The Cooper Companies, Inc.
Mar 7, 2006

The Cooper Companies Reports First Quarter 2006 Results

Revenue Ahead 45% in Constant Currency to $205.7 Million EPS 49 Cents before Nonrecurring Items;
Reported EPS 39 Cents Revenue and Earnings Guidance Updated

LAKE FOREST, Calif., March 7, 2006 (PRIMEZONE) -- The Cooper Companies, Inc. (NYSE:COO) today reported results for its fiscal first quarter ended January 31, 2006. On January 6, 2005, Cooper completed the acquisition of Ocular Sciences, Inc. and Ocular's results are included from that date forward.

First Quarter Highlights

-- Revenue $205.7 million, 45% above the first quarter of 2005 in constant currency, 39% as reported.



-- Reported EPS before nonrecurring items 49 cents; excluding stock option expense 58 cents. Nonrecurring items include nonrecurring acquisition and restructuring costs and the write-off of deferred financing costs associated with amending the syndicated bank credit facility.

EPS fell below December's first quarter guidance range of 63 cents to 65 cents primarily because of stock option expenses for directors and employees (9 cents versus previously estimated charge of 3 cents), audit cost overruns for 2005 (2 cents), foreign exchange losses (2 cents) and timing of sales expenses, promotional activities and research and development expenses ahead of new product launches.

-- Cash flow (pretax income from continuing operations plus stock option expenses, depreciation and amortization before nonrecurring items) per share 95 cents, up from 89 cents in the first quarter of 2005; trailing twelve months $4.60.

Change in Accounting for Stock Options

The Company has adopted the new accounting requirements for expensing stock options in accordance with Statement of Financial Accounting Standards No.123 (revised 2004), "Share-Based Payment" (SFAS 123R) using the modified prospective method. Therefore, prior periods have not been restated and are not comparable. These new accounting requirements reduced first quarter results by $4.9 million or 9 cents per share. Guidance for fiscal 2006 includes 25 cents for stock option expense, 10 cents more than previous guidance because ten year historical vesting data and higher volatility assumptions were used. The first quarter stock option expense will be greater than subsequent quarters because the 2006 directors' annual options are amortized over four months.

Revenue and Earnings Per Share Guidance

Cooper has updated revenue and EPS guidance for fiscal 2006 effective today to include first quarter actual results, the refinement of the impact of stock option expense and management's current manufacturing capacity expectations for the remainder of fiscal 2006 and 2007.

Revenue and EPS guidance, excluding nonrecurring acquisition and restructuring expenses, for the second quarter of fiscal 2006 and for fiscal 2006 and 2007 assuming no major changes in foreign currency exchange rates versus the first quarter are:

-- For fiscal 2006 Cooper now expects revenue of $908 million to $936 million and EPS of $3.15 to $3.35 ($3.40 to $3.60 excluding stock option expense). Previous 2006 revenue guidance was $933 million to $946 million and EPS of $3.34 to $3.44 ($3.49 to $3.59 excluding stock option expense).

-- CooperVision (CVI), the Company's contact lens business, expects fiscal 2006 revenue of $785 million to $810 million, an organic constant currency growth rate of 9% to 12% versus the prior year. Previous revenue guidance for CVI was $810 million to $820 million.

-- CooperSurgical (CSI), the Company's women's healthcare medical device business, expects fiscal 2006 revenue of $123 million to $126 million, the same as previous guidance.

-- For the second quarter of fiscal 2006, Cooper expects revenue of $215 million to $227 million -- $185 million to $195 million for CVI and $30 million to $32 million for CSI -- with EPS before nonrecurring acquisition and restructuring expenses of 67 cents to 77 cents (73 cents to 83 cents excluding stock option expense).

-- For fiscal 2007, Cooper's expects revenue of $998 million to $1050 million. Previous guidance was $1045 million to $1060 million. CVI guidance is $863 million to $910 million, an organic constant currency growth of 10% to 12% over 2006. CSI guidance remains unchanged at $135 million to $140 million.

2007 EPS guidance is $3.55 to $3.95 ($3.90 to $4.30 excluding stock option expense) compared to previous EPS guidance of $4.04 to $4.14 ($4.19 to $4.29 excluding stock option expense).

-- EPS guidance for 2006 and 2007 assumes a tax rate of 10% to 15%.

