16 March 2006

Ellex Announces Rebranding and Shifts Focus to Direct Marketing of its Ophthalmic Lasers

Ellex Medical Laser Ltd. (ASX:ELX), a world leading designer and manufacturer of laser systems for the ophthalmic industry, announced that it will establish Ellex, as its worldwide brand name, consistent with its name on the Australian Stock Exchange. Ellex will replace the brand name “Laserex” on products, and the US and Japan subsidiaries will also adopt Ellex, to be consistent in one global brand representation. In addition, Ellex will relocate its global sales and marketing headquarters to the San Francisco Bay Area during the second half of 2006, in a strategic move to be centrally located to its three main markets in North America, North Asia and Europe. The global sales and marketing headquarters will be directed by Peter Falzon, CEO of Ellex, and will develop and implement sales, marketing and service functions for the company worldwide.

Ellex has an installed base of more than 10,000 photodisruptors, photocoagulators and selective laser trabeculoplasty (SLT) laser systems. Today, two thirds of the company’s revenue is derived from new products released in the past three years as a result of aggressive investment in R&D and distribution with a sole focus on the ophthalmic laser market.

Providing therapeutic solutions to the three largest disease segments in ophthalmology — cataract, retina and glaucoma — Ellex is the only company focused entirely on the $200 million non-refractive ophthalmic laser market and intends to become the leading supplier under the Ellex brand.

Peter Falzon, CEO of Ellex, said, “The launch of the Ellex brand reflects a strategic decision to market our products directly to ophthalmologists while moving away from our seven year relationship with Lumenis. The company’s core strengths include the know-how that comes from 20 plus years of engineering and manufacturing laser systems for eye doctors. We believe our customers and our shareholders will be best served by Ellex’ direct participation in the marketplace.” On March 1, 2006 Ellex announced is FY06 first half financial results to the Australian Stock Exchange, which included 73% growth of its own brand product sales and 150% growth in profit compared to the same period of the prior year. “We are very pleased with the progress made to transition from a laser engineering and manufacturing company to a brand that is recognized by ophthalmologists. We are now ready to move the “storefront” of our business to San Francisco, which ideally positions the company to drive growth in our key markets.”

In line with Ellex’ stated strategy to become the preferred direct supplier of premium laser systems to the ophthalmic community, the company recently announced it had exercised its right to end its OEM supply agreement with competitor Lumenis Ltd. effective March 2006.

About Ellex

Ellex Medical Lasers Limited designs, manufactures and markets a complete line of lasers and ultrasound used by ophthalmologists to preserve vision and fight blindness. With more than 12,000 laser systems installed worldwide, Ellex has evolved from its starting point as an OEM supplier of ophthalmic lasers 15 years ago, to direct marketing of its own branded products through subsidiaries in the United States, Japan and Australia and through a network of distributors in more than 50 other countries. Ellex maintains a strong emphasis on intellectual property and research into new and better treatments to manage and cure the leading causes of blindness.