1-800 CONTACTS to Acquire Lens Express and Lens 1st

1-800 CONTACTS, INC. today announced that it has signed a letter of intent with Southfield, Michigan-based Camelot Ventures to acquire certain assets and assume certain liabilities of Lens Express and Lens 1st, two leading U.S. mail-order contact lens retailers.

Under the terms of the agreement, 1-800 CONTACTS will acquire certain assets of Lens Express and Lens 1st, including databases, customer information, web addresses, phone numbers, and intellectual property rights.

In addition, acquired assets will include certain property, equipment, inventories and other tangible assets. The consideration to be paid includes 900,000 restricted shares of common stock, $6.5 million in cash and the assumption of approximately $4.8 million of current liabilities.

The completion of this acquisition, which is expected to close by January 31, 2003, will be dependant upon definitive documentation, satisfactory outcome of due diligence, board approvals, lender approvals, and third party consents.

Scott Tanner, Chief Operating Officer of 1-800 CONTACTS, commented, "Buying directly from Johnson & Johnson should reduce our inventory and free up capital to pay for transactions like this. Currently, Johnson & Johnson products account for about 40% of our sales, but the approximately $23 million of Johnson & Johnson inventory we have on hand comprises about 60% of our total inventory balance."

Jonathan Coon, Chief Executive Officer of 1-800 CONTACTS, commented, "We are excited about the opportunities created by bringing these contact lens retailers together. This acquisition will leverage our existing infrastructure while delivering additional economies of scale in purchasing, distribution and marketing."

1-800 CONTACTS offers consumers an attractive alternative for obtaining replacement contact lenses in terms of convenience, price and speed of delivery. Through its easy-to-remember, toll-free telephone number, "1-800-CONTACTS" (1-800-266-8228), and its Internet web site, www.contacts.com, the Company sells all of the most popular brands of contact lenses. High volume, cost-efficient operations enable 1-800 CONTACTS to offer products at competitive prices while delivering a high level of customer service.