 Reported P&L Highlights ($'s in millions)
 -----------------------------------------

 ---------------------------------------------------------------------
                    Three Months Ended January 31,
 ---------------------------------------------------------------------
                Revenue                      Operating Income

                                                          %       %
                          %                        %   Revenue Revenue
           2006    2005  Inc.   2006        2005   Inc.  2006    2005
 ---------------------------------------------------------------------
 CVI      $175.6  $121.1 45%   $ 38.8(a) $ 30.0(a) 29%    22%     25%
 CSI        30.1    26.5 14%      5.3       3.5    50%    18%     13%
          ------  ------       ------    ------
 Subtotal  205.7   147.6 39%     44.1      33.5    31%    21%     23%
 Corporate 
  Expense     --      --  --     (8.6)     (3.8)    --     --      --
          ------  ------       ------    ------
 --------------------------------------------------------------------
 TOTAL    $205.7  $147.6 39%   $ 35.5    $ 29.7    20%    17%     20%
          ======  ======       ======    ======
 Excluding 
  stock 
  option 
  expense                      $ 40.4    $ 29.7    36%    20%     20%
                               ======    ======
 ---------------------------------------------------------------------

 (a) Before nonrecurring charges for merger related accounting and
     restructuring of $1.8 million and $3.1 million, in fiscal 2006 
     and 2005, respectively.

First Quarter Fiscal 2006 Revenue and Expense Summary

Cooper's first quarter revenue of $205.7 million was 45% above last year's first quarter in constant currency, 39% as reported.

Gross margin, before nonrecurring acquisition and restructuring costs, was 63%, one percent below last year's first quarter as unfavorable currency adjustments flow through the cost of goods sold. Including nonrecurring acquisition and restructuring costs, gross margin was also 63% compared with 62% in the prior year's quarter.

Selling, general and administrative expense (SG&A), including $4.8 million for stock option expense, grew 40% and was 41% of revenue, the same as in last year's first quarter. SG&A before stock option expense was 39% of sales.

Corporate expenses increased to $8.6 million, or 123% over the first quarter of 2005. These include $3.4 million of stock option expenses, increased costs to comply with corporate governance requirements and support a larger company, an audit cost overrun of $1.3 million for the fiscal 2005 financial and controls audits and continuing costs to maintain Cooper's global trading arrangement.

First quarter fiscal 2006 research and development expense was $5.9 million, more than double the first quarter of 2005, which included only one month of R&D costs from the acquisition. CVI's activities include programs to develop two-week disposable and continuous wear silicone hydrogel lenses, a disposable multifocal toric lens and a daily wear lens incorporating the Proclear® lens material.

Operating income before nonrecurring acquisition and restructuring costs grew 20%, 36% excluding the effect of stock option expense, and was 17% of revenue, 20% excluding the effect of stock option expense, versus 20% in last year's first quarter. With nonrecurring acquisition and restructuring costs included, operating income was 16% of revenue.

Interest expense grew 131% over the first quarter of 2005 as a result of debt incurred associated with the Ocular acquisition. Other expenses of $5.2 million include $800 thousand of foreign exchange losses and a $4.1 million write-off of deferred financing costs associated with amending the syndicated bank credit agreement in December 2005.

The effective tax rate (ETR) for the quarter (provision for taxes divided by income before taxes) was 11%, 12% excluding nonrecurring items, compared with 21% for the first quarter of 2005.

Compared with the first quarter of 2005, the number of shares used to calculate diluted earnings per share increased 21% to 47.6 million shares, primarily due to the shares issued in the Ocular transaction.


 First Quarter Fiscal 2006 Business Unit Operating Summaries 
 ($'s in millions)
 -----------------------------------------------------------

