SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF ORANGE ) ) ) ) ) ) ) ) CLASS ACTION

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1 In re ADVANCED MEDICAL OPTICS, INC. SHAREHOLDER LITIGATION This Document Relates To: ALL ACTIONS. SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF ORANGE Case No CLASS ACTION Assigned to: Judge Thierry P. Colaw NOTICE OF SETTLEMENT OF CLASS ACTION TO: ALL PERSONS WHO OWNED ADVANCED MEDICAL OPTICS, INC. COMMON STOCK FROM JANUARY 12, 2009 THROUGH AND INCLUDING FEBRUARY 24, 2009, THE DATE OF THE CLOSING OF THE TENDER OFFER WHEREBY ABBOTT LABORATORIES AND RAINFOREST ACQUISITION, INC. ACQUIRED ALL OF THE OUTSTANDING SHARES OF AMO COMMON STOCK. PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. YOUR RIGHTS MAY BE AFFECTED BY PROCEEDINGS IN THIS LITIGATION. This Notice has been sent to you pursuant to an Order of the Orange County Superior Court (the Court. The purpose of this Notice is to inform you of the proposed settlement of this class action litigation and of the hearing to be held by the Court to consider the fairness, reasonableness and adequacy of the settlement. This Notice describes the rights you may have in connection with the settlement and what steps you may take in relation to the settlement and this class action litigation. This Notice is not an expression of any opinion by the Court about the merits of any of the claims or defenses asserted by any party in this Action or the fairness or adequacy of the proposed settlement. I. THE LITIGATION On January 12, 2009, Abbott Laboratories and Rainforest Acquisition, Inc. (collectively, Abbott and Advanced Medical Optics, Inc. ( AMO or the Company announced that they had entered into a January 11, 2009 Agreement and Plan of Merger ( Merger Agreement pursuant to which Abbott would acquire all outstanding shares of AMO common stock not otherwise owned by Abbott for $22.00 per share through a cash tender offer, as set forth in Schedule SC TO-T filed with the Securities and Exchange Commission (the SEC on January 27, On and after January 13, 2009, the following complaints were filed in the Superior Court of California for the County of Orange on behalf of holders of AMO common stock, and naming as defendants AMO, members of AMO s Board of Directors and, in two complaints, Abbott. Case Name and Number Groen v. Advanced Medical Optics, Inc., et al., Case No Butler v. Advanced Medical Optics, Inc., et al., Case No Palafox v. Rollans, et al., Case No Smith v. Advanced Medical Optics, Inc., et al., Case No Date Filed January 13, 2009 January 14, 2009 January 15, 2009 February 4, 2009 On January 23, 2009, the Court consolidated all related actions under the caption In re Advanced Medical Optics, Inc. Shareholder Litigation, Case No (the Action, and appointed Coughlin Stoia Geller Rudman & Robbins LLP as Lead Plaintiffs Counsel. The Action challenges the Tender Offer, certain provisions of the Merger Agreement and certain deficiencies in the disclosures in the Schedule 14D-9 that was filed with the SEC on January 27, Subsequent to the filing of the Action, the Court set a briefing schedule for Plaintiffs motion for a temporary restraining order preventing the Tender Offer from going forward. Plaintiffs conducted an independent investigation and obtained document and deposition discovery regarding their claims for injunctive and declaratory relief. Plaintiffs reviewed and analyzed documents produced by Defendants; UBS Securities LLC and Goldman Sachs & Co. ( Goldman Sachs, the financial advisors to AMO; and Morgan Stanley & Co., Inc., the financial advisor to Abbott.

