KIBBUTZ SHAMIR, Israel—Shamir Optical Industry Ltd. (Nasdaq: SHMR) reported unaudited financial results for the fourth quarter and year ended Dec. 31, 2008.

For the quarter ended Dec. 31, 2008, revenues were $29.2 million, compared to $30.6 million for the fourth quarter of 2007. Gross profit for the quarter was $16.0 million, or 54.9 percent of revenues, compared to gross profit of $17.4 million, or 56.7 percent of revenues for the same period last year.

Shamir’s fourth quarter operating income was $2.9 million, or 10.0 percent of revenues, compared to operating income of $2.7 million, or 8.8 percent of revenues for the same periodin 2007. Net income for the quarter was $1.4 million compared to net income of $1.6 million for the comparable period in 2007.

For the year ended Dec. 31, 2008, Shamir’s revenues were $140.3 million, compared to $120.4 million for the same period in 2007. Gross profit for the year was $75.9 million, or 54.1 percent of revenues, compared to gross profit of $64.6 million, or 53.6 percent of revenues for the same period last year.

For the year ended Dec. 31, 2008, operating income was $13.4 million, or 9.5 percent of revenues, compared to operating income of $11.9 million, or 9.9 percent of revenues for the same period last year. Net income for the year was $9.1 million compared to net income of $8.2 million for the comparable period in 2007.

As of Dec. 31, 2008, Shamir had cash and cash equivalents, including short-term investments of $25.5 million.

Commenting on the results, Eyal Hayardeny, chief executive officer of Shamir, said, “In 2008, Shamir performed well, successfully executing our business strategy while penetrating new markets such as Mexico, and further penetrating our core geographic markets. We executed solidly and continued to make important inroads in many of our operating markets, with the goal of advancing the recognition of Shamir-branded products.”

He added, “Starting in the second half of 2008, and increasing in severity by the end of the year, we began to encounter a steadily deteriorating economic environment, negative currency fluctuation and an anticipated slowdown in the fourth quarter on revenues. Despite these challenges, we were able to adjust our expense structure and overall we are pleased with our fourth quarter results.”

Hayardeny concluded, “Moving into 2009, we are determined to expand our footprint throughout the world while facing a high level of uncertainly due to the world economic crisis. Until such time as we are able to forecast our sales with a higher level of certainty, we will not be providing guidance for 2009.”