 ---------------------------------------------------------------------
                               CooperVision
 ---------------------------------------------------------------------
                        2006          2006               % Change vs.
                    Nonrecurring    Before               2005 before
                    acquisition   nonrecurring           nonrecurring
                        and      acquisition and       acquisition and
             2006  restructuring restructuring          restructuring
           Reported  expenses      expenses    % Revenue  expenses
 ---------------------------------------------------------------------
 Net 
  sales     $175.6    $   --        $175.6         100%      45%
 Cost of 
  sales       63.8      (0.5)         63.3          36%      54%
            ------    ------        ------
 Gross 
  profit     111.8       0.5         112.3          64%      41%
 SG&A         65.2        --          65.2          37%      40%
 R&D and 
  amortization 8.3        --           8.3           5%     149%
 Restructuring 
  costs        1.3      (1.3)           --          --       --
            ------    ------        ------
 Total 
  operating 
  expense     74.8      (1.3)         73.5          42%      47%
            ------    ------        ------
 ---------------------------------------------------------------------
 Operating 
  income    $ 37.0    $  1.8        $ 38.8          22%      29%
            ======    ======        ======
 ---------------------------------------------------------------------


 ---------------------------------------------------------------------
                            CooperSurgical
 ---------------------------------------------------------------------
                             2006          % 
                           Reported     Revenue  % Change vs. 2005
 ---------------------------------------------------------------------
 Net sales                  $ 30.1        100%          14%
 Cost of sales                12.8         43%           8%
                            ------
 Gross profit                 17.3         57%          18%
 SG&A                         10.7         36%           7%
 R&D and amortization          1.3          3%          22%
 Total operating expense      12.0         39%           8%
                            ------
 ---------------------------------------------------------------------
 Operating income           $  5.3         18%          50%
                            ======
 ---------------------------------------------------------------------

Balance Sheet and Cash Flow Highlights

-- At the end of the first quarter, Cooper's days sales outstanding (DSO) increased to 68 days from 65 days a year ago. Cooper expects future DSO in the upper 60's to low 70's.

-- Inventory months on hand was 7.8 months at the end of the quarter, versus 6.8 months at last year's first quarter, in line with company expectations, as inventory is built to support new product launches.

-- Capital expenditures were $46 million in the quarter, primarily to expand manufacturing capacity and to continue the rollout of new information systems in selected locations.

"Our objective is to move aggressively to develop manufacturing capacity for our new silicone hydrogel lenses and to expand and/or convert capacity to the Gen II manufacturing platform for both single-use and our two-week and monthly PC technology-based high volume products," said Robert S. Weiss, executive vice president and chief operating officer. "Our ongoing conversion to Gen II is key to achieving the substantial manufacturing savings we've projected from the Ocular acquisition," he noted.

Cooper expects capital expenditures in fiscal 2006 of about $150 million to $160 million, about 70% for expanded manufacturing capacity, about 20% for Gen II conversion and about 10% for information technology.

Cooper expects to exit fiscal 2006 with the manufacturing capacity to sell $40 million in silicone hydrogel lenses during fiscal 2007, more than five times the anticipated fiscal 2006 capacity, and to continue to increase silicone hydrogel capacity during fiscal 2007. Adequate manufacturing capacity to meet anticipated demand for existing single-use lenses and Biomedics XC is expected to be in place over the next twelve months.

-- Depreciation and amortization was $14.2 million for the quarter.

Amended Credit Agreement

During the first quarter Cooper amended its $750 million credit facility. This reduced the cost of borrowing by approximately $2 million annually. As a result, Cooper wrote off $4.1 million of deferred costs related to the previous facility in the first quarter.

CooperVision Business Details


 2005 Worldwide Contact Lens Market Revenue Highlights
 -----------------------------------------------------
 
 ---------------------------------------------------------------------
    Calendar 2005 Trends In Manufacturers Worldwide Shipments 
                    of Soft Contact Lenses

 ---------------------------------------------------------------------
                                                             
                                      % Reported      
 Market                              Market Growth       % CVI
  Segment  % Market  % CVI Revenue  (12 mos. 2005) Soft Lens Growth(a)
 ---------------------------------------------------------------------
 Single-use    29           10            +13             +35
 ---------------------------------------------------------------------
 Sphere        46           50             +9              (3)
 ---------------------------------------------------------------------
 Toric         15           33            +15             +13
 ---------------------------------------------------------------------
 Multifocal     3            5            +19             +48
 ---------------------------------------------------------------------
 Cosmetic       7            2             (3)             --
 ---------------------------------------------------------------------
 Total        100          100            +10              +7
 ---------------------------------------------------------------------
  All 
   disposable  95           87            +14             +13
 ---------------------------------------------------------------------
 (a) Organic growth for 2005. See table below: CVI Selected Revenue 
     Data for Major Product and Geographic Categories.

