Q1 05 press release -Final after audit committee

FOR IMMEDIATE RELEASE TSX Venture Symbol: COA COASTAL REPORTS FIRST QUARTER 2005 RESULTS HIGHLIGHTS • Revenue growth of 80% to $12 million • $797,309 cash provided by operating activities • 54,587 orders shipped to returning customers up • EBITDA of $516,000 up from a EBITDA deficit of 215% 20,082 • Gross margin percentage up 23.25% • Earnings of $243,006 (one cent per share) • A 12% reduction in selling expenses as a percentage of sales Vancouver, British Columbia - March 21, 2005 - Coastal Contacts Inc. (TSX.V: COA) today reported consolidated financial results for the fiscal year 2005 first quarter, which ended January 31, 2004. "We are very pleased with the results of the first quarter of 2005 and especially the tremendous growth in the number of orders that we shipped to returning customers,” said Roger Hardy, Coastal’s chairman and chief executive officer. "Our first quarter results demonstrate the fundamentals of our business model in action. Strong growth continues to flow from our strong value proposition, the compounding effect of our re-order annuity is beginning to drive profitability, increased scale and market diversification are resulting in gross margin improvements, and sales and marketing expenses are dropping as a percentage of sales as the company begins to harvest its annuity. Management believes that our momentum is building and we are in a position to capitalize on this momentum throughout ...