2 Additionally, Plaintiffs took the depositions of defendants James O. Rollans and G. Mason Morfit, as well as a representative of Abbott and a representative of Goldman Sachs. A settlement agreement was reached after arm s-length negotiations among the parties, who were all represented by counsel with extensive experience and expertise in shareholder class action litigation. During the negotiations, all parties had a clear view of the strengths and weaknesses of their respective claims and defenses. The terms and conditions of the settlement are set forth in a Stipulation of Settlement dated April 8, 2009 (the Stipulation. 1 As a result of the settlement, AMO agreed to provide additional disclosures concerning the Tender Offer in an amended Schedule 14D-9 and AMO and Abbott agreed to make certain modifications to the Merger Agreement. Plaintiffs and their counsel have concluded that the additional disclosures provided AMO shareholders with information sufficient to cast an informed vote on the Tender Offer and that the Merger Agreement modifications made it more likely that a superior proposal for the Company would be obtained. As a result, Plaintiffs and their counsel believe that the settlement is in the best interest of the Settlement Class. II. TERMS OF THE PROPOSED SETTLEMENT 1. As a direct result of the prosecution of the Action and the extensive ongoing negotiations between the Settling Parties, a proposed settlement has been reached under the following terms: (a AMO made additional disclosures concerning the Tender Offer by filing an amended Schedule 14D-9 (the Amended Schedule with the SEC on or about February 17, 2009, which is attached to the Stipulation as Exhibit C. The additional disclosures included: (i information regarding additional compensation provided to the Company s presiding director for the work he performed in connection with the sales process; (ii information the Company and the Board considered in reviewing the potential strategic and recapitalization alternatives available to the Company, including the Company s ability to meet its payments and other obligations under its outstanding debt; (iii information concerning a December 12, 2008 meeting of the Board, the Company s management and representatives of Goldman Sachs (financial advisor to the Company and Skadden, Arps, Slate, Meagher & Flom LLP (legal counsel to the Company; (iv information concerning Goldman Sachs s analysis and review of potential capital raising and recapitalization transactions considered by the Company; (v information regarding the terms and circumstances of James V. Mazzo s (the Company s Chairman and Chief Executive Officer continued employment with Abbott after the closing of the Tender Offer; (vi information concerning a January 7, 2009 meeting among certain directors to consider the viability and value creation potential of operational restructuring initiatives under discussion that the Company could undertake if it remained independent; (vii information regarding financial forecasts considered by the Company and its Board; and (viii the Company s financial projections relied upon by Goldman Sachs in its fairness opinion. (b AMO and Abbott also agreed to amend certain provisions of the Merger Agreement as set forth in Amendment No. 1 to the Merger Agreement, attached as Exhibit D to the Stipulation. The modifications to the Merger Agreement amended certain time frames related to alternative proposals for the Company, amended certain time frames related to notice to Abbott that the Company was going to accept a superior proposal and modified the definition of Superior Proposal. 2. After reaching agreement on the additional disclosures and modifications to the Merger Agreement, the parties negotiated the amount of attorneys fees and expenses that would be paid to Plaintiffs Counsel, subject to Court approval. As a result of those negotiations, Defendants have agreed to pay, or cause to be paid to, Plaintiffs Counsel $1,310,000, for their attorneys fees and expenses (including the costs and expenses in providing notice to Settlement Class Members. III. REASONS FOR THE SETTLEMENT Plaintiffs believe that the claims asserted in the Action have merit. However, Lead Plaintiffs Counsel recognize and acknowledge the expense and length of continued proceedings necessary to prosecute the Action against the Defendants through trial and through appeals. Lead Plaintiffs Counsel also have taken into account the uncertain outcome and the risk of any litigation, especially in a complex action such as this Action, as well as the difficulties and delays inherent in such litigation. Lead Plaintiffs Counsel are further mindful of the inherent problems of proof and possible defenses to the claims asserted in the Action. Lead Plaintiffs Counsel believe that the settlement set forth in the Stipulation confers substantial benefits upon the Settlement Class. Based on their evaluation, Lead Plaintiffs Counsel have determined that the settlement set forth in the Stipulation is in the best interests of Plaintiffs and the Settlement Class. 1 The Stipulation can be downloaded at 2

