STAAR Surgical Generates $464,000 in Cash from Operations During Third Quarter

Largest Amount of Cash from Operating Activities in More Than Six Years

MONROVIA, Calif., Nov. 2 /PRNewswire-FirstCall/ -- STAAR Surgical Company
(Nasdaq: STAA), a leading developer, manufacturer and marketer of minimally
invasive ophthalmic products, today reported that it generated $464,000 in
cash from operating activities during the third quarter. The cash generated
was the largest amount from operating activities for any quarterly period in
the past six years. This achievement was made possible due to continued
significant progress in the management of domestic operating expense despite
recording over $400,000 in legal expenses during the quarter related to former
sales representative litigation, net of approximately $300,000 in estimated
insurance recoveries.

Third Quarter Financial Highlights

-- Cash provided by operating activities was $464,000, compared to cash
used in operating activities of $1.1 million during the third quarter
of
2008. This reflects continuous improvement for the past seven
quarters
as shown below:

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (000'S)

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
-------- ------- ------- ------- ------- ------- -------
($3,370) ($2,760) (1,107) ($991) ($448) $286 $464
------- ------- ------ ----- ----- ---- ----

-- Global sales for the third quarter were $18.1 million, unchanged on a
constant currency basis, as compared to $18.1 million during the third
quarter of 2008. Global sales for the third quarter of 2009 were
impacted by the Company's decision in late 2008 to de-emphasize sales
of
low margin products. Sales of these lower margin products declined by
15% or $821,000 during the third quarter and represented 26% of total
sales versus 30% in the third quarter of 2008. For the nine months to
date, global sales were $55.5 million, or $56.8 million on a constant
currency basis, as compared to $56.7 million for the first nine months
of 2008. Sales of the lower margin products declined by 17% or $3.0
million during the nine month period.
-- Gross profit margin was 54.3% versus 57.7% for the third quarter of
2008
due to a 500 basis point decline in international markets. The
decline
primarily resulted from a significant gross margin decline in Japan
which was due to intense price competition during the quarter.
Although
prices were down, volumes in Japan were up 8%. Gross profit margin
was
favorably impacted by improved gross margins in the US due to higher
average selling prices of IOLs and ICLs. For the nine month period
gross profit margin was 55.6% versus 52.4% in 2008.

-- Total operating expenses declined by 7.4% to $11.0 million from $11.9
million reported for the third quarter of 2008. Operating expense as
a
percentage of total revenue dropped to 60.8% compared to 65.6%
reported
for the prior year quarter. For the nine months to date operating
expenses have declined by 19.3%.

Recent Visian ICL Highlights

-- Global Visian ICL sales grew 5% during the third quarter of 2009
versus
the third quarter of 2008 driven by a 12% increase in Visian Toric
sales. Visian ICL units increased by 15% during the period. For the
nine months to date Visian ICL sales have increased by 9%, while units
increased by 23%.
-- International Visian ICL sales grew to $3.9 million, which is a 5%
increase compared to the $3.7 million sales reported in the prior year
third quarter. International Visian ICL units grew 19% from the year
ago period and are up 30% year to date reflecting the increased
underlying demand for the Visian products despite the global economic
downturn.
-- U.S. Visian ICL sales increased by 4% during the third quarter.
Visian
ICL units were up 10% sequentially and down only 1% from the third
quarter of last year. This performance contrasts with the estimated
30%
decline in refractive procedures industry-wide in the U.S. during the
third quarter, and reflects continued growth in Visian ICL market
share.
Year to date, U.S. Visian ICL sales have increased by 2% while overall
U.S. refractive procedures have declined by 33%.
-- Following the FDA's resumption of scientific review of STAAR's
application for the Toric Implantable Collamer® Lens (Visian TIC®) for
Myopic/Astigmatic patients, during the 60 day period between mid July
and mid September there have been frequent interactions between the
Company and the FDA. During this period the Company received and
responded to questions from the FDA. All questions have been answered
and the Company awaits the next communication.

-- Japan's Ministry of Health Labor and Welfare continues to evaluate
STAAR's application for marketing approval of the Visian ICL and the
Visian Toric ICL. The Ministry has separated the consideration of the
two products and requested additional clinical data on the Toric ICL,
which was provided in September. The injector system for the Visian
ICL
has been approved and the Company has been responding to questions
regarding data and labeling related issues.

