Coastal Contacts Inc. ("Coastal" or the "Company") today announced financial guidance for the fiscal year ending October 31, 2006. Based on current economic conditions, management expects Coastal to achieve revenues in the range of $95 million to $100 million and EBITDA in the range of $5 million to $7 million in 2006. EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, and stock based compensation.

As reported on January 26, 2006, Coastal reported record revenue for fiscal 2005 of $67.5 million, a 116% increase over the previous year. The Company also reported record EBITDA of $3,377,500 for 2005 compared with a loss of $224,674 for 2004.

"Market research from the major contact lens manufacturers forecasts a robust market for contact lenses over the next 10 years. This market growth combined with the conversion to on-line purchasing by consumers is creating an on-line contact lens industry that is growing at a greater rate than the market generally," comments Roger Hardy, Chairman and Chief Executive Officer of Coastal. "Coastal's efficient distribution model and strong financial condition positions the Company well to take advantage of this organic growth and strategic acquisition opportunities."

"Over the past several quarters we have demonstrated that Coastal can grow the core on-line business aggressively while still generating positive cash flow. During the fourth quarter of 2005, the Company added, on average, over 1,400 new customers a day. The large majority of these new customers will place re-orders adding significant value to the underlying annuity stream inherent in our business model," stated Bill Wrixon, President of Coastal. "We believe that ongoing international expansion and increased annuity revenue from re-orders provide the fuel and fundamentals to continue to build an industry leading company."

As reported on January 24, 2006, the Company intends to proceed with the process of applying to list its common shares on the TSX, Canada's senior stock exchange. Coastal has been listed on the TSX Venture Exchange since 2004 and was recently named one of the TSX-V top 50 venture companies.

This forecast is based on a currency exchange rate assumption of CDN$1.00 = US$0.877 and 6.80 Swedish Krona. The Company's guidance assumes re-order rates will remain consistent with historic rates. In addition, customer acquisition costs are forecast to remain at current levels in media channels traditionally utilized by the Company. Revenues and earnings forecasts are based upon historical consumer purchasing trends at Coastal, established over the previous four year period and take into account industry factors such as seasonality and product preferences.

About Coastal Contacts:

With operations and distribution hubs in both North America and Europe, the Company is one of the largest and fastest growing direct marketers of contact lenses in the world. The Company's large volume business combined with its cost effective global operations enable it to offer replacement contact lenses to customers worldwide at reduced prices, delivered quickly with strong customer service follow-up. Coastal's direct to consumer model and single product focus combine to create the distinct competitive advantage of a more efficient, customer-focused model for world-wide contact lens distribution.

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, limited suppliers, inventory risk, disruption in our distribution facilities, foreign exchange fluctuations, legislative/regulatory requirements, prescription verification, demand for contact lenses, competition and dependence on the internet. These risks, as well as others, 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.

Neither the TSX Venture Exchange nor any other regulatory body has

reviewed and therefore does not accept responsibility for the adequacy or

accuracy of this release.

For further information: Bill Wrixon, President, Coastal Contacts Inc., (604) 669-1555, Ext. 251, billw@coastalcontacts.com; Terry Vanderkruyk, Vice President, Corporate Development, Coastal Contacts Inc., (604) 669-1555, Ext. 326, terryv@coastalcontacts.com

Source: newswire