Concord Camera Corp. Executes New Fuji License Agreement, Provides Guidance for Third and Fourth Quarter and Adopts Share Repurchase Program.

Business Editors

HOLLYWOOD, Fla.--(BUSINESS WIRE)--Feb. 26, 2001

Fuji License Agreement - Concord Camera Corp. (the "Company") (NASDAQ: LENS) today announced it has settled its pending litigation with Fuji Photo Film Co., Ltd. ("Fuji") and entered a new 20-year license agreement with Fuji. Under the new license agreement, Fuji has granted to the Company a worldwide (excluding Japan until January 1, 2005) non-exclusive license to use Fuji's portfolio of patents and patent applications related to single-use cameras, a significant number of which were not included in the prior license agreement. Financial terms of the license were not disclosed because of confidentiality provisions contained therein, however, the new license is not expected to have any significant adverse effect on the Company's financial results.

Expected Financial Results - The Company announced revised revenue and earnings (loss) guidance for its third and fourth quarters ending March 31, 2001 and June 30, 2001, respectively, of approximately $24 million and ($3.7 million) or ($0.14) per fully diluted share and approximately $50 million and $5.1 million or $0.17 per fully diluted share, respectively. The expected revenue shortfalls are attributable to the prevailing weakness in the retail market and delay in introduction of certain of the Company's new digital products. The revenue decreases adversely affected projected absorption of manufacturing overhead and labor utilization which adversely impacted gross margins and expected earnings (loss) for the periods.

New Product Introductions - The Company began shipping its Concord EyeQ(TM)3x Still Digital Camera to retailers in February 2001 and is now in full commercial production of that camera. The Company's other new digital camera products (the Concord EyeQ(TM)Ir to be manufactured for Nokia Mobile Phones Ltd., Concord EyeQ(TM)Duo, Concord EyeQ(TM)Go and another Digital Imaging Accessory Device for a personal digital assistant produced by a large branded OEM customer) are all expected to be rolled out during the latter part of the fourth quarter ending June 30, 2001. The Company noted that both the Concord EyeQ(TM)Duo and the Concord EyeQ(TM)Go which were originally intended to be OEM products, will now be distributed directly by the Company to retailers.

Share Repurchase Program - The Company also announced its Board of Directors has allocated up to $10 million to a newly adopted share repurchase program. In commenting on the program, Ira B. Lampert, Concord's Chairman, Chief Executive Officer and President, affirmed the Board's belief that the Company's Common Stock is significantly undervalued at current market prices and represents an attractive investment opportunity for the Company.

About Concord

Concord Camera Corp. is a global developer, designer, manufacturer and marketer of high quality, low cost, digital, instant, Advanced Photo System (APS), and 35mm format cameras and 35mm, APS, and instant format single-use cameras. Concord markets its cameras under the trade names CONCORD(R), KEYSTONE(R), CONCORD EYE Q(TM), LE CLIC(R), GOLDLINE(R), APEX(R), and ARGUS(R). Today, Concord is one of the world's leaders in the single-use camera category, one of the fastest growing segments of the camera market, and the largest producer of single-use cameras in the world in private label, corporate premium and original equipment manufacturer segments of the industry. Concord sells and markets its camera products worldwide through direct sales offices in the United States, Canada, Germany, Hong Kong, the United Kingdom, and France and through independent sales agents. Concord manufactures its products in its expansive, vertically integrated manufacturing facilities in the Peoples Republic of China, which includes a class 10,000 "clean room" digital technology manufacturing and assembly facility. Concord's fiscal year 2000 revenue was approximately $173 million.

This press release contains forward-looking statements that involve numerous risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission, some of which are summarized under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended July 1, 2000 and updated in subsequently filed reports. In particular, expected manufacture of new digital cameras will require satisfactory completion of our development effort, initiation of full-scale production and marketplace acceptance of the products.