Recent Intraocular Lens (IOL) Highlights

-- Global IOL sales were up 7.5% to $8.2 million versus $7.6 million in
the
prior year third quarter driven by increased sales in international
markets.
-- International IOL sales were $6.2 million versus $5.4 million in the
prior year third quarter primarily driven by a 16% increase in Japan.
Growth was also seen in Europe with the recent release of the KS-X
Preloaded Hydrophobic Acrylic IOL.
-- U.S. IOL sales were $2.0 million in the third quarter of 2009 compared
to $2.2 million in the third quarter of 2008. Demand was high for
the
new nanoFLEX Collamer Single Piece Aspheric IOL reflected by increased
consignments to new customers.
-- On October 24, the Collamer Accommodating Study Team (CAST), which
formed in late 2008, reported preliminary assessments reported
surpassing 300 patient eye implants with the nanoFLEX Collamer
Aspheric
Single Piece IOL. The data presented provided compelling near vision
results when compared with leading standard IOLs. In addition, the
data
provided encouraging near vision results when compared with premium
IOLs
and superior intermediate vision results when compared to all IOLs.
Meanwhile, the Company's product development team is engineering some
minor design changes for the nanoFLEX for the purpose of moving to the
second phase of the CAST project. Members will evaluate these design
changes to determine if improvements upon current accommodation
assessments can be achieved.

-- STAAR is expanding the marketing message on the effectiveness of
nanoFLEX in the standard IOL channel, the largest volume channel of
all
IOLs sold today.

"Our third quarter performance illustrates the continued successful execution
in several areas of our overall strategy," said Barry G. Caldwell, President
and CEO. "While we have focused sales resources on higher margin products,
and our top line was flat versus year ago levels as a result, we generated the
most cash from operating activities for any quarter since 2003. We remain
vigilant about controlling costs and in the quarter reduced operation expenses
by $0.9 million. We still have lots of work to do. One area requiring
immediate attention is our gross margins in our international markets.
Additional focus will be placed in this area as we finish the year and head
into 2010."

"Since we released the nanoFLEX Collamer Aspheric IOL combined with the
nanoPOINT Injector System with NTIOL pricing status in the second quarter,
we've begun to see increased market interest and sales from this strategically
important product line. Our sales team will be asking surgeons to compare
their results with the nanoFLEX IOL to their current IOL of choice in ten
patients by using standard visual measuring tools. Historically, STAAR had
up to 10% domestic market share for IOLs and with a superior product we want
to begin moving from our current 3% share level back to the position we earned
in the past. Each market share point represents approximately $6 million
sales, so if we are successful at moving toward our goal, we will be adding
high margin revenue from increased IOL sales," added Mr. Caldwell.

Financial Performance for the Third Quarter Ended October 2, 2009

Gross profit for the third quarter was $9.8 million compared with $10.5
million in the comparable quarter of 2008, which was 54.3% and 57.7% of net
sales in respective periods. The decline in gross profit and gross profit
margin is primarily due to lower average selling prices in Japan due to
intense price competition. Gross profit margin also reflects the negative
impact of a 43% increase in sales of preloaded IOLs to international
distributors, which carry low profit margins and lower ASPs on IOLs in Germany
and Japan due to significant price competition. Factors that had a favorable
effect on gross profit margin were increased sales of toric ICLs, favorable
mix of ICLs and IOLs versus other products, and higher ASPs on ICLs and IOLs
in the US. Gross profit for the first nine months of 2009 was $30.8 million,
or 55.6% of net sales, compared with $29.7 million, or 52.4% of net sales in
the prior year period. Gross profit for the first nine months of 2008 was
negatively impacted by a $1.5 million purchase accounting charge associated
with the acquisition of STAAR Japan.

