2002 Financial Results; Sales Up 7% Like for Like; Operating Margin Reaches Record 15.9%; EPS Up 27.3%.

Business Editors

CHARENTON-LE-PONT, France--(BUSINESS WIRE)--March 13, 2003

The Board of Directors of Essilor International, the world leader in ophthalmic optical products, today announced the definitive financial results for the year ended December 31, 2002. The audited figures are slightly higher than the provisional results announced on January 30. -0-

                                                                  %
                   EUR millions                 2002     2001   change

Sales                                         2,138.3  2,070.4   +3.3%
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Operating income                                340.6    310.6   +9.7%
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Operating margin                                 15.9%      15%   ---
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Net non-operating expense                       (26.2)     (29)   ---
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Pretax income after non-operating items         277.7    233.3    +19%
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Net income after minority interests             182.4    142.6  +27.9%
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Earnings per share (in EUR)                      1.82     1.43  +27.3%
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Essilor's financial results reflect, year after year, the validity of the Company's strategic vision. Thanks to its positioning in high technology lenses and its extensive geographic coverage, Essilor has strengthened its global leadership in ophthalmic optical products.

In 2002, consolidated sales increased 7% to EUR2.1 billion on a comparable basis, outpacing growth in the global ophthalmic products market. Key factors driving sales growth and enhancing the product mix were the launch of new products, such as the Transitions(R) Next Generation photochromic lenses, and the development of high index, polycarbonate, anti-reflection and progressive lenses.

All regions contributed to the Company's performance, with like-for-like sales increasing 7.5% in Europe, 5.6% in North America and 11.6% in the rest of the world (South America and Asia/Pacific).

Operating income rose 9.7% to EUR340.6 million, lifting operating margin to a record 15.9% that exceeded objectives. The sustained margin improvement was attributable to:

-- An enhanced product mix, led by innovations in lens materials, design and coatings.

-- New productivity gains across the Company, as well as improved margins in regional operations.

Net non-operating expense of EUR26.2 million mainly included:

-- Reorganization costs to improve productivity in US and

European plants and laboratories (EUR25.7 million).

-- The ongoing development of the Vision Web B2B platform (EUR6.1

million).

-- A revaluation gain mentioned in the first half of 2002 (EUR8.2

million).

Pretax income after non-operating items increased by 19% thanks to a 24% decrease in interest expense to EUR36.7 million from EUR48.3 million in 2001. This was due to the combined effect of lower interest rates and a reduction in debt.

As a result, net income after minority interests increased by 27.9% to EUR182.4 million. Earnings per share rose 27.3% to EUR1.82, after gaining 11% in 2001 and in 2000.

Strong sales and improved margins led to record operating cash flow of EUR325 million. Net capital expenditures totaled EUR140 million and financial investments came to EUR37.2 million. Taken together, these factors allowed the Company to reduce net debt by EUR158 million during the year, to EUR163 million, and to bring the net debt-to-equity ratio down to 13% from 27% at year-end 2001.

ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

The Ordinary and Extraordinary Shareholders' Meeting has been reconvened for Friday, May 16 at 10:30 a.m., Palais de la Bourse, Place de la Bourse, 75002 Paris, France.

DIVIDEND

The Board of Directors will ask shareholders to approve a dividend before tax credit of EUR 0.50 per share of common stock, for total revenue of EUR 0.75 per share including tax credit. This represents an increase of 22%, reflecting the Company's very good performance in 2002. The dividend will be paid from May 20, 2003.

OUTLOOK FOR 2003

The combination of political, economic and monetary uncertainty in the first months of the year calls for prudence.

That said, Essilor remains confident in the soundness of its long term growth strategy based on technological innovation and the ability to gain market share.

Aside from new product launches, the year will be shaped by a renewed policy of targeted external growth. Already, Essilor has announced the acquisition of US-based Specialty Lens Corp, a manufacturer of prescription polarized sunglass lenses. The Company has also agreed to acquire Rupp + Hubrach, Germany's fifth largest corrective lens firm (see enclosed press release).

Lastly, Essilor will pursue its productivity enhancement program designed to improve results across the Company.

Essilor International is the world leader in ophthalmic optical products, offering a wide range of lenses under the flagship Varilux(R), Crizal(R), Airwear(R) and Essilor(R) brands to correct myopia, hyperopia, presbyopia and astigmatism. Essilor operates worldwide through 18 production centers, 165 lens finishing laboratories and local distribution networks. The Essilor share trades on the Euronext Paris market (Euroclear code: 12166; Reuters: ESSI.PA; Bloomberg: EF FP).