---

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# UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

# Form 20-F/A(Amendment No. 2)

# (Mark One)

|o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE
ACT OF 1934
|- | ----------------------------------------------------------------------------------------------

# OR

|x | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ------------------------------------------------------------------------------------

# FOR THE FISCAL YEAR
ENDED DECEMBER 31, 2007

# OR

|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|- | ----------------------------------------------------------------------------------------

# OR

|o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|- | -------------------------------------------------------------------------------------------

# Commission file
number: 000-27572

LUMENIS LTD.(Exact name of
Registrant as specified in its charter)

Not Applicable(Translation of
Registrants name into English)

Israel(Jurisdiction of
incorporation or organization)

P.O. Box 240,
Yokneam 20692, Israel(Address of
principal executive offices)

William Weisel, General Counsel
Telephone number: 011 972 4 959 9356; E-mail address: bill.weisel@lumenis.com; Facsimile number: 011 972 4 959 9355
Lumenis Ltd., P.O. Box 240, Yokneam 20692, Israel(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act. None

Securities registered or to be registered pursuant to Section 12(g) of the Act.
Ordinary Shares, Par Value NIS 0.1(Title of Class)

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. None



---

---

Indicate
the number of outstanding shares of each of the issuers classes of capital or common
stock as of the close of the period covered by the annual report:

177,239,738
Ordinary Shares, NIS 0.1 par value, including 35,527 treasury shares, at
December 31, 2007.

Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.

Yes o     No x

If
this report is an annual or transitional report, indicate by check mark if the registrant
is not required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.

Yes o     No x

Indicate
by check mark whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days.

Yes x     No o

Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer. See definition of accelerated filer and large
accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o             Accelerated filer o               Non-accelerated filer x

Indicate
by check mark which basis of accounting the registrant has used to prepare the financial
statements included in this filing:

|          |                                                       |        
|--------- | ----------------------------------------------------- | -------
|
|
|
|
|US GAAP x | International Financial Reporting Standards as issued | Other o
|          | by the International Accounting Standards Board o     |        

If
Other has been checked in response to the previous question, indicate by check
mark which financial statement item the registrant has elected to follow.

Item 17 o Item 18 o

If
this is an annual report, indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).

Yes o     No x

2

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# EXPLANATORY NOTE

This Amendment No. 2 to the
Annual Report on Form 20-F (Amendment No. 2) is being filed by Lumenis
Ltd. (the Registrant) for the sole purpose of addressing the following items
in the Registrants Annual Report on Form 20-F for the year ended December 31,
2007 filed with the Securities and Exchange Commission on June 25, 2008 (the
Annual Report) and to file the exhibits relating thereto:

| |  | To
clarify the Registrants disclosure in section (b) of Item 15T of the
Annual Report and to confirm that management completed its assessment of internal control
over financial reporting.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | To
correct clerical errors in the dates appearing on the Reports of the Independent
Registered Public Accounting Firms, filed in respect of the Companys Consolidated
Financial Statements for the three years ended December 31, 2007 (the Financial
Statements). The filed copies of both of the said Reports had been incorrectly
dated 2007 instead of 2008".
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | To
amend the text of Report of Ziv Haft, Independent Registered Public Accounting Firm,
filed in respect of the Financial Statements, in order to correct a clerical error that
had inadvertently referred to certain subsidiaries instead of just one subsidiary as
having been audited by another auditor, and to make it clear that Ziv Haft had only
relied upon the audit report of the other auditor with regard to the balance sheet and
profit and loss account of such subsidiary and not with regard to the preparation of the
consolidated statements of changes in shareholders equity and cash flows.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

This Amendment No. 2 consists
of: a cover page; this explanatory note; Items 8, 15T, 18 and 19 (each, as
amended); a reference to the Registrants consolidated financial statements; the
signature page; amended Reports of two Independent Registered Public Accounting Firms; the
index to exhibits and the accompanying exhibits, including the required certifications of
the principal executive officer and principal financial officer of the Registrant.

