A screening program for diabetic eye disease was established in Iceland in 1980. Approximately 90% of the insulin dependent patients in Iceland undergo annual eye examination and fundus photography and about a fifth of the type 2 diabetic patients. We report on 245 diabetic patients with type 2 diabetes. Any diabetic retinopathy was present in 100 patients (41%), proliferative retinopathy had been present in 17 (7%) and 24 (10%) had clinically significant diabetic macular edema. Two-hundred and twenty-four patients (91%) had visual acuity equal or better than 6/12 in their better eye, 17 patients (7%) with 6/18-6/36 in their better eye, and 4 patients (1.6%) equal or worse than 6/60 in their better eye.