According to independent market research data, the worldwide soft contact lens market grew 10% in calendar 2005 to $4.6 billion -- 8% in constant currency. The soft contact lens market in United States grew about 8% to $1.6 billion, while revenue in countries outside the United States grew about 11% to $3 billion.

Toric lenses, the largest specialty product category, grew approximately 15% to about $685 million, while the daily disposable segment grew about 13% to approximately $1.3 billion. Multifocal lenses grew 19% to $143 million.

The Americas region, approximately $1.8 billion or 40% of the world market, grew approximately 9%. Japan and the Pacific Rim countries, approximately $1.5 billion or 31% of the world market, grew approximately 17%. Europe, about $1.3 billion or 29% of the market, grew about 5%.

CVI believes that it is the world's third leading contact lens supplier with a worldwide market share of 17%. CVI now accounts for over 37% of worldwide toric lens revenues.

Silicone Hydrogel Market Update

According to independent market research data, worldwide silicone hydrogel lens revenue grew 95% during 2005 to $662 million, about 14% of the soft contact lens market. The market share for silicone hydrogel lenses stabilized at 16% of soft contact lens revenue in both the third and fourth quarters of calendar 2005.

About two-thirds of the silicone hydrogel revenue is generated in the United States. During calendar 2005, silicone hydrogel lenses accounted for 26% of soft contact lens revenue in the U.S.; 27% in the third quarter and 28% in the fourth quarter.

According to Health Product Research estimates, silicone hydrogel lenses accounted for 27% of total patient visits to contact lens practitioners in the United States during the fourth quarter of calendar 2005 compared with 25% in the third quarter. Silicone hydrogel lenses accounted for 34% of new patient visits in the third quarter and 35% of new visits in the fourth quarter.

CooperVision Worldwide Reported Revenue Highlights for the First Quarter Fiscal 2006

-- CVI's worldwide revenue of $175.6 million grew 45% over last year's first quarter -- 52% in constant currency.

-- CVI's core product lines -- specialty lenses (toric, cosmetic, multifocal, and PC Technology and silicone hydrogel spherical lenses) plus single-use lenses -- grew 44% in the first quarter and accounted for 63% of its soft lens business.

-- Sales of toric lenses, which correct astigmatism, increased 32% in the first quarter and accounted for 34% of CVI's soft contact lens revenue. All disposable toric products grew 33% in the quarter and now represent about 80% of CVI's worldwide toric sales.

-- Single-use lenses had sales of about $20.7 million during the quarter, up 256% for the same period in 2005.

-- In the Americas region, which accounts for 48% of CVI's contact lens business, revenue grew 37% -- 36% in constant currency.

-- European lens revenue, about 36% of CVI's contact lens business, grew 31% -- 44% in constant currency.

-- Asia-Pacific revenue grew to $28.3 million from $12.8 million, and now represents 16% of CVI's contact lens business.

CooperVision First Quarter Fiscal 2005 Organic Constant Currency Growth Revenue Comparison

On January 6, 2005, Cooper acquired Ocular, and results from the acquired Ocular business are part of Cooper's consolidated financial reporting from that date. To show CVI's organic constant currency growth, we include in the table below Ocular's revenue when Cooper did not own Ocular of $51.6 million for November 1, 2004 through January 5, 2005 with CVI's reported revenue of $121.1 million for the prior year's period.


