PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487 NEWS RELEASE Page 1 of 4

OPTICS CORPORATION ANNOUNCES Q3 RESULTS -

QUARTERLY SALES GROWTH WITH 116%

Massachusetts - Precision Optics Corporation, Inc. (OTC Bulletin Board: POCI)

today announced operating results on an unaudited basis for the third quarter

fiscal year 2006 ended March 31, 2006.

last few years, POC has developed new patented or patent pending, proprietary

products and technologies including micro-precision technologies, for use in

fabricating cost effective micro-optics - lenses, prisms, and optical assemblies

smaller than 1 mm, as well as Lenslock technology, for the production of

endoscopes with significant advantages over the current industry standards.

recent introduction of these and other new products has resulted in continuous

quarter-over-quarter sales growth for the last four quarters, with sales in

surpassing $700,000 for the first time in 12 quarters.

Quarter Operating Results

the quarter ended March 31, 2006, revenues were $704,010 compared to $529,195

for the preceding quarter and $326,272 for the same period last year,

representing increases of 33% and 116%, respectively. For the nine months ended

March 31, 2006 revenues improved 67% over the same period in the previous

the quarter ended March 31, 2006, net loss was $482,175 or $0.07 per share,

improvement of $337,741 from the net loss of $819,916 or $.12 per share, for

same period last year. The net loss in the quarter was an improvement of

$154,217 from the net loss of $636,392 in the preceding quarter ended December

31, 2005. The weighted average common shares outstanding for each of the

quarters ended March 31, 2006 and 2005 was 7,008,212.

Flow and Expenditures -

quarter ended March 31, 2006, cash and cash equivalents decreased by $416,437

compared to a decrease of $722,866 for the previous quarter ended December

quarter ended March 31, 2006, research and development expenses were $130,267

down 61% from $330,743 a year earlier. The level of future quarterly R&D

expenses will ultimately depend on the Company's assessment of new product

opportunities and available cash resources.

Selling, general and administrative expenses of $382,284 decreased by $77,000

17% for the quarter ended March 31, 2006 compared to the same period last year.

The achieved savings are from actions the Company initiated in the quarters

ending June 30, 2005 and September 30, 2005, reducing professional fees,

changing the CFO role to part-time, and through reduced premiums from changing

the Company's general insurance provider, partially offset by an increase in

Company has continued development of its new line of endoscopes based on unique,

patent pending Lenslock technology. Having completed the prototype development

effort, and delivery of initial production orders, the Company is in discussions

with a number of endoscopy market leaders who could provide significant new

sales opportunities.

Company is actively pursuing opportunities in the area of micro-precision

optics and continues to manufacture ultra-small lenses, prisms, and assemblies

with sizes ranging from 0.2 mm to 1 mm. In addition to ongoing

customers, the Company received a number of new orders for these micro-optics

Q3 and is also in discussions with several other customers regarding

manufacturing of prototypes of similar products. These optical components and

instruments utilize a variety of innovative techniques including the Company's

patent-pending micro-precisionTM

Company has recently completed a partnership effort for the proprietary

development of a new class of night vision lenses including a new patent-pending

eyepiece lens. With prototypes completed, the product incorporating the

Company's new night vision lenses is currently being evaluated for need and use,

including field testing. The Company cannot control the timing of current

evaluations and cannot therefore predict when, if ever, its developed prototypes

in night vision lenses might begin to generate revenue. Should the Company's

customer secure orders for its night vision system, the partnership agreement

ensures the Company will either be contracted to manufacture the new lenses,

will receive royalties on lenses manufactured elsewhere.

coming months the Company will continue to focus its efforts on marketing

products recently introduced. Development expenses may thus be reduced in

several areas, allowing the Company to realize improved margins.

13, 2006 the Company completed a private placement of its common stock, raising

proceeds of $2,112,500 less customary transaction expenses, including

professional fees associated with the private placement and the subsequent

registration of the common stock under the Securities Act of 1933, as amended.

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.

OPTICS CORPORATION, INC. AND SUBSIDIARIES

STATEMENTS OF OPERATIONS

THE THREE AND NINE MONTHS ENDED

OPTICS CORPORATION, INC. AND SUBSIDIARIES

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;