Investors Media EVC Group EVC Group Douglas Sherk, 415-652-9100 Chris Gale, 646-201-5431 Leigh Salvo, 415-568-9348 STAAR Surgical Reports Strong Second Quarter Financial Results Total Sales of $18.2 Million Incr

STAAR Surgical Reports Strong Second

Quarter Financial Results

Total Sales of $18.2 Million Increased

14% from Q2 2012 / 20% Increase on Constant Currency Basis

Visian ICL Sales Grew

31% to Record $11.3 Million

CentraFLOW Technology Continues to Drive Growth

Company Increases Revenue Growth Metric

GAAP Net Income of $0.01 per share;

Non-GAAP Adjusted Net Income of $0.05 per share

MONROVIA, CA, July 31, 2013 -- STAAR Surgical Company

(NASDAQ: STAA), a leading developer, manufacturer and marketer of minimally invasive ophthalmic products, today reported revenue

for the second quarter ended June 28, 2013 of $18.2 million, which represented 14% growth compared to $15.9 million reported for

the second quarter of 2012. The results included sales of $11.3 million of the Company's Visian ICL product portfolio and

$5.9 million of its IOL products. In addition, low margin Other Product sales increased to $1.0 million. The effect of foreign

currency exchange during the quarter versus prior year second quarter reduced total sales by $1.0 million. On a constant currency

basis revenues grew 20% during the second quarter of 2013 compared to the second quarter of 2012.

"We delivered a second consecutive quarter of solid revenue

growth with some very positive trends that we believe can be built on over the next several quarters," said Barry Caldwell,

President and CEO. "In our focused major markets, our Visian ICL continues to gain share over LASIK. We have now successfully

implanted over 20,000 ICLs with CentraFLOW and this technology continues to be a key growth driver. During June we received approval

of the ICL with CentraFLOW in Argentina and Korea. The ICL with CentraFLOW launch events took place this month in Korea and also

in India where we now expect to receive the final product approval during the third quarter. Based upon our experience in Europe,

the wider approval range of the Visian ICL with CentraFLOW opens up the refractive market for increased market share gains."

"We saw good growth in ICL revenues from all three of

our regions despite the continued downward pressure on LASIK, added Mr. Caldwell. "Our European region grew 47% during the

quarter driven by the new CentraFLOW technology, productivity from our expanded sales team in the region and the shift to a direct

selling model in Spain. Our Asia Pacific region grew Visian ICL sales by 29% which was driven by 77% growth in China. With the

growth renewal in China during the quarter that market was our number one market in Visian ICL revenues. During the second half

of this year the region will have the new CentraFLOW approvals in Korea and India to drive incremental growth. North America grew

ICL revenues by 9%. The U.S. continues to show market share gains as revenue grew 10% while units increased 15% during the quarter.

Our competitors promoting LASIK continue to profile the U.S. as a very challenging market for refractive procedures."

"We sold our first nanoFLEX Toric IOLs in Europe

during the quarter with encouraging results. IOL growth overall continued to be negatively impacted by KS IOL product supply and

the worsening value of the yen. The negative impact from the value of the yen on IOL sales was $827,000 during the quarter. We

had to suspend delivery of our new KS IOL products to China until we have additional supply which is dependent on our third party

supplier. This interruption in supply for China resulted in reduced sales of $810,000 as compared to second quarter of 2012 and

$347,000 sequentially. Our backorders in Europe increased to $1.2 million at the end of the second quarter."

"Our manufacturing consolidation project remained basically

on schedule as all IOLs and 21% of myopic ICLs through final inspection were manufactured in Monrovia during June. Throughout this

three year process, supply and product quality have remained our priority. As a result of higher than expected demand for the Visian

ICL during the first half of the year our ICL inventory levels in Switzerland have declined below our level of comfort. We need

to build more ICL units during the second half for both the increased demand and inventory replenishment. In order to accomplish

this we have decided to extend completion of our manufacturing consolidation initiative until the first half of 2014. By the end

of December we expect to have two thirds of all myopic ICLs and one third of all TICLs manufactured in the U.S. as well as 100%

of all IOL products. Production in Switzerland will continue into the first half of next year to build more robust inventory levels

for our ICL products and we plan to begin a second shift in Monrovia at the end of August. We do not anticipate this slight shift

will interfere with the planned use of all of the NOLs after consolidation," Mr. Caldwell continued.