Other than as expressly set forth
herein, this Amendment No. 2 does not, and does not purport to, amend or restate any
other information contained in the Annual Report nor does this Amendment No. 2
reflect any events that have occurred after the Annual Report was filed.

|ITEM 8. |  | FINANCIAL INFORMATION
|------- |  | ---------------------

|A. | Consolidated
Statements and Other Financial Information
|-- | -------------------------------------------------------

The first paragraph  under the caption
A.  Consolidated Statements and Other Financial Information  in
Item 8 - Financial Information on page 77 of the Annual Report is replaced in
its entirety with the following text:

The
Reports of the Independent Registered Public Accounting Firms in connection with the
consolidated financial statements are included in this Amendment No. 2 and appear on
pages F-1 and F-3. All other parts of consolidated financial statements and other
financial information required by Regulation S-X are included in the Annual Report
beginning with the index on page F-1.

Except as stated above, the remainder
of Item 8 is incorporated by reference herein.

|ITEM 15T. |  | CONTROLS AND PROCEDURES
|--------- |  | -----------------------

# (b) Managements
Annual Report on Internal Control over Financial Reporting

The third paragraph under the caption
(b) Managements Annual Report on Internal Control over Financial
Reporting in Item 15T  Control and Procedures on page 97 of the Annual
Report is replaced in its entirety with the following text:

3

---

---

Our
management completed its assessment of the effectiveness of our internal control over
financial reporting as of December 31, 2007 utilizing alternative evaluation
approaches based on the framework published by the Committee of Sponsoring Organizations
of the Treadway Commission, Internal Control  Integrated Framework
(COSO) and guidance set forth in releases of the Securities and Exchange
Commission. Because we implemented in the second half of 2007 a new company-wide ERP
system (SAP), that encompassed a significant portion of our transaction processing and
related controls relevant to financial reporting, management concluded that its assessment
and evaluation of the effectiveness of our internal control over financial reporting
should not be performed for most key processes until the new ERP system was implemented
and stable. As a result, a significant portion of our assessment of internal control over
financial reporting did not commence until November 2007 and continued through the date of
filing of this annual report. Further, this assessment consisted primarily of the
documentation of major processes and an analysis of key control gaps within such major
processes, as designed, at those entities deemed to be material. We based our evaluation
on detailed inquiry, observation and walkthroughs. With respect to most processes that
were included in our assessment, we were unable to perform all of the formal procedures
testing the effectiveness of controls designed to be in place within such processes by the
time this annual report was filed, but, utilizing the alternative evaluation procedures
described above, we completed our assessment. It is possible that had we performed our
assessment during the reporting period or closer to the balance sheet date we may have
found other control deficiencies. Furthermore, had we been able to perform formal testing
of control effectiveness as we had originally intended as part of managements
assessment of controls over financial reporting, it is possible that we may have found
control weaknesses or deficiencies in addition to those indicated in this annual report.
Nevertheless, management performed sufficient procedures under applicable rules to
complete its assessment of the effectiveness of internal control over financial reporting
as of December 31, 2007.

Except as stated above, the remainder
of Item 15T is incorporated by reference herein.

|ITEM 18. |  | FINANCIAL STATEMENTS
|-------- |  | --------------------

The text of Item 18 
Financial Statements on pages 99 of the Annual Report is replaced in its entirety with the
following text:

The
consolidated financial statements and the related notes required by this item are included
in this Amendment No. 2 and the Annual Report, as follows:

|Index to Consolidated Financial Statements                         | Page       
|------------------------------------------------------------------ | -----------
|
|
|
|
|Reports of Independent Auditors and Independent Public Accountants | F-2 and F-3

|                                                                                              | Annual Report
|--------------------------------------------------------------------------------------------- | -------------
|
|
|
|
|Consolidated Balance Sheets at December 31, 2007 and 2006                                     | F-4          
|Consolidated Statements of Operations for the Years Ended December 31, 2007, 2006 and 2005    | F-5          
|Consolidated Statements of Cash Flows for the Years Ended December 31, 2007, 2006 and 2005    | F-6          
|Consolidated Statements of Changes in Shareholders' Equity (Capital Deficiency) for the Years
|Ended December 31, 2007, 2006 and 2005                                                        | F-7          
|Notes to Consolidated Financial Statements                                                    | F-8 to F-31  

|ITEM 19. |  | EXHIBITS
|-------- |  | --------

The exhibits to this Amendment No. 2
are listed below.

