STAAR Surgical Reports Second Quarter 2017 Results MONROVIA, CA

STAAR Surgical Reports Second Quarter 2017

MONROVIA, CA, August 2, 2017---STAAR

Surgical Company (NASDAQ: STAA), a leading developer, manufacturer and marketer of implantable lenses and companion delivery systems

for the eye today reported financial results for the second quarter ended June 30, 2017.

Second Quarter 2017 Overview

"Our work to advance the ICL to its rightful position

as a premium and primary refractive vision correction solution continues to spur strong growth in many countries globally. Unit

growth in Q1 of 20% followed by unit growth of 11% in Q2 in spite of anticipated challenges in the India and Korea markets for

the quarter are an indicator of continued strong progress. During Q2, the Toric ICL achieved another new quarterly record for shipments.

ICL unit highlights for Q2 include growth in Canada of 119%, China of 57%, and Japan of 24%. Region growth was strong in ICL units

as well with North America and Asia Pacific Regions recording 15% unit growth respectively. With the positioning of the sale of

the ICL for the more competitive lower diopter range lenses and the addition of strategic accounts with incentivized volume commitments;

our average selling prices have been appropriately adjusted to gain share in targeted markets. Our position as market leader and

superior refractive surgical solution for high Myopes, however, continues to earn premium pricing," said Caren Mason, President

"Our first-in-man clinical trial for the next generation

ICL with EDOF continued during the quarter and the results continue to be positive. In July, DEKRA, our European Union notified

regulatory body, re-certified our facilities as compliant with ISO 13485 and re-certified the CE marking for all of our currently

certified and commercially available medical devices. With regard to FDA remediation, we completed our internal work in the first

quarter of 2017 and have notified the FDA that we are ready for inspection," added Ms. Mason.

Net sales were $21.9 million for the second quarter of 2017,

up 5% compared to $21.0 million reported in the prior year quarter. The sales increase was driven by ICL revenue and unit growth

of 6% and 11%, respectively, and strong injector part sales. Sales of IOLs decreased 14% compared to the prior year quarter.

For the second quarter of 2017, gross

profit margin was 70.5% compared to the prior year period of 69.7%. The increase in gross margin for the quarter is due

to a 12% increase in Toric ICL sales (our highest margin product), a reduction in inventory reserves and improved unit costs,

partially offset by lower average selling prices and unfavorable product mix due to increased sales of low margin injector

parts. Inventory provisions in 2016 were unfavorably impacted by the discontinuance of silicone IOL sales in the U.S. and

V4b ICL sales internationally.

Operating expenses for the quarter were

flat at $16.8 million compared to the prior year quarter. General and administrative expense was $4.8 million, 3.4% lower

than the prior year quarter. Marketing and selling expense was $7.3 million, up 1.9% compared to the prior year quarter.

Research and development expense was $4.7 million, up 1.1% compared to the prior year quarter.

The net loss for the second quarter of 2017 was $1.0 million

or approximately $0.02 per share compared with a net loss of $2.1 million or $0.05 per share for the prior year quarter.

The Adjusted Net Loss for the second quarter of 2017 was $0.4

million or $0.01 Adjusted Net Loss Per Share, compared with an Adjusted Net Loss of $1.0 million or $0.02 Adjusted Net Loss Per

Share for the prior year quarter. The reconciliation between GAAP and non-GAAP financial information is provided in the financial

tables included with this release.

Cash, cash equivalents and restricted cash at June 30, 2017

totaled $13.6 million, compared to $14.1 million at the end of the fourth quarter of 2016 and $12.8 million at the end of the second

quarter of 2016. Continued focus on optimizing the Company's cash position through revenue growth, expense mitigation, and

working capital management enabled the Company to maintain a cash balance consistent with the $13.6 million reported for the end

of the first quarter of 2017.

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

August 2, 2017 at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss its financial results and operational progress. To access the

conference call (Conference ID 54127075), 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 (Conference ID 54127075)

will 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

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. "Adjusted Net Loss"

and "Adjusted Net Loss Per Share" exclude the following items that are included in "Net Loss" as calculated

in accordance with U.S. generally accepted accounting principles ("GAAP"): gain or loss on foreign currency transactions,

stock-based compensation expenses, and quality remediation expenses. Management believes that "Adjusted Net Loss" and

"Adjusted Net Loss Per Share" are 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 has control. Management has excluded quality remediation expenses because 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 Loss and Adjusted Net Loss Per Share, 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.

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.

These lenses are intended to provide visual freedom for patients, lessening or eliminating the reliance on glasses or contact

lenses. All of these lenses are foldable, which permits the surgeon to insert them through a small incision. STAAR's lens

used in refractive surgery is called an Implantable Collamer Lens or "ICL". More than 700,000 Visian ICLs have

been implanted to date. To learn more about the ICL go to: www.discovericl.com. STAAR has approximately 340 full-time equivalent

employees and markets lenses in over 60 countries. Headquartered in Monrovia, CA, the company operates manufacturing facilities

in Aliso Viejo, CA and Monrovia, CA. For more information, please visit the Company's website at www.staar.com.

All statements in this press release that are not statements

of historical fact are forward-looking statements, including statements about any of the following: any financial projections,

including those relating to the plans, strategies, and objectives of management for future operations or prospects for achieving

such plans, expectations for sales, marketing and clinical initiatives, completion of remediation or other expense, success and

timing of new or improved products, clinical trials, research and development activities, investment imperatives, and any statements

of assumptions underlying any of the foregoing. Important factors that could cause actual results to differ materially from those

indicated by such forward-looking statements are set forth in the Company's Annual Report on Form 10-K for the year ended

December 30, 2016 under the caption "Risk Factors," which is on file with the Securities and Exchange Commission and

available in the "Investor Information" section of the company's website under the heading "SEC Filings."

We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information

These statements are based on expectations and assumptions as

of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ

materially from those described in the forward-looking statements. The risks and uncertainties include the following: our limited

capital resources and limited access to financing; global economic conditions; changes in currency exchange rates; the discretion

of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before approval

(including but not limited to FDA requirements regarding the Visian Toric ICL and/or actions related to the FDA Warning Letter

and Form FDA-483s), or to take enforcement action; research and development efforts; the purchasing patterns of our distributors

carrying inventory in the market; and the willingness of surgeons and patients to adopt a new or improved product and procedure.

The Visian Toric ICL and the Visian ICL with CentraFLOW, now known as EVO Visian ICL, are not yet approved for sale in the United

Brian Moore, 310-579-6199

Doug Sherk, 415-652-9100

STAAR Surgical Company

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