 ---------------------------------------------------------------------
 CVI Selected Revenue Data for Major Product and Geographic Categories
 ---------------------------------------------------------------------
                                                             % 
                                            % CVI          Change
                                           Revenue        1Q06 vs.
                                             1Q06           1Q05
 ---------------------------------------------------------------------
 Total worldwide soft contact lenses          100            +6
 ---------------------------------------------------------------------
 Total specialty lenses                        50           +10
 ---------------------------------------------------------------------
          US specialty                         61            +5
 ---------------------------------------------------------------------
          Outside the US (OUS) specialty       44           +14
 ---------------------------------------------------------------------
 Total disposable lenses (1 day, 2 week, 
  1 month wear)                                88            +8
 ---------------------------------------------------------------------
          US disposable                        84            +6
 ---------------------------------------------------------------------
          OUS disposable                       90            +9
 ---------------------------------------------------------------------
 Total spherical lenses (ex single-use)        47            (2)
 ---------------------------------------------------------------------
          US spherical                         48            (1)
 ---------------------------------------------------------------------
          OUS spherical                        46            (2)
 ---------------------------------------------------------------------
 Disposable spherical lenses (93% of 
  spherical revenue)                           55            +4
 ---------------------------------------------------------------------
          US disposable spherical              45            +3
 ---------------------------------------------------------------------
          OUS disposable spherical             61            +5
 ---------------------------------------------------------------------
 Total single-use spherical lenses             13           +23
 ---------------------------------------------------------------------
 Total toric lenses                            34            +9
 ---------------------------------------------------------------------
          US toric                             45            +4
 ---------------------------------------------------------------------
          OUS toric                            27           +15
 ---------------------------------------------------------------------
 Disposable toric lenses (80% of toric 
  revenue)                                     27           +13
 ---------------------------------------------------------------------
          US disposable toric                  32            +7
 ---------------------------------------------------------------------
 Multifocal lenses                              5           +56
 ---------------------------------------------------------------------
 Proclear(r) lenses                            17           +21
 ---------------------------------------------------------------------
          US Proclear(r)                       17           +15
 ---------------------------------------------------------------------
          OUS Proclear(r)                      16           +26
 ---------------------------------------------------------------------
 Americas region                               45            +3
 ---------------------------------------------------------------------
 European region                               38            +8
 ---------------------------------------------------------------------
 Asia-Pacific region                           17           +11
 ---------------------------------------------------------------------

CooperVision Strategies

While posting an 8% revenue gain worldwide during fiscal 2005, CVI lost market share in the two-week spherical lens market in the United States. New product introductions during calendar 2006 are aimed at growing revenue and regaining market share momentum. Recent new product introductions were:

-- In December 2005, CVI launched Biofinity a second generation monthly silicone hydrogel spherical lens in Europe and plans to introduce it in the United States in the second half of calendar 2006.

-- In January, CVI introduced Biomedics XC, a two-week aspheric lens featuring PC Technology. This product is positioned against first generation two-week disposable silicone hydrogel spheres as a superior product with overall patient comfort preference in daily wear. It will soon be available as a house brand for customers in the optical chain market, who have been unable to offer a CVI two- week sphere until now, and enables practitioners to offer a new two-week contact lens that is different from silicone hydrogel products.

-- In January, an improved Biomedics® single-use spherical lens was launched worldwide.

These products accounted for about $1 million in revenue in the first quarter of fiscal 2006.

The schedule for the introduction of CVI new products for the remainder of calendar 2006 and for 2007 and 2008 is as follows:


 ---------------------------------------------------------------------
 Introduction Date  Product Description     Market        Comments
  (calendar year)
 ---------------------------------------------------------------------
 1H06              Second base curve of    United     Allows more 
                   Proclear(r) toric       States     patients to wear
                                           then       the Proclear(r) 
                                           worldwide  toric lens

 ---------------------------------------------------------------------
                   Single-use toric        Japan      First single-use 
                                                      toric in Japan 
                                                      with wide range 
                                                      of parameters
 ---------------------------------------------------------------------
 2H06              Silicone Hydrogel       United     Second 
                   sphere                  States     generation   
                                                      monthly product
 ---------------------------------------------------------------------
                   Biomedics(r)            United     Disposable two-
                   Multifocal EP           States     week product
                   (Emerging Presbyope)    
 ---------------------------------------------------------------------
                   Proclear(r) disposable  United     First disposable 
                   toric multifocal        States     product in its 
                                                      class
 ---------------------------------------------------------------------
                   Single-use sphere with  United     Premium 
                   PC technology           States     single-use lens
                                                      enhances wearer 
                                                      comfort
 ---------------------------------------------------------------------
                   Proclear(r) disposable  United     Expands 
                   toric XR                States     parameters of  
                                                      Proclear(r) toric
 ---------------------------------------------------------------------
 2007              Single-use sphere with  Europe     Premium 
                   PC technology                      single-use lens  
                                                      enhances wearer 
                                                      comfort
 ---------------------------------------------------------------------
                   Silicone Hydrogel       United     CVI's third 
                   sphere plus PC          States     generation   
                   technology                         silicone 
                                                      hydrogel using 
                                                      PC technology
 ---------------------------------------------------------------------
                   Single-use multifocal   United     First premium 
                   with PC technology      States     single-use 
                                                      multifocal
 ---------------------------------------------------------------------
                   Biomedics XC(tm)        Asia       Favorable 
                   two-week disposable     Pacific    clinical profile
                   sphere with             Europe     versus    
                   PC technology                      competitive 
                                                      silicone
                                                      hydrogels                
 ---------------------------------------------------------------------
                   Silicone Hydrogel Toric United     CVI's third 
                                           States     generation  
                                           Europe     silicone  
                                                      hydrogel using 
                                                      PC technology
 ---------------------------------------------------------------------
 2008              Single-use sphere with  Japan      Premium 
                   PC technology                      single-use lens 
                                                      enhances wearer 
                                                      comfort
 ---------------------------------------------------------------------

