STAAR Surgical Reports Fourth Quarter and Full Year 2015 Results MONROVIA, CA

STAAR Surgical Reports Fourth Quarter

and Full Year 2015 Results

MONROVIA, CA, March 2, 2016---STAAR Surgical Company

(NASDAQ: STAA), a leading developer, manufacturer and marketer of implantable lenses and delivery systems for the eye today reported

financial results for the fourth quarter and full year ended January 1, 2016.

Fourth Quarter 2015 Overview

Full Year 2015 Overview

"Our record fourth quarter and full year net sales were

due to the continuing growth of our ICL business. The majority of APAC and EMEA ICL markets performed very well closing out the

year with good momentum. The success of the CentraFLOW ICL in approved markets spurred the growth with both the Spheric and

Toric versions of the lens growing double digits. We now have approximately 200,000 implants of this lens and the clinical data

is testament to its potential as a primary and premium lens choice for refractive surgeons. Our ICL lenses are intended to provide

visual freedom for patients, lessening or eliminating the reliance on glasses or contact lenses. In 2016, we will be focusing aggressively

on a number of key strategic priorities to advance the ICL as an Evolution in Visual Freedom for patients globally",

said Caren Mason, President and CEO. "We are beginning the second year of our commitment to build a foundation for consistent

growth. Our leading imperative remains our work in FDA remediation and quality system overhaul while we build a strong Culture

of Quality for STAAR. Our other imperatives include ICL market building, global key accounts focus, clinical validation and

regulatory rebirth, innovation in products, materials and delivery systems and continuing infrastructure and systems renovation.

The investment in these imperatives will remain significant and will outpace revenue and gross margin expansion in the near term.

One-time charges, such as the recently announced stock plan acceleration expense, need also to be considered. An aggressive and

transformative three year cycle is essential for STAAR to capture its market position as a clinically proven product provider with

global quality and regulatory compliance that is at the forefront of refractive procedure offerings", added Ms. Mason.

Net sales were $20.9 million for the fourth quarter of 2016,

up 26% compared to $16.6 million reported in the prior year. On a constant currency basis, fourth quarter net sales increased 27%

compared to the prior period.

The sales increase was driven by strong ICL unit sales in APAC

and EMEA with units growing 118% and 16%, respectively and a price increase on ICL's in most markets that averaged 6%. These

increases were partially offset by lower IOL unit sales and foreign currency changes due to the strengthening U.S. dollar against

the euro and the yen.

For the fourth quarter of 2015, the gross profit margin increased

13.6 points to 70.3% compared to the prior year period of 56.7%. An increased mix of higher margin ICL units, higher average selling

prices exclusive of currency impacts, and lower unit and other costs improved gross margin by approximately 14.5 points which was

partially offset by a decrease of approximately one point due to the impact of the weaker euro on average selling prices.

Operating expenses for the quarter increased 12% to $14.7 million

from $13.1 million in the prior year period due to costs related to quality system improvements of $600,000, increased selling

costs in Germany of $500,000 as a result of the conversion to a direct sales force in that market, and higher headcount costs of

$500,000. General and administrative expense was $4.9 million and $600,000 higher than the prior year due to bonuses and stock-based

compensation, partially offset by lower recruiting and consulting costs. Marketing and selling expense was $5.9 million and $200,000

higher than the prior year due to the costs of direct selling in Germany, partially offset by optimization of North American selling

and promotional costs. Research and development expense, which includes remediation and other FDA expenses, was $4.0 million and

approximately $700,000 higher than the prior year due to increased validation and project-related spending, partially offset by

lower remediation expenses. Remediation expense for the year was on budget.

The net loss for the fourth quarter of 2015 was $0.8 million

or $0.02 per share, compared with a net loss of $2.5 million or $0.07 per share for the prior year period.

Adjusted net income for the fourth quarter of 2015 was $537,000

or $0.01 on a per diluted share basis, compared with an adjusted net loss of $1.2 million or $0.03 per diluted share for the prior

year period. The reconciliation between GAAP and non-GAAP financial information is provided in the financial tables included with

The GAAP net loss for the fiscal year ending January 1, 2016

was $6.5 million or $0.17 per share, compared to a net loss of $8.4 million or $0.22 per share for the prior year. Adjusted net

income for the full year was $1.7 million or $0.04 per diluted share versus adjusted net income of $779,000 or $0.02 per diluted

share for the prior year.

