LCA Vision (LCAV) 8-K Lca-vision Reports Record First Quarter Diluted Eps of $0.93, or $0.50 Excluding Tax Benefit

[LCA VISION LOGO]

Company Contacts:	Investor Relations Contacts:
LCA-Vision Inc.	Lippert/Heilshorn & Associates, Inc.
Stephen N. Joffe, Chairman and CEO	Jody Cain
Alan H. Buckey, CFO	(310) 691-7100
(513) 792-9292	jcain@lhai.com
www.lasikplus.com	www.lhai.com

LCA-VISION REPORTS RECORD FIRST QUARTER
DILUTED EPS OF $0.93, OR $0.50 EXCLUDING TAX BENEFIT

Company raises 2004 financial guidance

CINCINNATI (April 27, 2004) – LCA-Vision Inc. (Nasdaq NM: LCAV),a leading developer and operator of fixed-site laser vision correction services under the brand name LasikPlus, today reported financial results for the three months ended March 31, 2004. Highlights from the first quarter of 2004 include:

• Earnings per diluted share of $0.93, or $0.50 excluding an income tax benefit, up significantly from earnings per diluted share of $0.16 in the first quarter of 2003

• Revenues of approximately $31.7 million, up 58% from revenues of approximately $20.0 million reported in the first quarter of 2003

• Revenue growth at LasikPlusvision centers open at least 12 months, up 48% from the first quarter of 2003

• Procedure volume of 24,270, up 43% from 17,028 in the first quarter of 2003

• Revenue per procedure of $1,304, up 11% from $1,173 in the first quarter of 2003

• Operating income increased to 21.4% of revenues, compared with 8.2% of revenues in the first quarter of 2003

• Net cash provided by operations of approximately $6.9 million, up 109% from the approximately $3.3 million of net cash provided by operations in the first quarter of 2003

• Opening new LasikPlusvision centers in San Antonio, Texas, Orlando, Florida, and the Company’s third vision center in Toronto, Ontario

• Appointing E. Anthony Woods and Craig P.R. Joffe to the Company’s board of directors

Net income for the first quarter of 2004 was $12,729,000, or $0.93 per fully diluted share, compared with first quarter 2003 net income of $1,757,000, or $0.16 per fully diluted share. Included in 2004 first quarter financial results is an income tax benefit of $5,900,000 to reverse a portion of the valuation allowance on the Company’s deferred tax assets. Without the benefit of the reversal of this allowance, the Company reported first quarter 2004 net income of $6,829,000, or $0.50 per diluted share. Management believes earnings per share excluding the benefit of the reversal of the reserve is a meaningful disclosure, facilitating year-over-year comparison on a consistent basis.

-more-

Page 2

Revenues for the first quarter of 2004 increased to $31,650,000, up more than 58% compared with revenues of $19,982,000 in the first quarter of 2003. Revenues at LasikPlusvision centers open for at least 12 months increased by 48% in the first quarter of 2004 compared with the first quarter of 2003.

Net cash provided by operations in the first quarter of 2004 was $6,927,000. As a result, cash and short-term investments increased to $72,056,000 as of March 31, 2004, up from $64,908,000 as of December 31, 2003.

Stephen N. Joffe, Chairman and CEO of LCA-Vision, stated, “We anticipate additional revenue growth during 2004 as we increase our market share, benefit from overall industry growth and open new LasikPlusvision centers. We have very specific criteria for vision center locations, and each vision center is opened with the expectation of reaching breakeven within six months. With our strong balance sheet, we believe we are well positioned to actively pursue our planned expansion.”

Mr. Joffe added, “As a result of our exceptional financial performance in this year’s first quarter, our proven operating model and our current outlook for the remainder of 2004, we are increasing our 2004 financial guidance from the prior guidance we provided in February of this year. We now expect to report pretax income in 2004 of $16.6 million to $18.2 million. We expect revenues to be in the range of $115 million to $117 million, up from our prior guidance of $110 million. We expect to report 2004 earnings per diluted share in the range of $1.55 to $1.65, which is an increase from our prior EPS guidance of $0.90 to $0.95, and includes the $5.9 million benefit recorded in the first quarter of 2004 for the partial reversal of the deferred tax valuation allowance.”

Conference Call

LCA-Vision has scheduled an investor conference call beginning at 10:00 a.m. Eastern Time today. To participate in the call, please dial 888-803-7404 toll-free within the U.S. and Canada, or 706-634-1308 for international callers. A telephone replay will be available for 48 hours by dialing 800-642-1687 toll-free within the U.S. and Canada, or 706-645-9291 for international callers. Enter reservation number 6442521.

Individual investors are invited to listen to the conference call live over the Internet by going to the “Investors” section of the Company’s Web site atwww.lasikplus.com. A replay of the call will be available for 30 days.

About LCA-Vision

LCA-Vision operates 41 laser vision correction centers, including 37 wholly owned LasikPlusvision centers located in large metropolitan markets throughout the United States, three joint ventures in Canada and one joint venture in Europe.