Continued improvement in the management of operating expenses during the third
quarter resulted in an approximate $0.9 million or 7.4% reduction from the
year ago period. General and administrative expenses were unchanged compared
to the third quarter of 2008 despite a $700,000 increase in legal fees
associated with former sales representative litigation. These costs were
partially offset by $300,000 in negotiated insurance reimbursements. Sales
and marketing expenses were reduced by $542,000 during the quarter due to
reduced salaries, travel, consulting, commissions, and promotional activities
in the US. Research and development expenses declined by $348,000 as a result
of reduced salaries, regulatory consulting and legal fees, although the
investment level is still approximately 11% of all STAAR manufactured product
sales. During the first nine months of 2009, the Company reduced its general
and administrative, marketing and selling, and research and development
expenses by $4.2 million compared with the same period in 2009 despite
spending $1.2 million, net of estimated insurance recovery, in legal fees
associated with former sales representative litigation.

Net loss for the third quarter ended October 2, 2009 was $2.0 million or $0.06
per share, compared with $2.2 million, or $0.08 per share for the third
quarter of 2008. Non-cash charges for the quarter were $1.3 million or $0.04
per share and included depreciation, amortization and stock-based
compensation. For the nine months ended October 2, 2009, the net loss was
$4.7 million, or $0.15 per share, compared with a net loss of $13.7 million,
or $0.47 per share for the first nine months of 2008. During the first nine
months of 2009, non-cash charges were $4.2 million or $0.13 per share.
Purchase accounting charges associated with the acquisition of STAAR Japan
impacting the first nine months of 2008 were $5.3 million or $0.18 per share.

As of October 2, 2009, the Company reported cash, cash equivalents and
restricted cash of $13.0 million compared with $5.2 million at the end of 2008
and $6.7 million at the end of the third quarter of 2008. During the second
quarter, the Company raised $8.6 million to fund a restricted deposit to
secure potential payment of the judgment in the Parallax case subject to our
pending appeal.

Conference Call
The Company will host a conference call and webcast on Tuesday, November 3,
2009 at 10:00 a.m. Eastern Time to discuss the Company's third quarter and
current corporate developments. The dial-in number for the conference call is
877-941-2927 for domestic participants and 480-629-9725 for international
participants.

A taped replay of the conference call will also be available beginning
approximately one hour after the call's conclusion and will be available for
seven days. This replay can be accessed by dialing 800-406-7325 for domestic
callers and 303-590-3030 for international callers, both using passcode
4169709#. To access the live webcast of the call, go to STAAR Surgical's
website at www.staar.com. An archived webcast will also be available at
www.staar.com.

About STAAR Surgical
STAAR Surgical is a leader in the development, manufacture and marketing of
minimally invasive ophthalmic products employing proprietary technologies.
STAAR's products are used by ophthalmic surgeons and include the Visian ICL, a
tiny, flexible lens implanted to correct refractive errors, as well as
innovative products designed to improve patient outcomes for cataracts and
glaucoma. Manufactured in Switzerland by STAAR, the ICL is approved by the
FDA for use in treating myopia, has received CE Marking and is sold in more
than 50 countries. Collamer® is the brand name for STAAR's proprietary
collagen copolymer lens material. More information is available at
www.staar.com.

Safe Harbor
All statements in this press release that are not statements of historical
fact are forward-looking statements, including statements about any of the
following: projections of earnings, revenue, sales, cash or any other
financial items; the plans, strategies, and objectives of management for
future operations or prospects for achieving such plans; future sale;
prospects for approval of the Visian Toric ICL supplemental premarket approval
application, or any other future approval by the FDA or other regulatory
agencies; our future 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 our limited
capital resources and limited access to financing, the fact that our public
accounting firm has expressed doubt about our ability to continue as a going
concern in their opinion on our financial statements, the broad discretion of
the FDA in approving any medical device and the inherent uncertainty that new
devices will be approved, the likelihood of administrative delays, the need in
certain future FDA submissions to satisfy additional and potentially costly
requirements such as third party audits, the cost of defending pending
litigation and satisfying judgment in the event of an adverse ruling, for
which we have taken no reserve, the fact that insurance covers only a portion
of the cost of pending litigation, cannot cover punitive damages, and may not
cover compensatory damages in the event of an adverse ruling; the negative
effect of the global recession on sales of products, especially products such
as the ICL used in non-reimbursed elective procedures, the challenge of
managing our foreign subsidiaries, the risk that sales of our newly introduced
products may not restore profitability to our U.S. IOL product line, our
ability to overcome negative publicity resulting from warning letters and
other correspondence from the FDA Office of Compliance and to demonstrate to
the agency that its past concerns have been resolved, the willingness of
surgeons and patients to adopt a new product and procedure, and the potential
effect of recent negative publicity about LASIK on the demand for refractive
surgery in general in the U.S. STAAR assumes no obligation to update its
forward-looking statements to reflect future events or actual outcomes and
does not intend to do so.

