Lumenis Increases Efficiency and Improves Customer Service by Selecting UPS for Global Supply Chain Management

Yokneam, Israel, June 21, 2005 – Lumenis^® Ltd. (LUME.PK), a global developer, manufacturer and seller of laser and light-based devices for medical, aesthetic, ophthalmic, dental and veterinary applications, in a continuing effort to reduce costs and build world-class customer service, announced today that it has reached agreement to outsource its global supply chain activities to UPS Supply Chain Solutions, a subsidiary of UPS (NYSE:UPS).

Under the terms of the initial 3-year agreement, UPS Supply Chain Solutions will assume responsibility for logistics, warehouse management, customs and transportation services for all Lumenis activities worldwide. UPS will also provide specialty services such as critical order management and service parts logistics. The agreement includes key performance parameters, such as order processing speed, on-time delivery, and inventory accuracy.

Avner Raz, Lumenis President and Chief Executive Officer, commented, “This agreement provides us with cost advantages due to UPS’ global supply chain flexibility and, more importantly, enables us to focus on our core activities which brings us closer to our customers. We expect that our increased efficiency will have a positive impact on our business and customer satisfaction”.

“Lumenis is a global company whose supply chain needs match well with our capabilities,” said John Hafferty, UPS Supply Chain Solutions vice president for Europe and Asia. “We plan on leveraging our supply chain management solutions to improve their efficiency and customer service.”

Lumenis is a global developer, manufacturer and seller of laser and light-based devices for medical, aesthetic, ophthalmic, dental and veterinary applications. The Company offers a wide range of products along with extensive product support systems including training, education and service. Lumenis invests heavily in research and development to maintain and enhance its leading industry position. The Company holds numerous patents worldwide on its technologies. For more information about Lumenis and its products, log onto www.lumenis.com.

About UPS

UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Its business unit UPS Supply Chain Solutions offers transportation and freight, logistics and distribution, and international trade services. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com and ups-scs.com.

Contact:

Lauri Hanover, CFO
1-866-232-6803
+972-4-959-9122

The statements in this press release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The Company's actual results could differ materially from those anticipated in the forward looking statements based on a variety of factors, including, among others: uncertainties with respect to market acceptance of the Company's products, the implementation and outcome of its Turnaround Plan, obtaining regulatory approvals for new products or for the sale of existing products in new markets and enforcement of intellectual property rights; risks associated with competition and competitive pricing pressures, economic conditions generally, the Company's international operations and the Company's ability to integrate its operations with those of acquired businesses; the outcome of the Securities and Exchange Commission investigation and several securities class action lawsuits to which the Company is subject and the outcome of the investigation conducted by the Audit Committee; uncertainties relating to the Company’s continuing liquidity; and other risks detailed from time to time in the reports filed by Lumenis with the SEC, including its annual report on Form 10-K and quarterly reports on Form 10-Q.