The Cooper Companies, Inc.
Sep 4, 2008

The Cooper Companies Announces Third Quarter 2008 Results

PLEASANTON, Calif., Sep 4, 2008 (GlobeNewswire via COMTEX News Network) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the third quarter of fiscal 2008.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We are pleased with our third quarter operating performance. The overall business continues to make positive strides including strong revenue growth supported by our Proclear® line of products and our silicone hydrogel spheres, Avaira and Biofinity®. Also, we accomplished several important goals this quarter including posting positive free cash flow, beginning production of our Biofinity silicone hydrogel toric, staying on target with our roll-out plans for Avaira, expanding our power ranges for Biofinity and Proclear® Dailies, and improving our manufacturing yields including more than doubling manufacturing yields on Avaira in Puerto Rico."

Third Quarter Operating Highlights

CVI Third Quarter Operating Highlights

                                                              Constant
                                                              Currency
                     (In thousands)  % of CVI Revenue   %chg    %chg
                          3Q08             3Q08          y/y     y/y
                     --------------  ----------------  ------ --------
   Specialty
    Toric                  $83,398          34%          12%      7%
    Multifocal              15,556           6%          22%     15%
    Cosmetic                 3,327           2%          -8%    -12%
                     --------------  ----------------
   Total specialty         102,281          42%          13%      7%
   Single-use sphere        46,168          19%          47%     32%
   Non single-use
    sphere, other           94,736          39%           5%     --
                     --------------  ----------------
   Total                  $243,185         100%          15%      8%
                     ==============  ================

 * Revenue by geography:

                                                              Constant
                                                              Currency
                     (In thousands)  % of CVI Revenue   %chg    %chg
                          3Q08             3Q08          y/y     y/y
                     --------------  ----------------  ------ --------
   Americas               $106,030          44%          13%     12%
   Europe                   95,519          39%          15%      4%
   Asia-Pacific             41,636          17%          19%      7%
                     --------------  ----------------
   Total                  $243,185         100%          15%      8%
                     ==============  ================

 * Revenue by product:

                                                              Constant
                                                              Currency
                     (In thousands)  % of CVI Revenue   %chg    %chg
                          3Q08             3Q08          y/y     y/y
                     --------------  ----------------  ------ --------
   Proclear                $67,963          28%          35%     28%
   Biofinity               $14,647           6%         415%    373%
   Avaira                   $3,751           2%         n/a     n/a


 * Gross margin 53% compared with 58% in the third quarter of 2007.
   Excluding costs considered unrelated to core operating performance,
   gross margin was 57% compared with 64% in last year's third
   quarter.

 * Operating margin 12% compared with 13% in the third quarter of
   2007.  Excluding costs considered unrelated to core operating
   performance, operating margin was 17% compared with 24% in last
   year's third quarter.

CSI Third Quarter Operating Highlights

Guidance

The Company amends its previous fiscal 2008 guidance and now anticipates revenue in the range of $1,080 million to $1,095 million, including CVI revenue of $915 million to $925 million and CSI revenue of $165 million to $170 million, non-GAAP EPS in the range of $2.18 to $2.24 and GAAP EPS in the range of $1.35 to $1.41. This compares to the Company's previous guidance for revenue of $1,060 million to $1,100 million, including CVI revenue of $895 million to $930 million and CSI revenue of $165 million to $170 million, non-GAAP EPS of $2.10 to $2.35 and GAAP EPS of $1.40 to $1.85.

The Company now expects capital expenditures in the range of $140 million to $160 million in fiscal 2008 and $125 million to $140 million in fiscal 2009. This compares to its previous guidance for capital expenditures of $160 million to $170 million in fiscal 2008, and $125 million to $140 million in fiscal 2009.

Non-GAAP EPS guidance excludes costs considered unrelated to core operating performance as discussed below in "Unaudited Reconciliation and Explanation of Non-GAAP to GAAP Operating Results."

Forward-Looking Statements

This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to plans, prospects, goals, strategies, future actions, events or performance and other statements which are other than statements of historical fact, including all statements regarding anticipated growth in our revenue, planned product launches and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like "believes," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.

Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: failures to launch, or significant delays in introducing new products, or limitations on sales following introduction due to poor market acceptance or manufacturing constraints (including failures to develop and implement improvements to manufacturing processes for new products); failures to receive or delays in receiving U.S. or foreign regulatory approvals for products; new competitors, product innovations or technologies; a major disruption in the operations of our manufacturing, research and development or distribution facilities, due to technological problems, natural disasters or other causes; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; the impact of acquisitions or divestitures on revenues, earnings or margins; losses arising for pending or future litigation or product recalls; changes in global or regional general business, political and economic conditions; interest rate and foreign currency exchange rate fluctuations; changes in U.S. and foreign government regulation of the retail optical industry and of the healthcare industry generally; changes in tax laws or their interpretation and changes in effective tax rates; changes in the Company's expected utilization of recognized net operating loss carry forwards; the requirement to provide for a significant liability or to write off a significant asset, including impaired goodwill; and other events described in our Securities and Exchange Commission filings, including the "Business" and "Risk Factors" sections in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2007, as such Risk Factors may be updated in quarterly filings.

We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law.

Conference Call and Webcast

Cooper will host a conference call today at 5:00 p.m. ET to discuss its third quarter financial results. The dial in number in the United States is +1-866-314-5232 and outside the United States is +1-617-213-8052. The passcode is 40304346. There will be a replay available approximately one hour after the call ends until Tuesday, September 9, 2008. The replay number in the United States is +1-888-286-8010 and outside the United States is +1-617-801-6888. The replay passcode is 61651851.

A live broadcast as well as a replay will also be available on the Internet at www.coopercos.com/investor and at www.streetevents.com.

About The Cooper Companies

The Cooper Companies, Inc. (www.coopercos.com) manufactures and markets specialty healthcare products through its CooperVision and CooperSurgical units. Corporate offices are in Pleasanton, CA. A toll free interactive telephone system at 1-800-334-1986 provides stock quotes, recent press releases and financial data.

CooperVision, Inc. (www.coopervision.com) develops, manufactures and markets a broad range of contact lenses for the worldwide vision correction market. Headquartered in Pleasanton, CA, it manufactures in Juana Diaz, Puerto Rico; Norfolk, VA; Rochester, NY; Adelaide, Australia; Hamble and Hampshire, England; and Madrid, Spain.

CooperSurgical, Inc. (www.coopersurgical.com) develops, manufactures and markets medical devices, diagnostic products and surgical instruments and accessories used primarily by gynecologists and obstetricians. Its major manufacturing and distribution facilities are in Trumbull, CT.

The information on Cooper's Web sites and its interactive telephone system are not part of this news release.


             THE COOPER COMPANIES, INC. AND SUBSIDIARIES
                Consolidated Condensed Balance Sheet
                ------------------------------------
                           (In thousands)
                             (Unaudited)

                                                 July 31,   October 31,
                                                   2008        2007
                                                ----------  ----------
                               ASSETS

 Current assets:
  Cash and cash equivalents                     $    3,438  $    3,226
  Trade receivables, net                           180,492     164,493
  Inventories                                      295,862     267,914
  Deferred tax asset                                26,284      23,395
  Other current assets                              62,592      58,494
                                                ----------  ----------
   Total current assets                            568,668     517,522
                                                ----------  ----------
 Property, plant and equipment, net                645,921     604,530
 Goodwill                                        1,286,176   1,289,584
 Other intangibles, net                            134,879     145,833
 Deferred tax asset                                 22,098      20,015
 Other assets                                       17,784      18,685
                                                ----------  ----------
                                                $2,675,526  $2,596,169
                                                ==========  ==========

                LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
 Short-term debt                                $   36,894  $   46,514
 Other current liabilities                         202,974     239,966
                                                ----------  ----------
   Total current liabilities                       239,868     286,480
                                                ----------  ----------
 Long-term debt                                    890,866     830,116
 Other liabilities                                  35,791       9,408
 Deferred tax liabilities                           12,397      10,678
                                                ----------  ----------
   Total liabilities                             1,178,922   1,136,682
                                                ----------  ----------
 Stockholders' equity                            1,496,604   1,459,487
                                                ----------  ----------
                                                $2,675,526  $2,596,169
                                                ==========  ==========


