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

Ellex Medical Lasers Ltd. (ASX:ELX), a world leading designer andmanufacturer of laser systems for the ophthalmic industry, announcedthat it will establish Ellex, as its worldwide brand name, consistentwith its name on the Australian Stock Exchange. Ellex will replace thebrand name "Laserex" on products, and the US and Japan subsidiarieswill also adopt the Ellex name, to be consistent in one global brandrepresentation. In addition, Ellex will relocate its globalheadquarters responsible for global sales, marketing and customerservice to the San Francisco Bay Area during the second half of 2006,in a strategic move to be centrally located to its three main marketsin North America, North Asia and Europe. The global sales andmarketing headquarters will be directed by Peter Falzon, CEO of Ellex,and will develop and implement sales, marketing and service functionsfor the company worldwide. Ellex' manufacturing, engineering andfinance operations will remain in Adelaide and not be effected by theopening of the San Francisco facility.

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

Providing therapeutic solutions to the three largest diseasesegments in ophthalmology -- cataract, retina and glaucoma -- Ellex isthe only company focused entirely on the $200 million non-refractiveophthalmic laser market and intends to become the leading supplierunder the Ellex brand.

Peter Falzon, CEO of Ellex, said, "The launch of the Ellex brandreflects a strategic decision to market our products directly toophthalmologists while moving away from our seven year relationshipwith Lumenis. The company's core strengths include the know-how thatcomes from 20 plus years of engineering and manufacturing lasersystems for eye doctors. We believe our customers and our shareholderswill be best served by Ellex' direct participation in themarketplace." On March 1, 2006 Ellex announced its FY06 first halffinancial results to the Australian Stock Exchange, which included 73%growth of its own brand product sales and 150% growth in profitcompared to the same period of the prior year. "We are very pleasedwith the progress made to transition from a laser engineering andmanufacturing company to a brand that is recognized byophthalmologists. We are now ready to move the `storefront' of ourbusiness to San Francisco, which ideally positions the company todrive growth in our key markets."

In line with Ellex' stated strategy to become the preferred directsupplier of premium laser systems to the ophthalmic community, thecompany recently announced it had exercised its right to end its OEMsupply agreement with competitor Lumenis Ltd. effective March 2006.

ABOUT ELLEX

Ellex Medical Lasers Ltd. (ASX:ELX) designs, manufactures andmarkets a complete line of lasers used by ophthalmologists to preservevision and fight blindness. With more than 10,000 systems delivered tothe market, Ellex has evolved since 1985 from a manufacturing companyof primarily OEM products, to direct marketing of its own brandedproducts through subsidiaries in the United States and Japan and anetwork of distribution partners in more than 50 countries. Ellexmaintains a strong emphasis on intellectual property and research intonew and better treatments to manage and treat the leading causes ofblindness.

For additional information about Ellex and its products, pleasevisit www.ellex.com.