3 Defendants have denied and continue to deny each and all of the claims and contentions alleged by Plaintiffs in the Action. Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them as alleged in the complaints and the Action, and specifically deny that they have committed or have threatened to commit or have aided or abetted the alleged commission of any violations of law or breaches of duty to Plaintiffs, the Settlement Class or anyone else. Defendants also have denied and continue to deny, inter alia, the allegations that Plaintiffs or the Settlement Class have suffered damage or that Plaintiffs or the Settlement Class were harmed by the conduct alleged in the complaints and the Action. Nonetheless, Defendants have concluded that further litigation could be protracted and expensive, and that it is desirable that the Action be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation. Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases like this Action. Defendants have, therefore, determined that it is desirable and beneficial to them that the Action be settled in the manner and upon the terms and conditions set forth in the Stipulation. IV. NOTICE OF HEARING ON PROPOSED SETTLEMENT A settlement hearing will be held on June 26, 2009, at 1:30 p.m., before the Honorable Thierry P. Colaw, Superior Court Judge, at the Superior Court of the State of California, County of Orange, Civil Complex Center, 751 West Santa Ana Blvd., Santa Ana, California (the Settlement Hearing. The purpose of the Settlement Hearing will be to determine: (a whether the settlement should be approved as fair, reasonable and adequate; and (b whether the Judgment should be entered. The Court may adjourn or continue the Settlement Hearing without further notice of any kind. V. DEFINITIONS USED IN THIS NOTICE 1. Defendants means AMO, Abbott, James V. Mazzo, James O. Rollans, Christopher G. Chavez, Elizabeth H. Davila, Daniel J. Heinrich, William J. Link, G. Mason Morfit, Michael A. Mussallem, Deborah J. Neff and Robert J. Palmisano. 2. Final means: (i the date of final affirmance on an appeal of the Judgment (as defined in 4 below, the expiration of the time for a petition for or a denial of a writ of certiorari to review the Judgment and, if certiorari is granted, the date of final affirmance of the Judgment following review pursuant to that grant; or (ii the date of final dismissal of any appeal from the Judgment or the final dismissal of any proceeding on certiorari to review the Judgment; or (iii if no appeal is filed, the expiration date of the time for the filing or noticing of any appeal from the Court s Judgment. 3. Individual Defendants means James V. Mazzo, James O. Rollans, Christopher G. Chavez, Elizabeth H. Davila, Daniel J. Heinrich, William J. Link, G. Mason Morfit, Michael A. Mussallem, Deborah J. Neff and Robert J. Palmisano. 4. Judgment means the judgment to be rendered by the Court, substantially in the form attached as Exhibit B to the Stipulation. 5. Lead Plaintiffs Counsel means Coughlin Stoia Geller Rudman & Robbins LLP, Darren J. Robbins, Randall J. Baron, Jeffrey D. Light, David T. Wissbroecker, 655 West Broadway, Suite 1900, San Diego, California Person means an individual, corporation, partnership, limited partnership, limited liability company or partnership, association, joint stock company, estate, legal representative, trust, unincorporated association, government or any political subdivision or agency thereof and any business or legal entity and their spouses, heirs, predecessors, successors, representatives or assignees. 7. Plaintiffs means Edward Earle Butler II, James F. Groen, Maria Lourdes Palafox and Eric Smith. 8. Plaintiffs Counsel means any counsel who have appeared for Plaintiffs in the Action. 