IRIDEX Reports Third Quarter Financi...(lion from the originally agreed up...),Health

originally agreed upon amount of up to $9.0 million.

-- Successfully continuing the transfer of the Laserscope products we

intend to manufacture into our Mountain View facility. Completion of

this integration during our fourth quarter is expected to add to gross

margin in subsequent quarters.

-- Adding two experienced outside members, James B. Hawkins and William M.

Moore, to our board of directors. Both have substantial operating

experience with growing medical device companies and have already made

contributions as board members.

-- Expecting the receipt of an additional $4 million in cash from the

settlement of the litigation with Synergetics. This litigation had

contributed significantly to the Company's expenses and losses during

the prior periods. Under the settlement, Synergetics paid IRIDEX $2.5

million on April 16, 2007 and agreed to additional annual payments of

$800,000 on each April 16th until 2012."

Mr. Boutacoff continued, "This has been a difficult year for IRIDEX, our employees and our shareholders. We have and will continue to take decisive actions to improve operations, to provide value to our customers and to create value for our shareholders. A key area of focus will be addressing remaining issues and challenges relating to our expanded aesthetics business following the Laserscope acquisition."

Revenue for the nine-month period ended September 29, 2007 was $41.4 million compared with the $26.9 million reported for the same period of 2006. Net loss for the nine-month period ended September 29, 2007 was $6.5 million or $0.80 per diluted share compared with a net loss of $2.0 million or a loss of $0.26 per diluted share during the comparable period of 2006.

Ophthalmology sales were $7.9 million for the third quarter of 2007 compared to $8.0 million reported in the third quarter of 2006. Aest
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