PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800; Telefax 978 / 630-1487 NEWS RELEASE POC:26-0112

OPTICS CORPORATION RECEIVES $2,112,500 PURSUANT TO A PRIVATE PLACEMENT SALE

Optics Corporation, Inc. (Trading Symbol: POCI on the Nasdaq over the counter

bulletin board quoted at www.otcbb.com) announced today that it has completed

private placement of its common stock raising proceeds of $2,112,500. The

Company issued 8,450,000 shares of common stock at $.25 per share to be used

general corporate purposes.

securities issued in the private placement have not been registered under the

Securities Act of 1933, as amended, and may not be offered or sold in the United

States absent registration under the Securities Act and applicable state

securities laws or an applicable exemption from those registration requirements.

Precision Optics has agreed to file a registration statement with the Securities

and Exchange Commission to register the resale of the shares of common stock

issued in the private placement.

notice shall not constitute an offer to sell or the solicitation of an offer

buy, nor shall there be any sale of these securities in any state in which

offer, solicitation or sale, would be unlawful prior to the registration or

qualification under the securities laws of any such state.

Optics Corporation, a leading developer and manufacturer of advanced optical

instruments since 1982, designs and produces high-quality medical instruments,

optical thin film coatings, and other advanced optical systems. The Company's

medical instrumentation line includes laparoscopes, arthroscopes and

endocouplers and a world-class product line of 3-D endoscopes for use in

minimally invasive surgical procedures.

Company continues to advance products through technical innovation, including

development of: the next generation (patent pending) of 3-D endoscopes; the

extension of Lenslock technology (patent pending) to its entire line of

endoscopes; instrumentation utilizing the Company's micro-precision lens

technology (patent pending) for optical components, assemblies and endoscopes

Optics Corporation is registered to ISO 9001:2000, ISO 13485:2003, and CMDCAS

Quality Standards, and complies with the FDA Good Manufacturing Practices and

the European Union Medical Device Directive for CE Marking of its medical

products. The Company's Internet Website is www.poci.com .

statements contained in this news release, including those related to the future

success of Company's newly released products and products under development are

made under "safe harbor" provisions of the Private Securities Litigation Reform

Act of 1995 and involve a number of risks and uncertainties that could

materially affect future results. These risks and uncertainties, many of which

are not within the Company's control, include, but are not limited to, the

uncertainty and timing of the successful development of the Company's new

products; decisions by customers to place orders for the Company's products; the

risks associated with reliance on a few key customers; the Company's ability to

attract and retain personnel with the necessary scientific and technical skills;

the timing and completion of significant orders; the timing and amount of the

Company's research and development expenditures; the timing and level of market

acceptance of customers' products for which the Company supplies components;

performance of the Company's vendors; the ability of the Company to control

costs associated with performance under fixed price contracts; the continued

availability to the Company of essential supplies, materials and services;

the other risk factors and cautionary statements listed from time to time in

Company's periodic reports filed with the Securities and Exchange Commission,

including but not limited to, the Company's Annual Report on Form 10-KSB for

year ended June 30, 2005.