             THE COOPER COMPANIES, INC. AND SUBSIDIARIES
             Consolidated Condensed Statements of Income
             -------------------------------------------
              (In thousands, except per share amounts)
                             (Unaudited)

                                Three Months Ended   Nine Months Ended
                                     July 31,            July 31,
                                ------------------  ------------------
                                  2008      2007      2008      2007
                                --------  --------  --------  --------

 Net sales                      $285,884  $251,862  $794,367  $696,817
 Cost of sales                   130,787   105,938   346,381   294,526
                                --------  --------  --------  --------
 Gross profit                    155,097   145,924   447,986   402,291
 Selling, general and
  administrative expense         110,639   104,521   328,048   302,977
 Research and development          9,030    11,513    26,278    30,581
 Restructuring costs                 173     2,072     1,521     6,779
 Amortization of intangibles       4,211     4,160    12,678    12,003
                                --------  --------  --------  --------
 Operating income                 31,044    23,658    79,461    49,951
 Interest expense                 15,266    11,085    38,441    31,795
 Other income, net                 1,738       512     1,929     1,340
                                --------  --------  --------  --------
 Income before income taxes       17,516    13,085    42,949    19,496
 (Benefit from) provision for
  income taxes                      (363)    4,905     6,952     6,495
                                --------  --------  --------  --------
 Net income                     $ 17,879  $  8,180  $ 35,997  $ 13,001
                                ========  ========  ========  ========
 Add interest charge applicable
  to convertible debt                348       523     1,394        --
                                --------  --------  --------  --------
 Income for calculating diluted
  earnings per share            $ 18,227  $  8,703  $ 37,391  $ 13,001
                                ========  ========  ========  ========

 Diluted earnings per share     $   0.39  $   0.18  $   0.79  $   0.29
                                ========  ========  ========  ========

 Number of shares used to
  compute earnings per share      46,934    47,785    47,477    45,082
                                ========  ========  ========  ========


 Unaudited Reconciliation and Explanation of Non-GAAP to GAAP
 ------------------------------------------------------------
 Operating Results (In thousands, except per share amounts)
 ----------------------------------------------------------

 Listed below are the items included in net income that management
 excludes in computing non-GAAP financial measures as described below
 the table.

             THE COOPER COMPANIES, INC. AND SUBSIDIARIES
       Reconciliation of Non-GAAP Earnings to GAAP Net Income
       ------------------------------------------------------

                                Three Months Ended   Nine Months Ended
                                     July 31,            July 31,
                                ------------------  ------------------
                                  2008      2007      2008      2007
                                --------  --------  --------  --------
 GAAP net income                $ 17,879  $  8,180  $ 35,997  $ 13,001
 Non-GAAP adjustments:
 Production start-up and
  restructuring costs in cost
  of sales                         8,888    13,353    27,063    33,653
 Distribution center
  rationalization and
  restructuring costs in SGA       1,228     4,178     1,938    12,721
 Intellectual property
  litigation expenses in SGA          --     2,265     3,364     5,598
 Production start-up costs in
  SGA                              1,338     2,765     3,556     4,421
 Acquired in-process R&D              --     3,000        --     7,254
 Other restructuring costs in
  operating expenses                 173     2,072     2,535     5,975
 Write-off of deferred financing
  costs                            2,955        --     2,955       882
 Income tax effect                (1,306)   (2,613)   (2,516)   (8,184)
                                --------  --------  --------  --------
                                  13,276    25,020    38,895    62,320
                                --------  --------  --------  --------
 Non-GAAP net income            $ 31,155  $ 33,200  $ 74,892  $ 75,321
                                ========  ========  ========  ========

 Add interest charge applicable
  to convertible debt                348       523     1,394     1,569
                                --------  --------  --------  --------

 Income for calculating diluted
  earnings per share            $ 31,503  $ 33,723  $ 76,286  $ 76,890
                                ========  ========  ========  ========

 Diluted earnings per share     $   0.67  $   0.71  $   1.61  $   1.61
                                ========  ========  ========  ========

 Number of shares used to
  compute earnings per share      46,934    47,785    47,477    47,672
                                ========  ========  ========  ========

Explanation of Non-GAAP Measures

In addition to results in accordance with GAAP, Cooper management also considers non-GAAP operating results as important supplemental financial measures in evaluating its ongoing core operating results and in making operating decisions.