STAAR's current data on the accommodating properties of the Collamer material
derive from the reports of individual independent clinicians and have not been
subjected to large scale clinical studies. STAAR's current nanoFLEX IOL does
not currently have an FDA labeling claim for accommodation. STAAR cannot
assure that its further research will support a claim that either its current
Collamer lenses or future designs restore the eye's ability to accommodate. If
clinical research does not support these claims, or supports only a narrow
range of accommodation, STAAR's Collamer accommodation project may not result
in increased sales. New lens designs may require clinical research studies and
applying for the FDA's premarket approval, which are expensive and could
result in delay or denial of approval.

Use of Non-GAAP Information
This news release presents selected items from the Company's Condensed
Consolidated Statements of Operations as reported in accordance with U.S.
generally accepted accounting principles ("GAAP"), and also on a non-GAAP
basis after excluding certain non-recurring expenses, and excluding changes in
currency. None of these measures are a substitute for measures determined in
accordance with GAAP, and may not be comparable to the same measures as
reported by other companies.

When reviewing financial information to assess the effectiveness of
initiatives to enhance long-term performance by reducing expenses, management
may eliminate the effect of significant non-recurring expenses in order to
discern underlying trends. In the 2008 fiscal year, the Company's results
were significantly affected by the following non-recurring expenses classified
in the GAAP reconciliation table as "purchase A/C [accounting] charges": a
$1.5 million purchase accounting charge related to inventory purchased in the
acquisition of STAAR Japan, Inc. and a $3.8 million charge for the settlement
of a pre-existing distribution arrangement in connection with the STAAR Japan,
Inc. acquisition. Because the effect of purchase accounting charges can
overwhelm the effect of meaningful trends in the Company's business
performance, management evaluates its performance excluding these
non-recurring items. The Company believes that this non-GAAP measure is also
helpful to investors in discerning underlying trends. The table below shows
the effects of the excluded non-recurring items.

The Company conducts a significant part of its activities outside the U.S. It
receives sales revenue and pays expenses principally in U.S. dollars, Swiss
francs, Japanese yen and Euros. The exchange rates between dollars and
non-U.S. currencies can fluctuate greatly and can have a significant effect on
our results when reported in U.S. dollars. When preparing its financial
statements in conformance with GAAP, the Company translates foreign currency
sales and expenses to dollars at the weighted average of exchange rates in
effect during the period. As a result, the Company's reported performance may
be significantly affected by currency fluctuations. In order to compare the
Company's performance from period to period without the effect of currency,
the Company will apply the same average exchange rate applicable in the prior
period, or the "constant currency" rate to sales or expenses in the current
period as well. Because changes in currency are outside of the control of the
Company and its managers, management finds this non-GAAP measure useful in
determining the long term progress of its initiatives and determining whether
its managers are achieving their performance goals. The Company believes that
the non-GAAP constant-currency sales results measures provided in this press
release are similarly useful to investors to give insight on long term trends
in the Company's performance without the external effect of changes in
relative currency values. The table below shows sales results calculated in
accordance with GAAP, the effect of currency, and the resulting non-GAAP
measure expressed in constant currency.

CONTACT: Investors Media
EVC Group EVC Group
Douglas Sherk, 415-896-6820 Christopher Gale 646-201-5431
Michael Pollock, 415-896-5862

(Tables to Follow)

STAAR Surgical Company
Condensed Consolidated Statements of Operations
(In 000's except for per share data)
Unaudited

Three Months Ended
-----------------------------------------
October 2, September 26,
2009 2008
---- ----

Net sales 100.0% $18,113 100.0% $18,112

Cost of sales 45.7% 8,278 42.3% 7,654
----- -----

Gross profit 54.3% 9,835 57.7% 10,458
----- ------

Selling, general and
administrative expenses:
General and administrative 19.3% 3,490 19.2% 3,480
Marketing and selling 33.0% 5,972 36.0% 6,514
Research and development 8.5% 1,542 10.4% 1,890
Loss on settlement of
pre-existing distribution
arrangement 0.0% - 0.0% -
--- ---

