National Vision Reports Operating Results for the Fourth Quarter and Fiscal Year Ended January 3, 2004

National Vision Reports Operating Results for the Fourth Quarter
and Fiscal Year Ended January 3, 2004 


LAWRENCEVILLE, Ga., April 1  /PRNewswire-FirstCall/ -- National Vision, Inc. 
today announced operating results for its fourth quarter and fiscal year ended
January 3, 2004 ("fiscal 2003").  Fiscal 2003 was a 53-week fiscal year, with
the additional week being contained in the fourth quarter. Fiscal 2002 was a
more traditional 52-week year.

Current year fourth quarter total net revenue from continuing operations of
$62.6 million yielded gross profit of $34.1 million.  The prior year's fourth
quarter total net revenue from continuing operations of $55.8 million yielded
gross profit of $28.5 million. Year-over-year domestic comparable store sales
growth was +5.1% for the quarter, excluding sales generated in the fourteenth
week of the current year quarter.  Net income for the quarter was $539,000
compared with a loss of $2.5 million in the comparable period last year.  The
current year's fourth quarter results include a gain on Note repurchases of $2.3
million, offset by additional expense of $550,000 resulting from the impairment
of long-lived assets.  Last year's fourth quarter results included $1.0 million
in gains on Note repurchases. EBITDA, as defined in the Company's bond
indenture, was $6.1 million in the current year quarter versus $3.8 million in
the comparable period last year.

Fiscal 2003 total net revenue from continuing operations was $243.3 million,
yielding gross profit of $132.4 million.  Prior year total net revenue from
continuing operations was $224.2 million, yielding gross profit of $123.5
million.  Domestic comparable store sales growth for the year was +5.0%,
excluding sales generated in the 53rd week of the current fiscal year. The
Company's net loss for 2003 was $3.9 million, a $2.3 million improvement in
comparison to last year's $6.2 million net loss.  Current year results include a
gain on Note repurchases of $2.3 million, offset by additional expense of
$564,000 relating to the cumulative effect of a change in accounting principle,
$550,000 in impairment losses and $484,000 in restructuring charges.  In the
prior fiscal year, gains of $1.6 million were realized from Note repurchases. 
Current year EBITDA was $23.9 million versus EBITDA of $24.9 million achieved in
the prior year.

"We are quite proud of what the NVI team was able to accomplish in such a
transitional year.  Last year we changed almost every aspect of our operational
mix--including product selection and display, store scheduling, training and
incentives. In addition, we tested two new business concepts and laid the
groundwork for several other new tests," commented Reade Fahs, CEO and
President.  "It is pretty remarkable in a year of so much operational change and
new product development (not to mention the closure of 40 strong Wal-Mart
stores) that the team managed to deliver such healthy sales growth and bottom
line improvement."

At the end of the fiscal year, the Company operated 468 vision centers, versus
518 vision centers at the end of fiscal 2002. Of the Company's vision centers
open and operating at January 3, 2004, 359 were in domestic Wal-Mart stores, 37
were in Wal-Mart de Mexico stores, 47 were located in Fred Meyer stores, and 25
were on military bases throughout the United States.

The Company will hold an Investor Relations Conference Call on Friday, April 2,
2004, at 11:00 a.m. EST to discuss these quarterly and annual results. The
general public can access this conference call via the Company's website at
http://www.nationalvision.com/ .  At the conclusion of the prepared remarks by
management, the Company will accept and address questions from institutional
investors.

We frequently refer to EBITDA because it is the basis for the calculation of the
excess cash flow principal repayment under our senior notes and it is a widely
accepted financial indicator of a company's ability to service or incur
indebtedness.  EBITDA is calculated as net earnings before interest, taxes,
depreciation, amortization, cumulative effect of a change in accounting
principle, non-cash items and reorganization items as defined under our Senior
Subordinated Debt Indenture.  A reconciliation of net earnings (loss) to EBITDA
is presented in the attached financial tables.