CVI First Quarter Expenses

CVI's gross margin before nonrecurring acquisition and restructuring costs was 64% of revenue in the first quarter of fiscal 2006 compared to 66% in last year's first quarter. Gross margin with nonrecurring acquisition and restructuring costs included was also 64%, approximately the same as the first quarter of 2005. The impact of foreign exchange, sales product mix and manufacturing inefficiencies associated with the ramp up of new products is expected to cause gross margins to be lower in the first half of the year compared with the second half.

CooperVision's SG&A expense grew 40% during the quarter compared with revenue growth of 45%. Expense growth reflects CVI's investment in selling programs associated with new products in advance of product launches. SG&A expenses in the second half of the year as a percent of revenue are expected to decline reflecting the impact of anticipated revenue associated with new product introductions.

Research and development expense was $5.2 million in the first quarter of fiscal 2006, 1.5 times greater than last year's first quarter and is expected to be between $18 million and $20 million for fiscal 2006.

CooperSurgical Business Details

During the first quarter, revenue at CSI, Cooper's women's healthcare medical device business, grew 14% to $30.1 million compared with $26.5 million in the first quarter of fiscal 2005.

CSI's organic revenue grew approximately 6% over last year's first quarter.

CSI's operating margin was 18% for the quarter, up from 13% in the first quarter of 2005, reflecting operating efficiencies derived from 2005 restructuring activities.

In November 2005, CSI acquired NeoSurg Technologies, Inc. (NeoSurg), a manufacturer of reusable and disposable trocar access systems used in laparoscopic surgery, and Inlet Medical, Inc. (Inlet), a manufacturer of trocar closure systems and pelvic floor reconstruction procedure kits. These purchases advance CSI's expansion within the hospital segment of women's healthcare.

Inlet revenue was approximately $2.7 million in the first quarter, and the Company expects to launch its NeoSurg products in the second half of fiscal 2006.

Earnings Per Share

All per share amounts in this news release refer to diluted per share amounts.

Non-GAAP Financial Measures (In millions, except per share amounts)

In this news release, we report Cooper's "cash flow per share" for the first quarter of fiscal 2006 and 2005 as 95 cents and 89 cents, respectively, and our cash flow per share for the twelve months ended January 31, 2006 as $4.60.

Although "cash flow per share" is a non-GAAP financial measure, we disclose it because we believe it is a more appropriate measure of Cooper's liquidity and financial strength, particularly when calculated consistently over time. In Cooper's case, cash flow per share is more informative than the more common non-GAAP measure of liquidity called "earnings before interest, taxes, depreciation and amortization" (EBITDA) because, unlike most companies, Cooper does not expect to pay federal income taxes for several years because it has significant net operating loss carryforwards. Cooper has a significant competitive advantage, as most companies expend a large portion of their pretax profits on taxes. Readers should understand this and judge our financial strength accordingly.

To calculate "cash flow per share," we add back charges for income taxes, stock options, depreciation, amortization and nonrecurring items (nonrecurring acquisition and restructuring expenses and the write-off of deferred financing costs associated with amending the syndicated bank credit facility) to income for calculating earnings per share, less interest on convertible debt, and then divide the result by the average number of shares used to calculate diluted earnings per share. In the table below, we reconcile earnings per share (the closest GAAP measure) to "cash flow per share" for all periods reported using the same diluted per share figures.