|Exhibit |  | Description
|------- |  | -----------

|1.1 |  | Memorandum
of Association, as amended July 26, 2001 (English translation) *B (3.1)
|--- |  | ----------------------------------------------------------------------------------

|1.2 |  | Articles
of Association, as amended and restated December 26, 2007 **
|--- |  | ---------------------------------------------------------------------

|4.(b)1 |  | Lease
 Agreement dated March 18,  1998 between Skan Group Yokneam Ltd. and Lumenis  (English
 Translation)              with respect to the Yokneam, Israel facility *A (10.31)
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)2 |  | Lease
 Agreement  dated  September 5,  2006 between Aspen Real Estate Ltd. and Lumenis with
respect to the              Yokneam, Israel facility *G (4.8)
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)3 |  | Lease
dated as of July 19,  2006  between  Lumenis,  Inc.  and HDP  Associates,  LLC.  with
respect to the              Santa Clara, California facility *G (4.10)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)4 |  | Lease
Agreement dated as of April 25,  2006 between Lumenis and Century East Business Center,
 L.L.C. with              respect to the Salt Lake City facility *G (4.18)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)5 |  | Lease
Agreement  dated as of  September 27,  2006 between  Lumenis and Ascend Realty
 Investments LLC with              respect to the Salt Lake City facility *G (4.19)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)6 |  | Construction
and Lease Agreement dated January 8,  2008 between Industrial Buildings  Corporation Ltd.
and              Lumenis (English Translation) with respect to new Yokneam, Israel
facility **
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)7 |  | Letter
Agreement with Bank Hapoalim B.M dated June 17, 2003 *D (10.5)
|------ |  | ---------------------------------------------------------------------

|4.(b)8 |  | Stock
Pledge Agreement dated as of July 1, 2003 between Bank Hapoalim B.M. and Lumenis Ltd. *D
(10.6)
|------ |  | -----------------------------------------------------------------------------------------------------

|4.(b)9 |  | Stock
Pledge  Agreement  dated as of July 1,  2003 between Bank  Hapoalim  B.M. and Lumenis
 Holdings Inc.              *D (10.7)
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------

|4.(b)10 |  | Cash
Fee-Ltd.  Stock Letter,  dated as of November 19,  2003,  between Lumenis Ltd. and Bank
Hapoalim B.M.              *E (10.3)
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------

|4.(b)11 |  | Asset
Purchase  Agreement,  dated as of January 1,  2005, by and between Lumenis Inc. and
Eclipse Medical,              Ltd.  and  others.  (A  portion  of this  exhibit  has been
 omitted  and filed  separately  with the SEC.              Confidential treatment has
been requested with respect to the omitted portion.) *F (10.1)
|------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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|4.(b)12 |  | Purchase
 Agreement  dated as of  September 30,  2006 among Lumenis,  Ofer Hi-Tech  Investments,
 Ltd., LM              Partners L.P. and LM (GP) L.P.*G (4.20)
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)13 |  | Restructuring
Agreement dated as of September 29, 2006 between Lumenis and Bank Hapoalim B.M.*G (4.21)
|------- |  | ------------------------------------------------------------------------------------------------------

|4.(b)14 |  | Amendment
No. 1 to Restructuring Agreement dated as of December 5,  2006 between Lumenis and Bank
Hapoalim              B.M. *G (4.22)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------

|4.(b)15 |  | Amendment
No. 2 to Restructuring Agreement dated June 25, 2008 between Lumenis and Bank Hapoalim
B.M. **
|------- |  | --------------------------------------------------------------------------------------------------------

