Essilor – 2009 Third Quarter Report

    CHARENTON-LE-PONT, France, October 22 /PRNewswire-FirstCall/ --
    - Nine-Month Revenue up 8.4%
    - Positive Like-for-Like Growth in the Third Quarter

Essilor International, the world leader in ophthalmic optics, today
announced its consolidated revenue for the nine months ended September 30,
2009.

    2009 Consolidated revenue

    EUR millions       2009     2008    % Change      % Change  Contribution
                      (9       (9      (reported)*   (like-         from
                     months)  months)                 for-like) acquisitions

    Total           2,468.5  2,277.8     +8.4%         -0.4%        +5.9%
    Europe            989.4  1,017.3     -2.7%         -3.3%        +2.2%
    North America   1,051.6    933.8    +12.6%         -1.0%        +4.1%
    Asia-Pacific      259.7    226.1    +14.9%        +12.7%        +0.6%
    Latin America      95.9     98.5     -2.7%         +4.6%        +1.0%
    Laboratory
     equipment[1]      71.9**    2.1***   N/M           N/M          N/M

*Currency effect: +2.9%. **Excluding Satisloh sales to Essilor, which
totaled EUR21.1 million. ***Satisloh was not part of the Company in the first
nine months of 2008.

Consolidated revenue for the first nine months of 2009 totaled EUR2,468.5
million, an increase of 8.4% year-on-year as reported and a decline of 0.4%
like-for-like. Changes in the scope of consolidation accounted for 5.9% of
reported growth, corresponding to 0.8% from companies acquired in 2009, 2%
from certain companies acquired in 2008 and 3.1% from Satisloh. The positive
2.9% currency effect mainly reflected the rise in the dollar and, to a lesser
extent, the yen against the euro, which offset the negative impact of the
weaker Brazilian real, British pound and Australian dollar.

    Third quarter revenue up 6.3% as reported
    Consolidated Revenue

    EUR millions      Q3 2009 Q3 2008  % Change      % Change   Contribution
                                      (reported)*   (like-         from
                                                     for-like)  acquisitions

    Total              805.1   757.6     +6.3%         +0.1%       +5.6%
    Europe             324.3   323.8     +0.1%         -1.1%       +2.6%
    North America      333.5   315.8     +5.6%         -1.0%       +3.9%
    Asia-Pacific        89.6    79.3    +12.9%        +11.3%       -0.7%
    Latin America       35.6    38.0     -6.1%         -3.0%       +1.4%
    Laboratory
     equipment          22.1     0.7**    N/M           N/M         N/M

*Currency effect: +0.5%. **Satisloh was not part of the Company in
third-quarter 2008.

In the third quarter alone, consolidated revenue rose by 6.3% on a
reported basis. The 0.1% like-for-like gain over the period confirmed the
gradual upturn in business following like-for-like declines of 1% in the
first quarter and of 0.4% in the second.

The slide in the US dollar since May significantly attenuated the
positive currency effect, which amounted to 0.5% for the quarter. The impact
of changes in the scope of consolidation was on a par with the second
quarter, adding 5.6% to growth, of which 2.8% from Satisloh.

In Europe, performance and trends continued to vary by country. Growth
was robust in France, supported by a solid performance in the lens business
and stronger instrument sales led by pent-up demand, particularly for the Mr
Blue(R) edger. Operations in the United Kingdom, Italy and, to a lesser
extent, Spain began to see a noticeable upturn in business, but the situation
remained difficult in the Nordic countries, Eastern Europe and the
Netherlands.

In North America, overall performance was hampered by a poor
third-quarter in Canada, but business held firm in the United States. Led by
the launch of the Xperio(TM) polarized lens, KBco reported strong sales
growth, as did stock lens distributor Nassau.