Total selling, general
and administrative
expenses: 60.8% 11,004 65.6% 11,884
------ ------

Operating loss -6.5% (1,169) -7.9% (1,426)
------ ------

Other income (expense):
Interest income 0.2% 28 0.3% 47
Interest expense -3.0% (551) -1.2% (222)
Gain/(loss) on foreign currency 0.0% 3 -2.6% (473)
Other income, net -0.4% (68) 0.3% 63
--- ---
Other (expense) income, net -3.2% (588) -3.2% (585)
---- ----

Loss before provision
for income taxes -9.7% (1,757) -11.1% (2,011)

Provision for income
taxes 1.2% 210 1.3% 239
--- ---

Net loss -10.9% $(1,967) -12.4% $(2,250)
======= =======

Loss per share:
Basic and diluted $(0.06) $(0.08)
====== ======

Weighted average shares outstanding:
Basic and diluted 34,701 29,490
====== ======

Nine Months Ended
-----------------
October 2, September 26,
2009 2008
---- ----

Net sales 100.0% $55,514 100.0% $56,737

Cost of sales 44.4% 24,675 47.6% 26,990
------ ------

Gross profit 55.6% 30,839 52.4% 29,747
------ ------

Selling, general and
administrative expenses:
General and
administrative 20.9% 11,626 20.2% 11,441
Marketing and selling 32.0% 17,784 36.4% 20,627
Research and
development 7.9% 4,395 10.5% 5,965
Loss on settlement of
pre-existing
distribution
arrangement 0.0% - 6.8% 3,850
--- -----

Total selling, general
and administrative
expenses: 60.9% 33,805 73.8% 41,883
------ ------

Operating loss -5.3% (2,966) -21.4% (12,136)
------ -------

Other income (expense):
Interest income 0.1% 36 0.2% 138
Interest expense -2.1% (1,183) -1.1% (645)
Gain/(loss) on foreign
currency 0.4% 200 -0.6% (329)
Other income, net 0.2% 122 0.2% 130
--- ---
Other (expense) income,
net -1.5% (825) -1.2% (706)
---- ----

Loss before provision
for income taxes -6.8% (3,791) -22.6% (12,842)

Provision for income
taxes 1.7% 926 1.6% 893
--- ---

Net loss -8.5% $(4,717) -24.2% $(13,735)
======= ========

Loss per share:
Basic and diluted $(0.15) $(0.47)
====== ======

Weighted average shares
outstanding:
Basic and diluted 31,751 29,489
====== ======

STAAR Surgical Company
Global Sales
(in 000's)
Unaudited

Three Months Ended
------------------
September
October 2, 26, %
Geographic Sales 2009 2008 Change
---- ---- ------
United States 22.2% $4,017 26.2% $4,746 -15.4%

Germany 31.3% 5,663 32.3% 5,844 -3.1%
Japan 19.3% 3,503 17.3% 3,127 12.0%
Korea 5.9% 1,064 6.3% 1,137 -6.4%
Other 21.3% 3,866 18.0% 3,258 18.7%
----- -----
Total
International
Sales 77.8% 14,096 73.8% 13,366 5.5%

------- -------
Total Sales 100.0% $18,113 100.0% $18,112 0.0%
======= =======

Product Sales
IOLs 45.3% $8,209 42.2% $7,636 7.5%
ICLs 29.0% $5,245 27.6% $4,996 5.0%
Other 25.7% $4,659 30.3% $5,480 -15.0%
------ ------
Total 100.0% $18,113 100.0% $18,112 0.0%
======= =======

Nine Months Ended
-----------------

September 26, %
Geographic Sales 2009 2008 Change
---- ---- ------
United States 22.2% $12,329 25.5% $14,468 -14.8%

Germany 32.0% 17,748 33.9% 19,260 -7.9%
Japan 20.2% 11,199 16.9% 9,608 16.6%
Korea 6.6% 3,664 4.9% 2,777 31.9%
Other 19.0% 10,574 18.7% 10,624 -0.5%
------ ------
Total
International
Sales 77.8% 43,185 74.5% 42,269 2.2%