|4.(b)16 |  | Registration
Rights Agreement dated as of December 5, 2006 among Lumenis, Ofer Hi-Tech Investments,
 Ltd.,              LM Partners L.P. and Bank Hapoalim B.M. *G (4.23)
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)17 |  | Warrant
 No. 2 dated  December 5,  2006 to purchase  11,658,273  ordinary  shares  issued to Ofer
 Hi-Tech              Investments Ltd. on or before June 5, 2007 *G (4.24)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)18 |  | Warrant
 No. 4 dated  December 5,  2006 to  purchase  7,083,333  ordinary  shares  issued to Ofer
 Hi-Tech              Investments Ltd. on or before December 5, 2011 *G (4.25)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)19 |  | Warrant
No. 5 dated December 5,  2006 to purchase  8,000,000  ordinary shares issued to Bank
Hapoalim B.M.              on or before November 19, 2011 *G (4.26)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)20 |  | Warrant
No. 6 dated December 5,  2006 to purchase  1,411,300  ordinary shares issued to Bank
Hapoalim B.M.              on or before November 19, 2011 *G (4.27)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)21 |  | Warrant
No. 7 dated December 5,  2006 to purchase 11,560,343 ordinary shares issued to LM
Partners L.P. on              or before June 5, 2007 *G (4.28)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)22 |  | Warrant
No. 8 dated December 5,  2006 to purchase 10,639,875 ordinary shares issued to LM
Partners L.P. on              or before December 5, 2011 *G (4.29)
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(c)1 |  | 1999
Share Option Plan, as amended April 30, 2003 *I (4.1)
|------ |  | ----------------------------------------------------------

|4.(c)2 |  | 2000
Share Option Plan, as amended September 30, 2006 *I (4.2)
|------ |  | --------------------------------------------------------------

|4.(c)3 |  | Israel
2003 Share Option Plan, as amended May 27, 2003 *C (Exhibit A)
|------ |  | ---------------------------------------------------------------------

|4.(c)4 |  | 2007
Share Incentive Plan, as amended September 23, 2007 *H (99.1, Appendix A)
|------ |  | ------------------------------------------------------------------------------

|4.(c)5 |  | Form
of pre-2006 recapitalization Indemnification Agreement *B (10.7)
|------ |  | ---------------------------------------------------------------------

|4.(c)6 |  | Form
of post-2006 recapitalization Indemnification Agreement *G (4.6)
|------ |  | ---------------------------------------------------------------------

|4.(c)7 |  | Lumenis
Business Conduct Policy **
|------ |  | ----------------------------------

|4.(c)8 |  | Lumenis
Code of Business Ethics for Financial Officers **
|------ |  | ---------------------------------------------------------

|8 |  | List
of Subsidiaries **
|- |  | -----------------------

|12.1 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 **
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 **
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.3 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (**)
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.4 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (**)
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.5 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ***
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.6 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ***
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13 |  | Certification
of Chief Executive Officer and Chief Financial  Officer pursuant to 18 U.S.C.  Section
1350,              as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 **
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.4 |  | Consent
of Ziv Haft, a BDO member firm, independent registered public accounting firm ***
|---- |  | -----------------------------------------------------------------------------------------

|15.5 |  | Consent
of Blick Rothenberg, independent registered public accounting firm for Lumenis (UK)
Limited ***
|---- |  | -------------------------------------------------------------------------------------------------------

Note: Parenthetical  references
 following the  Exhibit Number of a document relate to the exhibit number under which
such exhibit was initially filed.

|*A | Incorporated
by reference to said document filed as an exhibit to Annual Report on Form 10-K for
the fiscal year ended December 31, 1999, File #000-27572, filed on March 30,
2000.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*B | Incorporated
by reference to said document filed as an Exhibit to Annual Report on Form 10-K for
the fiscal year ended December 31, 2001, File #000-27572, filed on April 1,
2002.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5