This news release contains forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this release, including statements respecting the Company’s belief that revenues, income and earnings will exhibit healthy year-over-year growth and new vision centers will shortly reach breakeven, among others, are based on information available to the Company as of the date hereof. The Company’s actual results could differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with the Company’s business, including market acceptance of our services, competition in the laser vision correction industry, an inability to attract new patients, the possibility of long-term side effects and adverse publicity regarding laser vision correction, adverse economic conditions, and the relatively high fixed cost structure of our business, among other factors. For a further discussion of factors that may cause actual results to differ materially from current expectations, please review the Company’s filings with the Securities and Exchange Commission, including but not limited to its Forms 10-K and 10-Q. The Company assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

[Tables to Follow]

Page 3

LCA-Vision Inc.
Condensed Consolidated Statements of Income
(Dollars in thousands except per share data)

	Three months ended March 31,
	2004			2003
Revenues	$	31,650		$	19,982
Operating costs and expenses
Medical professional and license fees		6,465			4,071
Direct costs of services		9,630			7,774
General and administrative expenses		2,289			2,018
Marketing and advertising		4,789			2,975
Depreciation		1,716			1,505
Operating income		6,761			1,639
Equity in earnings from unconsolidated businesses		72			147
Minority equity interest		(124	)		(80	)
Interest income		367			36
Other income		—			53
Income before taxes on income		7,076			1,795
Income tax (benefit) expense		(5,653	)		38
Net income	$	12,729		$	1,757
Income per common share
Basic	$	0.96		$	0.16
Diluted	$	0.93		$	0.16
Weighted average shares outstanding
Basic		13,320			10,743
Diluted		13,751			10,744

Page 4

LCA-Vision Inc.
Condensed Consolidated Balance Sheets
(Dollars in thousands)

Assets	March 31, 2004			December 31, 2003
Current assets
Cash and cash equivalents	$	72,056		$	64,908
Accounts receivable, net of allowance for doubtful accounts of $1,472 and $1,480		4,538			3,255
Receivable from vendor		713			802
Prepaid expenses, inventory and other		1,854			1,422
Deferred tax asset		5,900			—
Total current assets		85,061			70,387
Property and equipment		42,597			41,967
Accumulated depreciation and amortization		(26,329	)		(24,622	)
Property and equipment, net		16,268			17,345
Accounts receivable, net of allowance for doubtful accounts of $712 and $416		1,276			749
Goodwill		275			275
Deferred compensation plan assets		598			461
Investment in unconsolidated businesses		407			385
Other assets		440			435
Total assets	$	104,325		$	90,037
Liabilities and Stockholders’ Investment
Current liabilities
Accounts payable	$	3,759		$	4,883
Accrued liabilities and other		5,830			4,518
Total current liabilities		9,589			9,401
Deferred compensation liability		597			457
Insurance reserve		1,242			963
Minority equity interest		538			414
Stockholders’ investment
Common stock ($0.001 par value; 15,708,365 and 13,110,306 shares and 13,341,168 and 10,743,109 shares issued and outstanding, respectively)		16			16
Contributed capital		132,039			131,203
Common stock in treasury, at cost (2,367,197 shares and 2,367,197 shares)		(15,462	)		(15,462	)
Accumulated deficit		(24,340	)		(37,069	)
Accumulated other comprehensive income		106			114
Total stockholders’ investment		92,359			78,802
Total liabilities and stockholders’ investment	$	104,325		$	90,037

Page 5

LCA-Vision Inc.

Condensed Consolidated Statements of Cash Flow
(Dollars in thousands)

	Three Months Ended March 31,
	2004			2003
Cash flow from operating activities:
Net income	$	12,729		$	1,757
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,716			1,505
Provision for loss on doubtful accounts		288			—
Deferred income taxes		(5,900	)
Deferred compensation		140			82
Insurance reserve		279			431
Equity in earnings of unconsolidated affiliates		(72	)		(147	)
Changes in working capital:
Accounts receivable		(2,098	)		(376	)
Receivables from vendors		89			(107	)
Prepaid expenses, inventory and other		(432	)		554
Accounts payable		(1,124	)		(1,169	)
Accrued liabilities and other		1,312			766
Net cash provided by operations		6,927			3,296
Cash flow from investing activities:
Purchase of property and equipment		(646	)		(475	)
Deferred compensation plan		(137	)		(72	)
Loans to shareholders		—			(10	)
Other, net		118			133
Net cash used in investing activities		(665	)		(424	)
Cash flows from financing activities:
Principal payments of long-term notes, debt and capital lease obligations		—			(3	)
Exercise of stock options		836			—
Distribution of minority equity investees		50			15
Net cash provided by financing activities		886			12
Increase in cash and cash equivalents		7,148			2,884
Cash and cash equivalents at beginning of period		64,908			18,298
Cash and cash equivalents at end of period	$	72,056		$	21,182

#  #�� #