In Asia, third-quarter performance was in line with trends observed since
the beginning of the year. Growth remained very strong in emerging economies,
where the launch of specially adapted lenses (Essilor(R) Azio360degrees(TM)
and Varilux(R) India360degrees(TM)) helped to drive new market share gains.
In Australia, sales to independent eyecare professionals are trending sharply
upwards. Lastly, business in Japan continues to suffer from depressed demand.

Despite a strong performance in Mexico and Central America, growth in
Latin America was dampened by highly unfavorable prior-period comparatives.

Significant third-quarter events and other transactions

Acquisitions

Essilor completed six acquisitions – two in Europe and four in the United
States – in the third quarter. In addition to the previously announced
acquisitions of De Ceunynck and WLC in Europe and Apex Optical, Vision Pointe
and Optisource in the US, Essilor of America acquired all the assets of Orion
Progressive Lab, a Wisconsin-based prescription laboratory with nearly $5
million in revenue. It has been consolidated since September 1.

In all, Essilor has acquired 17 companies since January 1, representing
additional full-year revenue of approximately EUR83 million.

Share buybacks – Cash position

During the third quarter, as part of the share-buyback program set up to
offset dilution from the conversion of outstanding OCEANE bonds, Essilor
purchased one million of its own shares on the market, for a total of nearly
EUR38 million.

The substantial free cash flow generated during the period helped to
reduce net debt by EUR87 million to EUR125 million.

Outlook

In the second half, Essilor is pursuing its development based on the
launch of products, services and growth initiatives. At the same time, the
Company will continue to diligently manage its operating expenses. For the
full year, Essilor expects to report an increase in revenue, with
like-for-like growth of around 0%, and an improved contribution margin
compared with 2008.

    Appendices - Quarterly revenue data

    EUR millions      Q3 2009 Q2 2009 Q1 2009 Q3 2008 Q2 2008 Q1 2008

    Total               805.1   823.0   840.4   757.6   758.0   762.2
    Europe              324.3   335.0   330.0   323.8   348.8   344.7
    North America       333.5   345.7   372.5   315.8   303.3   314.6
    Asia-Pacific         89.6    84.4    85.7    79.3    72.8    74.0
    Latin America        35.6    32.5    27.8    38.0    32.3    28.3
    Laboratory           22.1    25.4    24.4     0.7*    0.8*    0.6*
     equipment

    *Satisloh was not part of the Company in the first nine months of 2008.

    A conference call in French will be held today at 9:00 a.m. CEST.
    The number to dial is: +33(0)1-70-99-42-78

    The conference will be available for later listening at:

http://hosting.3sens.com/Essilor/20091022-1428C2BD/fr/

    A conference call in English will follow at 10:00 a.m. CEST.
    The number to dial is: +44(0)20-7806-1967

    The conference will be available for later listening at:

http://hosting.3sens.com/Essilor/20091022-1428C2BD/en/

                            ------------------------

Essilor International is the world leader in ophthalmic optical products,
offering a wide range of lenses under the flagship Varilux(r), Crizal(r),
Essilor(r) and Definity(r) brands to correct myopia, hyperopia, presbyopia
and astigmatism. Essilor operates worldwide through 15 production sites, 293
lens finishing laboratories and local distribution networks.

The Essilor share trades on the NYSE Euronext Paris market and is
included in the CAC 40 index.

Codes and symbols: ISIN: FR 0000121667; Reuters: ESSI.PA; Bloomberg:
EI:FP.

[1] Application of IFRS 8 – Operating Segments has resulted in the
creation of the “Laboratory Equipment” business segment, which includes the
machines, consumables and replacement parts sold by Satisloh and Delamare to
prescription laboratories. The change has not had a material impact on
revenue from the operating regions, which consolidate all of the other sales
(primarily of ophthalmic lenses and optical instruments).

    ------------------------

    Investor Relations and Financial Communications
    Veronique Gillet - Sebastien Leroy
    Phone: +33-1-49-77-42-16

http://www.essilor.com

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SOURCE Essilor