STAAR Surgical Reports Continued Momentum

STAAR Surgical Reports Continued Momentum

During Third Quarter

~Total Sales of $17.1 Million Increased

8% from Q3 2012 / 14% Increase in Constant Currency~

~Visian ICL Sales Grew

18%; Visian ICL with CentraFLOW Technology Driving Growth~

Revised Revenue Growth Metric of

13% to 14% is at Upper End of Range

GAAP Net Income of $0.01 per share;

Non-GAAP Net Income of $0.04 per share

Cash Position Increases to $23.4

MONROVIA, CA, October 30, 2013 -- STAAR Surgical Company

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

for the third quarter ended September 27, 2013 of $17.1 million, which represented 8% growth compared to $15.9 million reported

for the third quarter of 2012. The results included sales of $10.7 million of the Company's Visian ICL product portfolio

and $5.3 million of its IOL products. Low margin Other Product sales increased to $1.1 million, a 51% increase over the prior

year and 73% in constant currency. The effect of foreign currency exchange during the third quarter versus the same quarter in

the prior year reduced total sales by $1.0 million. On a constant currency basis, revenues grew 14% during the third quarter of

2013 compared to the third quarter of 2012.

"Visian ICL sales continued to show strong growth during

the quarter while LASIK continues to be under downward pressure," said Barry Caldwell, President and CEO. "ICLs with

CentraFLOW technology continue to be the key growth driver for us in markets where it is available. Key markets with CentraFLOW

like Europe and the Middle East grew 42% and 39% respectively. In Europe, Spain grew 23% year over year, reflecting the first

quarter with a true direct to direct distribution model comparison. We are still in the early days of adoption of the technology

in Korea, India and Argentina. Approximately 33,000 Visian ICLs with CentraFLOW have been successfully implanted since the introduction

of the technology. The CentraFLOW technology makes the procedure more convenient and cost effective for both the surgeon and the

patient. As a result of the momentum generated in the marketplace by our rapid cadence of new product developments, the Visian

ICL continues to gain market share in the global refractive surgical market.

"The recent ESCRS meeting in Amsterdam was an exceptionally

successful and productive event for STAAR. During the week there were 111 presentations on our Visian ICL technology, with the

Visian ICL Experts Meeting prior to ESCRS drawing 160 surgeons for the two day symposium. Throughout the week, we maintained a

strong presence, with the largest and most active booth in the Company's history and an evening ICL Symposium on the Visian

ICL technology that drew over 200 attendees. We also introduced the Visian ICL Preloaded System, which includes an enhanced optic

design with the CentraFLOW technology," added Caldwell. "This technology is designed to reduce the procedure time,

increase the useful optical zone for patients with larger pupils, as well as make the delivery of the ICL even more consistent.

We expect to gain CE Mark approval in Q4 and begin a full launch of commercialization during the first quarter of next year. As

we continue the rapid cadence of new products utilizing our ICL platform, the focus within our Research and Development group

turns to the V6 ICL. This product will both expand into a new market segment of presbyopia correction as well as make the ICL

more competitive to LASIK in the myopic age group nearing their 40's."

Gross profit margin for the quarter was 70.5% compared to 70.4

% in the third quarter of 2012. The manufacturing of the preloaded silicone IOL in the U.S. now has a higher cost structure in

Japan due to the weaker value of the yen as compared to 2012 which negatively impacts gross margin dollars. Increased IOL injector

sales sold at low margins to the Company's KS-IOL lens supplier negatively impacted gross margin as well. Combined these

two factors negatively impacted gross margin percent for the quarter by 270 basis points. Without the impact of these factors,

gross margins would have been 73.2%. As long as the value of the yen compared to the dollar is weak, the Company's gross

margin expansion will continue to be negatively impacted.

