National Vision Reports Operating Results for 2005 Fiscal First Quarter

National Vision Reports Operating Results for 2005 Fiscal First
Quarter 


LAWRENCEVILLE, Ga., May 16  /PRNewswire-FirstCall/ -- National Vision, Inc.
(AMEX:NVI) today announced operating results for its fiscal first quarter ended
April 2, 2005.

Total net revenue from continuing operations for the first quarter of 2005 was
$60.6 million, a 5% increase over total net revenue from continuing operations
of $57.9 million in the prior year's first quarter.  The Company's retail
optical locations achieved a year-over-year comparable store sales increase of
+2%.

Net earnings for 2005's first quarter were $2.8 million, or $0.50 per share on
a diluted basis, compared with net earnings of $3.1 million, or $0.56 per
diluted share, in the first quarter of 2004.  This reduction in net income was
driven by an increase of $1.7 million in the provision for income taxes. The
Company recorded a total income tax provision of approximately 40% of pre- tax
income in the first quarter of fiscal 2005 whereas income taxes were recorded
at a rate of approximately 6% in the fiscal 2004 first quarter. Substantially
all of the 2005 income tax provision pertains to deferred income taxes, as the
Company expects its cash taxes paid to be less than 4% of its full-year pre-tax
income for 2005.

Adjusted EBITDA increased to $10.1 million in the fiscal 2005 first quarter
from $9.7 million in the prior year comparable period.

Earnings before income taxes and discontinued operations increased to $4.5
million in 2005's first quarter from $2.1 million in the first quarter of 2004.

"NVI delivered another very strong quarter," stated Reade Fahs, CEO and
President.  "Positive sales comps were on top of a +10% sales comp in the first
quarter of 2004.  Our quarterly adjusted EBITDA was the best we've had in over
five years and our earnings before income taxes and discontinued operations
more than doubled those of last year's first quarter."

"At the end of the first quarter of 2005, we were operating 45 fewer retail
optical locations than we were operating a year earlier," Mr. Fahs continued. 
"In light of that reduction in store count and the significant increase in our
effective tax rate, our net income comparisons are quite remarkable.  Our store
teams and operations management continue to perform exceptionally well."

Fahs added, "We recently announced that we would use some of the first
quarter's positive cash flow to redeem $5.2 million of our Notes on June 1.
We've also repurchased another $772,000 of our Notes so far this year, so our
Note balance following the June 1 redemption will be approximately $67.0
million assuming no other repurchases by then.  We hope to continue
repurchasing our Notes as opportunities arise."

The Company will hold an Investor Relations Conference Call on Tuesday, May 17,
2005, at 11:00 a.m. EDT to discuss its first quarter results. The call may be
accessed via the Company's web site at http://www.nationalvision.com/ .
Following the conclusion of the prepared remarks by management, the Company
will accept and address questions from investors.

The Company's financial disclosures refer to adjusted EBITDA because it is used
in the calculation of excess cash flow principal repayments required under the
Company's Senior Subordinated Notes, it is the basis of certain covenants in
the Company's senior credit facility with the Fleet Retail Group and it is a
widely accepted financial indicator of a company's ability to service or incur
indebtedness.  Adjusted EBITDA is calculated as net earnings before interest,
taxes, depreciation, amortization, and certain other unusual non-cash items.  A
reconciliation of net earnings to EBITDA is presented in the attached financial
tables.

National Vision, Inc. is a retail optical company that operates vision centers
primarily within host environments in the United States and Mexico. Our vision
centers sell a wide range of optical products including eyeglasses, contact
lenses and sunglasses.  As of the end of the most recent fiscal quarter on
April 2, 2005, the Company operated 406 vision centers.  As of the date of the
news release, the Company operates 411 vision centers, including 293 located
inside domestic Wal-Mart stores.  National Vision depends on its domestic
Wal-Mart locations for substantially all of its revenues and cash flow. 
Investments in the debt and equity securities of National Vision, Inc. are
subject to substantial risks as described in the Company's public filings with
the Securities and Exchange Commission.

This release includes statements concerning the Company's plans, beliefs and
expectations for future periods.  These "forward-looking statements" may be
identified by the use of words such as "intends," "contemplates," "believes,"
"anticipates," "expects," "should," "could," "would" and words of similar
import.  These forward-looking statements involve known and unknown risks and
uncertainties that could cause actual results to differ materially from the
expectations expressed or implied in such statements.  With respect to such
forward-looking statements and others that may be made by, or on behalf of, the
Company, the factors described as "Risk Factors" in the Company's Reports filed
with the SEC, could materially affect the Company's actual results.

These risks and uncertainties include, among others, the Company's potential
inability to repay its debt, an adverse change in the Company's relationship
with Wal-Mart, changes in economic conditions (including an increase in
interest rates), financial markets or customer demand, the level of competition
in the retail eyecare industry, federal and state regulation of the healthcare
and insurance industries (particularly in California), the tax treatment
accorded to the Company's net operating loss carryforwards by federal and state
tax authorities, the Company's financial condition and other risks and
uncertainties set forth in the Company's filings with the Securities and
Exchange Commission.

All forward-looking statements included in this release are based upon
management's present expectations and the information available at this time.
The Company does not undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or other factors.

