Sterling Vision’s false takeover reports allow insiders to sell at inflated prices.

Investors have bid-up Sterling Vision’s stock based on completely false yet widely-published reports of large “smart-money” buying based on an anticipated “buyout” and a “share buyback” plan. Neither of these events is remotely possible and institutions have been selling not buying. Sterling Vision is a poor performing, financially troubled company with no prospects of being sold at a premium price, and no ability to repurchase its shares. In fact, Sterling Vision recently registered over 3.2 million of its shares on behalf of certain selling shareholders. The terms of Sterling Vision’s recent private offering assure that these selling shareholders are able to sell their shares into the market at a profit. The selling has occurred without notice to existing shareholders or the public. Sterling Vision will receive none of the proceeds from these stock sales.

Sterling Vision operates in a fragmented, low growth, highly competitive segment of the retail industry. The Company has negative cash flow, declining margins, rapidly deteriorating same store sales, and is controlled by conflict-riddled, highly controversial part-time managers. Even without accounting for these negative factors, based on the best case valuation of its assets, Sterling Vision is worth far less than its current $124 million market capitalization. Sterling Vision is much more likely a candidate for bankruptcy than a takeover target at any price, much less at a price higher than its current grossly overvalued $8 1/8 per share stock price.

Short selling involves a risk not associated with the purchase of stock including, but not only limited to, unlimited loss and stock borrowing risks. Additional information is available upon request.