STAAR Surgical Reports Third Quarter 2012 Financial Results

         STAAR Surgical Reports Third Quarter 2012 Financial Results

Visian® ICL™ Revenue Increases 15% Year over Year

Gross Margin of 70.4%, 190 Basis Points Above 3Q 2011

$2.5 Million in Cash Generated from Operations; Cash Position Increases to
$19.8 Million

PR Newswire

MONROVIA, Calif., Oct. 31, 2012

MONROVIA, Calif., Oct. 31, 2012 /PRNewswire/ --STAAR Surgical Company
(NASDAQ: STAA), a leading developer, manufacturer and marketer of minimally
invasive ophthalmic products, today reported that sales of its Visian ICL
product portfolio in the third quarter ended September 28, 2012 increased 15%
to $9.1 million. Total revenue was $15.9 million, up 4% from $15.3 million in
the third quarter of 2011. Gross margin of 70.4% was 190 basis points above
the 68.5% margin in the third quarter of 2011. The year over year gross
margin improvement continues to reflect the increased contribution of Visian
ICL sales, margin improvement in ICLs based on increased prices and lower cost
of goods for both ICLs and IOLs.

Net loss, calculated in accordance with GAAP, was $90,000, or breakeven on a
per diluted share basis, compared with net income of $77,000, also breakeven
on a per diluted share basis, in the third quarter of 2011. Adjusted net
income (excluding manufacturing consolidation expenses, gain (loss) on foreign
currency transactions, fair value adjustment of warrants, and stock-based
compensation expense) for the quarter ended September 28, 2012 was $1.3
million, or $0.04 per diluted share versus adjusted net income for the year
ago quarter of $1.2 million, or $0.03 per diluted share. Cash and cash
equivalents at September 28, 2012 totaled $19.8 million, the largest amount in
the history of the Company. This represents an increase of $2.2 million in
cash from the end of June despite the increased investment spending in sales
and marketing personnel and manufacturing consolidation of $1.7 million during
the quarter.

"Visian ICL revenues during the quarter were strong in most of our key focused
markets as compared to prior year," said Barry Caldwell, president and CEO.
"ICL sales were up double digits in all three of our regions: North America,
Asia Pacific and Europe. Our transition to a direct selling model in Spain
resulted in a sales increase of 72% year over year. ICL sales in China did
show a partial rebound with an increase of 52% during the quarter. Reports
continue from the majority of refractive surgeons in China that patients are
still asking questions about the safety of refractive surgery due to the
negative media focus on the complications of LASIK during the second quarter.
We just completed a special training session for ICL users in China which
should help drive our rebound during the fourth quarter and into next year.
In addition we also saw strong Visian ICL increases in Japan, India, and the
U.S. These positive dynamics were partially offset by weak sales in Korea, our
largest market. For the first time we saw the demand from our distributor to
end-customers less in the quarter than the prior year. Excluding Korea our
ICL sales increased by 26% in the rest of the world. We are in the process of
hiring a direct employee in Korea to work with our distributor on a day to day
basis to help grow our ICL franchise. Additionally, a strategic session with
our distributor focused on both the short term and long term ICL growth will
take place this weekend in Korea."

"IOL sales declined by 8% from the third quarter of 2011," continued Mr.
Caldwell. "We believe this may have been partially driven by a decline in
cataract procedures evidenced by the third quarter results and reports of the
two largest competitors. The decline in IOL sales was evenly spread
throughout all three regions. We did begin shipping the KS-SP, our Single
Piece Preloaded Acrylic IOL, for the limited launch late in the quarter. The
feedback from customers has been very good which has led our key distributors
to increase their forecasts for the product significantly. We will continue
to have limited supply during the fourth quarter but should be able to catch
up with demand during the first half of next year. We are still awaiting
clinical feedback from customers on the new nanoFLEX® Toric IOL. This should
be completed during the fourth quarter.

