Advanced Medical Optics Provides Preliminary 2005 Revenue and Earnings Guidance.

Business Editors/Health/Medical Writers

SANTA ANA, Calif.--(BUSINESS WIRE)--June 15, 2004

Advanced Medical Optics, Inc. (AMO) (NYSE:AVO), a global leader in ophthalmic surgical devices and eye care products, today announced a preliminary 2005 guidance range reflecting the combined operations of AMO and its pending acquisition of the ophthalmic surgical business of Pfizer Inc.

The company expects the combined 2005 revenue from its existing business and the acquired Pfizer ophthalmic surgical business to be between $800 million and $830 million. AMO expects combined pro forma diluted earnings per share for 2005 to be between $1.50 and $1.70. These estimates assume the successful completion of the acquisition in 2004, and the implementation of a successful global integration process, the transition of customers and maintaining market shares of the combined product lines.

"We are giving an estimated range of 2005 guidance in order to provide better visibility into the future operations of the combined businesses post-acquisition," said Richard A. Meier, executive vice president of operations and finance and chief financial officer. "We intend to provide updated guidance for the second half of 2004 and for 2006 when we report second-quarter 2004 financial results in late July."

The company previously announced that it expected 2004 revenue and pro forma diluted earnings per share, excluding the benefits of the transaction, to be between $635 million and $645 million and $1.02 and $1.04, respectively. The company will report second-quarter 2004 financial results, review guidance and host a conference call with investors and analysts on Wednesday, July 28. The conference call will be available via a live Webcast on July 28, 2004 at 10:00 a.m. EDT. To participate in the live Webcast or to access the archived replay, visit AMO's Investors/Media site at http://www.amo-inc.com.

AMO announced on April 21, 2004, its agreement to acquire Pfizer's ophthalmic surgical business in a $450 million all-cash transaction. AMO will acquire the Healon(R) line of viscoelastic products used in ocular surgery, CeeOn(R) and Tecnis(R) intraocular lenses (IOLs) used in cataract surgery and the Baerveldt(R) glaucoma shunt. These assets generated aggregate annual sales of approximately $150 million in 2003. AMO will also acquire related manufacturing and research and development facilities in Groningen, Netherlands; Uppsala, Sweden; and Bangalore, India. The company expects to close the transaction in early summer. The acquisition is subject to certain closing conditions.

Pro Forma Explanation and Reconciliation

The company typically provides its earnings results in two formats. The first format represents reported, or GAAP, results and the second format presents pro forma, or comparable, results. The pro forma results will reflect the adjusted financial statements that exclude the unrealized gain or loss on derivative instruments, as well as costs associated with debt restructuring, adjustments to the company's capital structure and other one-time charges related to the acquisition of Pfizer's ophthalmic surgical business.

The company's management uses pro forma results to measure and compare its regional and global performance absent the impact of foreign currency fluctuations on currency derivatives. Additionally, management believes this format is useful for investors to perform more meaningful comparisons of operating results. The company does not provide a reconciliation of projected pro forma earnings per share to expected reported results due to the unknown effect and potential significance of foreign currency fluctuations on the fair value of its currency derivatives, as well as the charges associated with the Pfizer transaction and related changes to its capital structure.

About Advanced Medical Optics

Advanced Medical Optics, Inc. (AMO) is a global leader in the development, manufacturing and marketing of ophthalmic surgical and eye care products. The company focuses on developing a broad suite of innovative technologies and devices to address a wide range of eye disorders. Products in the ophthalmic surgical line include foldable intraocular lenses, phacoemulsification systems, viscoelastics and related products used in cataract surgery, and microkeratomes used in LASIK procedures for refractive error correction. AMO owns or has the rights to such ophthalmic surgical product brands as Phacoflex(R), Clariflex(R), Array(R) and Sensar(R) foldable intraocular lenses, the Sovereign(R) and Sovereign(R) Compact phacoemulsification systems with WhiteStar(TM) technology and the Amadeus(TM) microkeratome. Products in the contact lens care line include disinfecting solutions, daily cleaners, enzymatic cleaners and lens rewetting drops. Among the contact lens care product brands the company possesses are COMPLETE(R) Moisture PLUS(TM), COMPLETE(R) Blink-N-Clean(R), Consept(R)F, Consept(R) 1 Step, Oxysept(R) 1 Step, UltraCare(R), Ultrazyme(R), Total Care(R) and blink(TM) branded products. Amadeus is a licensed product of, and a trademark of, SIS, Ltd. AMO is based in Santa Ana, California, and employs approximately 2,300 worldwide. The company has operations in about 20 countries and markets products in approximately 60 countries. For more information, visit the company's Web site at www.amo-inc.com.

Forward-Looking Statements

Statements regarding our expected 2004 and 2005 results and our acquisition of Pfizer's ophthalmic surgical business, as well as Mr. Meier's statements and any other statements in this press release that refer to AMO's estimated or anticipated future results are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, the company's performance may at times differ from its estimates and targets, and the company often does not know what the actual results will be until after the fiscal reporting period's end. In addition, consummation of the acquisition is subject to certain closing conditions. All forward-looking statements in this press release reflect AMO's current analysis of existing trends and information and represent AMO's judgment only as of the date of this press release. Actual results may differ from current expectations based on a number of factors affecting AMO's businesses, including but not limited to receipt of regulatory approvals required for the transaction, completion of financing and risks associated with the integration and operation of the acquired business; changing competitive, regulatory and market conditions; exposure to foreign markets and international operations; the performance and acceptance of new products and the continuing acceptance of current products; unexpected litigation; the execution of strategic initiatives and business development projects; AMO's ability to maintain a sufficient supply of products; and the uncertainties associated with intellectual property protection for these products. In addition, matters generally affecting the domestic and global economy, such as changes in interest and currency exchange rates, can affect AMO's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. AMO disclaims any intent or obligation to update these forward-looking statements. Additional information concerning these and other risk factors can be found in press releases issued by AMO as well as AMO's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting AMO and its Businesses" in AMO's 2003 Form 10-K and Form 10-Q filed in May 2004. Copies of press releases and additional information about AMO are available on the World Wide Web at www.amo-inc.com, or by calling the AMO Investor Relations Department at 714-247-8348.