DRAPER, Utah, July 5 /PRNewswire-FirstCall/ -- 1-800 CONTACTS, INC.
(Nasdaq: CTAC) (the "Company") today announced that it has closed the
transactions for the sale of its ClearLab business. The Company sold
ClearLab's flat pack technology and certain other intellectual property to
Menicon Co., Ltd., Japan's largest independent contact lens manufacturer on
June 15, 2007, and sold ClearLab's manufacturing, distribution and customer
support operations to Mi Gwang Contact Lens Co., Ltd., a Korean-based
contact lens manufacturer on June 30, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040107/LACONTACTSLOGO )
Jonathan Coon, Chief Executive Officer, remarked, "We have now
finalized these transactions that we announced on May 29. We received the
expected $32 million in cash and $6.5 million in Mi Gwang's stock upon
closing these transactions, which will allow us to pay off all of our
outstanding debt and capital lease obligations. In addition, as previously
announced, we expect to receive from Menicon deferred cash payments of up
to $5 million upon Menicon reaching certain milestones, as well as possible
earn-out payments over a minimum fifteen-year term."
About 1-800 CONTACTS, INC.
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,
http://www.1800contacts.com, the Company sells all of the popular brands of
contact lenses. 1-800 CONTACTS offers products at competitive prices, while
delivering a high level of customer service.
ClearLab develops and manufactures a wide range of disposable contact
lens products and distributes these lenses in markets outside of the United
States. More information about ClearLab can be found at its website,
http://www.clearlab.com.
About Menicon Co., Ltd.
Menicon Co., Ltd. (http://www.menicon.com), founded by Mr. Kyoichi
Tanaka in 1951, is the largest independent contact lens manufacturer in
Japan and the only manufacturer in the world dedicated to all areas of
contact lens related businesses including development and manufacturing of
hyper-Dk GP Lenses, silicone hydrogel lenses, and multi purpose lens care
solutions.
About Mi Gwang Contact Lens Co., Ltd
Mi Gwang is one of the leading contact lens manufacturers in Korea. Mi
Gwang is publicly traded on the Korea Stock Exchange. More information can
be found at its website, http://www.migwang.com or at the Korea Exchange
website, eng.krx.co.kr (ticker: 066850).
Forward-looking Statements
This press release contains a number of statements about the Company's
future business prospects which are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include all statements which are not purely
historical and include, but are not necessarily limited to, all statements
relating in any way to the transactions with Menicon and Mi Gwang; the
anticipated future consideration to be paid by Menicon; and all
post-closing obligations of the Company, Menicon, or Mi Gwang. All such
forward-looking statements are based upon information available to the
Company as of the date hereof, and the Company disclaims any intention or
obligation to update any such forward-looking statements. Actual results
could differ materially from current expectations. Factors that could cause
or contribute to such differences include, among others, the risks and
uncertainties identified in the reports filed from time to time by the
Company with the U.S. Securities and Exchange Commission, including the
Company's most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Information on the Company's websites, other than the
information specifically referenced in this press release, shall not be
deemed to be part of this press release.
SOURCE 1-800 CONTACTS, INC.
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Related links:
http://www.1800contacts.com
http://www.clearlab.com http://www.menicon.com
http://www.migwang.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20040107/LACONTACTSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Brian W. Bethers, President, or Robert G.
Hunter, CFO, both of 1-800 CONTACTS, INC., +1-801-316-5000,
investors@contacts.com
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