"The third quarter was a solid quarter for the Company despite lower revenue
results than expected," concluded Mr. Caldwell. "With the exception of one
market, our Visian ICL sales were quite strong and we continue to make
progress on getting new IOL products to market which will help return these
products to a growth position. While we are making significant investments in
our future, we are still generating good cash and have the largest cash
position in our history at nearly $20 million. Our investments this year in
additional sales and marketing personnel will help increase our growth rates
in 2013. Our investments in manufacturing consolidation will help generate
continued expansion of our gross margins and provide significant tax benefits
starting in 2014."

Recent Visian Implantable Collamer® Lens (ICL) Highlights

  oThird quarter Visian ICL sales grew to $9.1 million, a 15% increase from
    $7.9 million in the third quarter of 2011 which was 31% higher than the
    third quarter of 2010. There was also a favorable mix of TICL® (+12%)
    versus ICL (+8%).

       oICL sales represented 57.4% of total sales, the highest percent in
         the history of the Company, as compared to 51.8% of sales in Q3 2011.

  oSales in the European region grew 17.5%, led by increases in Europe from
    Spain, Italy and the U.K.

       oVisian ICL with CentraFLOW™ technology represented approximately 82%
         of total ICL sales to just the European markets during the third
         quarter of 2012. Total ICL sales in Europe grew 29% during the
       oThere have now been over 7,000 implants of the Visian ICL with the
         CentraFLOW technology in Europe and it is performing as expected.
       oRecorded sales have not seen the benefit from the increased premium
         for the ICL with CentraFLOW technology due to the decline in the Euro
         since the launch of the product.
       oDuring the third quarter of 2012 the Company completed its transition
         to a direct distribution model in Spain, where revenue increased

  oICL sales in the U.S. increased by 11.5% during the quarter due to
    increased promotional activities including initial benefits from our
    social media activities.

       oSales to civilian sector accounts increased by 20% while military
         sales of ICLs during the quarter declined 12% from the prior year due
         to a year-end military order during the third quarter of 2011.
       oMilitary ICL sales did increase by 92% as compared to the second
         quarter of this year. The Company expects to see continued
         improvement in military ICL sales in the fourth quarter due both to
         returning surgeons and the expansion of surgeons using the Visian

  oSales in Asia Pacific market increased 15.5% led by Japan, China and

       oJapan grew 56% with unit growth of 113% reflecting a higher percent
         of sales from the two major refractive centers.
       oChina returned to growth though not at the same rate as previously
         experienced. ICL sales increased by 52% compared to the average 95%
         quarter growth over the past two years.
       oIndia continues to show strong growth as ICL sales increased by 24%
         during the quarter.
       oICL sales declined by 15% in Korea due to lower than expected
         consumer demand as reported by the distributor.

Recent Intraocular Lens (IOL) Highlights

  oThird quarter IOL sales decreased 8% to $6.1 million compared with $6.6
    million in the third quarter of 2011, with IOL sales decreasing in all
    three regions.
  oThird quarter results from major competitors in the IOL market seem to
    indicate that overall global cataract procedures declined during the third
    quarter as compared to prior year.
  oLower than expected sales in Japan and Europe were partially due to the
    lack of the KS-SP Preloaded Single Piece Acrylic IOL which was launched
    late in the quarter. The KS-SP initial limited launch in Europe has been
    very successful and European distributors have significantly increased
    their forecasted purchases for 2013. The Company anticipates continued
    supply constraints during the fourth quarter.
  oThe results of the limited launch of the nanoFLEX Toric IOL have not yet
    been completed and the Company expects to complete the limited launch
    during the fourth quarter.
  oIOL gross margins improved to 60% as compared to 59% during the third
    quarter of 2011. These margin increases were seen in Collamer® and
    silicone IOLs. There was a slight decrease in the global average selling
    price as compared to prior year.