Non-GAAP operating results and guidance exclude from GAAP operating items that management does not consider part of core operating performance. Management uses these non-GAAP operating results to compare actual operating results to its business plans, calculate debt compliance covenants, allocate resources and evaluate potential acquisitions. Management believes that presenting these non-GAAP operating results allows investors, as well as management, to evaluate operating results from one period to another on a comparable basis.

Specific items that Cooper excludes from its GAAP results when evaluating core operational performance are:

Not all the items listed occurred in the fiscal third quarter of 2008 or 2007. Specific amounts for the items in the fiscal third quarter of 2008 and 2007 are set forth in the table above. For fiscal 2008, the Company no longer excludes share-based compensation expense in its non-GAAP operating results as share-based compensation is now comparable over a three-year period.

Operating results adjusted for these items should not be considered alternatives to any performance measures derived in accordance with GAAP. We present them because we consider their disclosure an important supplemental measure of performance. In evaluating Cooper's non-GAAP operating results and guidance, investors are cautioned that in future periods Cooper expects to incur expenses similar to those for which adjustments are made in the presentation of non-GAAP operating results. Presentation of non-GAAP operating results and guidance should not be construed as an implication that future results will be unaffected by similar items or nonrecurring or unusual charges.

Cooper's non-GAAP operating results have limitations as an analytical tool, including that they do not reflect the cost of:

In addition, non-GAAP operating results may not be useful when comparing Cooper to other companies that may calculate these measures differently. Moreover, the impact of many of the items excluded (particularly litigation and restructuring) on guidance is difficult to quantify because of significant uncertainty in timing and the range of possible outcomes. These items could be material.

Cooper compensates for these limitations by relying primarily on GAAP operating results and supplementing these with non-GAAP operating results.

Contact Lens Industry (CLI) Revenue Update: Second Calendar Quarter 2008 and Full Year 2007 in Constant Currency

The data below is extracted from a compilation of industry participants' revenue by an independent market research firm.


 Worldwide Manufacturers' Soft Lens Revenue
 Independent Market Research Data
 (U.S. dollars in millions; constant currency; unaudited)

                            CYQ2 2008     Y/Y      CY2007       Y/Y
                              Market    % Change   Market     % Change
                            ----------  --------  ----------  --------
  Single-Use Spherical
   Lenses                   $     491      11%    $   1,681      12%
  Spherical Lenses (ex
   single-use)                    593       2%        2,168       2%
                            ----------            ----------
 Total Spheres                  1,084       5%        3,849       6%
                            ----------            ----------
  Torics                          261      12%          893      14%
  Cosmetic                         69*     (4%)         274      (4%)
  Multifocal                       53      12%          179      14%
                            ----------            ----------
 Specialty Lenses                 383       9%        1,346      10%
                            ----------            ----------
 Soft Contact Lenses        $   1,467       6%    $   5,195       7%
                            ==========            ==========
  Total Silicone Hydrogel   $     445      21%    $   1,375      29%

  Americas Region           $     588       5%    $   2,100       6%
  European Region                 461       9%        1,543       6%
  Asia Pacific Region             418       6%        1,552       8%
                            ----------            ----------
 Worldwide Soft Contact
  Lenses                    $   1,467       6%    $   5,195       7%
                            ==========            ==========

  United States             $     510       5%    $   1,836       5%
  International                   957       8%        3,359       8%
                            ----------            ----------
 Worldwide Soft Contact
  Lenses                    $   1,467       6%    $   5,195       7%
                            ==========            ==========

 * Management estimate - No longer provided by CLI

Based upon Health Product Research (HPR), which reports on a statistical sampling of practitioners each quarter, management calculated that silicone hydrogel lenses accounted for 47% of total patient visits and 51% of new patient visits to contact lens practitioners in the United States during the second calendar quarter of 2008. Silicone hydrogel toric lenses accounted for 45% of total toric patient visits and 47% of new toric patient visits in the United States in the second calendar quarter of 2008.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: The Cooper Companies, Inc.

The Cooper Companies, Inc.
Albert G. White, III, VP, Investor Relations and Treasurer
Kim Duncan, Director, Investor Relations
ir@coopercompanies.com, 925-460-3663