Beacon Eye Institute Completes Acquisition - Strategically Expanding Laser Vision Correction Services in Ontario.

TORONTO--(BUSINESS WIRE)--Sept. 24, 1997--BeaconEye Inc. (BEY-T), which operates as Beacon Eye Institute ("Beacon"), today announced the completion of an acquisition of a laser eye care centre expanding its presence in the growing market for laser vision correction ("LVC") in Ontario.

The centre, which formerly operated as Gimbel Eye Centre - Toronto, is located at 10 Commerce Valley Drive East in Thornhill, Ontario. This location is easily accessible from Leslie Street just north of the 407 and is ideally situated for efficient market expansion. In addition to addressing a broader demographic group, the location provides a Beacon alternative for those consumers who do not wish to travel to Beacon's centre in BCE Place in downtown Toronto.

Dean Smith, MD and David Wong, MD, well-respected and leading Toronto-area ophthalmologists, will act as consultants to Beacon and will perform LVC procedures in the acquired centre. Dr. Smith and Dr. Wong will join the medical team of Raymond Stein, MD, Clive Mortimer, MD, and Catherine Eplett, MD, who currently perform laser vision correction in Beacon's facilities in Ontario. Collectively, these doctors using Beacon's facilities have performed thousands of procedures and are recognized as being among the world's most experienced and proficient LVC surgeons.

Keith Moore, Beacon Chairman and CEO, said, "We are delighted to have such a highly qualified group of doctors using Beacon facilities. The acquisition is a great fit. The new centre is in a preferred location for effectively reaching more consumers in a market where we have already established broad-based name recognition. The high-quality centre has an appearance and functionality consistent with other Beacon operations. Furthermore, we anticipate that advertising and operating synergies in connection with Beacon's facility in downtown Toronto will provide cost and marketing efficiencies that will become increasingly significant competitive advantages. The acquired centre has been in operation since February 1997 and achieved a positive level of operating cash flow in July 1997."

The purchase price consideration for the centre included a cash payment of $150,000; issuance of 133,482 BeaconEye Inc. common shares with an approximate market value of $400,000; repayment of shareholder advances totalling $723,112; and assumption of financing obligations of approximately $650,000. Moore commented, "The acquisition, which was made possible following a break-up of the founding partnership, represents a unique opportunity for Beacon. Acquiring this laser centre at this relatively low cost and at the point that it has reached break-even performance is a positive step in increasing shareholder value."

Moore stated, "The laser vision correction market continues to expand. In 1997 more than 200,000 LVC procedures are expected to be performed, more than double the number performed in 1996. We are seeing similar increases in numbers at Beacon facilities. Our booking rate is almost double that of just six months ago. In addition, of the more than 7,000 eye care professionals who have received Beacon educational materials, more and more are becoming comfortable with LVC to the point that they are now recommending and co-managing the procedure for their patients."

Beacon provides facilities and services for the performance of laser vision correction including Laser-PRK, or photorefractive keratectomy, and LASIK, or laser-assisted in situ keratomileusis. Both procedures are performed with an excimer laser which generates ultraviolet light for reshaping the eye to correct nearsightedness, farsightedness, and astigmatism and improve natural vision reducing the need to wear glasses or contact lenses.

Beacon now operates 11 laser vision correction centres with locations in Toronto, Ontario; San Antonio, Austin, Dallas/Fort Worth, and Houston, Texas; Denver, Colorado; Fort Lauderdale and Tampa, Florida; Atlanta, Georgia; and Irvine, California. Further expansion is planned as the market for laser vision correction continues to grow.

CONTACT: BeaconEye Inc.

Keith Moore

Chairman, President & CEO

Phone: [phone]

Fax: [phone]

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