Third Quarter Financial Highlights

  oTotal net sales in the third quarter were $15.9 million, a 4% increase
    over $15.3 million in the third quarter of 2011. Net sales were
    negatively affected by over a $90,000, or 11%, decline in sales of the
    "other" product category, primarily legacy products.
  oCore product sales of ICLs were up 15% and IOLs were down 8% year over
    year during the quarter. Core product sales (IOL & ICL) grew 5% year over
    year from $14.5 million.
  oGross margin increased to 70.4% of revenue compared with 68.5% in the
    prior year's third quarter. The increase reflected a higher mix of ICL to
    total sales of 57%, as compared to 52% during the third quarter of 2011,
    due to the higher mix of Toric ICL sales, improved average selling prices
    on ICLs and a 100 basis point improvement in IOL margins.
  oTotal operating expenses were $11.3 million, a 16% increase over $9.7
    million in the third quarter of 2011. The increase of $1.6 million in
    operating expenses was due to the increased year over year investment
    spending in sales and marketing of $1.1 million and $0.6 million on the
    manufacturing consolidation project. The investments from sales and
    marketing should show positive revenue gains in 2013 and the manufacturing
    consolidation project should show positive gains in gross margins and tax
    during 2014.

       oMarketing and selling expenses also included a $0.4 million charge
         associated with the transition from distributor to direct sales model
         in Spain.
       oManufacturing consolidation expenses, labeled as other general and
         administrative expenses, were more than expected in the quarter as
         the Company moved forward accruals for projected severance payouts
         next year. Total consolidation expenses projected for the year are
         now approximately $2.5 million as compared to the previous estimate
         of $2.3 million.

  oNet inventories have increased by $0.9 million since December 30, 2011 and
    by $0.5 million since the close of the second quarter on June 29, 2012.
    This inventory increase is to assure there is an adequate safety stock of
    product as the Company transfers manufacturing to the U.S.
  oOther income was $220,000 versus an expense of $446,000 in the prior year
    period. This was driven by gains on foreign currency transactions,
    decreased interest expense and a decrease in the fair value of warrants.
  oGAAP net loss in the third quarter of 2012 was $90,000, or $0.00 per
    share, compared with net income of $77,000, or $0.00 per diluted share, in
    the third quarter of 2011. Adjusted net income was $1.3 million, or $0.04
    per diluted share, compared with adjusted net income during the third
    quarter of 2011 of $1.2 million, or $0.03 per diluted share.
  oCash and cash equivalents totaled $19.8 million at September 28, 2012
    compared with $17.5 million at June 29, 2012 and $16.6 million at December
    30, 2011. The Company generated $2.5 million in cash from operating
    activities during the third quarter.

Second Half 2012 Key Metrics Update

Below is an update on the Company's progress against the second half key

1.Increase in revenues of Solid Double Digit Growth.

     a.The Company expects its year over year fourth quarter growth to
         exceed its third quarter growth rate. However, a solid double digit
         growth for the second half would be beyond the Company's current

2.Increase in Visian ICL revenues of 25%.

     a.The Company is expecting strong Visian ICL revenue growth during the
         fourth quarter. However, without a solid rebound in Asia Pacific
         markets a 25% growth rate for the second half would be beyond the
         Company's current estimates.

3.Continuous expansion of gross margins to achieve 71% for the full year.

     a.With the 190 basis point improvement during the third quarter and
         estimates for the fourth quarter the Company should achieve this
         metric for the full year.

4.Achieve profitability in Q3 and Q4.

     a.Though the Company was breakeven during the third quarter on a GAAP
         per share basis, the Company's estimates for the fourth quarter would
         result in profitability for the second half and the full year.

5.Implement manufacturing consolidation with no disruption to customer
    quality or supply requirements. This metric will be measured by the
    amount of customer backorders.

     a.This continues to be favorable and the Company expects it to remain
         so during the fourth quarter as well.
     b.Since some expenses were pulled forward from 2013 the spending level
         was higher than projected for the third quarter and will be so for
         the full year.

Key Operational Updates

  oGood progress continues on the Manufacturing Consolidation Project which
    is planned to be complete by the end of 2014.

       oDuring the quarter the Company began manufacturing non-sterile
         silicone IOLs for Japan in the U.S. The transfer of non-sterile
         silicone IOLs is expected to be complete in November and sterile
         transfer phased in during the first quarter of next year.
       oThe Company expects to build the first Visian ICLs in the U.S. during
         the first quarter of 2013.
       oThe Company expects several employees from Switzerland and Japan will
         be willing to take on special assignments in the U.S. for periods of
         one month to one year to further assist in the transfer activities.
       oThe effective tax rate beginning in 2014 is expected to be
         approximately 10% based upon these transfers and the continued
         expansion of the gross margin percentage will be enhanced.