---

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|*C | Incorporated
by reference to said document as an Exhibit to the Registrants Definitive Proxy
Statement for its 2003 Annual Meeting of Shareholders filed under cover of Schedule 14A
on April 30, 2003, File #000-27572.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*D | Incorporated
by reference to said document filed as an Exhibit to Quarterly Report on Form 10-Q
for the Quarterly Period ended June 30, 2003, File #000-27572, filed on August 19,
2003.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*E | Incorporated
by reference to said document filed as an Exhibit to Quarterly Report on Form 10-Q
for the Quarterly Period ended September 30, 2003, File #000-27572, filed on November 19,
2003.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*F | Incorporated
by reference to said document filed as an Exhibit to Current Report on Form 8-K,
File #000-27572, filed on January 20, 2005.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------

|*G | Incorporated
by reference to said document filed as an exhibit to Registration Statement on Form 20-F,
File #0-27572, filed on May 1, 2007.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------

|*H | Incorporated
by reference to said document filed as an Exhibit to Current Report on Form 6-K,
File #000-27572, furnished on November 21, 2007.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------

|*I | Incorporated
by reference to said document filed as an exhibit to a Post-Effective Amendment to a
Registration Statement on Form S-8, File #333-14860, filed on April 2, 2008.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|** | Filed
with the Form 20-F on June 25, 2008.
|-- | ------------------------------------------

|(**) | Filed
with Amendment No. 1 to the Form 20-F on June 26, 2008.
|---- | -------------------------------------------------------------

|*** | Filed
with this Amendment No. 2 to the Form 20-F.
|--- | -------------------------------------------------

# THE CONSOLIDATED FINANCIAL
STATEMENTS OF THE REGISTRANT

The text of pages F-2 and F-3 of the
Annual Report are replaced in their entirety by pages F-2 and F-3, below, of this
Amendment No. 2, but except therefor, the remainder of the Registrants
consolidated financial statements and related notes included in the Annual Report are
incorporated by reference herein.

6

---

---

# SIGNATURES

The
Registrant hereby certifies that it meets all of the requirements for filing on
Form 20-F and that it has duly caused and authorized the undersigned to sign this
Amendment No. 2 to the Annual Report filed on its behalf.

| |  | LUMENIS LTD.By: /s/ Dov Ofer
Dov OferChief Executive Officer
| |  | --------------------------------------------------------------------------

Date: January 20, 2009

7

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|                                          |                                           
|----------------------------------------- | ------------------------------------------
|
|
|
|
|                                          | Head Office: Amot Bituach House Building B
|46-48 Menachem Begin Road, Tel-Aviv 66184
|Tel: +972 3 638 6868 Fax: +972 3 639 4320
|E-mail: zivhaft@bdo.co.il www.bdo.co.il  

# REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRMTO THE SHAREHOLDERS
AND BOARD OF DIRECTORS OFLUMENIS LTD.

We have audited the consolidated
balance sheets of Lumenis Ltd. and its subsidiaries (the Company) as of
December 31, 2007 and 2006 and the consolidated statements of operations, changes in
shareholders equity and cash flows for each of the three years in the period ended
December 31, 2007. These financial statements are the responsibility of the
Companys management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We did not audit the balance sheets
and profit and loss accounts of a subsidiary, whose consolidated assets constitute
approximately 3.43% and 3.94% of total consolidated assets as of December 31, 2007
and 2006, respectively, and whose consolidated revenues constitute approximately 11.19%,
8.40% and 6.29% of total consolidated revenues for the years ended December 31, 2007,
2006 and 2005, respectively. The balance sheets and profit and loss accounts of that
subsidiary were audited by another auditor, whose reports have been furnished to us, and
our opinion, insofar as it relates to the amounts included in respect of that subsidiary
is based solely on the reports of the other auditor.

We conducted our audits in accordance
with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. The company is not
required to have, nor were we engaged to perform, an audit of its internal control over
financial reporting.

