Coastal Contacts Inc. Record Third Quarter 2010 Results Highlighted by Strong Cash Generation

VANCOUVER, British Columbia, Sept. 13, 2010 (GLOBE NEWSWIRE) -- Coastal
Contacts Inc. ("Coastal" or "the Company") (TSX:COA) (Stockholm:COA) today
announced its financial results in Canadian dollars for the third fiscal
quarter ended July 31, 2010. 

Coastal noted the following highlights for the 2010 third fiscal quarter:

• Sales set a quarterly record of $39.5 million as compared to $37.5 million in
the third quarter of the previous fiscal year. Sales increased 12% excluding
the impact of foreign exchange rate fluctuations. 
 
• More than 428,000 orders shipped, an increase of 16% over the same period in
2009. 
 
• $20.8 million in cash and cash equivalents as compared with $10 million at the
end of the second quarter of fiscal 2010. 
 
• Coastal acquired 120,000 new customers in the quarter.
 
• Eyeglasses sales grew to $5.0 million in the quarter, an increase of 84% over
the same period in fiscal 2009. 
 
• Shipped more than 71,000 pairs of eyeglasses in the quarter.
 
• Sales in Canada grew 22% in the third quarter of 2010 as compared to the same
period of last fiscal year, and 35% during the nine months ended July 31, 2010. 
 
• Sales in the United States grew 24% in the third quarter of 2010 as compared
to the same period of the last fiscal year, and 29% during the nine months
ended July 31, 2010. 
 
• Advertising expense declined to 12% of sales as compared to 13% of sales in
the same period in fiscal 2009. 

Sales for the third fiscal quarter increased 5% and set a quarterly record of
$39.5 million compared to $37.5 million in 2009. Exclusive of foreign exchange
fluctuations sales grew 12% during the quarter compared to the same period in
2009. Adjusted EBITDA for the third fiscal quarter was $1.4 million compared
with $2.0 million during the same period in 2009.  Net earnings for the third
fiscal quarter was $0.5 million or $0.01 per share compared to $0.6 million or
$0.01 per share in the third quarter of fiscal 2009. 

Mr. Roger Hardy, Coastal's Founder and CEO, commented, "During the third
quarter the Coastal team delivered record sales in what remains a challenging
consumer environment. Results in the quarter were lead by strong growth in
North America with healthy double digit increases in both Canada and the United
States.  Our markets in Europe experienced flat to single digit growth in their
domestic currencies excluding the effect of foreign exchange fluctuations. We
are confident that our competitive position remains strong based upon our
differentiated business model and unique consumer value proposition, which
allows us to provide the highest quality glasses and contact lenses direct to
our customers at much lower prices and delivery time than traditional optical
retailers. As we continue to gain market share in the glasses market we feel
confident that our business plan is set to deliver substantially higher returns
in the coming quarters." 

Coastal will host a conference call to review the financial results and Company
operations on Monday, September 13, 2010 at 1:00pm PT.   Participating in the
call will be Roger Hardy, Founder and CEO and Glen Kayll, CFO. 

To attend the call, participants may dial:

North American Toll Free   1-888-892-3255 
Sweden                     0200791989
  
A replay of the call will be available for 7 days.   To access the replay
listeners may dial: 

North American Toll Free   1-800-937-6305
Passcode                   593098

Coastal's risks and uncertainties are discussed in detail in the Company's
Annual Information Form dated January 29, 2010, which is also available on
SEDAR at www.sedar.com. 

Adjusted EBITDA and orders shipped as referenced in this news release are
Non-GAAP financial measures. Adjust EBITDA is defined as earnings before
interest, income taxes, depreciation and amortization, share based compensation
expense and foreign exchange gains and losses. See "Supplemental Non-GAAP
Measures" herein. 

The following selected financial information is qualified in its entirety by,
and should be read in conjunction with our unaudited consolidated financial
statements for the third fiscal quarter ended July 31st, 2010 and accompanying
notes and Management's Discussion and Analysis which will be available on SEDAR
at www.sedar.com. 

Supplemental Non-GAAP Measures

Coastal reports its results in accordance with Canadian GAAP, however in this
news release, it presents Adjusted EBITDA and the number of orders shipped
because Coastal believes its investors use these figures to make investment
decisions about the Company. 

Adjusted EBITDA is a non-GAAP financial measure that does not have any
standardized meaning prescribed by Canadian GAAP and is therefore unlikely to
be comparable to similar measures presented by other companies. Adjusted EBITDA
should be considered in addition to, and not as a substitute for, net earnings,
cash flows and other measures of financial performance and liquidity reported
in accordance with Canadian GAAP. 

Adjusted EBITDA is a measure Coastal believes is useful in assessing
performance and highlighting trends on an overall basis. Adjusted EBITDA
differs from the most comparable GAAP measure, net earnings, primarily because
it does not include interest, income taxes, depreciation, amortization,
share-based compensation expense and foreign exchange gains and losses. 

About Coastal Contacts:

Coastal Contacts Inc. is the world's leading direct-to-consumer vision products
company which designs, produces and distributes a diversified offering of
contact lenses and eyeglasses. Coastal'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, Coastal is positioned to
become the vision product consumer's retailer of choice owing to its compelling
value proposition combining value and service.  A leader in many of its
markets, Coastal is rapidly advancing toward its goal of becoming the "World's
Optical Store". 

Forward Looking Statements

All statements made in this news release, other than statements of historical
fact, are forward-looking statements. The words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect",
"goal", "target", "should," "likely," "potential," "continue," "project,"
"forecast," "prospects," and similar expressions typically are used to identify
forward-looking statements.  Examples of such forward looking statements within
this news release include statements relating to the Company's perception of
the industries and markets it operates in and its competitive position therein. 

Forward-looking statements are based on the then-current expectations, beliefs,
assumptions, estimates and forecasts about Coastal's business and the industry
and markets in which we operate. Forward-looking statements are not guarantees
of future performance and involve risks, uncertainties and assumptions which
are difficult to predict.  Assumptions underlying our expectations regarding
forward-looking statements contained in this news release include, among
others, that Coastal will maintain its competitive position in the industries
and markets it operates in and expand into other markets in a favorable manner. 

Persons reading this news release are cautioned that forward-looking statements
or information are only predictions, and that Coastal's actual future results
or performance may be materially different due to a number of factors.  These
factors include, but are not limited to, changes in the market, potential
downturn in economic conditions and other risks detailed in Coastal's filings
with Canadian and Swedish securities regulatory authorities. Reference should
also be made to the section entitled "Risk Factors" contained in Coastal's most
recently filed Annual Information Form dated January 29, 2010 and in the NASDAQ
OMX Stockholm listing prospectus dated October 14, 2009, as filed on Sedar and
with the Swedish Financial Supervisory Authority respectively, for a detailed
description of the risks and uncertainties relating to Coastal's business.
These risks, as well as others, could cause actual results and events to vary
significantly. Accordingly, readers should not place undue reliance on
forward-looking statements and information, which are qualified in their
entirety by this cautionary statement. These forward-looking statements are
made as of the date of this news release and Coastal expressly disclaims any
intent or obligation to update these forward-looking statements, unless it
specifically state otherwise and except as required by applicable law. 

Please see the attachment for financial tables.

CONTACT:  Coastal Contacts Inc.
          Terry Vanderkruyk, Vice President, Corporate Development
          604.676.4498
          terryv@coastalcontacts.com