PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487 POC: 27-0043 Page 1 of 1 NEWS RELEASE FOR IMMEDIATE RELEASE Thursday

OPTICS CORPORATION RECEIVES

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

POCI.OB), (the "Company") today announced that it has completed a private

placement of its common stock raising proceeds of $2,500,000. The Company issued

10,000,000 shares of common stock at $0.25 per share and warrants to purchase

aggregate of 10,000,000 shares of common stock at an exercise price of $0.32

share. The net proceeds of the sale of the common stock and the warrants are

be used for working capital and general corporate purposes which include capital

for growth of its new medical market initiatives, as well as supporting working

capital needs for ongoing product development and the Company's recently

announced receipt of initial production orders for an

advanced surgical visualization system.

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.

The Company has agreed to file a registration statement with the Securities

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

and the shares of common stock issuable upon the exercise of the warrants sold

in this 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.

statements contained in this news release are made under "safe harbor"

provisions of the Private Securities Litigation Reform Act of 1995 and involve

number of risks and uncertainties that could materially affect future