Advanced Medical Optics (EYE)

Eye Care

Eye care sales declined 23.0 percent to $56.8 million in the first quarter, including a 4.3 percent negative impact related to foreign currency. Soft performance in Japan, along with accelerated rationalization of non-strategic products primarily in Europe and Japan overshadowed positive results in the U.S. Below are highlights of eye care categories for the first quarter of 2006. Growth rates reflect comparisons to the same period in 2005 and include the impacts of foreign currency.

•                  Multipurpose solution sales declined 9.8 percent to $32.3 million. Results reflected declines in sales in international markets and unfavorable currency translations, offset by growth of the company’s flagship COMPLETE® MoisturePLUSä brand in the U.S.

•                  Sales of hydrogen peroxide solutions declined 31.6 percent to $14.2 million, reflecting the continuing contraction of the global hydrogen peroxide market, which is concentrated in Japan and parts of Europe.

•                  Sales of other eye care products declined 40.2 percent to $10.3 million. These results reflected the company’s accelerated rationalization of older-generation products that no longer fit its growth strategy.

In recent weeks, the eye care market has been impacted by reports of fungal keratitis among contact lens wearers in the U.S. and certain international markets. AMO’s COMPLETE® MoisturePLUSä has earned an excellent safety record since its introduction in 2003. During this time, the company has never had a confirmed case of fungal keratitis attributed to use of its multipurpose solutions and has no reason to believe any of the recent cases are in any way attributable to the company’s products.

Eye Care

Eye care revenue grew 1.2 percent in the second quarter, including a 2.1 percent increase related to foreign currency, to $83.1 million, compared to $82.1 million in 2004’s second quarter. The second-quarter performance was impacted by growth in the company’s multipurpose solutions and an offsetting decline in hydrogen peroxide sales, primarily in Japan where the contact lens care market is moving to multipurpose systems.

Sales of AMO’s multipurpose solutions rose 14.8 percent in the second quarter to $44.2 million, compared to $38.5 million one year ago. Sales of the company’s flagship COMPLETE^® branded product line were up 19.5 percent for the quarter.

Eye Care

Eye care revenue grew 2.5 percent in the first quarter, including a 3.3 percent increase related to foreign currency, to $73.8 million, compared to $72.0 million in 2004’s first quarter. The first-quarter performance was primarily impacted by a decline in sales in Japan. This was due in part to a gradual decline in hydrogen peroxide sales as a result of the market’s movement to single-bottle systems.

While overall eye care sales declined, sales of multipurpose solutions rose 14 percent in the first quarter to $37.0 million, compared to $32.5 million one year ago. Sales of the company’s flagship COMPLETE^® branded product line were up 16.3 percent for the quarter. AMO continues to expect its global eye care franchise to grow annually at a rate of 1 percent to 3 percent, excluding the impacts of currency.

Eye Care

Eye care revenue growth remained strong in the fourth quarter, rising 11.5 percent, including a 4.6 percent increase related to foreign currency, to $89.7 million, compared to $80.5 million in 2003’s fourth quarter.

Sales of the company’s flagship COMPLETE® branded product line were up 4.9 percent for the quarter and 17.6 percent for the full year. AMO’s COMPLETE® MoisturePLUS^™, the first multipurpose solution with two artificial tear ingredients, is designed to alleviate discomfort and dryness for contact lens wearers.

For the full year 2004, eye care revenue grew 11.4 percent, including a 6.2 percent increase related to foreign currency, to $328.7 million, compared to $294.9 million in 2003.

Eye Care

Eye care revenue growth remained strong in the fourth quarter, rising 11.5 percent, including a 4.6 percent increase related to foreign currency, to $89.7 million, compared to $80.5 million in 2003’s fourth quarter.

Sales of the company’s flagship COMPLETE® branded product line were up 4.9 percent for the quarter and 17.6 percent for the full year. AMO’s COMPLETE® MoisturePLUS^™, the first multipurpose solution with two artificial tear ingredients, is designed to alleviate discomfort and dryness for contact lens wearers.

For the full year 2004, eye care revenue grew 11.4 percent, including a 6.2 percent increase related to foreign currency, to $328.7 million, compared to $294.9 million in 2003.

Eye Care

Eye care revenue growth remained strong in the fourth quarter, rising 11.5 percent, including a 4.6 percent increase related to foreign currency, to $89.7 million, compared to $80.5 million in 2003’s fourth quarter.

Sales of the company’s flagship COMPLETE® branded product line were up 4.9 percent for the quarter and 17.6 percent for the full year. AMO’s COMPLETE® MoisturePLUS^™, the first multipurpose solution with two artificial tear ingredients, is designed to alleviate discomfort and dryness for contact lens wearers.

For the full year 2004, eye care revenue grew 11.4 percent, including a 6.2 percent increase related to foreign currency, to $328.7 million, compared to $294.9 million in 2003.