Concord Camera Corp. Updates Guidance for Fiscal 2004 Second Quarter.

Business Editors

HOLLYWOOD, Fla.--(BUSINESS WIRE)--Jan. 16, 2004

Concord Camera Corp. ("Concord" or "Company") (NASDAQ: LENS) today announced that, based on current estimates, net sales for the second quarter ended December 27, 2003 are expected to be approximately $65 million, resulting in a net loss of between $(2.0) million and $(2.5) million, or $(0.07) to $(0.09) per share. The estimated net loss includes the recognition of a $(0.9) million loss related to short term investments and an approximate $2.5 million charge with respect to certain inventory and tooling primarily attributable to digital camera products.

Concord had previously provided guidance for the second quarter of sales in the range of $70 to $75 million and net income in the range of $5.2 to $6.5 million, or $0.17 to $0.21 per diluted share, before any non-cash variable stock option expense.

The disappointing results are primarily attributable to lower than anticipated digital camera sales coupled with lower than projected average selling prices. Furthermore, higher manufacturing costs primarily due to inefficiencies related to delays in the introduction of certain new digital camera product offerings were a significant contributing factor.

The Company remains optimistic about the long term outlook. Revenues for the first six months increased more than 33% year over year and second quarter revenues represented a new sales record for all previous quarters. In addition, average selling prices of digital cameras for the quarter, although lower than expected, increased by 20% over the prior fiscal year. Concord is actively introducing new products, enhancing product design and development capabilities, fortifying sales and marketing infrastructure to address new sales channels and exploring a variety of strategic opportunities, including acquisitions.

Concord expects to report financial results for the second quarter or about February 5, 2004. The Company will provide additional details regarding second quarter results at that time.

About Concord Camera Corp.

Concord Camera Corp. is a global developer, designer, manufacturer and marketer of high quality, popularly priced, digital, instant, Advanced Photo System (APS), and 35mm cameras. Concord markets its cameras under the trademarks POLAROID(R), CONCORD(R), KEYSTONE(R), CONCORD EYE Q(R), LE CLIC(R), GOLDLINE(R), APEX(R), and ARGUS(R). 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 vertically integrated manufacturing facilities in the People's Republic of China. The Polaroid trademark is owned by Polaroid Corporation and is used by Concord under license from Polaroid. CONCORD, KEYSTONE, CONCORD EYE Q, LE CLIC, GOLDLINE, APEX and ARGUS are trademarks and/or registered trademarks of Concord Camera Corp. in the United States and/or other countries.

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements, including the statements regarding anticipated or expected results and the future introduction of new products, involve risks and uncertainties which may affect the Company's business and prospects, including the risks discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2003 and subsequently filed reports. Any forward-looking statements contained in this press release represent our estimates only as of the date hereof, or as of such earlier dates as are indicated, 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.