"We remain focused on expanding our market share and gaining

additional approvals for our technology in key markets. I am encouraged that we have executed so well against the plan we laid

out at the start of this year. While we expect to have continued headwinds due to the yen valuation, as a result of our performance

during the first half of the year, and the positive momentum going into the second half of the year, we are increasing our annual

revenue growth metric from the original 8 to 10% to the 12 to 14% range," concluded Mr. Caldwell.

Gross profit margin for the quarter was 69.5% compared to 69.3%

in the second quarter of 2012. The highest gross margin product, the Visian ICL, represented 62% of all revenue during the quarter.

Gross margin expansion was limited primarily by a 23% sequential increase in very low margin IOL injector systems sales to a third

party supplier for the buildup of their acrylic preloaded product supply, which appears in the Other Product sales category. These

sales generated a gross margin considerably below the Company's Visian ICL and IOL product lines gross margins. Those differences

accounted for a 150 basis point difference in the gross margin results during the quarter which would have otherwise been 71%.

Operating expenses for the second quarter of 2013 were $11.9

million, up 6.4% from the $11.2 million prior year period reflecting $613,000 in related charges associated with the Company's

manufacturing consolidation project and a $293,000 increase in sales and marketing expenses driven by the additions to the Company's

headcount throughout 2012. The effect of foreign currency exchange on overall operating expenses was a positive $505,000.

Income taxes increased to $599,000 during the second quarter

of 2013 compared to $327,000 during the second quarter of 2012. The overall tax rate was 68.3% during the quarter and the estimated

tax rate for 2013 has been increased to 45% due to the Company's decision to extend the completion date of its manufacturing

consolidation project to focus on meeting near term demand. Additionally, the effective tax rate for the quarter was negatively

impacted because under GAAP jurisdictions with losses are excluded from the calculation for interim reporting purposes.

GAAP net income for the second quarter of 2013 was $278,000,

or $0.01 on a per diluted share basis, compared with net loss of $491,000, or $0.01 on a per diluted share basis, in the second

quarter of 2012, a $769,000 improvement. 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 June 28,

2013 was $1.8 million or $0.05 per diluted share versus adjusted net income for the year ago quarter of $1.2 million or $0.03 per

diluted share. The reconciliation between GAAP and non-GAAP financial matters is provided with financial tables included with this

Cash and cash equivalents on June 28, 2013 totaled $19.7 million,

compared to $19.2 million at the end of the first quarter of 2013. Cash generation from operations during the quarter was $788,000,

which includes the use of $613,000 for the manufacturing consolidation project. The Company also used $799,000 for the purchase

of property and equipment and generated $929,000 in proceeds from stock option exercises.

For the six month period ended June 28, 2013, sales increased

to $36.2 million versus $31.5 million during the first half of 2012, a 15% increase in U.S. dollars and 21% increase in constant

currency. Gross profit increased by 15%. Operating expenses increased $1.7 million or 7.6%, which included key investments

of $1.5 million for the consolidation project ($262,000 above prior year) and incremental spending of $916,000 in sales and marketing.

Operating income increased by $1.7 million during the six month period. Income taxes were $355,000 higher and the new medical device

tax was $104,000. Net Income on a GAAP basis was $749,000 or $0.02 per diluted share and the non-GAAP adjusted net income increased

to $5.0 million or $0.13 per diluted share basis as compared to $2.6 million or $0.07 per diluted share during the first half of

Recent Visian Implantable Collamer Lens (ICL)

Regional ICL Updates

Europe, Middle East, Africa (EMEA)

Recent Intraocular Lens (IOL) Highlights

Project Comet Update

2013 Metrics- Revenue Growth Metric Increased; Manufacturing

Consolidation Extended

The Company updated its metrics as follows and will continue

to report and update on each of the 2013 metrics quarterly:

The Company will host a conference call and video webcast today,

July 31, 2013 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss the Company's second quarter 2013 financial results and recent

corporate developments. The dial-in number for the conference call is 877-703-6105 for domestic participants and 857-244-7304 for

international participants, both using a passcode 23510067.

The Company will also be using slides to illustrate its second