NVI National Vision

National Vision Announces Distribution to DTC Participants of its 12% Senior Secured Notes Due 2009 (the 'Notes' - CUSIP #63845PAA9) and its Common Stock (CUSIP #63845P101) LAWRENCEVILLE, Ga., June 23 /PRNewswire-FirstCall/ -- National Vision, Inc. (AMEX:NVI), formerly known as Vista Eyecare, Inc., today announced that on June 24, 2004 (the "Payable Date"), Depository Trust Company ("DTC") will complete the distribution of the Company's Common Stock (CUSIP #63845P101) and its 12% Senior Secured Notes due 2009 (the "Notes" - CUSIP #63845PAA9) to DTC participants of Vista Eyecare, Inc. 12.75% Senior Notes (the "Original Notes" - CUSIP #638459AC1). The record date for determining recipients of the Common Stock and Notes is May 18, 2001 (hereinafter the "Record Date"). Vista Eyecare, Inc. reorganized and emerged from Chapter 11 in May 2001 as National Vision, Inc. (the "Company"). Pursuant to the terms of the confirmed plan of reorganization, holders of general unsecured claims were entitled to receive their pro rata share of Notes and Common Stock in full satisfaction of their pre-bankruptcy claims against Vista Eyecare, Inc. and its debtor subsidiaries. However, the holders of general unsecured claims must have "allowed" claims before they were entitled to distributions of Notes and Common Stock under the plan of reorganization. Accordingly, as part of the claims resolution and allowance process in connection with the Chapter 11 cases, the Company objected to a significant number of general unsecured claims. Ultimately, those claims were either resolved by order of the United States Bankruptcy Court for the Northern District of Georgia (the "Bankruptcy Court") or were otherwise resolved by the Company and the relevant claim holder. The final general unsecured claims were resolved in November 2003. Because not all claims were resolved and "allowed" at the time of the Company's initial distribution of Notes and Common Stock in 2001, the plan of reorganization provided for the establishment of a Disputed Claims Reserve. To the extent that a party had a general unsecured claim which was not yet allowed, the Company was required to reserve the applicable pro rata portion of Notes and Common Stock that would be attributable to such claim based upon the amount as filed with the Bankruptcy Court. As previously noted, all general unsecured claims have now been resolved, and accordingly, the Company is now releasing to DTC participants the remaining and previously reserved Notes and Common Stock from the Disputed Claims Reserve. 567,778 shares of the Company's Common Stock have been released from the Disputed Claims Reserve, to be distributed on a pro rata basis to all holders of allowed general unsecured claims. As a result, each claimant has received or will receive approximately 0.128 additional shares of Common Stock, rounded to the nearest whole share, for each share of Common Stock previously received in settlement of general unsecured claims. For DTC participants this equates to 3.584656 shares of Common Stock for each $1,000 Original Note held as of the Record Date. Claimants whose shares of Common Stock were originally distributed to a brokerage account will receive these shares through DTC; other claimants have received stock certificates directly from the Company's stock transfer agent. Notes with a face value of $13,318,000 have been released from the Disputed Claims Reserve, to be distributed on a pro rata basis to all holders of allowed general unsecured claims. As a result, each claimant has received or will receive approximately 0.125 Notes, rounded to the nearest whole Note, for each Note received in 2001. For DTC participants this equates to $84.088 for each $1,000 Original Note held as of the Record Date. Each Note has a face value of $1,000 and a current par value of $876.84. This reduced par value reflects mandatory redemption payments that have been made through February 28, 2004. Claimants whose Notes were originally distributed to a brokerage account will receive the additional Notes through DTC; other claimants have received Notes directly from the Trustee. The original issuance of Notes and Common Stock, including amounts held in the Disputed Claims Reserve, was recorded in the Company's financial statements upon emergence from bankruptcy in 2001, and all Note interest and redemption payments have been based upon the full amounts issued and/or distributable. As a result, these final distributions do not affect the Company's financial condition or results of operations. 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. DATASOURCE: National Vision, Inc. CONTACT: Paul A. Criscillis, Jr., Senior Vice President and CFO of National Vision, Inc., +1-770-822-4262 Web site: http://www.nationalvision.com/

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