1-800 CONTACTS Announces Record First Quarter Revenues and Earnings Ahead of Early Estimates; Internet Sales of $2.5 Million Continue to Fuel Growth.

DRAPER, Utah--(BUSINESS WIRE)--April 27, 1999--

1-800 CONTACTS, INC. (Nasdaq: CTAC), the world's largest direct marketer of contact lenses, Tuesday reported record revenues for the first quarter of 1999 and said that earnings exceeded previous estimates.

Net sales for the quarter increased 114% to $22.3 million from $10.4 million for the same quarter in 1998. Earnings for the quarter were $297,000 or $.05 per diluted share compared with a net loss of ($212,000) or ($.04) per diluted share for the first quarter of 1998.

Repeat sales for the first quarter increased 174% to $10.7 million from $3.9 million for the same quarter in 1998. Jonathan Coon, president and chief executive officer, indicated "Internet sales continue to propel our business as customers discover the ease of ordering contact lenses through our website, www.contacts.com.

"Our Internet sales were insignificant only a year ago, but reached $2.5 million in the first quarter of 1999--more than doubling from $1.2 million for the fourth quarter of 1998.

"During the first quarter, Internet orders represented more than 16% of all new orders. Recently, nearly one of every five new orders is an Internet order. We expect the Internet to continue to be the fastest growing channel for our business."

Scott Tanner, chief financial officer, added, "We see strength throughout the business. Repeat sales nearly tripled compared with the first quarter of last year. In addition, new sales were ahead of expectations for the quarter, despite spending less than we originally planned on advertising.

"We added well over 100,000 new customers during the first quarter of 1999. We believe that the investments we are making in the business--such as the opening of our new 35,000 square foot distribution facility in February, and ongoing enhancements to our website--will continue to increase service levels to our more than 700,000 customers."

1-800 CONTACTS is the world's largest direct marketer of contact lenses. The company 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 website, www.contacts.com, the company sells substantially 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, advertising spending and effectiveness, and regulatory considerations.

Web site: http://www.contacts.com E-mail: [e-mail] -0-

                         1-800 CONTACTS, INC.
                  CONDENSED STATEMENTS OF OPERATIONS
               (in thousands, except per share amounts)
                              (Unaudited)

                                     Quarter Ended (a)
                               April 3,             April 4,
                                 1999                 1998
NET SALES                      $22,304              $10,429
COST OF GOODS SOLD              13,909                6,629
 Gross profit                    8,395                3,800
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES         8,000                3,138
INCOME FROM OPERATIONS             395                  662
OTHER INCOME (EXPENSE):
 Interest expense                   (2)                 (74)
 Interest income                    86                  144
 Other, net                          -                   10
   Total other, net                 84                   80
INCOME BEFORE PROVISION FOR
 INCOME TAXES                      479                  742
PROVISION FOR INCOME TAXES (b)    (182)                (954)
NET INCOME (LOSS)                 $297                $(212)

PER SHARE INFORMATION:
 Basic and diluted net income
  (loss) per common share        $0.05               $(0.04)

PRO FORMA INFORMATION (b):
 Income before provision for
  income taxes                     479                  742
 Provision for income taxes       (182)                (278)
 Net income                       $297                 $464

 Basic and diluted net income
  per common share               $0.05                $0.08

     Footnote (a): Effective January 1, 1998, the company changed from
a calendar year end to a 52/53 week fiscal year.
     Footnote (b): Immediately prior to its Initial Public Offering in
February 1998, the company revoked its S Corporation election,
converting to C Corporation status. In connection therewith, the
company became subject to income taxation; and, in accordance with
SFAS 109, recorded deferred tax assets and liabilities and the
corresponding income tax provision.

                         1-800 CONTACTS, INC.
                       CONDENSED BALANCE SHEETS
                            (in thousands)

                                ASSETS

                                   April 3,              January 2,
                                     1999                   1999
                                  (Unaudited)

CURRENT ASSETS:
 Cash and cash equivalents          $8,596                  $3,762
 Inventories                        10,586                  10,753
 Other current assets                  287                     483
   Total current assets             19,469                  14,998
DEFERRED ADVERTISING COSTS               -                     175
PROPERTY AND EQUIPMENT, net:         2,344                   2,049
DEFERRED INCOME TAXES                  461                     643
OTHER ASSETS                           164                     151
   Total assets                    $22,438                 $18,016

                 LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Current portion of capital
  lease obligation                     $38                     $37
 Accounts payable & accrued
  liabilities                        9,059                   3,116
   Total current liabilities         9,097                   3,153
LONG-TERM LIABILITIES:
 Capital lease obligation, less
  current portion                       20                      30
   Total long-term liabilities          20                      30
STOCKHOLDERS' EQUITY:               13,321                  14,833
   Total liabilities and
    stockholders' equity           $22,438                 $18,016