Bausch & Lomb Announces Proposed Settlement of 2001 Shareholder Class Action Suit

Business Wire, August 3, 2004

ROCHESTER, N.Y. -- Bausch & Lomb (NYSE:BOL) today announced that it has signed a settlement agreement, subject to Court approval, to settle a three-year old consolidated shareholder class action suit now pending in the United States District Court for the Western District of New York. The suit alleges that the value of the Company's stock was artificially inflated by alleged false and misleading statements about expected financial results for the fiscal year 2000. The Company agreed to settle the lawsuit for $12.5 million in cash, all of which will be paid by the Company's insurance carrier. Accordingly, there will be no charges against earnings for this matter.

The settlement agreement is subject to preliminary approval by the Court later this month and is subject to final review at a fairness hearing that is likely to be scheduled for later this year. Class members are expected to be defined as purchasers of Bausch & Lomb common stock from January 27, 2000 through August 24, 2000.

Commenting on the settlement agreement, Senior Vice President and General Counsel Robert B. Stiles said, "We have always made it a practice to keep our shareholders informed of significant developments in our businesses and we believe we communicated fully, fairly and promptly during the period at issue. We were prepared to defend the Company vigorously against these allegations. We have agreed to this proposed settlement in order to eliminate the burden and expense of further protracted litigation, so that we can put this matter behind us and concentrate our full attention on growing our businesses and providing increased value to our shareholders."

This news release contains, among other things, certain statements of a forward-looking nature relating to future events or the future business performance of Bausch & Lomb. Such statements involve a number of risks and uncertainties including, without limitation, those concerning global and local economic, political and sociological conditions; currency exchange rates; government pricing changes and initiatives with respect to healthcare products; changes in laws and regulations relating to the Company's products and the import and export of such products; product development and rationalization; enrollment and completion of clinical trials; the ability of the Company to obtain regulatory approvals; the outcome of litigation; the success of product introductions; the financial well-being of key customers, development partners and suppliers; the successful execution of marketing strategies; the continued successful implementation of the Company's efforts in managing and reducing costs and expenses; the Company's success in the process of management testing and auditor attestation of internal controls, as required under the Sarbanes-Oxley Act of 2002; the Company's success in introducing and implementing its enterprise-wide information technology initiatives, including the corresponding impact on controls and reporting; continued positive relations with third party financing sources and the risk factors listed from time to time in the Company's SEC filings, including but not limited to the current report on Form 8-K, dated June 14, 2002 and the Form 10-Q for the quarter ended June 26, 2004.

Bausch & Lomb is the eye health company, dedicated to perfecting vision and enhancing life for consumers around the world. Its core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. The Bausch & Lomb name is one of the best known and most respected healthcare brands in the world. Celebrating its 150th anniversary, the Company is headquartered in Rochester, New York. Bausch & Lomb's 2003 revenues were $2.0 billion; it employs approximately 11,500 people worldwide and its products are available in more than 100 countries. More information about the Company can be found on the Bausch & Lomb Web site at www.bausch.com. Copyright Bausch & Lomb.