Our audits included consideration of
internal control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Companys internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, based on our audits
and the reports of another auditor, the consolidated financial statements present fairly,
in all material respects, the consolidated financial position of the Company as of
December 31, 2007 and 2006, and the related consolidated results of operations and
cash flows for each of the three years in the period ended December 31, 2007, in
conformity with generally accepted accounting principles as applied in the United States
of America.

| |                                    
| | -----------------------------------
|
|
|
|
| | /s/ Ziv Haft                       
| | Ziv Haft                           
| | Certified Public Accountants (Isr.)
| | A BDO member firm                  

Tel-Aviv, IsraelJune
25, 2008

|                                            |                                               
|------------------------------------------- | ----------------------------------------------
|
|
|
|
|Haifa Tel: 04-8680600, Fax: 04-8620866      | Kiryat Shmona Tel: 04-6951389, Fax: 04-6950004
|Jerusalem: Tel: o2-6546200, Fax: 02-6526633 | Beer Sheva Tel: 08-654432, Fax: 08 6270008    

F - 2

---

---

| |                      
| | ---------------------
|
|
|
|
| | BICK ROTHENBERG      
| | Chartered Accountants

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
LUMENIS (UK) LIMITED

We have audited the balance  sheets
of Lumenis (UK) Limited (the  "Company")  as of  31 December  2007 and 2006 and the
profit and loss  account for each of the years in the  three-year  period  ended  31
December 2007 ("the financial  statements").  These financial  statements are the
 responsibility  of the Company's management.  Our  responsibility  is to  express an
opinion  on these  financial  statements  based on our audits.

We conducted  our audits in
 accordance  with the  standards of the Public  Company  Accounting  Oversight Board
(United  States).  Those standards  require that we plan and perform the audit to obtain
 reasonable assurance  about whether the financial  statements are free of material
 misstatement.  The company is not required  to have,  nor were we  engaged to  perform,
 an audit of its  internal  control  over  financial reporting.

Our audits included  consideration
of internal  control over financial  reporting as a basis for designing audit  procedures
 that are  appropriate  in the  circumstances,  but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control over financial reporting.
 Accordingly,  we express no such opinion.  An audit also  includes  examining,  on a
test basis,  evidence  supporting  the amounts and  disclosures  in the  financial
 statements,  assessing  the  accounting  principles  used and significant  estimates
 made  by  management,  as well  as  evaluating  the  overall  financial  statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  based on our
audits,  the financial  statements present fairly, in all material respects, the
 financial  position of the Company as of  31 December  2007 and 2006,  and the profit
for each of the three years in the period ended  31 December  2007,  in  conformity  with
 generally  accepted  accounting principles as applied in the United States of America.

/s/ Blick RothenbergBlick Rothenberg
Chartered Accountants & Registered Auditors
12 York Gate
London
NW1 4QS
United Kingdom

25 June, 2008

F - 3

---

---

# INDEX TO EXHIBITS

|Exhibit |  | Description
|------- |  | -----------

|1.1 |  | Memorandum
of Association, as amended July 26, 2001 (English translation) *B (3.1)
|--- |  | ----------------------------------------------------------------------------------

|1.2 |  | Articles
of Association, as amended and restated December 26, 2007 **
|--- |  | ---------------------------------------------------------------------

|4.(b)1 |  | Lease
 Agreement dated March 18,  1998 between Skan Group Yokneam Ltd. and Lumenis  (English
 Translation)              with respect to the Yokneam, Israel facility *A (10.31)
|------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)2 |  | Lease
 Agreement  dated  September 5,  2006 between Aspen Real Estate Ltd. and Lumenis with
respect to the              Yokneam, Israel facility *G (4.8)
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)3 |  | Lease
dated as of July 19,  2006  between  Lumenis,  Inc.  and HDP  Associates,  LLC.  with
respect to the              Santa Clara, California facility *G (4.10)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)4 |  | Lease
Agreement dated as of April 25,  2006 between Lumenis and Century East Business Center,
 L.L.C. with              respect to the Salt Lake City facility *G (4.18)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)5 |  | Lease
Agreement  dated as of  September 27,  2006 between  Lumenis and Ascend Realty
 Investments LLC with              respect to the Salt Lake City facility *G (4.19)
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)6 |  | Construction
and Lease Agreement dated January 8,  2008 between Industrial Buildings  Corporation Ltd.
and              Lumenis (English Translation) with respect to new Yokneam, Israel
facility **
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)7 |  | Letter
Agreement with Bank Hapoalim B.M dated June 17, 2003 *D (10.5)
|------ |  | ---------------------------------------------------------------------