9. Related Parties means Defendants and/or their respective families, parent entities, associates, affiliates or subsidiaries, and each and all of their respective past, present or future officers, directors, stockholders, agents, representatives, employees, attorneys, financial or investment advisors, advisors, consultants, accountants, investment bankers, commercial bankers, trustees, engineers, agents, insurers, co-insurers and reinsurers, heirs, executors, trustees, general or limited partners or partnerships, limited liability companies, members, heirs, executors, personal or legal representatives, estates, administrators, predecessors, successors and assigns, whether or not any such Related Parties were named, served with process or appeared in the Action. 10. Released Claims means the complete discharge, dismissal with prejudice, settlement and release of, and an injunction barring all claims, demands, rights, actions or causes of action, rights, liabilities, damages, losses, obligations, judgments, suits, fees, expenses, costs, matters and issues of any kind or nature whatsoever, whether known or unknown, contingent or absolute, suspected or unsuspected, disclosed or undisclosed, hidden or concealed, 3

4 matured or unmatured, that have been, could have been, or in the future can or might be asserted in the Action or in any court, tribunal or proceeding (including, but not limited to, any claims arising under federal or state statutory or common law relating to alleged fraud, breach of any duty, negligence, violations of the federal securities laws or otherwise by or on behalf of any Member of the Settlement Class, whether individual, class, derivative, representative, legal, equitable or any other type or in any other capacity, which have arisen, could have arisen, arise now or hereafter arise out of, or relate in any manner to the allegations, facts, events, transactions, matters, acts, occurrences, statements, representations, misrepresentations, omissions or any other matter, thing or cause whatsoever, or any series thereof, embraced, involved or set forth in, or referred to or otherwise related, directly or indirectly, in any way to, the Action or the subject matter of the Action, and including without limitation any claims in any way related to: (i the Tender Offer, or any amendment thereto; (ii the fiduciary obligations of any of the Defendants or Released Persons in connection with the Tender Offer, or any amendment thereto; (iii the negotiations in connection with the Tender Offer, or any amendment thereto; and (iv the disclosure obligations of any of the Defendants or Released Persons in connection with the Tender Offer, or any amendment thereto; provided, however, that the Released Claims shall not include the right of Plaintiffs or any Members of the Settlement Class to enforce in the Court the terms of the Stipulation or any properly perfected claims for appraisal in connection with the merger that is proposed to be consummated following the Tender Offer. 11. Released Persons means each and all of the Defendants and their respective or collective Related Parties. 12. Settlement Class means all Persons who owned AMO common stock, other than Defendants, from January 12, 2009 through and including February 24, 2009, the date of the closing of the Tender Offer, including any and all of their respective successors-in-interest, predecessors, representatives, trustees, executors, administrators, heirs, assigns or transferees, immediate and remote, and any Person acting for or on behalf of, or claiming under, any of them, and each of them. 13. Settlement Class Member or Member of the Settlement Class mean a Person who falls within the definition of the Settlement Class as set forth above. 14. Settling Parties means, collectively, each of the Defendants and the Plaintiffs on behalf of themselves and the Members of the Settlement Class. 15. Tender Offer means the Merger Agreement and amendments thereto between AMO and Abbott whereby Abbott acquired all of the outstanding shares of AMO for $22.00 per share. 16. Unknown Claims means any claim, cause of action, damage or harm which Plaintiffs and/or the Settlement Class Members do not know or suspect to exist at the time of the release of the Released Persons which, if known by him, her or it, might have affected his, her or its settlement with and release of the Released Persons, or might have affected his, her or its decision not to object to this settlement. VI. ORDER CERTIFYING A CLASS FOR PURPOSES OF SETTLEMENT On April 8, 2009, the Court certified the Settlement Class for purposes of settlement as defined above. VII. DISMISSAL AND RELEASES If the proposed settlement is approved, the Court will enter the Judgment. The Judgment will release the Released Claims as to the Defendants and their Related Parties. The Judgment will provide that all Settlement Class Members shall be deemed