at the South Korean Congress, very
well received. We had some presence from the Korean surgeons at the ESCRS,
at our user group meeting, out of the 69 surgeons, so good interest and the
business is expanding there.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Looking at your press release and the way you line itemized the geographic
sale, you have United States, Germany, Australia and then other. In that
&#147;other,&#148; I mean obviously there are many countries that you have, but which
would you consider, could you tell us which were the top three in the other
column?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We&#146;re lost.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">There&#146;s an area that says geographic sales for the three months ended
September&nbsp;30<sup>th</sup> and October 1<sup>st</sup>.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Andrews</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">I would say it would be Spain, Korea and Germany ... Germany&#146;s on there.
Spain, Korea, Canada.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Spain, Korea, Canada.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Andrews</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Spain, Korea and Canada.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And for the Toric ICL, Argentina and Australia as well, Canada as well.


<P>
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    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Going back to the point you made about your penetration rates in Switzerland
and Germany being a big market for you, do you have a handle on what your
penetration rate is there for the ICL?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Yes, I&#146;ve got a handle on the penetration in all the counties.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Okay, would you like to tell us what the penetration would be let&#146;s say for
example in Germany at this point?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">At the moment ... I indicated, Switzerland was the highest. On Germany we&#146;ve
probably got a long way to go because we do very well in Germany with our
affiliate there, but that affiliate is focused on cataract distribution and
we know we&#146;ve changed a lot of distributors who are cataract distributors
because they do not do well with refractive. We&#146;ve probably got a big
opportunity in Germany for growth.



<P align="left" style="margin-left:24%; font-size: 12pt">If we took Germany up to the penetration we have in Switzerland, you would
see something like ... I&#146;m trying to paint a picture, but a ten-fold
increase in the German refractive business, whereas if we took Spain up to
the Switzerland growth, we&#146;d get a doubling of the current business.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And there were a certain amount of ICLs, the FDA allowed (if I&#146;m remembering
correctly) a Phase IV type situation here in the U.S.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">We got approval for investigative to implant before approval ...


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">So where are we with that?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">They&#146;ll allow us to do that, but in reality that&#146;s quite a cumbersome
process and because we ended up with events going on, many of the
investigators took the view that we would probably get approval before they
got through that process with their IRBs, etc., Marvin, so we&#146;ve had few
take that opportunity up.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And my last question is what&#146;s the sales rep number or situation here in the
United States presently?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">About 46 territories.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">And is there an average number of reps per territory that we have at this
point?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">No, 46 in total.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">46 in total, okay, very good.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">46 in total and then 5 proctors who are direct employees.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">M.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sperling</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Okay, excellent. Alright, good luck.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you, Marvin.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Operator</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. We have a follow up question from Kate Sharadin with Pacific
Growth Equities. Please go ahead.


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Hi, sorry, I know you guys want to finish up. Dave, I was just curious on
the Swiss manufacturing facility. I can&#146;t find it in my notes and I don&#146;t
know if I have my facts straight, but you had I think it was like a lead
time of a couple of months that you were trying to work down. I was
wondering if that lead time then would be the same once you got the ICL
approved here if they&#146;re manufacturing it there. Is that true and did that
come down a bit? What&#146;s the target?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Bailey</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">For the U.S. product, Kate, for the ICL?


<P>
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<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="12%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">K.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Sharadin</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Right. I just recall (and I&#146;m sorry I was trying to find it in my notes) I
think you had said that one of the things you were working on at one point
was to get the lead time down in the Swiss plant on the ICL.


<P>
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<P align="left" style="margin-left:24%; font-size: 12pt">I think you&#146;re referring to the lead time on the Toric ICL. Because of the
number of SKUs, available units, it&#146;s essentially got to be a build-to-order
product. And we have gotten that down through holding a certain amount of
inventory which has allowed us to deliver about 65% of the demand from that
inventory. The other product is made to order and we still have a plan to
get the lead time for that build-to-order product down, so that&#146;s an ongoing
activity.



<P align="left" style="margin-left:24%; font-size: 12pt">The standard ICL for the U.S. market, we&#146;ve already built WIP and it would
just be a case of bringing that to finished product ready for launch and
then we bring that inventory here and it would be delivered from inventory
so there wouldn&#146;t be a wait time under normal circumstances.


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<P align="left" style="margin-left:24%; font-size: 12pt">Perfect, that&#146;s helpful. Thank you.


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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. Our next question comes from Larry Haimovitch with HMTC. Please
go ahead with your question.


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<P align="left" style="margin-left:24%; font-size: 12pt">Good afternoon. My question is on the Toric ICL, and I apologize if you&#146;ve
covered it, but the regulatory status in the U.S., David, last time we
talked about this I think you talked about filing the data pretty much right
after the ICL is approved in the U.S. Is that still the situation?


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<P align="left" style="margin-left:24%; font-size: 12pt">Yes, the goal is as I said in my prepared remarks, to file it fairly soon
after approval. We want the approval first and we&#146;re busily putting the data
together, etc., for the patient requirements.


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<P align="left" style="margin-left:24%; font-size: 12pt">And that would be a PMA supplement?


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<P align="left" style="margin-left:24%; font-size: 12pt">Yes.


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<P align="left" style="margin-left:24%; font-size: 12pt">So you probably wouldn&#146;t need a panel meeting for that?


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<P align="left" style="margin-left:24%; font-size: 12pt">I&#146;m getting mixed messages on that. We don&#146;t know, Larry. It could be a
panel, it might not be.


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<P align="left" style="margin-left:24%; font-size: 12pt">Okay, so that&#146;s still up in the air?


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<P align="left" style="margin-left:24%; font-size: 12pt">Yes.


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    <TD>Haimovitch</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">If you don&#146;t need a panel I would assume that on approval in 2006 it would
be a relatively ... assuming we get the ICL approval in the next few weeks
before the end of the year at least, that you could file pretty quickly on
Toric ICL and without a panel would have a pretty decent shot at 2006
launch. Is that a reasonable timeline?


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<P align="left" style="margin-left:24%; font-size: 12pt">I think that&#146;s reasonable.


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<P align="left" style="margin-left:24%; font-size: 12pt">And with a panel obviously then it gets pushed out a little bit?


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<P align="left" style="margin-left:24%; font-size: 12pt">Yeah.


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<P align="left" style="margin-left:24%; font-size: 12pt">Okay, great. David, thank you.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thanks, Larry.


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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. We have no further questions at this time. Please continue.


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    <TD>Bailey</TD>
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<P align="left" style="margin-left:24%; font-size: 12pt">Thank you. I&#146;d like to thank everybody for their time and their excellent
questions. We look forward to moving along to gain the ICL approval and
strengthen the U.S. cataract business going forward. Thank you all very
much.


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<P align="left" style="margin-left:24%; font-size: 12pt">Ladies and gentlemen, this concludes the STAAR Surgical third quarter 2005
earnings conference call. If you would like to listen to a replay of today&#146;s
conference call, please dial 1-800-405-2236 or 303-590-3000 and enter access
number 11041715.



<P align="left" style="margin-left:24%; font-size: 12pt">You may disconnect and thank you for using ACT Teleconferencing.



<P align="center" style="font-size: 10pt; display: none">


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