According to the docket on April 3, 2002, the Court entered the Amended Order and Final Judgment signed by U.S. District Judge Naomi R. Buchwald. The Class Action is certified as a class action. The counsel for Plaintiffs and the Class are awarded fees in the amount of $1,350,000 plus 150,000 shares of the Settlement Shares or 30% of the Settlement Fund, plus reimbursement of expenses in the amount of $153,223.30, plus interest. The case is closed.

By the closing Order, dated December 12, 2001 from U.S. District Judge Michael B. Mukasey of the U.S. Southern District of New York, Lumenis Ltd. (formerly ECS Medical Systems Ltd.) agreed to settle a 1998 class action lawsuit for $4.5 million in cash and the issuance of 420,000 to 500,000 common shares.

As summarized in the Notice of Pendency, on December 23, 1999, Defendants filed a Motion to Dismiss the Amended Class Action Complaint. On February 23, 2000, Plaintiffs filed their memorandum in opposition to Defendants' motion to dismiss the amended class action complaint. On March 28, 2000, Defendants filed their reply memorandum in support of their motion to dismiss. At the hearing held on August 24, 2000, Judge Buchwald denied the ESC Defendants' Motion to Dismiss, and on January 17, 2001, the Court issued a Mediation Order which suspended discovery during the pendency of the parties' mediation effor . The parties engaged in extended arm's length negotiations that ultimately led to an agreement, subject to Court approval, to settle the Action The parties negotiated and signed a Memorandum of Understanding on or about August 20, 2001, and pursuant thereto, negotiated and on December 7-10, 200, signed the Stipulation of Settlement to set forth the complete terms and conditions of settlement.

The Company had been named in a number of purported class action securities
lawsuits filed in the fall of 1998 that were consolidated in the United States District Court for the Southern District of New York. On July 9, 1999, a consolidated amended complaint was filed naming the Company, Salomon Smith Barney Inc., and several additional current and former directors and officers of the Company's subsidiary, Laser Industries, as defendants. The consolidated amended complaint seeks damages and attorneys fees under the United States securities laws for alleged irregularities in the way in which the Company reported its financial results and disclosed certain facts throughout 1997 and 1998 and for alleged "tipping" of non-public information to Salomon Smith Barney Inc. in September 1998.