IRIDEX Announces Closing of $5.0 Million Private...( MOUNTAIN VIEW Calif. Sept. 5 /- I...),Health

MOUNTAIN VIEW, Calif., Sept. 5 /PRNewswire-FirstCall/ -- IRIDEX Corporation (Nasdaq: IRIX) today announced that it has raised $5.0 million in gross proceeds via a private placement conducted with BlueLine Partners which closed on August 31, 2007. Net proceeds after transaction expenses were approximately $4.9 million.

"This equity financing will help resolve the short-term liquidity challenges created by our January 2007 acquisition of the aesthetics assets of Laserscope," said Barry G. Caldwell, IRIDEX President and CEO. "In addition to this cash infusion, we have recently undertaken several actions to reduce costs and accelerate the realization of synergies between our ophthalmology business and our new aesthetics business."

IRIDEX plans to complete the integration of the manufacturing of the acquired Laserscope aesthetics products into its Mountain View facility during the fourth quarter of 2007. "We expect that the full integration of the Laserscope products into our Mountain View manufacturing infrastructure will result in the enhancement of gross margins. We believe that this coupled with our reduced infrastructure costs and our revenue growth outlook will support our return to profitability," Mr. Caldwell continued.

"BlueLine is confident that IRIDEX is well on its way to recovering from the challenges that followed the Laserscope transaction," said William M. Moore, a director of BlueLine Partners. "We have been and will continue working closely with the company's management and Board of Directors and our decision to provide capital reflects our strong belief in the future potential of IRIDEX' business."

The financing took the form of a private placement of units, each of which consiste
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