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IRIDEX Reports Strong Growth and Profits in 2010 Fourth Quarter
Date:3/3/2011

ce support programs. IRIDEX is dedicated to a standard of excellence, offering superior technology for superior results. IRIDEX products are sold in the United States through a direct sales force and internationally through a combination of a direct sales force and a network of approximately 100 independent distributors into 107 countries. For further information, visit the Company's website at http://www.iridex.com.

Safe Harbor StatementThis announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, relating to the Company's strategic plans, growth initiatives, new products and projected 2011 financial results.  These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors.  Please see a detailed description of these and other risks contained in our Annual Report on Form 10-K for the fiscal year ended January 2, 2010 and our Quarterly Report on Form 10-Q for the third quarter ended October 2, 2010, each of which was filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and will not be updated.

TABLES FOLLOWIRIDEX CorporationCondensed Consolidated Statements of Operations(In thousands, except per share data)(unaudited)Three Months EndedYear EndedJanuary 1,January 2,January 1,January 2,2011201020112010Revenues

$ 12,228$ 11,563$ 43,694$ 43,212Cost of revenues

6,3356,28922,79122,939Gross profit

5,8935,27420,90320,273Operating expenses:Research and development

9019743,8143,609Sales and marketing

2,8202,5079,8049,273General and administrative

9981,0064,4884,873Total operating expenses

4,7194,48718,10617,
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