Premier Laser Systems Inc and Pro-Laser Ltd. announced that they have signed a letter of intent under which Pro-Laser will acquire Premier's EyeSys Corneal Topography division. Pro-Laser, based in Duesseldorf, Germany will acquire the intellectual property, customer base and inventory of the EyeSys Corneal Topography division from Premier. Under the terms of the agreement, Pro-Laser expects to close this transaction, on or about December 8, 2000.

In addition, Premier and Pro-Laser have executed an additional letter of intent to proceed towards a merger of Premier into Pro-Laser at the conclusion of Premier's Chapter 11 case. The close of both transactions are subject to completion of due-diligence review, Premier and Pro-Laser Board approval, Bankruptcy Court approval and the completion of definitive agreements.

Ronnie Jaegermann, chief executive officer and president of Pro-Laser, said, "We believe that acquiring the EyeSys Corneal Topography product line -- one of the leading topography systems in the world, will enhance our ophthalmic diagnostic product offering and enable Pro-Laser to form a closer relationship with refractive surgeons worldwide."

Fredric J. Feldman, chairman, board of directors of Premier, said "We feel that the transactions with Pro-Laser will benefit our customers, shareholders and creditors. We are pleased to be moving forward with a company of the magnitude of Pro-Laser."

The transaction between the parties is a result of negotiations involving three separate suitors for control of Premier's EyeSys assets. The Magnum Group, Inc. of Tiburon, CA, financial advisors to Premier, managed these negotiations.

Randy McDonald, managing director for Magnum stated, "Premier has approximately 4,000 EyeSys customers and 3,500 shareholders. This merger agreement and acquisition of the EyeSys assets by Pro-Laser will benefit a large number of parties." McDonald also noted that this is the third major business division to be divested and that other assets will continue to be sold as part of Premier's plan of reorganisation.