Draper, UT | June 4, 2007 — 1-800 CONTACTS, INC. (Nasdaq: CTAC) (the “Company”) today announced that it has entered into a definitive merger agreement with affiliates of Fenway Partners, LLC pursuant to which Fenway Partners will acquire 1-800 CONTACTS for $24.25 per share, representing a premium ofapproximately 21 percent over the June 1, 2007 closing share price of $20.08 and a premium of approximately 34 percent over the average closing share price during the 30 trading days ending June 1, 2007. The total value of the transaction is approximately $340 million.
Jonathan Coon, Chief Executive Officer of the Company, remarked, “We believe this transaction with Fenway Partners is the right decision for our stockholders, our Company, our employees, and our customers. This transaction will not only provide significant premium value for our stockholders, but will allow the Company to pursue its long-term goals with the flexibility and long-term focus of a private company.”
Tim Mayhew, Managing Director of Fenway Partners, said, “1-800 CONTACTS is a terrific business that fits well with our investment strategy. We look forward to working
with Jonathan Coon, Brian Bethers and the entire management team to support the Company’s growth.”
Brian Bethers, President of the Company, added, “We also look forward to working with Fenway Partners. They understand our business, share our commitment to customer
service, and support our investment in advertising for growth.”
The Board of Directors of 1-800 CONTACTS, following the recommendation of a Transactions Committee of independent directors, has approved the merger agreement
and recommends that 1-800 CONTACTS’ stockholders approve the merger. The transaction is subject to approval by 1-800 CONTACTS’ stockholders, as well as other
customary closing conditions, including regulatory approvals. The transaction is expected to close during the second half of fiscal 2007. The transaction is not subject to a
financing condition nor is it subject to closing the Menicon or Mi Gwang transactions (referenced in the Company’s Current Report on Form 8-K filed June 1, 2007), although
those transactions are expected to close in June.
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 and its Internet web site, 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.
About Fenway Partners, LLC
Fenway Partners, LLC is a middle market private equity firm with offices in New York and Los Angeles and $1.7 billion under management. Fenway companies typically have
leading franchises and operate in two core industry segments, branded consumer products and transportation/logistics. With significant knowledge and success investing in these
industries, Fenway has built a strong reputation for its hands-on approach to supporting its portfolio companies which include sporting goods manufacturer Easton Bell Sports,
school yearbook and class ring manufacturer American Achievement, leading global supplier of mobile computing cases and accessories Targus International, expedited
ground transportation provider Panther Expedited Services and intermodal logistics service provider RoadLink USA.
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