Letter from the Chairman

Dear Valued Customers, Partners and Suppliers,

I am delighted to inform you that today a Private Equity consortium concluded a major investment of approximately $125 Million of new equity in Lumenis. The consortium is now the owner of a substantial majority interest in Lumenis with this investment. Additionally, the debt of the Company has been significantly reduced. (Enclosed is the Press Release with details of the transaction). This transaction represents a significant improvement in the capital structure of Lumenis, as well as the addition of new leadership to the Company. Going forward we intend to focus on improving Lumenis’ execution on all fronts, as well as bringing to market the most innovative, ground-breaking technologies, applications and products.

Our objective is to communicate directly with all of our stakeholders and inform you about our status and plans for the future. We are working hard on all fronts to respond to any problems you may be encountering as a result of our cash situation in the last year. Within a short period of time inventories, delivery times, and service levels will be normalized.

Lumenis is recognized as the world market leader in medical and aesthetic laser and light based technologies and has the largest installed base in the business. It is our goal to constantly improve our products and services with a focus on the highest standards of Quality. We have the skill, know-how, leadership and innovation to continuously introduce new products with affordable, revolutionary technologies.

I have great pleasure in introducing Mr. Zivi Nedivi, our new Chief Operating Officer. I am confident that with his experience in various senior executive management positions, and his fresh perspective, Zivi will enable effective implementation of our strategies and vision. I will be acting as Chairman and CEO until our new CEO is on board in the near future. Please contact me or Zivi Nedivi directly if you have any questions or concerns.

We look forward to working with you during this very exciting time and in the years to come.

Sincerely,
Harel Beit-On
Chairman of the Board