  oThe Company has invested by adding 14 of a now expected 17 new hires in
    the sales and marketing area. The remaining 3 positions are expected to
    be filled during the fourth quarter.

       oThe Company expects to see a return with enhanced revenue growth
         during 2013 as all 17 will be trained and productive in their

  oDuring the European Society of Cataract and Refractive Surgeons meeting
    there were over 100 clinical presentations on the Visian ICL.

       oVery strong clinical presentations were given illustrating the
         success of over 7,000 Visian ICL implants with the CentraFLOW

  oThe Company also announced during the third quarter the plans to lease
    approximately 26,000 square feet which will directly adjoin the current
    44,000 square feet in Monrovia, California.

       oThis is expected to create a more productive working environment
         which will allow for enhanced productivity.
       oThe Company expects to spend approximately $700,000 on tenant
         improvements during the fourth quarter.

Conference Call

The Company will host a conference call and video webcast today, October 31,
2012 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss the Company's third
quarter 2012 financial results and recent corporate developments. The dial-in
number for the conference call is 877-941-8609 for domestic participants and
480-629-9692 for international participants.

The Company will also be using slides to illustrate its third quarter 2012
results and operational progress. The slides and live webcast of the call can
be accessed from the investor relations section of the STAAR website at

Use of Non-GAAP Financial Measures

This press release includes supplemental non-GAAP financial information, which
STAAR believes investors will find helpful in understanding its operating
performance. "Adjusted Net Income" excludes the following items that are
included in "Net Income (Loss)" as calculated in accordance with U.S.
generally accepted accounting principles ("GAAP"): manufacturing
consolidation expenses, gain or loss on foreign currency transactions, the
fair value adjustment of outstanding warrants issued in 2007, and stock-based
compensation expenses.

We believe that "Adjusted Net Income" is useful to investors in gauging the
outcome of the key drivers of our business performance: our ability to
increase sales revenue and our ability to increase profit margin by improving
the mix of high value products while reducing the costs over which we have

We have excluded manufacturing consolidation expenses because these are
non-recurring expenses and their inclusion may mask underlying trends in our
business performance.

We have excluded gains and losses on foreign currency transactions and the
fair value adjustment of warrants because of the significant fluctuations that
can result from period to period as a result of market driven factors.

Stock-based compensation expenses consist of expenses for stock options and
restricted stock under Statement of Financial Accounting Standards ("SFAS")
No.123R. In calculating Adjusted Net Income STAAR excludes these expenses
and the fair value adjustment of outstanding warrants because they are
non-cash expenses and because of the complexity and considerable judgment
involved in calculating their values. In addition, these expenses tend to be
driven by fluctuations in the price of our stock and not by the same factors
that generally affect our other business expenses.

We have provided below a detailed reconciliation table, which is useful to
investors in providing the context to understand our Adjusted Net Income and
how it differs from Net Income (Loss) calculated in accordance with GAAP.

About STAAR Surgical

STAAR, which has been dedicated solely to ophthalmic surgery for over 25
years, designs, develops, manufactures and markets implantable lenses for the
eye. All of these lenses are foldable, which permits the surgeon to insert
them through a small incision. STAAR's lens used in refractive surgery as an
alternative to LASIK is called an Implantable Collamer® Lens or "ICL." A lens
used to replace the natural lens after cataract surgery is called an
intraocular lens or "IOL." Over 300,000 Visian ICLs have been implanted to
date; to learn more about the ICL go to: STAAR has
approximately 300 full time employees and markets lenses in over 60
countries. Headquartered in Monrovia, CA, it manufactures in the following
locations: Nidau, Switzerland; Ichikawa City, Japan; Aliso Viejo, CA; and
Monrovia, CA. For more information, please visit the Company's website at or call 626-303-7902.

Collamer® is the registered trademark for STAAR's proprietary biocompatible
collagen copolymer lens material.