|4.(b)8 |  | Stock
Pledge Agreement dated as of July 1, 2003 between Bank Hapoalim B.M. and Lumenis Ltd. *D
(10.6)
|------ |  | -----------------------------------------------------------------------------------------------------

|4.(b)9 |  | Stock
Pledge  Agreement  dated as of July 1,  2003 between Bank  Hapoalim  B.M. and Lumenis
 Holdings Inc.              *D (10.7)
|------ |  | ---------------------------------------------------------------------------------------------------------------------------------

|4.(b)10 |  | Cash
Fee-Ltd.  Stock Letter,  dated as of November 19,  2003,  between Lumenis Ltd. and Bank
Hapoalim B.M.              *E (10.3)
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------

|4.(b)11 |  | Asset
Purchase  Agreement,  dated as of January 1,  2005, by and between Lumenis Inc. and
Eclipse Medical,              Ltd.  and  others.  (A  portion  of this  exhibit  has been
 omitted  and filed  separately  with the SEC.              Confidential treatment has
been requested with respect to the omitted portion.) *F (10.1)
|------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)12 |  | Purchase
 Agreement  dated as of  September 30,  2006 among Lumenis,  Ofer Hi-Tech  Investments,
 Ltd., LM              Partners L.P. and LM (GP) L.P.*G (4.20)
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)13 |  | Restructuring
Agreement dated as of September 29, 2006 between Lumenis and Bank Hapoalim B.M.*G (4.21)
|------- |  | ------------------------------------------------------------------------------------------------------

|4.(b)14 |  | Amendment
No. 1 to Restructuring Agreement dated as of December 5,  2006 between Lumenis and Bank
Hapoalim              B.M. *G (4.22)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------

|4.(b)15 |  | Amendment
No. 2 to Restructuring Agreement dated June 25, 2008 between Lumenis and Bank Hapoalim
B.M. **
|------- |  | --------------------------------------------------------------------------------------------------------

|4.(b)16 |  | Registration
Rights Agreement dated as of December 5, 2006 among Lumenis, Ofer Hi-Tech Investments,
 Ltd.,              LM Partners L.P. and Bank Hapoalim B.M. *G (4.23)
|------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)17 |  | Warrant
 No. 2 dated  December 5,  2006 to purchase  11,658,273  ordinary  shares  issued to Ofer
 Hi-Tech              Investments Ltd. on or before June 5, 2007 *G (4.24)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)18 |  | Warrant
 No. 4 dated  December 5,  2006 to  purchase  7,083,333  ordinary  shares  issued to Ofer
 Hi-Tech              Investments Ltd. on or before December 5, 2011 *G (4.25)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)19 |  | Warrant
No. 5 dated December 5,  2006 to purchase  8,000,000  ordinary shares issued to Bank
Hapoalim B.M.              on or before November 19, 2011 *G (4.26)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)20 |  | Warrant
No. 6 dated December 5,  2006 to purchase  1,411,300  ordinary shares issued to Bank
Hapoalim B.M.              on or before November 19, 2011 *G (4.27)
|------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)21 |  | Warrant
No. 7 dated December 5,  2006 to purchase 11,560,343 ordinary shares issued to LM
Partners L.P. on              or before June 5, 2007 *G (4.28)
|------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(b)22 |  | Warrant
No. 8 dated December 5,  2006 to purchase 10,639,875 ordinary shares issued to LM
Partners L.P. on              or before December 5, 2011 *G (4.29)
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.(c)1 |  | 1999
Share Option Plan, as amended April 30, 2003 *I (4.1)
|------ |  | ----------------------------------------------------------