                                                               Twelve
                                                Twelve Months  Months
                                                    Ended      Ended 
                                 Q1 2006  Q1 2005 12/31/2005 1/31/2006
 Income for calculating earnings
  per share                       $ 18.5   $ 18.2   $ 93.8
 Add:
 Income taxes                        2.2      4.6     16.7
 Stock options                       4.9       --       --
 Depreciation                       10.4      6.6     36.9
 Amortization                        3.7      1.6     11.7
 Nonrecurring acquisition and
  restructuring expenses             1.8      4.7     52.0
 Write-off of deferred financing
  costs                              4.1       --       --
 Less: Interest charge applicable
  to convertible debt, net of tax    0.5      0.5      2.1
                                  ------   ------   ------ 
 "Cash flow"                      $ 45.1   $ 35.2   $209.0
                                  ======   ======   ======
 Earnings per share               $ 0.39   $ 0.46   $ 2.04
                                  ======   ======   ======
 Cash flow per share              $ 0.95   $ 0.89   $ 4.54     $ 4.60
                                  ======   ======   ======     ======
 Number of shares used to compute
  diluted earnings per share        47.6     39.5     46.0

In this news release, we report for the first quarter of fiscal 2006, "earnings per share before nonrecurring items" as 49 cents and "earnings per share before nonrecurring items and stock option expense" as 58 cents.

Although "earnings per share before nonrecurring items" is a non-GAAP financial measure, we disclose it because we believe it is an appropriate measure to promote comparability of Cooper's results, particularly when calculated consistently over time. In the schedule below, we reconcile earnings per share (the closest GAAP measure) to "earnings per share before nonrecurring items," for all periods reported using the same diluted per share figures. We add back nonrecurring items, adjusted for the impact of the nonrecurring items on the effective tax rate, to reported earnings per share.


                                                              Q1 2006

 Earnings per share, as reported                               $0.39
 Nonrecurring items, net of tax                                 0.10
                                                               -----
 Earnings per share before nonrecurring items                  $0.49
                                                               =====
 Stock option expense, net of tax                               0.09
                                                               -----
 Earnings per share before nonrecurring items and stock 
  option expense                                               $0.58
                                                               =====
 Number of shares used to compute diluted earnings per share    47.6
                                                               =====

Conference Call

The Cooper Companies will hold a conference call to discuss its first quarter results today at 2pm Pacific Standard Time. To access the live call, dial 1-888-396-2369. A replay will be available at 888-286-8010 approximately one hour after the call ends and remain available for five days. The passcode is 42774109. Callers outside the United States should dial 617-847-8710, passcode 49928841.This call will also be broadcast live on The Cooper Companies' Web site, www.coopercos.com and at www.streetevents.com.

Forward-Looking Statements

This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. These include certain statements about the integration of the Ocular business, our capital resources, performance and results of operations. In addition, all statements regarding anticipated growth in our revenue, anticipated market conditions, planned product launches and results of operations 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. Discussions of strategy, plans or intentions often contain forward-looking statements. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties. These include the risk that acquired businesses will not be integrated successfully into CVI and CSI, including the risk that the Company may not continue to realize anticipated benefits from its cost-cutting measures and inherent in accounting assumptions made in the acquisitions; the risks that CVI's new products will be delayed or not occur at all, or that sales will be limited following introduction due to manufacturing constraints; risks related to implementation of information technology systems covering the Company's businesses and any delays in such implementation or other events which could result in management having to report a significant deficiency or material weakness in the effectiveness of the Company's internal control over financial reporting in its 2006 annual report on Form 10-K; and risks with respect to the ultimate validity and enforceability of the Company's patent applications and patents and the possible infringement of the intellectual property of others.

Events, among others, that could cause our actual results and future actions of the Company to differ materially from those described in forward-looking statements include major changes in business conditions, a major disruption in the operations of our manufacturing or distribution facilities, new competitors or technologies, significant delays in new product introductions, the impact of an undetected virus on our computer systems, acquisition integration delays or costs, increases in interest rates, foreign currency exchange exposure, investments in research and development and other start-up projects, variations in stock option expenses caused by stock price movement or other assumptions inherent in accounting for stock options, dilution to earnings per share from acquisitions or issuing stock, worldwide regulatory issues, including product recalls and the effect of healthcare reform legislation, cost of complying with corporate governance requirements, changes in tax laws or their interpretation, changes in geographic profit mix effecting tax rates, significant environmental cleanup costs above those already accrued, litigation costs including any related settlements or judgments, the adverse effects on patients, practitioners and product distribution of natural disasters, cost of business divestitures, the requirement to provide for a significant liability or to write off a significant asset, including impaired goodwill, changes in accounting principles or estimates and other events described in our Securities and Exchange Commission filings, including the "Business" and "Risk Factors" section in Cooper's Annual Report on Form 10-K for the fiscal year ended October 31, 2005. 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.