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: any projections of earnings, revenue, sales, profit margins, cash
or any other financial items; the plans, strategies, and objectives of
management for future operations or prospects for achieving such plans;
statements regarding new products, including but not limited to, expectations
for success of the new ICL, KS-SP and nanoFLEX Toric IOL products in the U.S.
or international markets or government approval of new products, the outcome
of product research or development of future economic conditions or
performance, size of market opportunities, expected savings from business
consolidation plans and the timetable for those plans; 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 the following:
our limited capital resources and limited access to financing; the negative
effect of unstable global economic conditions on sales of products, especially
products such as the ICL used in non-reimbursed elective procedures; the
challenge of managing our foreign subsidiaries; backlog as we prepare for our
manufacturing facility consolidation; the risk of unfavorable changes in
currency exchange rate; the discretion of regulatory agencies to approve or
reject new products, or to require additional actions before approval;
unexpected costs or delays that could reduce or eliminate the expected
benefits of our consolidation plans; the risk that research and development
efforts will not be successful or may be delayed in delivering for launch; the
purchasing patterns of our distributors carrying inventory in the market; the
willingness of surgeons and patients to adopt a new product and procedure;
patterns of Visian ICL use that have typically limited our penetration of the
refractive surgery market, and a general decline in the demand for refractive
surgery particularly in the U.S. and China, which STAAR believes has resulted
from both concerns about the safety and effectiveness of laser procedures and
current economic conditions; the impact of the federal presidential elections,
or the upcoming "fiscal cliff," in the United States. The Visian Toric ICL
and the Visian ICL with CentraFLOW are not yet approved for sale in the United

STAAR Surgical Company
Condensed Consolidated Balance Sheets
(in 000's)
                                         September 28,       December 30,
                                         2012                2011
Current assets:
Cash and cash equivalents                $     19,753   $     16,582
Restricted cash                         -                   129
Accounts receivable trade, net           8,142               9,089
Inventories, net                         11,793              10,933
Prepaids, deposits, and other current    1,840               1,921
 Total current assets                  41,528              38,654
Property, plant, and equipment, net      4,698               4,222
Intangible assets, net                   2,458               2,989
Goodwill                                 1,786               1,786
Deferred income taxes                    149                 152
Other assets                             1,210               1,203
 Total assets                          $     51,829   $     49,006
Current liabilities:
Line of credit                           $      2,580  $      2,580
Accounts payable                         3,818               4,261
Deferred income taxes                    472                 472
Obligations under capital leases        933                 597
Other current liabilities                6,348               6,106
 Total current liabilities             14,151              14,016
Obligations under capital leases        534                 1,124
Deferred income taxes                    824                 708
Other long-term liabilities              723                 940
Pension obligations                      2,982               2,760
 Total liabilities                     19,214              19,548
Stockholders' equity:
Common stock                             363                 360
Additional paid-in capital               160,910             157,383
Accumulated other comprehensive income   2,381               2,405
Accumulated deficit                      (131,039)           (130,690)
 Total stockholders' equity            32,615              29,458
 Total liabilities and stockholders'   $     51,829   $     49,006