|4.(c)2 |  | 2000
Share Option Plan, as amended September 30, 2006 *I (4.2)
|------ |  | --------------------------------------------------------------

|4.(c)3 |  | Israel
2003 Share Option Plan, as amended May 27, 2003 *C (Exhibit A)
|------ |  | ---------------------------------------------------------------------

|4.(c)4 |  | 2007
Share Incentive Plan, as amended September 23, 2007 *H (99.1, Appendix A)
|------ |  | ------------------------------------------------------------------------------

|4.(c)5 |  | Form
of pre-2006 recapitalization Indemnification Agreement *B (10.7)
|------ |  | ---------------------------------------------------------------------

|4.(c)6 |  | Form
of post-2006 recapitalization Indemnification Agreement *G (4.6)
|------ |  | ---------------------------------------------------------------------

|4.(c)7 |  | Lumenis
Business Conduct Policy **
|------ |  | ----------------------------------

|4.(c)8 |  | Lumenis
Code of Business Ethics for Financial Officers **
|------ |  | ---------------------------------------------------------

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|8 |  | List
of Subsidiaries **
|- |  | -----------------------

|12.1 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 **
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 **
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.3 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (**)
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.4 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (**)
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.5 |  | Certification
of Chief Executive  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ***
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.6 |  | Certification
of Chief Financial  Officer pursuant to Rules 13a-14(a) (17 CFR  240.13a-14(a)),  as
adopted              pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 ***
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13 |  | Certification
of Chief Executive Officer and Chief Financial  Officer pursuant to 18 U.S.C.  Section
1350,              as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 **
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.4 |  | Consent
of Ziv Haft, a BDO member firm, independent registered public accounting firm ***
|---- |  | -----------------------------------------------------------------------------------------

|15.5 |  | Consent
of Blick Rothenberg, independent registered public accounting firm for Lumenis (UK)
Limited ***
|---- |  | -------------------------------------------------------------------------------------------------------

Note:  Parenthetical  references
 following the  Exhibit Number of a document relate to the exhibit number under which
such exhibit was initially filed.

|*A | Incorporated
by reference to said document filed as an exhibit to Annual Report on Form 10-K for
the fiscal year ended December 31, 1999, File #000-27572, filed on March 30,
2000.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*B | Incorporated
by reference to said document filed as an Exhibit to Annual Report on Form 10-K for
the fiscal year ended December 31, 2001, File #000-27572, filed on April 1,
2002.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*C | Incorporated
by reference to said document as an Exhibit to the Registrants Definitive Proxy
Statement for its 2003 Annual Meeting of Shareholders filed under cover of Schedule 14A
on April 30, 2003, File #000-27572.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*D | Incorporated
by reference to said document filed as an Exhibit to Quarterly Report on Form 10-Q
for the Quarterly Period ended June 30, 2003, File #000-27572, filed on August 19,
2003.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*E | Incorporated
by reference to said document filed as an Exhibit to Quarterly Report on Form 10-Q
for the Quarterly Period ended September 30, 2003, File #000-27572, filed on November 19,
2003.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|*F | Incorporated
by reference to said document filed as an Exhibit to Current Report on Form 8-K,
File #000-27572, filed on January 20, 2005.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------

|*G | Incorporated
by reference to said document filed as an exhibit to Registration Statement on Form 20-F,
File #0-27572, filed on May 1, 2007.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------

|*H | Incorporated
by reference to said document filed as an Exhibit to Current Report on Form 6-K,
File #000-27572, furnished on November 21, 2007.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------

|*I | Incorporated
by reference to said document filed as an exhibit to a Post-Effective Amendment to a
Registration Statement on Form S-8, File #333-14860, filed on April 2, 2008.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|** | Filed
with the Form 20-F on June 25, 2008.
|-- | ------------------------------------------

|(**) | Filed
with Amendment No. 1 to the Form 20-F on June 26, 2008.
|---- | -------------------------------------------------------------

|*** | Filed
with this Amendment No. 2 to the Form 20-F.
|--- | -------------------------------------------------

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