Concord Camera Corp. Revises Fourth Quarter Guidance.

Business Editors

HOLLYWOOD, Fla.--(BUSINESS WIRE)--June 22, 2001

Concord Camera Corp. ("Concord") (NASDAQ National Market:LENS) today

announced that, for its fourth quarter ending June 30, 2001, its revised revenue guidance is expected to range from $38.5 to $40.00 million and it expects to incur a loss from $21.9 million, or $.83 per fully diluted share, to $21.4 million, or $.81 per fully diluted share.

The forecasted revenue shortfall is attributed to greater than anticipated sales weakness in both the Company's original equipment manufacturing business and its retail sales and distribution business. Continued adverse economic conditions have decreased demand for the Company's products and those of certain of its customers. Excess inventory positions at many of the Company's customers and the resulting changes in their purchasing patterns have also adversely affected sales.

The anticipated revenue shortfall has negatively impacted forecasted absorption of manufacturing overhead and labor utilization, resulting in reduced gross margins. Profitability has also been adversely affected by pricing pressures in our retail sales and distribution business. In addition, the Company will record the following one-time charges against income in the quarter:

- $15.8 million accounts receivable provision

- $ 4.3 million inventory provision

- $ 1.4 million restructuring charge

The accounts receivable provision and $2.0 million of the inventory provision relate to a financially troubled former customer of the Company with respect to which management has concluded that workout efforts are not likely to be successful. The balance of the inventory provision covers discontinued products and a write down of certain electronic components which have decreased in value. The restructuring charge results from the Company's cost containment initiative and is expected to result in annual cost savings of approximately $1.3 million.

Outlook for the first quarter of 2002 -- Current economic conditions and customer visibility make it difficult for the Company to forecast since purchase forecasts by a number of OEM customers have not been reliable and the purchasing activity of our retail sales and distribution customers has been erratic. The Company's results will be significantly impacted by the pace at which its customers can reduce excess inventory positions and reverse or temper their current purchasing patterns. The Company is completing its budget process for Fiscal 2002 and will provide first quarter 2002 guidance with the release of its operating results for Fiscal 2001 in August.

The Company will conduct a conference call to discuss the revised guidance at 11:00 a.m. EDT on Friday, June 22, 2001. Interested parties may participate in the call by dialing 212-346-7481 approximately 10 minutes before the call is scheduled to begin and ask to be connected to the Concord conference call. The conference call will also be broadcast live over the Internet via the Investor Information section of Concord's web site - www.concordcam.com. It will also be accessible at www.companyboardroom.com (private investors) and www.streetevents.com (institutions). To access the live audio on the Internet, go to one of the web sites at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen to the live call, the conference call will be archived and can be accessed for approximately 5 business days.

About Concord Camera Corp.

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, timely introduction of Concord's new digital cameras will require satisfactory completion of our development effort and initiation of full-scale production. Additionally, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.