Cash and cash equivalents at January 1, 2016 totaled $13.4 million,

compared to $16.1 million at the end of the third quarter of 2015 and $13.0 million at year-end 2014. The Company used $2.7 million

in cash during the fourth quarter of 2015, which includes $1.8 million used in operating activities and $0.8 million for purchases

of property and equipment.

The Company will host a conference call and webcast on Wednesday,

March 2 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss its financial results. To access the conference call (Conference ID

34287402), please dial 855-765-5684 for domestic participants and 262-912-6252 for international participants. The live webcast

can be accessed from the investor relations section of the STAAR website at www.staar.com.

A taped replay of the conference call will also be available

beginning approximately one hour after the call's conclusion for seven days. This replay can be accessed by dialing 855-859-2056

for domestic callers and 404-537-3406 for international callers. An archived webcast will also be available at www.staar.com.

Use of Non-GAAP Financial Measures

This press release includes supplemental non-GAAP financial

information, which STAAR believes investors will find helpful in understanding its operating performance.

The Company conducts a significant part of its activities outside

the U.S. It receives sales revenue and pays expenses principally in U.S. dollars, Swiss francs, Japanese yen and euros. The exchange

rates between dollars and non-U.S. currencies can fluctuate greatly and can have a significant effect on the Company's results

when reported in U.S. dollars. When preparing its financial statements in conformity with U.S. generally accepted accounting principals

("GAAP"), the Company translates foreign currency sales and expenses denominated in Japanese yen to dollars at the

weighted average of exchange rates in effect during the period. As a result, the Company's reported performance may be significantly

affected by currency fluctuations. In order to compare the Company's performance from period to period without the effect of currency,

the Company will apply the same average exchange rate applicable in the prior period, or the "constant currency" rate

to sales or expenses in the current period as well. Because changes in currency are outside of the control of the Company and

its managers, management finds this non-GAAP measure useful in determining the long-term progress of its initiatives and determining

whether its managers are achieving their performance goals. The Company believes that the non-GAAP constant-currency sales results

measures provided in this press release are similarly useful to investors to give insight on long term trends in the Company's

performance without the external effect of changes in relative currency values. The table below shows sales results calculated

in accordance with GAAP, the effect of currency, and the resulting non-GAAP measure expressed in constant currency.

"Adjusted Net Income (or Loss)" excludes the following

items that are included in "Net Income (or Loss)" as calculated in accordance with GAAP: manufacturing consolidation

expenses, gain or loss on foreign currency transactions, stock-based compensation expenses, and FDA panel and remediation expenses.

Management believes that "Adjusted Net Income (or Loss)"

is useful to investors in gauging the outcome of the key drivers of the business performance: the ability to increase sales revenue

and our ability to increase profit margin by improving the mix of high value products while reducing the costs over which management

Management has excluded manufacturing consolidation expenses

and FDA panel and remediation expenses because these are non-recurring expenses and their inclusion may mask underlying trends

in our business performance.

Management has also excluded gains and losses on foreign currency

transactions because of the significant fluctuations that can result from period to period as a result of market driven factors.

Stock-based compensation expenses consist of expenses for stock

options and restricted stock under the Financial Accounting Standards Board's Accounting Standards Codification (ASC) 718.

In calculating "Adjusted Net Income (or Loss)" STAAR excludes these expenses because they are non-cash expenses and

because of the complexity and considerable judgment involved in calculating their values. In addition, these expenses tend to be

driven by fluctuations in the price of our stock and not by the same factors that generally affect our other business expenses.

The Company has provided below a detailed reconciliation table,

which is useful to investors in providing the context to understand STAAR Surgical's non-GAAP information and how it differs

About STAAR Surgical

STAAR, which has been dedicated solely to ophthalmic surgery

for over 30 years, designs, develops, manufactures and markets implantable lenses for the eye with companion delivery systems.