Operating expenses for the third quarter of 2013 were $11.9

million, up 5% from the $11.3 million prior year period reflecting $490,000 in charges associated with the Company's manufacturing

consolidation project. General and Administrative expenses in the third quarter were $4.1 million, a 20% increase over the third

quarter of 2012. This increase was due mainly to an increased accrual as compared to Q3 2012 for the performance based employee

bonus plan and incremental cost associated with the expanded facility in Monrovia. These costs totaled approximately $560,000

additional expense compared to the third quarter of 2012. Sales and Marketing expenses were $5.5 million, essentially flat to

the same quarter in the prior year. The costs of increased headcount were offset by decreased trade show expenses due to the timing

of the ESCRS meeting which fell in the fourth quarter this year as compared to in the third quarter of 2012. Research and Development

expenses were $1.7 million, a 6% increase over Q3 2012 of $1.6 million. This increase was driven by investments in R&D related

new product development and increased regulatory cost associated with key product approvals. The cost of the manufacturing consolidation

project which is recorded as Other Expense was $238,000 lower than the third quarter of 2012. The effect of foreign currency exchange

on overall operating expenses provided a positive impact of $624,000.

"During the quarter we began to see the first tax advantages

from the manufacturing consolidation project as the Company recorded an income tax benefit of $433,000," added Steve Brown,

Chief Financial Officer. "Since we are no longer manufacturing in Japan we are able to release the valuation allowance against

its tax assets." Income taxes provided an overall net benefit of $25,000 during the third quarter of 2013 compared to a

$219,000 tax provision during the third quarter of 2012. Excluding the tax benefit from the Japan restructuring the effective

tax rate for the quarter was approximately 82%.

GAAP net income for the third quarter of 2013 was $525,000,

or $0.01 on a per diluted share basis, compared with net loss of $90,000, or $0.00 on a per diluted share basis, in the third

quarter of 2012. Adjusted net income (excluding manufacturing consolidation expenses, Spain distribution transition costs, gain

(loss) on foreign currency transactions, fair value adjustment of warrants, and stock-based compensation expense) for the quarter

ended September 27, 2013 was $1.7 million or $0.04 per diluted share versus adjusted net income for the year ago quarter of $1.7

million or $0.05 per diluted share. The reconciliation between GAAP and non-GAAP financial matters is provided with financial

tables included with this release.

Cash and cash equivalents on September 27, 2013 reached a record

high of $23.4 million, compared to $19.7 million at the end of the second quarter of 2013 and $21.7 million at the end of fiscal

2012. Cash generation from operations during the quarter was $3.1 million, which includes the use of $0.5 million for the manufacturing

consolidation project. The Company also used $1.0 million for the purchase of property and equipment and generated $1.8 million

in proceeds from stock option exercises.

Recent Visian Implantable Collamer Lens (ICL)

Regional ICL Updates

Europe, Middle East, Africa (EMEA)

Recent Intraocular Lens (IOL) Highlights

Project Comet Update

During the quarter the Company continued to make progress toward

completing the manufacturing consolidation project by mid-2014. At the end of the second quarter the Company had approximately

7,500 ICLs in finished goods inventory. At the end of the third quarter the Company has approximately 11,400 ICLs in inventory

held in both Europe and the U.S. This represents a 50% increase of ICLs in finished goods inventory during the quarter while shipping

15% more units from stock compared to the third quarter of 2012. This inventory build is consistent with management's plan

to assure adequate supply and quality of product throughout this consolidation project. Manufacturing yields of the ICL in the

U.S. continue to increase.

Nine Month YTD Results

For the nine month period ended September 27, 2013, sales increased

to $53.3 million versus $47.3 million during the first nine months of 2012, a 13% increase in U.S. dollars and 18% increase in

constant currency. Gross profit increased by 13% as gross margin percentage reached 70.1%. Gross margin percentage was negatively

impacted by the value of the yen and increased injector sales by 260 basis points. The nine month gross margin would have been

72.7% if not for these two factors. Operating expenses increased $2.3 million or 6.9% and were positively impacted by

the effect of currency exchange by $1,447,000. Key investment spending included of $2.0 million for the manufacturing consolidation

project during the nine month period, approximately $731,000 for the facility improvements in the expanded U.S. facility and $442,000

for the transition to a direct distribution model in Spain. Income taxes increased $109,000 and the new medical device tax was

$149,000. Net Income on a GAAP basis was $1.3 million or $0.03 per diluted share as compared to a loss of $0.3 million or $0.01

per diluted share during the first nine months of 2012. The non-GAAP adjusted net income increased to $6.7 million or $0.17 per

diluted share basis compared to $4.3 million or $0.12 per diluted share basis during the first nine months of 2012. For the first