DRAPER, Utah, Dec. 2 /PRNewswire-FirstCall/ --
1-800 CONTACTS, INC. (Nasdaq: CTAC), today announced that it has reached an
agreement with Vistakon, a division of Johnson & Johnson Vision Care, to
become an authorized retailer of Vistakon contact lenses.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990917/1800CONTACTS )
As part of the agreement, 1-800 CONTACTS will modify its systems to give
eye care providers a minimum of eight business hours to respond to its
prescription verification requests for Vistakon products. Eye care providers
will have the option of receiving these requests by fax. If the eye care
provider notifies 1-800 CONTACTS within this time period that the customer's
prescription is expired or otherwise invalid, it will not ship the order.
Absent such notification from the eye care provider, the Company will proceed
with the sale based on the prescription that was communicated to the eye care
provider. This system will apply to Vistakon orders nationwide with the
exception of a few states where 1-800 CONTACTS has pre-existing agreements to
employ more stringent procedures.
After demonstrating system reliability, 1-800 CONTACTS will begin ordering
directly from Vistakon. It is anticipated that this modification and testing
process will be completed within 6-8 weeks.
This direct relationship with Vistakon will lower the Company's product
acquisition costs and allow it to offer rebates and other incentives not
previously available to its customers who wear Vistakon lenses. It will also
enable the Company to reduce its inventory investment by purchasing a more
balanced mix of products at lower prices than it has historically been able to
obtain through indirect sources. This agreement also resolves long-standing
disputes and should free up substantial Company resources for use elsewhere.
"Vistakon is the leader in contact lens market share. We are excited to
begin a direct working relationship with them," said Jonathan Coon,
1-800 CONTACTS' Chief Executive Officer. "In addition, we hope that eye care
providers will recognize these modifications to our systems and cooperate with
our prescription verification requests by responding appropriately to them."
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.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.
This news release contains forward-looking statements about the Company's
future business prospects. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in or implied by such forward-looking statements. Factors that may
cause future results to differ materially from the Company's current
expectations include, among others: general economic conditions, the health
of the contact lens industry, inventory acquisition and management,
manufacturing issues, integration of IGEL, exchange rate fluctuations,
advertising spending and effectiveness, unanticipated delays or difficulty
certifying with Vistakon requirements, and regulatory considerations.
SOURCE 1-800 CONTACTS, INC.
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Related links:
http://www.contacts.com
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/19990917/1800CONTACTS
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
CONTACT:
Jonathan C. Coon, Chief Executive Officer,
+1-801-924-9800, or Scott S. Tanner, Chief Operating Officer,
+1-801-924-9802, investors@contacts.com, both of 1-800 CONTACTS,
INC.
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