------- -------
Total Sales 100.0% $55,514 100.0% $56,737 -2.2%
======= =======

Product Sales
IOLs 44.8% $24,863 42.9% $24,320 2.2%
ICLs 28.8% $15,962 25.9% $14,680 8.7%
Other 26.5% $14,689 31.3% $17,737 -17.2%
------- -------
Total 100.0% $55,514 100.0% $56,737 -2.2%
======= =======

STAAR Surgical Company
Condensed Consolidated Balance Sheets
(in 000's)
Unaudited

October 2, January 2,
2009 2009
---- ----

Cash and cash equivalents $5,644 $4,992
Short-term investments - restricted 7,368 179
Accounts receivable trade, net 9,411 8,422
Inventories, net 15,296 16,668
Prepaids, deposits, and other current assets 2,196 2,009
----- -----
Total current assets 39,915 32,270
------ ------
Property, plant, and equipment, net 5,180 5,974
Intangible assets, net 5,039 5,611
Goodwill 7,847 7,538
Other assets 1,242 1,189
----- -----
Total assets $59,223 $52,582
======= =======

Accounts payable $6,182 $6,626
Line of credit 2,220 2,200
Deferred income taxes - current 282 282
Obligations under capital leases - current 940 989
Other current liabilities 12,129 11,366
------ ------
Total current liabilities 21,753 21,463
------ ------
Notes payable - long-term, net of discount 4,389 4,414
Obligations under capital leases - long-term 1,084 1,335
Deferred income taxes - long-term 787 897
Other long-term liabilities 1,967 1,678
----- -----
Total liabilities 29,980 29,787

Series A redeemable convertible preferred stock 6,780 6,768

Common stock 348 295
Additional paid-in capital 149,267 138,811
Accumulated other comprehensive income 3,456 2,812
Accumulated deficit (130,608) (125,891)
-------- --------
Total stockholders' equity 22,463 16,027
------ ------
Total liabilities, redeemable convertible
preferred stock and stockholders' equity $59,223 $52,582
======= =======

STAAR Surgical Company
Condensed Consolidated Statements of Cash Flows
(in 000's)
Unaudited
Nine Months Ended
-----------------
October 2, September 26,
2009 2008
---- ----
Cash flows from operating activities:
Net loss $(4,717) $(13,735)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation of property and equipment 1,797 2,055
Amortization of intangibles 585 625
Amortization of discount 265 180
Fair value adjustment of warrant 74 60
Loss on disposal of property and equipment 96 89
Stock-based compensation expense 1,207 1,195
Loss on settlement of pre-existing
distribution arrangement - 3,850
Change in pension liability 117 302
Other 51 (196)
Changes in working capital, net of business
acquisition:
Accounts receivable (868) (2,482)
Inventories 1,351 1,613
Prepaids, deposits and other current assets (28) 434
Accounts payable (225) (1,892)
Other current liabilities 597 665
--- ---
Net cash used in operating activities 302 (7,237)
--- ------

Cash flows from investing activities:
Cash acquired in acquisition of Canon Staar,
net of acquisition costs - 2,215
Acquisition of property and equipment (320) (802)
Proceeds from sale of property and equipment 160 100
Purchase of short-term investments (22) -
Proceeds from sale of short-term investments 190 -
Restricted deposit with the Superior Court
of Orange County (7,368) -
Net change in other assets 5 149
-- ---
Net cash provided by (used in) investing
activities (7,355) 1,662
------ -----

Cash flows from financing activities:
Borrowings under lines of credit 630 3,760
Repayments of lines of credit (630) (1,880)
Repayment of capital lease lines of credit (852) (762)
Net proceeds of public sale of equity
securities 8,548 -
Proceeds from the exercise of stock options - 40
-- --
Net cash provided by financing
activities 7,696 1,158
----- -----

Effect of exchange rate changes on cash and
cash equivalents 9 219
-- ---

Decrease in cash and cash equivalents 652 (4,198)
Cash and cash equivalents, at beginning of the
period 4,992 10,895
----- ------
Cash and cash equivalents, at end of the period $5,644 $6,697
====== ======