                            NATIONAL VISION, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands except per share information)
                                 (Unaudited)

                                                   Three Months Ended
                                             April 2, 2005     April 3, 2004
  Sales of optical products and
   services                                      $57,952           $56,003
  Fees from managed vision care
   services                                        2,500             1,927
  Sales of home medical products and
   services                                          120

  Total net revenue                               60,572            57,930
  Cost of goods sold, including
   occupancy costs                                26,072            23,976

  Gross profit                                    34,500            33,954
  Selling, general & administrative
   expense                                        27,789            29,033
  Operating income from continuing operations      6,711             4,921
  Other income (expense):
    Interest expense                              (2,368)           (2,911)
    Gain on repurchase of Senior
     Subordinated Notes                                6
    Other income, net                                196                40

  Earnings before taxes and
   discontinued operations                         4,545             2,050
  Income tax expense                               1,783               135

  Net earnings before discontinued
   operations                                      2,762             1,915

  Discontinued operations:
    Operating income from
     discontinued operations                         138             1,257
    Loss on disposal                                  (1)              (31)
    Income tax expense                                70                50
  Earnings from discontinued operations               67             1,176

  Net earnings                                    $2,829            $3,091

  Earnings per common share:

       Basic                                       $0.54             $0.61

       Diluted                                     $0.50             $0.56



                               NATIONAL VISION, INC.
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         April 2, 2005 and January 1, 2005
                                  (In thousands)

                                             April 2, 2005
                                              (Unaudited)   January 1, 2005
        ASSETS
        CURRENT ASSETS:
             Cash and cash equivalents           $11,365            $7,858
             Accounts receivable
                  (net of allowance:
                   2005 - $550; 2004 -
                   $423)                           4,051             2,561
             Inventories                          13,781            14,065
             Deferred income tax asset             8,024             9,394
             Other current assets                  1,351             2,405
                  Total current assets            38,572            36,283
        PROPERTY AND EQUIPMENT, net               12,291            12,271
        INTANGIBLE VALUE OF CONTRACTUAL
         RIGHTS
             (net of accumulated
              amortization: 2005 -
              $28,851; 2004 - $26,974)            83,894            85,771
        OTHER ASSETS AND DEFERRED COSTS
             (net of accumulated
              amortization: 2005 -
              $1,236; 2004 - $1,193)                 780               785
                                                $135,537          $135,110

        LIABILITIES AND SHAREHOLDERS' EQUITY
        CURRENT LIABILITIES:
             Accounts payable                     $5,495            $3,446
             Accrued expenses and other
              current liabilities                 23,853            23,772
             Senior Subordinated Notes -
              current portion                      5,200             4,858
                  Total current
                   liabilities                    34,548            32,076
        DEFERRED INCOME TAX LIABILITY              8,514             8,191
        OTHER LONG TERM LIABILITIES                  490               491
        SENIOR SUBORDINATED NOTES                 67,693            72,930
        COMMITMENTS AND CONTINGENCIES
        SHAREHOLDERS' EQUITY:
             Preferred stock, $1 par
              value; 5,000,000 shares
              authorized, none issued
             Common stock,  $0.01 par
              value; 10,000,000 shares
              authorized, 5,390,679 shares
              issued and outstanding at
              April 2, 2005 and January 1,
              2004                                    54                54
             Additional paid-in capital           25,592            25,592
             Deferred stock compensation            (371)             (407)
             Retained deficit                       (728)           (3,557)
             Accumulated other
              comprehensive loss                    (255)             (260)
                  Total shareholders'
                   equity                         24,292            21,422
                                                $135,537          $135,110



                            NATIONAL VISION, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (In thousands except per share information)
                                 (Unaudited)

                                                   Three Months Ended
                                             April 2, 2005     April 3, 2004
  Cash flow from operating activities:
    Net income                                     $2,829            $3,091
    Adjustments to reconcile cash to net
     income:
      Depreciation and amortization                 3,052             3,487
      Gain on repurchase of Senior
       Subordinated Notes                              (6)
      Loss (gain) on disposal of equipment            (56)              115
      Deferred income taxes                         1,693
      Other                                            47               100
  Changes in operating assets and
   liabilities:
    Accounts receivable                            (1,490)             (885)
    Inventories                                       284               613
    Other current assets                            1,054               (53)
    Other assets                                      (10)                6
    Accounts payable                                2,049             1,081
    Accrued expenses and other current
     liabilities                                       81              (692)
    Other non-current liabilities                      (1)
    Net cash provided by operating
     activities                                     9,526             6,863
  Cash flow from investing activities:
    Purchase of property and equipment             (1,181)             (861)
    Proceeds from sale of property and
     equipment                                         59                98
    Net cash used by investing activities          (1,122)             (763)
  Cash flow from financing activities:
    Principal payments on subordinated debt        (4,858)             (545)
    Repurchases of subordinated debt                  (31)
    Deferred financing costs                           (8)               (9)
    Net cash used by financing activities          (4,897)             (554)
  Net increase in cash                              3,507             5,546
  Cash, beginning of year                           7,858             3,545
  Cash, end of period                             $11,365            $9,091

  Supplemental cash flow information
  Cash paid for:
    Interest                                       $4,671            $5,772
    Income taxes                                      $49              $193



                            NATIONAL VISION, INC.
                     COMPUTATION OF CONSOLIDATED EBITDA
          Three Month Periods Ended April 2, 2005 and April 3, 2004
                               (In thousands)

                                                   Three Months Ended
                                             April 2, 2005     April 3, 2004

            Net earnings                           $2,829           $3,091
            Adjustment to net earnings:
                 Interest expense                   2,368            2,911
                 Income tax expense                 1,853              185
                 Depreciation and
                  amortization                      3,052            3,487
                 Gain on repurchase of
                  Notes                                (6)
                 Other                                (29)             (17)

            Adjusted EBITDA                       $10,067           $9,657


DATASOURCE: National Vision, Inc.



CONTACT:  Paul A. Criscillis, Jr., Senior Vice President and CFO of

National Vision, Inc., [phone]



Web site:  http://www.nationalvision.com/ 

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