Essilor: First-Quarter 2005 Sales Up 4.5% At Constant Exchange Rates CHARENTON-LE-PONT, France, April 21 /PRNewswire-FirstCall/ -- Essilor, the world leader in ophthalmic optics, today announced its consolidated sales for the three months ended March 31, 2005: In EUR millions March 31, 2005 March 31, 2004 % Change March 31, 2004 IFRS IFRS reported Sales 570.0 557.2 + 2.3% 569.4 The EUR12.2 million decrease in first-quarter 2004 sales under IFRS compared with the prior-period French GAAP figure primarily reflects the fact that under IFRS, cash discounts granted to customers and certain sales commissions are deducted from sales. Sales for the quarter Sales rose 4.5% in the first three months of 2005, based on IFRS and excluding the currency effect. On a like-for-like basis, sales were up 1.3%, compared with a first-quarter 2004 that saw exceptionally strong like-for-like growth of 9%. First-quarter 2005 performance was shaped by a decline in sales in almost all European markets. However, business continued to expand in North America, Asia and Latin America, while overall, demand for value-added products remained robust and the product mix continued to improve. Companies acquired in 2004 and in the first three months of 2005 added 3.2% to reported growth. The currency effect was a negative 2.1% due to the decline in the dollar, yen and pound against the euro compared with first-quarter 2004. Sales by region In EUR million March 31, March 31, Reported Like-for-like Change at 2005 2004 change change constant IFRS exchange IFRS rates Europe 269.1 273.1 - 1.5% - 3.4% - 1.5% North America 238.7 228.1 + 4.6% + 4.6% + 9.7% Asia-Pacific 47.0 42.9 + 9.5% + 10.0% + 11.9% Latin America 15.2 13.0 + 16.5% + 12.8% + 12.8% Total 570.0 557.2 + 2.3% + 1.3% +4.5% - In Europe, the challenging business environment and unfavorable weather conditions caused demand to decline in almost every country. Note that in Germany, where the market was also down for the period, the phase-out of national healthcare system reimbursements for ophthalmic lenses did not really have an impact until the second quarter of 2004. - Operations in North America had a very good quarter, building on first-quarter 2004's 11.3% gain. In particular, the US prescription laboratories reported solid sales gains. - The Asia-Pacific and Latin American regions are continuing to expand, with good growth for the period. Outlook for 2005 Despite a lackluster beginning to the year in Europe, Essilor remains confident in its ability to increase earnings in 2005. Prescription Laboratories Acquired in Canada Essilor Canada has acquired Groupe Vision Optique (GVO), which owns prescription laboratories in several large cities in the Province of Quebec (Trois-Rivières, Quebec, Rimouski, Beloeil and downtown Montreal). GVO has annual sales of C$6 million and 70 employees. The initiative will expand Essilor's service capabilities in Quebec by broadening their reach and delivering high-quality local service for all of Essilor products. Separately, Essilor Canada has signed a contract with Hakim Optical, Ontario's leading optical chain, to acquire its Coating Lab Enterprises business, which comprises three anti-reflective treatment centers in London and Toronto, Ontario and in Halifax, Nova Scotia. The contract also calls for Essilor to supply the majority of the anti-reflective treatments sold in Hakim Optical's stores, as well as a major proportion of their lenses. Essilor International is the world leader in ophthalmic optical products, offering a wide range of lenses under the flagship Varilux(R), Crizal(R), Airwear(R) and Essilor(R) brands to correct myopia, hyperopia, presbyopia and astigmatism. Essilor operates worldwide through 17 production sites, 183 lens finishing laboratories and local distribution networks. The Essilor share trades on the Euronext Paris market and is included in the CAC 40 index (ISIN: FR 000012166; Reuters: ESSI.PA; Bloomberg: EF FP). DATASOURCE: Essilor CONTACT: Investor Relations and Financial Communication, Véronique Gillet, Phone: +33-0-(1)-49-77-42-16 http://www.essilor.com/

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