STAAR Surgical Company
GAAP Reconciliation Tables
(in 000's)
Unaudited

Three Months Ended 10/2/2009
---------------------------------
Three
Months
As Effect of Ended
Sales in Constant Currency Reported Currency Ex-Currency 9/26/2008
-------- --------- ----------- ---------
US 4,017 - 4,017 4,746
International 14,096 54 14,042 13,366
------ -- ------ ------
Total 18,113 54 18,059 18,112
====== == ====== ======

Nine Months Ended 10/2/2009
---------------------------------
Nine
Months
As Effect of Ended
Sales in Constant Currency Reported Currency Ex-Currency 9/26/2008
-------- --------- ----------- ---------
US 12,329 - 12,329 14,468
International 43,185 (1,270) 44,455 42,269
------ ------ ------ ------
Total 55,514 (1,270) 56,784 56,737
====== ====== ====== ======

Q3 2009 vs. Q3 2008
-------------------
As Reported Ex-Currency
----------- -----------
Sales in Constant Currency $ Change % Change $ Change % Change
-------- -------- -------- --------
US (729) -15% (729) -15%
International 730 5% 676 5%
Total 1 0% (53) 0%

As Reported Ex-Currency
----------- -----------
Sales in Constant Currency $ Change % Change $ Change % Change
-------- -------- -------- --------
US (2,139) -15% (2,139) -15%
International 916 2% 2,186 5%
Total (1,223) -2% 47 0%

Nine Months
% of October 2, % of
Statement of Operations Sales 2009 Sales
----- ---- -----

Net sales 100% $55,514 100%
Cost of sales 44% 24,675 48%
------
Gross profit 56% 30,839 52%
------
Selling, general and
administrative expenses:
General and administrative 21% 11,626 20%
Marketing and selling 32% 17,784 36%
Research and development 8% 4,395 11%
Loss on settlement of
pre-existing
distribution arrangement - 7%
--
Total selling, general and
administrative expenses: 61% 33,805 74%
------
Operating loss -5% (2,966) -21%
------
Other income (expense):
Interest income 0% 36 0%
Interest expense -2% (1,183) -1%
Gain on foreign currency 0% 200 -1%
Other income, net 0% 122 0%
Total other (expense) income,
net -1% (825) -1%
----
Loss before provision for
income taxes -7% (3,791) -23%
Income tax provision 2% 926 2%
---
Net loss -8% $(4,717) -24%
=======
Loss per share: basic and
diluted $(0.15)
======
Weighted average shares
outstanding: basic and diluted 31,751
======

As Reported Nine Months
September
26, Purchase Ex Purchase % of
Statement of Operations 2008 A/C Chgs A/C Chgs Sales
---- -------- -------- -----

Net sales $56,737 $- $56,737 100%
Cost of sales 26,990 (1,500) 25,490 45%
------ ------ ------
Gross profit 29,747 1,500 31,247 55%
------ ----- ------
Selling, general and administrative
expenses:
General and administrative 11,441 - 11,441 20%
Marketing and selling 20,627 - 20,627 36%
Research and development 5,965 - 5,965 11%
Loss on settlement of pre-
existing distribution
arrangement 3,850 (3,850) - 0%
----- ------ --
Total selling, general and
administrative expenses: 41,883 (3,850) 38,033 67%
------ ------ ------
Operating loss (12,136) 5,350 (6,786) -12%
------- ----- ------
Other income (expense): 0%
Interest income 138 - 138 0%
Interest expense (645) - (645) -1%
Gain on foreign currency (329) - (329) -1%
Other income, net 130 - 130 0%
-- ---
Total other (expense) income,
net (706) - (706) -1%
---- -- ----
Loss before provision for
income taxes (12,842) 5,350 (7,492) -13%
Income tax provision 893 - 893 2%
--- -- ---
Net loss $(13,735) $5,350 $(8,385) -15%
======== ====== =======
Loss per share: basic and
diluted $(0.47) $0.18 $(0.28)
====== ===== ======
Weighted average shares
outstanding: basic and diluted 29,489 29,489 29,488
====== ====== ======

SOURCE STAAR Surgical Company

investors, Douglas Sherk, +1-415-896-6820, or Michael Pollock,
+1-415-896-5862, or media, Christopher Gale, +1-646-201-5431, all of EVC
Group, for STAAR Surgical Company