Coastal Contacts Inc.
TSX : COA

Coastal Contacts Inc.

February 26, 2008 09:00 ET

Coastal Announces Final Results of Issuer Bid

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Coastal Contacts Inc. (TSX:COA) announced today the final results of its previously announced modified "Dutch Auction" substantial issuer bid to repurchase up to 7,000,000 of its common shares (the "Offer"), which expired at 5:00 p.m., Eastern time, on Monday, February 25, 2008.

Based on the final report provided by the depository for the Offer, Coastal will purchase for cancellation 6,837,344 common shares at a price of $1.25 per share, for a total cost of $8,546,680. These shares represent approximately 9.6% of the shares outstanding as of February 25, 2008. After the repurchase, approximately 64.2 million common shares will remain outstanding.

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.

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 one of the world's fastest growing vision care suppliers. Leveraging its world class operations in North America, Europe and Asia, Coastal is building a predictable recurring revenue stream in the contact lens segment and is developing complementary branded vision care products. 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 contains certain forward-looking statements that reflect the current views and/or expectations of Coastal Contacts Inc. 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 Contacts does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.

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