Bausch & Lomb and CIBA Vision Announce Final Global Settlement of Patent Litigation; Companies Cross-License Rights to Revolutionary Silicone Hydrogel Contact Lens Materials

Business Wire, July 2, 2004

ROCHESTER, N.Y. & ATLANTA -- Bausch & Lomb (NYSE:BOL) and CIBA Vision Corporation, the eye care unit of Novartis AG (NYSE:NVS), today announced that they have reached a final settlement agreement that resolves disputes between the two companies in patent infringement lawsuits and associated patent proceedings related to breakthrough silicone hydrogel contact lens materials.

Under the terms of the agreement, the companies have agreed to cross-license rights to their silicone hydrogel contact lens technologies. Bausch & Lomb will pay CIBA Vision a royalty on net U.S. sales of its PureVision(TM) brand contact lenses until 2014 and on net sales outside the U.S. until 2016. Specific terms of the agreement are confidential.

The agreement, effective immediately, resolves patent lawsuits in the United States in Federal District Courts in Georgia, Delaware and New York, as well as other lawsuits and patent proceedings in Germany, Ireland, the European Patent Office and Australia.

Bausch & Lomb may resume sale and manufacture of PureVision brand contact lenses in the United States on April 27, 2005, upon expiration of the Harvey patent, which was the subject of a 2002 ruling in the Federal District Court in Delaware. PureVision brand lenses will continue to be available outside the United States. CIBA Vision's Focus(R) NIGHT & DAY(R) contact lenses continue to be available worldwide.

Bausch & Lomb indicated the settlement agreement will have no effect on its previously communicated guidance for 2004.

"While the process that led to this settlement was a long one, both CIBA Vision and Bausch & Lomb believe the settlement is in the best interests of eye care professionals and consumers around the world," said Andrea Saia, president of CIBA Vision's global lens business. "What's important is that we move forward and utilize the NIGHT & DAY silicone hydrogel technology to bring new and innovative eye care solutions to consumers worldwide."

"We look forward to once again providing our PureVision contact lenses to practitioners and patients in the United States," said Angela J. Panzarella, Bausch & Lomb corporate vice president - global vision care. "This agreement allows us to focus our efforts on expanding our strong market position and continue development of new advances in silicone hydrogel materials."

Yesterday Bausch & Lomb inadvertently distributed a news release draft regarding these settlement discussions with CIBA Vision, which had not been concluded at the time. The final agreement has now been signed and the terms of the settlement are effective immediately.

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 successful introduction and implementation of the Company's enterprise-wide information technology initiatives, including the corresponding impact on controls and reporting; continued positive relations with third party financing sources as well as 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 March 27, 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 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.

With worldwide headquarters in Atlanta, CIBA Vision is a global leader in research, development and manufacturing of optical and ophthalmic products and services, including contact lenses and lens care products. CIBA Vision products are available in more than 70 countries. For more information, visit the CIBA Vision web site at www.cibavision.com.