CHARENTON-LE-PONT, France, January 25 /PRNewswire-FirstCall/ -- Essilor, the world leader in ophthalmic optics, has announced consolidated sales of EUR2,423.5 million for the year ended December 31, 2005. This represents an increase of 10.0% as reported and 8.5% excluding the currency effect, in line with forecasts. The Company's major markets generally performed well and demand for its new products remained very strong. As a result, Essilor has confirmed that 2005 will see further growth in both earnings and margins. in EUR 2005 2004 % change % change Contribution Currency millions as like-for-like from effect (IFRS) reported acquisitions Consolidated 2,423.5 2,202.5 + 10.0% + 5.2% + 3.3% + 1.5% sales at Dec. 31 Consolidated 620.4 537.4 + 15.5% + 5.1% + 3.5% + 6.8% 4th quarter sales - Following a relatively slow start, consolidated sales gradually increased during the year to levels more in line with the Company's historic growth trend. The growth was driven by: -- A 5.2% like-for-like increase that accelerated between the first half (4.7%) and the second (5.7%). It reflected: - An approximately 3% rise in sales volumes. - An improvement in the product mix, resulting from a higher percentage of sales from progressive lenses (notably the Varilux(R) line), Transitions(R) photochromic lenses, Crizal(R) Alize(TM) anti-reflective lenses, and lenses made of very high index and polycarbonate materials. -- A positive currency effect of 1.5% for the year. The first quarter's negative currency effect gradually declined, becoming favorable late in the year thanks to the rise of the US and Canadian dollars against the euro and the very good resilience of the Brazilian real. -- A 3.3% contribution from companies acquired in 2004 and 2005 - mainly Midland Optical, 21st Century, National Optronics, Select Optical and Opalite in the United States and LTL and ATR in Italy- which added an aggregate EUR74 million to consolidated sales. In 2005, Essilor continued to strengthen its global presence and extend its prescription laboratory network, notably in the United States, Italy, India and Taiwan. Eighteen acquisitions were finalized during the year, including that of The Spectacle Lens Group, Johnson & Johnson's ophthalmic lens business. Sales Dec. 31, 2005 Dec. 31, 2004 % change % change in EUR millions as reported like-for-like Europe 1,119.6 1,077.9 + 3.9% + 2.3% North America 1,025.1 897.2 + 14.3% + 6.5% Asia-Pacific 202.1 173.3 + 16.6% + 12.2% Latin America 76.7 54.1 + 41.7% + 18.1% Total 2,423.5 2,202.5 + 10.0% + 5.2% - Growth was led by North America, the Asia-Pacific region and Latin America, while in Europe performance varied from one country to another: -- A slight increase in sales in Europe. Sales were good in Germany, thanks to the upturn in demand, and in Southern Europe. In Austria, sales were slowed considerably by lower reimbursements for optical equipment beginning on January 1, 2005. In France, where the market was sluggish, Essilor maintained its positions. -- Strong demand in North America throughout the year. In the United States, Essilor sales were lifted by a rising market and the prescription laboratory acquisition strategy pursued in recent years. Sales of Varilux(R) progressive lenses and Crizal(R) Alize(TM) anti-reflective lenses were very strong. -- Very sharp growth in all emerging countries. Essilor's strongest performance for the year was in Latin America, especially in Brazil and Argentina. In Asia, demand was sustained in every country, including Japan, where the Nikon-Essilor subsidiary gained new market share. Growth was especially strong in China and India, where ophthalmic optics markets are expanding rapidly. Three New Acquisitions Essilor International recently acquired a 25% stake in Ayudas para la Vision Subnormal (AVS), a company based in Madrid, Spain that manages a vision rehabilitation center for people suffering from macular degeneration related to age, glaucoma or retinopathy. The transaction will enable Essilor and AVS to develop vision rehabilitation services and provide more appropriate solutions for the growing number of people suffering from visual impairment. In early 2006, Essilor of America, Essilor's US subsidiary, acquired two other prescription laboratories: - Eye Care Express Lab Inc. of Houston, Texas, with revenues of $3.9 million and 24 employees. - Accu Rx of Johnston, Rhode Island, with revenues of $5.8 million and 37 employees. Essilor also acquired equity stakes in companies in India and Taiwan (see press release of January 12, 2006). Conference call: A conference call will be held today at 10:00 a.m. France time. The telephone number is +44-(0)-161-601-8918. Next financial announcement: 2005 earnings will be released on March 9, 2006. 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 16 production sites, 190 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 0000121667; Reuters: ESSI.PA; Bloomberg: EF FP). Investor Relations and Financial Communications Veronique Gillet Phone: +33-1-49-77-42-16 DATASOURCE: Essilor CONTACT: Investor Relations and Financial Communications, Veronique Gillet, Tel: +33-1-49-77-42-16

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