Coherent's Medical Group Sold to ESC Medical Systems Ltd.

Apr 30, 2001, 01:00 ET from Coherent, Inc.

    SANTA CLARA, Calif., April 30 /PRNewswire/ --
 Coherent, Inc. (Nasdaq: COHR) announced today that it has completed, effective
 April 30, 2001, the sale of its medical products business, Coherent Medical
 Group (CMG), to ESC Medical Systems Ltd. (Nasdaq: ESCM) for a combination of
 cash, notes, and ESC stock valued, in the aggregate, at more than $200 million
 as well as a potential future earnout of an additional $25 million.  The
 Company anticipates that the sale will result in a one-time gain to be
 reflected in the results for its third fiscal quarter ending June 30, 2001.
     "I believe this transaction will benefit all involved," said
 Bernard Couillaud, Coherent's President and CEO.  "The skills resident in the
 combined operations of ESC and CMG, which will be called Lumenis, and the
 resultant synergies, should benefit its customers as well as, in the
 long-term, the stockholders of both ESC and Coherent.  Additionally, the
 Lumenis employees should benefit from the career opportunities afforded by a
 much larger company that is a clear leader in its markets.  In Coherent's
 case, the sale provides management with the opportunity to concentrate on our
 core competencies and greater financial resources to pursue them."
 
      "Safe Harbor" Statement Under the Private Securities Litigation Reform
       Act
      The statements in this press release that relate to future plans, events
 or performance, including statements that the Company anticipates the sale
 will result in a one-time gain, that the sale is beneficial to all involved,
 that the sale should be in the long-term benefit the stockholders of both ESC
 and Coherent, and the combination would be beneficial to Coherent by allowing
 management to concentrate on its core competencies, are forward-looking within
 the meaning of the Private Securities Litigation Act of 1995.  Readers are
 cautioned not to place undue reliance on these forward-looking statements,
 which speak only as of the date hereof.  The Company undertakes no obligation
 to release publicly the result of any revisions of these forward-looking
 statements that may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.  Readers are
 encouraged to refer to the risk disclosures described in the Company's reports
 filed with the SEC, including but not limited to the Form 10-K for the fiscal
 year ended September 30, 2000 and the Forms 10-Q for the quarter ending
 December 30, 2000.
     Founded in 1966, Coherent, Inc. is a Standard & Poor's
 SmallCap 600 company and a world leader in providing photonics based solutions
 to the commercial, scientific, medical, and telecom markets.  Please direct
 any questions to Peter Schuman, Director, Investor Relations at 408-764-4174.
 For more information about Coherent, visit our Web site at
 http://www.coherentinc.com for product and financial updates.
 
 

SOURCE Coherent, Inc.
    SANTA CLARA, Calif., April 30 /PRNewswire/ --
 Coherent, Inc. (Nasdaq: COHR) announced today that it has completed, effective
 April 30, 2001, the sale of its medical products business, Coherent Medical
 Group (CMG), to ESC Medical Systems Ltd. (Nasdaq: ESCM) for a combination of
 cash, notes, and ESC stock valued, in the aggregate, at more than $200 million
 as well as a potential future earnout of an additional $25 million.  The
 Company anticipates that the sale will result in a one-time gain to be
 reflected in the results for its third fiscal quarter ending June 30, 2001.
     "I believe this transaction will benefit all involved," said
 Bernard Couillaud, Coherent's President and CEO.  "The skills resident in the
 combined operations of ESC and CMG, which will be called Lumenis, and the
 resultant synergies, should benefit its customers as well as, in the
 long-term, the stockholders of both ESC and Coherent.  Additionally, the
 Lumenis employees should benefit from the career opportunities afforded by a
 much larger company that is a clear leader in its markets.  In Coherent's
 case, the sale provides management with the opportunity to concentrate on our
 core competencies and greater financial resources to pursue them."
 
      "Safe Harbor" Statement Under the Private Securities Litigation Reform
       Act
      The statements in this press release that relate to future plans, events
 or performance, including statements that the Company anticipates the sale
 will result in a one-time gain, that the sale is beneficial to all involved,
 that the sale should be in the long-term benefit the stockholders of both ESC
 and Coherent, and the combination would be beneficial to Coherent by allowing
 management to concentrate on its core competencies, are forward-looking within
 the meaning of the Private Securities Litigation Act of 1995.  Readers are
 cautioned not to place undue reliance on these forward-looking statements,
 which speak only as of the date hereof.  The Company undertakes no obligation
 to release publicly the result of any revisions of these forward-looking
 statements that may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.  Readers are
 encouraged to refer to the risk disclosures described in the Company's reports
 filed with the SEC, including but not limited to the Form 10-K for the fiscal
 year ended September 30, 2000 and the Forms 10-Q for the quarter ending
 December 30, 2000.
     Founded in 1966, Coherent, Inc. is a Standard & Poor's
 SmallCap 600 company and a world leader in providing photonics based solutions
 to the commercial, scientific, medical, and telecom markets.  Please direct
 any questions to Peter Schuman, Director, Investor Relations at 408-764-4174.
 For more information about Coherent, visit our Web site at
 http://www.coherentinc.com for product and financial updates.
 
 SOURCE  Coherent, Inc.