to have released and forever discharged all Released Claims against all Released Persons, and will be barred from asserting any of the Released Claims in the future, unless the settlement is canceled or terminated pursuant to the terms of the Stipulation. VIII. CONDITIONS FOR SETTLEMENT The settlement is conditioned upon the occurrence of certain events. Those events include, among other things: (1 entry of the Judgment by the Court, as provided for in the Stipulation; and (2 expiration of the time to appeal from or alter or amend the Judgment. If, for any reason, any one of the conditions described in the Stipulation is not met, the Stipulation might be terminated and, if terminated, will become null and void, and the parties to the Stipulation will be restored to their respective positions prior to the settlement. IX. THE RIGHT TO BE HEARD AT THE HEARING Any Settlement Class Member may, but is not required to, enter an appearance in the Action and be represented by counsel of his, her or its choice and at his, her or its expense. Any Settlement Class Member who does not enter an appearance will be represented by the attorneys for the Plaintiffs listed below. Any Settlement Class Member who objects to any aspect of the settlement including the negotiated amount of attorneys fees and expenses may appear 4

5 and be heard at the Settlement Hearing. Any such Person must submit a written notice of objection, mailed or hand delivered such that it is received on or before June 5, 2009, by each of the following: CLERK OF THE COURT SUPERIOR COURT OF THE STATE OF CALIFORNIA, COUNTY OF ORANGE Civil Complex Center 751 West Santa Ana Blvd. Santa Ana, CA DAVIS POLK & WARDWELL NEAL A. POTISCHMAN 1600 El Camino Real Menlo Park, CA Attorneys for Defendants: Counsel for Plaintiffs: COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP JEFFREY D. LIGHT 655 West Broadway, Suite 1900 San Diego, CA O MELVENY & MYERS LLP SETH ARONSON 400 South Hope Street Los Angeles, CA The notice of objection must demonstrate the objecting Person s membership in the Settlement Class, and contain a statement of the reasons for objection. Only Members of the Settlement Class who have submitted written notices of objection in this manner will be entitled to be heard at the Settlement Hearing, unless the Court orders otherwise. X. NOTICE TO PERSONS OR ENTITIES HOLDING RECORD OWNERSHIP ON BEHALF OF OTHERS If you hold or held any AMO common stock between January 12, 2009 and February 24, 2009, the date of the closing of the Tender Offer, as nominee for a beneficial owner, then, within ten (10 calendar days after you receive this Notice, you must either: (1 send a copy of this Notice by first class mail to all such Persons; or (2 provide a list of the names and addresses of such Persons to the Notice Administrator: AMO Shareholder Litigation Notice Administrator c/o Gilardi & Co. LLC P.O. Box 8040 San Rafael, CA If you choose to mail the Notice yourself, you may obtain from the Notice Administrator (without cost to you as many additional copies of these documents as you will need to complete the mailing. Regardless of whether you choose to complete the mailing yourself or elect to have the mailing performed for you, you may obtain reimbursement for, or advancement of, reasonable administrative costs actually incurred or expected to be incurred in connection with forwarding the Notice and which would not have been incurred but for the obligation to forward the Notice, upon submission of appropriate documentation to the Notice Administrator. XI. EXAMINATION OF PAPERS This Notice is a summary and does not describe all of the details of the Stipulation. For full details of the matters discussed in this Notice, you may desire to review the Stipulation filed with the Court, which may be inspected during business hours, at the office of the Clerk of the Court, Superior Court of the State of California, County of Orange, Civil Complex Center, 751 West Santa Ana Blvd., Santa Ana, CA You can also download the Stipulation and related exhibits at For further information regarding this Action or settlement you may also contact: Coughlin Stoia Geller Rudman & Robbins LLP, Rick Nelson, c/o Shareholder Relations, 655 West Broadway, Suite 1900, San Diego, California 92101, Telephone: PLEASE DO NOT TELEPHONE THE COURT OR THE CLERK S OFFICE REGARDING THIS NOTICE. DATED: April 8, 2009 BY ORDER OF THE COURT SUPERIOR COURT OF THE STATE OF CALIFORNIA, COUNTY OF ORANGE 5

6 AMO Shareholder Litigation Notice Administrator c/o Gilardi & Co. LLC P.O. Box 8040 San Rafael, CA Important Legal Document. AMDL1