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STAAR Surgical Reports 14% Fourth Quarter Revenue Growth
Date:3/16/2009

ake progress with our IOL product line sales during the fourth quarter," Mr. Caldwell continued. "While total IOL sales increased 47% due to the strong contribution from Japan, our U.S. IOL sales decreased by only five percent as compared to a 26% decline in the fourth quarter of 2007. Our seven point plan to restore profitability to the US IOL business remains on track. In fact, at this point, we believe we are positioned to grow U.S. IOL sales in the first quarter as a result of our new NTIOL products and our new pricing strategy that assists doctors in this difficult economic environment."

"In addition, we have begun a Centers of Excellence project which is designed to take advantage of our key competencies in Japan and the U.S. In Japan the organization has demonstrated a real excellence in delivery systems for IOLs. Japan will become our Center of Excellence for lens delivery research and development. The U.S. organization has demonstrated an excellence in developing and manufacturing lens materials and designs. The U.S. will become our Center of Excellence for the manufacturing of lenses. Both of these moves should enhance our ability to introduce new technologies while reducing the cost of our IOLs significantly beginning in 2010.

"Our strong operational progress during the fourth quarter and first two months of 2009 has been overshadowed by the $4.9 million jury verdict in favor of Parallax Medical Systems, Inc. subsequent to year end. The next step in this case will be the formal entry of a judgment on the jury verdict by the judge hearing the case, which we expect will be completed before the end of March. We will use the 15-day filing extension for our 2008 10-K so that we can better assess the effects of the final judgment on our liquidity and capital resources," Mr. Caldwell concluded.

Financial Performance for the Fourth Quarter and Full Year Ended January 2, 2009

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SOURCE STAAR Surgical Company
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