FDA panel approval accelerates U.S. market growth opportunities for Beacon Eye Institute.

TORONTO--(BUSINESS WIRE)--Jan. 16, 1997--BeaconEye Inc. (TSE:BEY), which operatesas Beacon Eye Institute ("Beacon"), expects recent industry news in the U.S. to be very positive for the company's market penetration.

VISX INCORPORATED ("VISX") announced on January 14 that its VISX STAR Excimer Laser System(TM), which is used in all Beacon Laser Centers, has been recommended by the U.S. FDA Ophthalmic Devices Advisory Panel for use in the treatment of astigmatism.

Commenting on the announcement, Keith Moore, Beacon's Chairman and CEO, said, "Final FDA approval to treat astigmatism, in addition to previously approved mild to moderate nearsightedness, removes a significant barrier to increased market penetration in the U.S. A number of factors point to positive growth prospects for the laser vision treatment industry and for Beacon. Over 130 million North Americans may be candidates for Laser-PRK(TM) vision correction. Penetration of less than one percent of this potential market would create an industry of $2 billion to $4 billion annually.

"More than 100,000 incoming calls have been addressed at our Information Response Center since September 1995," Moore added. "Over 3,000 consumers have visited our U.S. Laser Centers or have attended seminars to learn about Laser-PRK. Experience with patients treated in Beacon's Toronto center indicates that more than 80 per cent of those consumers expressing interest in Laser-PRK have astigmatism requiring treatment. Local availability of astigmatism treatment in the U.S. removes a substantial hurdle for the vast majority of U.S. consumers."

More than 3,800 procedures have been performed in Beacon facilities since the company's first center opened in Toronto in May, 1995, including procedures for patients who initially visited our U.S. centers and were willing to travel to Canada for astigmatism treatment, rather than wait for approval in the U.S. This base of satisfied consumers in Beacon's markets, combined with patient satisfaction levels exceeding 97 percent, contributes strongly to word-of-mouth endorsement of Laser-PRK.

In the VISX announcement, data from Dr. Raymond Stein, Beacon's Medical Consultant was presented, highlighting the fact that 97 percent of patients with myopic astigmatism (preoperative spherical equivalent up to -5.99 D and astigmatism greater than -0.75 D) achieved 20/40 or better unaided vision after one month. Dr. Stein said, "The results have been outstanding. Our patients are thrilled when they find out their vision has improved so quickly."

Although restrictions preventing astigmatism treatment limited volume growth in the U.S. laser centers during 1996, the total number of procedures performed (including those for patients initially counselled in Beacon's U.S. laser centers and subsequently treated in Toronto) approached 90 per cent of the company's plan.

Moore concluded, "Our business model is working. With nine world-class Beacon Laser Centers open in prime U.S. markets, Beacon is well positioned to capitalize on the growth potential of the emerging and growing market for laser vision treatment."

Beacon provides facilities and services for the performance of Laser-PRK vision correction. Laser-PRK is performed with an excimer laser which generates ultraviolet light for gently reshaping the surface of the eye to improve natural vision and reduce or eliminate the need to wear glasses or contact lenses. Astigmatism is a common condition in which the cornea or front of the eye is shaped more like a football than the more normal shape of a basketball.

In addition to the Toronto facility, nine U.S. centers - San Antonio, Austin, Dallas/Fort Worth, Houston, Denver, Fort Lauderdale, Tampa, Atlanta and Orange County - are operational. Further expansion is planned as the market for laser vision treatment continues to grow.

CONTACT: Beacon Eye Institute

Keith Moore, Phone: [phone]

Fax: [phone]

e-mail: [e-mail]