Advanced Medical Optics (EYE)

Financial Guidance

AMO expects 2008 sales in the range of $1.17 billion to $1.20 billion and adjusted 2008 EPS in the range of $0.70 to $0.80. The company’s adjusted EPS guidance includes acquisition-related amortization, which is estimated to be approximately $70 million, or approximately $0.70 per share on an after-tax basis. AMO’s adjusted EPS guidance excludes the impact of charges and write-offs associated with acquisitions, reorganizations, restructurings and recapitalizations, impairments, unrealized gains or losses on derivative instruments and other periodic or special charges or gains. For more information, see the “Use of Non-GAAP Measures” section later in this release.

Financial Guidance

AMO reduced its adjusted 2008 EPS guidance to a range of $1.00 to $1.15 (versus prior guidance of $1.25 to $1.45), based primarily on its revised outlook for U.S. refractive procedures. Weak U.S. economic conditions and corresponding significant declines in consumer discretionary spending drove the company’s U.S. excimer procedures down nearly 40% in June. As a result, AMO now expects its 2008 U.S. excimer procedures to be approximately 25% below 2007 levels. The company reiterated its 2008 sales guidance range of $1.22 billion to $1.24 billion. The company’s adjusted EPS guidance includes acquisition-related amortization, which is estimated to be approximately $70 million, or approximately $0.70 per share on an after-tax basis. AMO’s adjusted EPS guidance excludes the impact of charges and write-offs associated with acquisitions, restructurings, recapitalizations, reorganizations, unrealized gains or losses on derivative instruments and other periodic or special charges or gains. For more information, see the “Use of Non-GAAP Measures” section later in this release.

Financial Guidance

AMO affirms its guidance for 2008 of revenues in the range of $1.22 billion to $1.24 billion and adjusted EPS in the range of $1.25 to $1.45. The company’s adjusted EPS guidance includes acquisition-related intangible amortization, which is estimated to be approximately $70 million, or about $0.70 per share on an after-tax basis. AMO’s adjusted EPS guidance excludes the impact of charges and write-offs associated with acquisitions, restructurings, recapitalizations, reorganizations, unrealized gains or losses on derivative instruments and other periodic or one-time charges or gains. For more information, see the “Use of Non-GAAP Measures” section later in this release.

Financial Guidance

AMO’s revised guidance assumes a decline in its 2008 U.S. excimer procedures of approximately 10%, compared to its prior expectation of approximately 6% growth. The company’s revised guidance also assumes a more modest rate of growth for its U.S. femtosecond procedure and refractive IOL sales than it has previously expected. The company’s revised guidance is as follows:

The company’s adjusted EPS guidance excludes charges and write-offs related to acquisitions, reorganizations and recapitalizations, as well as unrealized gains or losses on derivative instruments and other periodic or one-time charges. The company’s adjusted EPS guidance includes the estimated after-tax effect of intangible amortization and stock-based compensation expenses, which are non-cash and total approximately $90 million per year, or approximately $0.90 per share.

Financial Guidance

AMO affirmed its guidance as follows:

The company’s adjusted earnings (loss) per-share guidance includes the estimated impact of the May 2007 recall and annualized acquisition-related amortization of approximately $70 million. The company’s adjusted earnings (loss) per share guidance excludes any charges and write-offs associated with acquisitions, reorganizations, recapitalizations, as well as unrealized gains or losses on derivative instruments and other one-time charges.

Financial Guidance

AMO affirmed its guidance as follows:

The company’s adjusted earnings (loss) per-share guidance includes the impact of the May 2007 recall and annualized acquisition-related amortization of approximately $70 million. The

company’s adjusted earnings (loss) per share guidance excludes any charges and write-offs associated with acquisitions, reorganizations, recapitalizations, as well as unrealized gains or losses on derivative instruments and other one-time charges .

Financial Guidance

AMO affirmed its guidance as follows:

The company’s adjusted EPS guidance includes acquisition-related amortization. The IntraLase acquisition will cause AMO’s acquisition-related amortization to increase by approximately $30 million on an annualized basis, bringing AMO’s total annual amortization to approximately $70 million, or about $0.70 per share on an after-tax basis. AMO’s adjusted EPS guidance excludes the impact of charges and write-offs associated with acquisitions, recapitalizations and unrealized gains or losses on derivative instruments. For more information, see the “Use of Non-GAAP Measures” section later in this release.

AMO’s revised financial guidance for 2006 and 2007 is as follows:

AMO revised its outlook for 2006 and 2007 adjusted EPS because it now expects the planned shift in sales mix to occur at a slower pace than originally forecast.  This should, in turn, affect the pace of gross margin expansion.  This change in timing is due primarily to slower-than-expected refractive implant and U.S. laser vision correction procedure growth, and pricing pressures on conventional cataract products in certain international markets. In addition, the company now plans to expand its eye care manufacturing in order to meet increased market demand for its branded multipurpose solutions, which is expected to limit gross margin expansion of its eye care business in 2007.

Financial Guidance

AMO revised its adjusted EPS guidance for 2006 to reflect the reduction in debt and corresponding interest expense in the second half of the year. The company reaffirmed revenue guidance for 2006 and 2007, as well as adjusted EPS guidance for 2007 as follows:

AMO’s adjusted EPS guidance includes the impact associated with stock-based compensation expense now being recognized under Statement of Financial Accounting Standards No. 123R issued by the Financial Accounting Standards Board.

Financial Guidance

AMO affirmed its guidance, including the impact for FAS 123R, as follows:

Financial Guidance

“Implementation of our rationalization and repositioning strategy is on schedule,” said Randy Meier, executive vice president operations and finance and chief financial officer. “We expect margin expansion in the second half of 2006, as our revenue mix shifts toward more value-added product sales, our productivity initiatives take hold, and we gain greater leverage of our global infrastructure.”

Based on the progress thus far on its accelerated rationalization and repositioning strategy and the confidence in its growth plans, AMO affirmed its guidance for 2006-2007 as follows:

Financial Guidance

AMO affirmed its guidance for 2005-2007 as follows:

AMO Announces Third Quarter 2005 Results – Page 5