Mentor Corporation Increases Share Repurchase Program by 5 Million Shares; Declares First Quarter Dividend of $0.20 Per Share

Business Wire, June 19, 2007

SANTA BARBARA, Calif. -- Mentor Corporation (NYSE:MNT), a leading supplier of aesthetic medical products in the United States and internationally, today announced that its Board of Directors increased the number of shares of Mentor common stock authorized for repurchase under the Company's existing share purchase program by 5 million shares, bringing the total number of shares authorized for future repurchases under this program to 5.9 million shares. Under the terms of the program going forward, the Company is authorized to repurchase up to $200 million worth of shares of its common stock as market conditions permit. The Company's Credit Agreement, as amended, permits repurchases of our equity securities up to $400 million after March 30, 2007. As of March 31, 2007, the Company had approximately 42.4 million shares of common stock outstanding. Since that date, the Company has purchased approximately 3.9 million shares at prices averaging in excess of $40 per share.

"We have the financial resources available to continue funding our stock repurchase program while continuing to execute our growth strategy," said Joshua H. Levine, Mentor's President and Chief Executive Officer. "Mentor currently has in excess of $300 million in cash on hand and an available credit line of nearly $200 million. We believe this repurchase program is a prudent use of capital and reaffirms our optimism about the future and our commitment to building shareholder value over the long term."

The ongoing repurchase program's terms have been structured to comply with Rule 10b-18 promulgated by the U.S. Securities and Exchange Commission, and is subject to market conditions and applicable legal requirements. The program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time. All purchases are expected to be on the open market and funded from the Company's existing cash reserves.

The Company also today announced that its Board of Directors has declared a quarterly cash dividend of $0.20 per share for the Company's first quarter, fiscal year 2007. The dividend is payable on July 18, 2007 to shareholders of record as of June 28, 2007.

About Mentor Corporation

Founded in 1969, Mentor Corporation is a leading supplier of medical products for the global aesthetic market. The Company develops, manufactures and markets innovative, science-based products for surgical and non-surgical medical procedures that allow patients to retain a more youthful appearance and improve personal well-being. The Company's website is www.mentorcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements regarding Mentor's share repurchase program, quarterly dividend, balance sheet and financial resources. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by us. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors.

The Securities and Exchange Commission filings of Mentor, including, without limitation, its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and recent Current Reports on Form 8-K, discuss important risk factors that could contribute to such differences or otherwise affect its business, results of operations and financial condition. Mentor undertakes no obligation to revise or update publicly any forward-looking statement for any reason.