Bausch & Lomb Provides Update on Internal Investigation Related to Brazil Subsidiary and Its Impact on Third Quarter 2005 Results; Will Restate Financial Results for Prior Periods.

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Bausch & Lomb Provides Update on Internal Investigation Related to Brazil Subsidiary and Its Impact on Third Quarter 2005 Results; Will Restate Financial Results for Prior Periods.

ROCHESTER, N.Y. -- Audit Committee Commences Independent Investigation Into Allegations of Improper Sales Practices in Korean Subsidiary

Bausch & Lomb (NYSE:BOL) today provided an update on the investigation, previously reported on October 26, 2005, into allegations of improper conduct by management of its Brazilian subsidiary, BL Industria Otica Ltda. (BLIO) and tax assessments against BLIO by Brazilian taxing authorities that related to several prior years. The Company has concluded, based on the investigation, that certain prior-period financial statements will be required to be restated. In addition, the Company has preliminarily identified a material weakness in its controls over financial reporting relating to detection and prevention of local management's fraudulent override of Brazil tax reporting controls. Bausch & Lomb also announced today that the Audit Committee of its Board of Directors has commenced an independent investigation into revenue recognition practices in its Korean subsidiary. Information provided on each of these matters is presented below.

Brazil Matters

On October 26, ...

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