Advanced Medical Optics Inc (1168335) SEC Filing 10-K Annual report for the fiscal year ending Wednesday, December 31, 2008

Exhibit 99.1

FOR IMMEDIATE RELEASE

ADVANCED MEDICAL OPTICS ANNOUNCES

FOURTH-QUARTER AND FULL-YEAR 2008 RESULTS

(SANTA ANA, CA), February 20, 2009

Fourth-quarter net sales declined 6.4% to $285.2 million, including a 2.4% decline related to foreign currency exchange rate effects.  Fourth-quarter net earnings under Generally Accepted Accounting Principles (GAAP) were $25.1 million, or $0.40 per diluted share.  Fourth-quarter results were increased by an estimated $0.23 per share due to the combined after-tax effect of the following items:

·                  $107.4 million pre-tax gain associated with the early retirement of convertible senior subordinated notes, net of a $3.0 million write-off of deferred financing costs recorded in interest expense.

·                  $72.6 million in pre-tax impairment charges, including a $36.2 million goodwill impairment in the Eye Care business and a $36.4 million non-amortizing intangible asset impairment in the Refractive business, each of which represented the difference between the assets’ carrying values and their fair values.

·                  $24.1 million in pre-tax charges associated with restructurings, transactions and recapitalizations.

·                  $5.9 million pre-tax charge associated with the forfeiture of underwater stock options by senior management.

·                  $0.6 million pre-tax unrealized loss on derivative instruments.

·                  $11.1 million tax benefit from reversal of valuation allowances on deferred tax assets.

In the year-ago period, the company reported a GAAP net loss of $12.3 million, or a net loss of $0.20 per share.  These results were reduced by $0.17 due to the combined effect of acquisition-related charges and an unrealized loss on derivative instruments.

Full-Year 2008 Results

For 2008, the company’s net sales rose 8.6% to $1.2 billion, including a 3.2% increase related to foreign currency exchange rate effects.  GAAP net earnings for 2008 were $61.0 million, or $0.97 per diluted share.  The 2008 results were increased by an estimated $0.19 per share due to the combined after-tax effect of $131.3 million in pre-tax gains associated with the early retirement of convertible senior subordinated notes, legal contingencies and sales of investments; a $72.6 million pre-tax goodwill and intangible asset impairment charge, $63.9