Coastal announces final results of substantial issuer bid


    TSX Symbol: COA

    VANCOUVER, July 28 /CNW/ - Coastal Contacts Inc. (TSX: COA) announced
today the final results of its previously announced substantial issuer bid to
repurchase up to 5,000,000 of its common shares (the "Offer"), which expired
at 5:00 p.m., Eastern time, on Friday, July 25, 2008.
    Based on the final report provided by the depository for the Offer,
Coastal will purchase for cancellation 5,000,000 common shares (subject to
adjustments to avoid the purchase of fractional shares) at a price of $1.00
per share, for a total cost of $5 million. These shares represent
approximately 8% of the common shares outstanding as of July 25, 2008. After
the repurchase, approximately 58.4 million common shares will remain
    The number of common shares deposited pursuant to the Offer was
13,549,640 and, as a result, shareholders who deposited common shares to the
Offer will have approximately 36.9% of their deposited common shares
repurchased at a price of $1.00 per share, subject to adjustments to avoid the
purchase of fractional shares.
    Payment for common shares tendered and accepted for purchase under the
Offer will be made as soon as practicable in accordance with the terms of the
Offer. Common shares not repurchased will promptly be returned to depositing

    Important Income Tax Information for Coastal Shareholders

    As described in the Offer to Purchase and Issuer Bid Circular describing
the Offer that was mailed to Coastal's shareholders, Coastal is hereby
designating the entire amount of the deemed dividend arising from its purchase
of common shares under the Offer as an "eligible dividend" for purposes of the
enhanced dividend tax credit pursuant to subsection 89(14) of the Income Tax
Act (Canada) and any relevant provincial legislation of comparable effect.
This notice meets the requirements of the Income Tax Act (Canada). Please
contact your tax advisor if you have any questions with regard to the
designation of the eligible dividends.

    About Coastal Contacts:

    Coastal Contacts is the world's leading direct to consumer vision
products company which designs, produces and distributes a diversified
offering such as contact lenses and eyeglasses. The Company's unique
combination of branded and private label products represent quality, value and
above all, service. Coastal sells into more than 150 countries through
proprietary web properties which reflect the culture and consumer preference
of the target market. As new markets for eyeglasses and contact lenses evolve,
the Company is positioned to become the vision product consumer's retailer of
choice owing to its unbeatable value proposition combining value and service.
Already No. 1 in many of its markets, Coastal is rapidly advancing toward its
goal of becoming the "World's Optical Store".

    This news release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to buy or the
solicitation of an offer to sell common shares of Coastal. The full details of
the Offer are described in the Company's offer to purchase and issuer bid
circular and related materials filed by Coastal with Canadian securities
regulatory authorities.
    This news release may contain certain forward-looking statements that
reflect the current views and/or expectations of Coastal with respect to its
performance, business and future events. Investors are cautioned that all
forward-looking statements involve risks and uncertainties including, without
limitation, those relating to changes in the market, potential downturns in
economic conditions, credit market conditions and consumer credit risk,
limited suppliers, inventory risk, disruption in our distribution facilities,
foreign exchange fluctuations, regulatory requirements, demand for contact
lenses, changes in business strategy, competition and dependence on the
internet. These risks, as well as others, including those described in detail
in Coastal's Annual Information Form and other filings with Canadian
securities regulatory authorities, could cause actual results and events to
vary significantly. Coastal does not undertake any obligations to release
publicly any revisions for updating any voluntary forward-looking statements.

For further information:

For further information: Terry Vanderkruyk, Vice President, Corporate
Development, Coastal Contacts Inc., (604) 676-4498,

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