Corporate Information

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

CooperVision manufactures and markets contact lenses and ophthalmic surgery products. Headquartered in Lake Forest, Calif., it manufactures in Albuquerque, N.M., Juana Diaz, Puerto Rico, Norfolk, Va., Rochester, N.Y., Adelaide, Australia, Hamble and Hampshire England, Ligny-en-Barrios, France, Madrid, Spain and Toronto. Its Web address is www.coopervision.com.

CooperSurgical manufactures and markets diagnostic products, surgical instruments and accessories to the women's healthcare market. With headquarters and manufacturing facilities in Trumbull, Conn., it also manufactures in Pasadena, Calif., North Normandy, Ill., Fort Atkinson, Wis., Montreal and Berlin. Its Web address is www.coopersurgical.com.

Proclear® and Biomedics®, are registered trademarks and Biomedics XC and Biofinity are trademarks of The Cooper Companies, Inc. and its subsidiaries or affiliates.


                      FINANCIAL STATEMENTS FOLLOW

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


                                                  Three Months Ended
                                                      January 31,  
                                                 -------------------
                                                   2006       2005   
                                                 --------   --------
 Net sales                                       $205,739   $147,550
 Cost of sales                                     76,578     55,432
                                                 --------   --------
 Gross profit                                     129,161     92,118
 Selling, general and administrative expense       84,446     60,395
 Research and development expense                   5,932      2,830
 Restructuring costs                                1,340        666
 Amortization of intangibles                        3,729      1,610
                                                 --------   --------
 Operating income                                  33,714     26,617
 Interest expense                                   8,428      3,648
 Other loss, net                                    5,163        614
                                                 --------   --------
 Income before income taxes                        20,123     22,355
 Provision for income taxes                         2,169      4,646
                                                 --------   --------
 Net income                                        17,954     17,709
 Add interest charge applicable to
  convertible debt, net of tax                        522        524
                                                 --------   --------
 Income for calculating diluted earnings per
  share                                          $ 18,476   $ 18,233
                                                 ========   ========

 Diluted earnings per share                      $   0.39   $   0.46
                                                 ========   ========

 Number of shares used to compute earnings
  per share                                        47,614     39,479
                                                 ========   ========


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


                                          January 31,  October 31,
                                             2006         2005     
                                          ----------   ----------

                          ASSETS

 Current assets:
  Cash and cash equivalents               $   24,597   $   30,826
  Trade receivables, net                     155,001      152,610
  Inventories                                198,480      185,693
  Deferred tax asset                          21,147       23,449
  Other current assets                        50,118       51,136
                                          ----------   ----------
   Total current assets                      449,343      443,714
                                          ----------   ----------
 Property, plant and equipment, net          414,113      379,785
 Goodwill                                  1,209,834    1,169,049
 Other intangibles, net                      161,096      151,413
 Deferred tax asset                           20,699       19,716
 Other assets                                 13,173       16,153
                                          ----------   ----------
                                          $2,268,258   $2,179,830
                                          ==========   ==========

      LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
 Short-term debt                          $   38,537   $   72,260
 Other current liabilities                   186,398      185,362
                                          ----------   ----------
  Total current liabilities                  224,935      257,622
                                          ----------   ----------
 Long-term debt                              727,234      632,652
 Deferred tax liabilities                      7,819        9,118
 Accrued pension liability and other           7,606        7,213
                                          ----------   ----------
  Total liabilities                          967,594      906,605
                                          ----------   ----------
 Stockholders' equity                      1,300,664    1,273,225
                                          ----------   ----------
                                          $2,268,258   $2,179,830
                                          ==========   ==========

CONTACT: The Cooper Companies, Inc.
Norris Battin
(888) 822-2660
Fax: (949) 597-0662
ir@coopercompanies.com