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Mentor Announces Significant Dividend Increase,
Friday August 1, 8:03 am ET


SANTA BARBARA, Calif.--(BUSINESS WIRE)--Aug. 1, 2003--Mentor Corporation (Nasdaq: MNTR - News)today announced that its Board of Directors has declared a significant increase in its cash dividend, along with an expanded share repurchase program.
The quarterly dividend payable on the common stock is being increased to $0.15 per share, from $0.02 per share. The next dividend payment will be made on October 21, 2003, to shareholders of record as of September 30, 2003. The Company has paid dividends every year since 1987.

The Board also authorized the repurchase of up to 4 million more shares of the Company's stock off the open market. In the last three years the Company has repurchased $69 million of Mentor stock off the open market.

Commenting on the Board's decision, Chris Conway, President and CEO of Mentor said, "In the light of current tax changes on dividends we are pleased to provide our shareholders with this substantial increase in dividends. This decision is based on our strong financial results and our confidence in the continued growth of the business. Together with our ongoing commitment to build value through stock repurchases, the recent change in tax policy provides another opportunity to deliver cash to our shareholders."

Conway added, "We maintain a strong balance sheet and this decision will not impede our financial flexibility or our ability to pursue both organic growth and strategic acquisitions. We are looking forward to another good year."

Mentor shares are currently traded on the Nasdaq under the symbol MNTR. On Tuesday, August 5th, Mentor shares will begin trading on the New York Stock Exchange under the symbol MNT.

Mentor Corporation develops and manufactures specialized medical products, which it markets throughout the world. This release contains, in addition to historical information, forward-looking statements. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2003.



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Contact:
Mentor Corporation
Christopher J. Conway, 805-879-6082
President
or
Coffin Communications Group
William F. Coffin, 818-789-0100
President



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Source: Mentor Corporation



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