National Vision, Inc. is a retail optical company that operates vision centers
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 April 1, 2004, the Company operated 451 vision centers,
including 341 located inside domestic Wal-Mart stores. In 2004, through April 1,
the Company has closed 19 stores (including 18 domestic Wal- Mart stores) and
opened two stores on military bases.  We depend on our domestic Wal-Mart
locations for substantially all of our 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" maybe
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 high leverage
and its 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
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 includedin 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.
  Summarized Consolidated Statements of Operations
  (in thousands, except per share information)

                                        QUARTER ENDED     FISCAL YEAR ENDED
                 Jan. 3, Dec. 28,   Jan. 3,   Dec. 28,
                                        2004     2002      2004      2002
                                    (14 weeks)(13 weeks)(53 weeks)(52 weeks)
  Revenue:
    Retail sales, net          $60,630  $55,070   $236,125  $222,156
    Premium revenue                     1,677      757      6,347     2,041
    Other revenue                         247                 877
  Total net revenue                    62,554   55,827    243,349 224,197

  Cost of goods sold                   28,478   27,365    110,907   100,699
  Gross profit                         34,076   28,462    132,442   123,498

  Operating expenses:
    Selling, general and
     administrative expense            32,038   29,416    123,713   119,451
    Impairment of long-lived assets       550                 550
    Restructuring expense                                     484
  Total operating expense              32,588   29,416    124,747   119,451

  Operating income                      1,488     (954)     7,695     4,047

  Other income (expense):
    Interest expense                   (3,111)  (3,277)   (12,913)  (14,099)
    Gain on note repurchases            2,321    1,019      2,321     1,566
    Other, net                             (8)     331         50       470

  Pre-tax income (loss) from
   continuing operations *                690   (2,881)    (2,847)   (8,016)
  Income taxes                            198                 198

  Income (loss) from continuing
   operations *                           492   (2,881)    (3,045)   (8,016)
  Income (loss) from discontinued
   operations                              47      406       (259)    1,812

  Income (loss) *                         539   (2,475)    (3,304)   (6,204)
  Cumulative effect of a change in
   accounting principle                                      (564)
  Net income (loss)                      $539  $(2,475)   $(3,868)  $(6,204)

  Earnings (loss) per basic share:
    Earnings (loss) from continuing
     operations *                       $0.10   $(0.58)    $(0.61)   $(1.60)
    Earnings (loss) from discontinued
     operations                          0.01     0.07      (0.05)     0.36
    Cumulative effect of a change in
     accounting principle                                   (0.11)
  Net earnings (loss) per basic share   $0.11   $(0.51)    $(0.77)   $(1.24)

  Earnings (loss) per diluted share:
    Earnings (loss) from continuing
     operations *           $0.09   $(0.58)    $(0.61)   $(1.60)
    Earnings (loss) from discontinued
     operations                          0.01     0.07      (0.05)     0.36
    Cumulative effect of a change in
     accounting principle                            (0.11)
  Net earnings (loss) per diluted share $0.10   $(0.51)    $(0.77)   $(1.24)

      * Excluding the cumulative effect of a change in accounting principle.


  National Vision, Inc.
  Reconciliation of Net Earnings (Loss) to EBITDA
  (in thousands)
                                        QUARTER ENDED     FISCAL YEAR ENDED
                                      Jan. 3,  Dec. 28,   Jan. 3    Dec. 28,
                                       2004      2002      2004      2002
                 (14 weeks)(13 weeks)(53 weeks)(52 weeks)
  Net earnings (loss)                  $539    $(2,475)  $(3,868)  $(6,204)
  Adjustments:
    Interest expense, net of
     interest income                  3,119      2,946    12,863    13,952
    Income taxes                        198                  198
    Depreciation and amortization     3,969      4,387    15,962    18,999
    Cumulative effect of a
     change in accounting principle                           564
    Non-cash items(1,771)    (1,019)   (1,771)   (1,889)
  EBITDA                             $6,054     $3,839   $23,948   $24,858


  National Vision, Inc.
  Summarized Balance Sheets
  (in thousands)
                                                 AS OF
                                               January 3,       December 28,
                                                  2004              2002
  ASSETS
  Current Assets:
  Cash and cash equivalents                       $3,545     $9,020
  Accounts receivable, net                         3,078             2,164
  Inventories                                     17,387            17,928
  Other current assets                             1,278             1,305
  Deferred income tax asset                        7,305             3,428
  Total current assets                            32,593            33,845
  Property and equipment, net                     13,619            17,992
  Other assets and deferred costs         806             1,004
  Intangible value of contractual rights          93,279           100,960
  Total Assets                                  $140,297          $153,801

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current Liabilities:
  Accounts payable                                $3,506            $3,445
  Accrued expenses and other current liabilities  25,132            24,393
  Current portion of long-term debt                  545             3,824
  Total current liabilities        29,183            31,662
  Deferred income tax liability                    7,305             3,428
  Senior subordinated notes                       94,939           105,882
  Shareholders' equity                             8,870       12,829
  Total Liabilities and Shareholders' Equity    $140,297          $153,801


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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