STAAR Surgical Company
Condensed Consolidated Statements of
(In 000's except for per share
                       Three Months Ended                             Nine Months Ended
                % of   September  % of   September  Change            % of   September  % of   September  Change
                       28,               30,                                 28,               30,
                Sales  2012       Sales  2011       Amount   %        Sales  2012       Sales  2011       Amount     %
Net sales       100.0% $  15,866  100.0% $  15,266  $ 600    3.9%     100.0% $  47,316  100.0% $  46,385  $ 931      2.0%
Cost of sales   29.6%  4,690      31.5%  4,816      126      -2.6%    30.0%  14,194     33.3%  15,445     1,251      -8.1%
Gross profit    70.4%  11,176     68.5%  10,450     726      6.9%     70.0%  33,122     66.7%  30,940     2,182      7.1%
general and
 General and   21.7%  3,450      24.1%  3,683      (233)    -6.3%    23.1%  10,942     23.7%  10,985     (43)       -0.4%
 Marketing     34.7%  5,507      29.1%  4,439      1,068    24.1%    32.8%  15,536     28.2%  13,098     2,438      18.6%
and selling
 Research and  10.0%  1,582      9.5%   1,454      128      8.8%     9.8%   4,640      9.2%   4,279      361        8.4%
general, and    66.4%  10,539     62.7%  9,576      963      10.1%    65.8%  31,118     61.1%  28,362     2,756      9.7%
general and     4.6%   728        0.9%   137        591      431.4%   4.2%   1,980      1.0%   463        1,517      327.6%
general and     71.0%  11,267     63.6%  9,713      1,554    16.0%    70.0%  33,098     62.1%  28,825     4,273      14.8%
Operating       -0.6%  (91)       4.8%   737        (828)    -112.3%  0.1%   24         4.6%   2,115      (2,091)    -98.9%
income (loss)
Other income
 Interest      0.0%   7          0.0%   7          -        0.0%     0.0%   14         0.1%   24         (10)       -41.7%
 Interest      -0.4%  (65)       -0.9%  (134)      69       -51.5%   -0.5%  (227)      -0.9%  (440)      213        -48.4%
 Gain (loss)
on foreign      1.2%   191        -1.8%  (277)      468      -169.0%  0.0%   9          0.4%   167        (158)      -94.6%
 Other income  0.5%   87         -0.3%  (42)       129      -307.1%  1.3%   610        0.8%   358        252        70.4%
(expense), net
other income    1.4%   220        -2.9%  (446)      666      -149.3%  0.9%   406        0.2%   109        297        272.5%
(expense), net
Income before
provision for   0.8%   129        1.9%   291        (162)    -55.7%   0.9%   430        4.8%   2,224      (1,794)    -80.7%
income taxes
Provision for   1.4%   219        1.4%   214        5        2.3%     1.6%   779        2.1%   985        (206)      -20.9%
income taxes
Net income      -0.6%  $  (90)    0.5%   $  77      $ (167)  -216.9%  -0.7%  $  (349)   2.7%   $  1,239   $ (1,588)  -128.2%
Net income
(loss) per             $  (0.00)         $  0.00                             $  (0.01)         $  0.04
Net income
(loss) per             $  (0.00)         $  0.00                             $  (0.01)         $  0.03
average shares         36,292            35,539                              36,206            35,304
outstanding -
average shares         36,292            36,953                              36,206            36,507
outstanding -

STAAR Surgical Company
Condensed Consolidated Statements of Cash Flows
(in 000's)
                                                  Nine Months Ended
                                                  September 28,  September 30,
                                                  2012           2011
Cash flows from operating activities:
 Net income (loss)                              $    (349)     $    1,239
 Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
        Depreciation of property and equipment    989            890
        Amortization of intangibles               525            595
        Deferred income taxes                     114            150
        Fair value adjustment of warrant          (217)          (29)
        Loss (gain) on disposal of property and   47             (14)
        Stock-based compensation expense          2,317          1,330
        Change in net pension liability           187            147
        Other                                     40             (70)
 Changes in working capital:
        Accounts receivable                       910            1,630
        Inventories                               (734)          241
        Prepaids, deposits and other current      85             331
        Accounts payable                          (444)          (201)
        Other current liabilities                 236            (829)
         Net cash provided by operating      3,706          5,410
Cash flows from investing activities:
        Acquisition of property and equipment     (1,161)        (722)
        Release of restricted cash                129            -
        Proceeds from sale of property and        -              26
        Net change in other assets                -              48
         Net cash used in investing          (1,032)        (648)
Cash flows from financing activities:
        Repayment of capital lease lines of       (619)          (412)
        Proceeds from exercise of stock options   1,102          2,983
         Net cash provided by financing      483            2,571
Effect of exchange rate changes on cash and cash  14             46
Increase in cash and cash equivalents             3,171          7,379
Cash and cash equivalents, at beginning of the    16,582         9,376
Cash and cash equivalents, at end of the period   $    19,753    $    16,755

