Essilor: First-Half 2006 Revenue: Up 8.7% Like-For-Like

Five Prescription Lens Laboratories Join Essilor in the United States 


CHARENTON-LE-PONT, France, July 20  /PRNewswire-FirstCall/ -- Essilor, the world leader in ophthalmic optics, today announced its consolidated revenue for the six months ended June 30, 2006:

  EUR millions           1st half    1st half  % change as Like-for-like
                            2006        2005     reported      change*

  Consolidated revenue    1,361.8     1,182.8     +15.1%        +8.7%



(*) Based on a comparable scope of consolidation and at constant exchange rates.

In a generally buoyant environment for the ophthalmic lens industry, Essilor enjoyed sustained demand for its high value-added lenses and its new products, led by Varilux Physio(R), the new progressive lens which was introduced worldwide during the first six months of the year.

Organic growth was strong throughout the period, with revenue up by 11.5% like-for-like in the first quarter and by a very respectable 6.1% in the second quarter, despite the high basis of comparison created by the 8.1% increase in the year-earlier period.

Changes in the scope of consolidation boosted reported revenue by 3.7%, reflecting the contributions of the businesses acquired in 2005 as well as of the first acquisitions made in 2006, which included several prescription lens laboratories in the United States and stakes in India's GKB Group and in the Taiwan-based Polylite Group.

The currency effect remained positive, at 2.7%; however, the impact was significantly lower than in first-half 2005 due to the strengthening of the euro against the US dollar and the Company's other main currencies.

  Revenue by geographical segment:

  EUR millions      1st half 2006 1st half 2005  % change as  Like-for-like
                                                  reported       change*

  Europe                606.3         563.2         +7.6%         +6.2%
  North America         595.4         490.4        +21.4%        +10.8%
  Asia-Pacific          116.9         95.0         +23.0%        +13.3%
  Latin America         43.2          34.2         +26.4%         +5.8%



(*) Based on a comparable scope of consolidation and at constant exchange rates.

- After a very good first quarter, growth in Europe slowed to 2.9% like-for-like in the second quarter compared with 7.5% in the same period of 2005.

- In North America, growth remained strong across all networks, with revenue up 9.3% like-for-like in the second quarter.

- Asia-Pacific turned in another good performance, with second quarter revenue up 12.4% like-for-like.

- In Latin America, after a very good start to the year revenue for the second quarter contracted 3.4% like-for-like, partly reflecting a very high basis of comparison in Brazil. Revenue in Argentina remained high.

Five US-Based Prescription Lens Laboratories Have Joined Essilor

As part of its external growth strategy, Essilor acquired several prescription lens laboratories during the period: 

  - Future Optics, Inc. based in Largo, Florida.
  - Ozarks Optical Laboratories, Inc. based in Springfield, Missouri.
  - Precision Optical Laboratory, Inc. based in Gallaway, Tennessee.
  - Precision Optical Laboratory, Inc. based in Hartford, Connecticut.


- Homer Optical Company, Inc., the twelfth largest independent laboratory(1) in the United States, and owner of four prescription lens laboratories in Maryland, Pennsylvania, Virginia and New York State.

Together, these five companies represent total revenue of some $30 million.

In all, Essilor has acquired 15 companies since January 1, representing full-year revenue of EUR51 million. 

  (1)According to Vision Monday November 21, 2005 edition.
  A conference call will be held today at 10:00 a.m. Paris time.
  The number to dial is: [phone]
  The conference will be available for later listening at:
  http://hosting.3sens.com/Essilor/20060720-5F96AB45/en
  Next financial announcement
  First-half earnings will be released on September 7.


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, 215 lens finishing laboratories and local distribution networks.

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

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

Investor Relations and Financial Communication:

Veronique Gillet, Phone: [phone] 

DATASOURCE: Essilor



CONTACT:  Investor Relations and Financial Communication: Veronique

Gillet, Phone: [phone]

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