STAAR Surgical Reports Third Quarter 2017 Results MONROVIA, CA

STAAR Surgical Reports Third Quarter 2017 Results

MONROVIA, CA, November 8, 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 third quarter ended September 29, 2017.

Third Quarter 2017 Overview

"During Q3, we achieved a number of milestones for the

company. We were pleased to deliver a profitable quarter with $0.03 positive earnings per share and approximately $3.1 million

in positive cash flow from operations. We achieved record revenue and gross profit for the quarter while benefiting from planned

expense management and a shift in marketing expense for our Experts Meeting and ESCRS to the fourth quarter. Top line results include

record ICL sales and record ICL units with Canada units up 200%, China units up 76%, Japan units up 48%, Germany units up 28% and

Global Distributors units up 22% over the prior year quarter. China's demand was especially strong as the third quarter encompasses

the largest procedure volume of the year. As we have expanded our business substantially in China, the largest refractive surgery

market globally, we now will be planning for greater revenue in Q3 in future years than in previous years." said Caren Mason,

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

ICL with EDOF optic is nearly finished and the results continue to meet intended outcomes. We plan to begin our pivotal clinical

trial during the first quarter of 2018 to evaluate the performance of an EDOF optic design to treat Presbyopia on the approved

EVO Visian Implantable Collamer Lens platform. With regard to FDA remediation, we completed our internal work in the first quarter

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

Net sales were $23.5 million for the third quarter of 2017,

up 17% compared to $20.1 million reported in the prior year quarter. The sales increase was driven by ICL revenue and unit growth

of 22% and 18%, respectively, and strong injector part sales. Sales of IOLs decreased 16% compared to the prior year quarter.

Gross profit margin for the third quarter

of 2017, was 71.8% compared to the prior year period of 74.2%. The decrease in gross margin for the quarter is due to unfavorable

product mix due to increased sales of low margin injector parts, increased inventory provisions due to timing, and an increase

in ICL unit costs, partially offset by an increased sales mix of Toric ICLs.

Operating expenses for the quarter were

$15.8 million compared to the prior year quarter of $16.6 million. The decrease in operating expenses for the quarter was

due to planned expense management and the timing of our Experts Meeting and the ESCRS, which were held and expensed in the third

quarter of 2016 versus being held and expensed in the fourth quarter of 2017.

Net income for the third quarter of 2017 was $1.2 million or

approximately $0.03 per diluted share compared with a net loss of $1.8 million or $0.04 per share for the prior year quarter.

Adjusted Net Income for the third quarter of 2017 was $1.5 million

or $0.04 per diluted share, compared with an Adjusted Net Loss of $0.9 million or $0.02 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 September 29,

2017 totaled $16.3 million, compared to $14.1 million at the end of the fourth quarter of 2016 and $14.4 million at the end of

the third 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 effectively increase its cash balances.

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

November 8, 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 6998378), 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 6998378)

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 Income

(Loss)" and "Adjusted Net Income (Loss) Per Share" exclude the following items that are included in "Net

Income (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 Income (Loss)" and "Adjusted Net Income (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 Income (Loss) and Adjusted Net Income (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," which includes the EVO Visian ICL

product line. 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, revenue, earnings, marketing and clinical initiatives, completion of remediation or other expense,

or expense timing, 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 or events.

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

Consolidated Balance Sheets

STAAR Surgical Company

Consolidated Statements of Operations

(In 000's except for per share data)