IRIDEX Announces Automatic Conversion of Series A Preferred Stock to Common Stock

 IRIDEX Announces Automatic Conversion of Series A Preferred Stock to Common
                                    Stock

PR Newswire

MOUNTAIN VIEW, Calif., June 11, 2013

MOUNTAIN VIEW, Calif., June 11, 2013 /PRNewswire/ --IRIDEX Corporation
(Nasdaq: IRIX) today announced that it has converted all outstanding shares of
its SeriesA Preferred Stock into 1,000,000 shares of its common stock. The
SeriesA Preferred shares were issued to BlueLine Capital Partners LP
(BlueLine) as part of a private placement agreement that occurred in 2007. The
Certificate of Designation provides that the SeriesA Preferred shares will
automatically convert into common stock if IRIDEX common stock trades above
$5.00 for 30 consecutive trading days.

"This is a positive development for the Company and has been a goal since
BlueLine invested in IRIDEX in a private placement and the preferred shares
were issued in 2007," Will Moore President and CEO of IRIDEX said. "I want to
thank BlueLine for their initial and ongoing support that has allowed us to
get to this point. The conversion simplifies our capital structure, is
non-dilutive and is an indication that we have made great strides in the past
year in meeting commercial and operational milestones and winning investor
confidence. The SeriesA Preferred Stock has always been included in the
diluted share count and will be part of the basic and diluted share count
going forward."

As a result of the conversion, the separate right of the holders of SeriesA
Preferred Stock to a senior liquidation preference and to appoint a second
board member, subject to the approval of the Company, have also ceased.

About IRIDEX

IRIDEX Corporation was founded in 1989 and is a worldwide leader in
developing, manufacturing, and marketing innovative and versatile laser-based
medical systems, delivery devices and consumable instrumentation for the
ophthalmology market. We maintain a deep commitment to the success of our
customers, with comprehensive technical, clinical, and service 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 70 independent distributors
into over 100 countries. For further information, visit the IRIDEX website at
http://www.iridex.com/.

Safe Harbor Statement

This 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 markets for the Company's
common stock. 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 December 29, 2012, and our Quarterly
Report on Form 10-Q for the fiscal quarter ended March 30, 2013, 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.

SOURCE IRIDEX Corporation

Website: http://www.iridex.com
Contact: IRIDEX Contact, Jim Mackaness, CFO & COO, 650-940-4700, or Investor
Relations Contact, Matt Clawson, Allen & Caron, 949-474-4300,
matt@allencaron.com
 
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