STAAR Surgical Company
Global Sales
(in 000's)
              Three Months Ended                 Year Ended
                     September        September  %              September        September  %
                     28,              30,                       28,              30,
Geographic           2012             2011       Change         2012             2011       Change
United States 19.1%  $  3,038  21.0%  $  3,211   -5.4%   19.9%  $  9,428  22.5%  $  10,448  -9.8%
Japan         26.7%  4,237     26.4%  4,037      5.0%    25.8%  12,187    25.4%  11,772     3.5%
Korea         11.1%  1,755     13.6%  2,069      -15.2%  11.4%  5,379     11.8%  5,463      -1.5%
China         15.4%  2,444     12.0%  1,825      33.9%   14.1%  6,691     10.4%  4,832      38.5%
Other         27.7%  4,392     27.0%  4,124      6.5%    28.8%  13,631    29.9%  13,870     -1.7%
International 80.9%  12,828    79.0%  12,055     6.4%    80.1%  37,888    77.5%  35,937     5.4%
 Total     100.0% $  15,866 100.0% $  15,266  3.9%    100.0% $  47,316 100.0% $  46,385  2.0%
Product Sales
 ICLs      57.4%  $  9,111  51.8%  $  7,902   15.3%   55.6%  $  26,321 49.8%  $  23,091  14.0%
 IOLs      38.1%  6,052     43.0%  6,571      -7.9%   40.5%  19,185    44.8%  20,767     -7.6%
 Total core  95.6%  15,163    94.8%  14,473     4.8%    96.2%  45,506    94.6%  43,858     3.8%
 Other     4.4%   703       5.2%   793        -11.3%  3.8%   1,810     5.4%   2,527      -28.4%
 Total     100.0% $  15,866 100.0% $  15,266  3.9%    100.0% $  47,316 100.0% $  46,385  2.0%

STAAR Surgical Company
Reconciliation of
Non-GAAP Financial
                          Three Months Ended           Nine Months Ended
                          September 28, September 30,  September 28, September
                          2012          2011           2012          2011
Net income (loss) - (as   $    (90)     $    77        $    (349)    $  1,239
 Manufacturing           $    728      $    137       $    1,980    $  463
consolidation expenses
 Loss (gain) on foreign  $    (191)    $    277       $    (9)      $  (167)
 Fair value adjustment   $    (10)     $    153       $    (217)    $  (29)
of warrants
 Stock-based             $    838      $    523       $    2,317    $  1,330
compensation expense
Net income - (adjusted)   $    1,275    $    1,167     $    3,722    $  2,836
Net income (loss) per
share, basic - (as        $    (0.00)   $    0.00      $    (0.01)   $  0.04
 Manufacturing           $    0.02     $    0.00      $    0.05     $  0.01
consolidation expenses
 Loss (gain) on foreign  $    (0.01)   $    0.01      $    (0.00)   $  (0.00)
 Fair value adjustment   $    (0.00)   $    0.00      $    (0.01)   $  (0.00)
of warrants
 Stock-based             $    0.02     $    0.01      $    0.06     $  0.04
compensation expense
Net income per share,     $    0.04     $    0.03      $    0.10     $  0.08
basic - (adjusted)
Net income (loss) per
share, diluted - (as      $    (0.00)   $    0.00      $    (0.01)   $  0.03
 Manufacturing           $    0.02     $    0.00      $    0.05     $  0.01
consolidation expenses
 Loss (gain) on foreign  $    (0.01)   $    0.01      $    (0.00)   $  (0.00)
 Fair value adjustment   $    (0.00)   $    0.00      $    (0.01)   $  (0.00)
of warrants
 Stock-based             $    0.02     $    0.01      $    0.06     $  0.04
compensation expense
Net income per share,     $    0.04     $    0.03      $    0.10     $  0.08
diluted - (adjusted)
Weighted average shares   36,292        35,539         36,206        35,304
outstanding - Basic
Weighted average shares   36,292        36,953         36,206        36,507
outstanding - Diluted
Note: Net income (loss) per share (adjusted), basic and diluted, may not add
up due to rounding

CONTACT: Investors Media
            EVC Group                                   EVC Group
            Jenifer Kirtland, 415-568-9349              Amy Phillips,
            Jamar Ismail, 415-568-9348
            Douglas Sherk, 415-652-9100

SOURCE STAAR Surgical Company

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