----

| ANNUAL      REPORT PURSUANT TO SECTION 13 OR15(d) |
|---------------------------------------------------|

| OF      THE SECURITIES EXCHANGE ACT OF 1934 |
|---------------------------------------------|

| For      the fiscal year ended: December 31,      2007 |
|--------------------------------------------------------|

| Commission      file number: 1-14128 |
|--------------------------------------|

| Yes | No  X |
|-----|-----------------|

| Yes | No  X |
|-----|-----------------|

| Yes  X | No |
|------------------|----|

| Large      accelerated filer | Accelerated      filer           |
|------------------------------|----------------------------------|
| Non-accelerated      filer   | Smaller      reporting company X |

| Yes | No  X |
|-----|-----------------|

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|                                                                                                                                                                                                                                                                                                                                                                           |   |  December      31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|
| I.      COMPANY-OWNED STORES:                                                                                                                                                                                                                                                                                                                                                  |   |                    | 2007 | * |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                    |   |   |   |   |   |   |
| Company-owned      stores                                                                                                                                                                                                                                                                                                                                                      |   |                    | 11 |   |   |   |   | 10 |   |
| Company-owned      stores managed by franchisees                                                                                                                                                                                                                                                                                                                               |   |                    | 1 |   |   |   |   | - |   |
| Total                                                                                                                                                                                                                                                                                                                                                                          |   |                    | 12 |   |   |   |   | 10 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                    |   |   |   |   |   |   |   |
| (*)      Existing store locations: Maryland (1), New Jersey (1), New York (8),      Pennsylvania (1) and Virginia (1).                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   | December      31,       |
|                                                                                                                                                                                                                                                                                                                                                                           |   | 2007                    | * |   |   | 2006 |   |
| II.      FRANCHISED STORES:                                                                                                                                                                                                                                                                                                                                                    |   |                    | 146 |   |   |   |   | 144 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |                    |   |   |   |   |   |   |   |
| (*)      Existing store locations: California (43), Delaware (4), Florida (1),      Illinois (1), Kentucky (2), Maryland (15), Massachusetts (1), Nevada (1),      New Jersey (6), New York (39), North Dakota (3), Ontario, Canada (2),      Pennsylvania (9), Virginia (6), Washington D.C. (2), West Virginia (1),      Wisconsin (8), and the U.S. Virgin Islands (2) |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |

| a.   | Term. Generally, the      term of each Franchise Agreement is ten years and, subject to certain      conditions, is renewable at the option of the  franchisee. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Initial Fees.      Generally, franchisees (except for any franchisees converting their      existing retail optical store to a Sterling Store (a “Converted Store”),      and those entering into agreements for more than one location) must pay      the Company a non-recurring, initial franchise fee of      $20,000.  For each franchisee entering into agreements for more      than one location, the Company charges a non-recurring, initial franchise      fee of $15,000 for the second location, and $10,000 for each location in      excess of two.  The Company charges each franchisee of a      Converted Store a non-recurring, initial franchise fee of $10,000 per      location. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| c.   | Ongoing      Royalties.  Franchisees are obligated to pay the Company      ongoing royalties in an amount equal to a percentage (generally 8%) of the      gross revenues generated by their Sterling Store. Franchisees of Converted      Stores, however, pay ongoing royalties, on their store's historical      average base sales, at reduced rates increasing (in most cases) from 2% to      6% for the first three years of the term of the Franchise      Agreement.  The Franchise Agreement provides for the payment of      ongoing royalties on a weekly basis, based upon the gross revenues for the      preceding week. Gross revenues generally include all revenues generated      from the operation of the Sterling Store in question, excluding refunds to      customers, sales taxes, a limited amount of bad debts and, to the extent      required by state law, fees charged by independent      optometrists. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Advertising Fund      Contributions. Most franchisees must make ongoing contributions, on      a weekly basis, to an advertising fund (the “Advertising Fund”) generally      equal to 6% of their store's gross revenues for the preceding week.      Generally, 50% of these funds are expended at the direction of each      individual franchisee (for the particular Sterling Store in question),      with the balance being expended on joint advertising campaigns for all      franchisees located within specific geographic  areas. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| e.   | Termination. Franchise      Agreements may be terminated if a franchisee has defaulted on its payment      of monies due to the Company, or in its performance of the other terms and      conditions of the Franchise Agreement. During 2007, the assets of (as well      as possession of) three franchised stores were reacquired by the      Company.  Substantially all of the assets located in such stores      were voluntarily surrendered and transferred back to the Company in      connection with the termination of the related Franchise Agreements. In      certain instances, the Company will re-convey the assets of such a store      to a new franchisee, requiring the new franchisee to enter into the      Company’s then current form of Franchise Agreement.  However,      the Company reviews each stores historical performance to consider if the      Company will continue to operate such store (as a Company-owned location)      without re-conveying the assets of such store to a new      franchisee. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s common stock was delisted from the Nasdaq Global Market      (“NASDAQ”), which makes it more difficult for shareholders to sell shares      of the Company’s common stock.On August 24, 2001, NASDAQ terminated the      listing of the Company’s common stock as a result of the Company’s failure      to maintain a $1.00 per share minimum bid price for the Company’s common      stock.  As a result, the Company’s common stock began trading on      the Over-The-Counter Bulletin Board (“OTCBB”) on August 24, 2001. The      OTCBB is generally considered a less efficient market than      NASDAQ.  Shareholders are likely to find it more difficult to      trade the Company’s common stock on theOTCBB. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      application of the "penny stock rules" could reduce the liquidity      and, therefore, the market price of the Company’s common      stock. On March 28, 2008, the last reported sales price of the      Company’s common stock was $0.20.  Because the trading      price of the Company’s common stock is less than $5.00 per share and no      longer trades on NASDAQ, the Company’s common stock comes within the      definition of a "penny stock."  The “penny stock rules”      impose additional sales practice requirements on broker-dealers who      sell the Company’s securities to persons other than established      customers and accredited investors, generally those with assets      in excess of $1,000,000 or annual income exceeding $200,000, or      $300,000 together with their spouse.  Before a      broker-dealer can sell a penny stock, the Securities and Exchange      Commission (the “SEC”) rules require the firm to first approve the      customer for the transaction in question and receive from the      customer a written agreement to such transaction.  The      firm must furnish the customer a document describing the risks of      investing in penny stocks.  The broker-dealer must also      advise the customer of the current market quotation, if any, for the      penny stock and the compensation the firm and its broker will receive      for the trade.  Finally, the firm must send monthly      account statements showing the market value of each penny stock held      in the customer’s account.  These additional burdens      imposed on broker-dealers may restrict the ability of broker-dealers      to sell the Company’s securities and may affect your ability      to resell the Company’s commonstock. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Dr.      Alan Cohen, the Company’s Chairman of its Board of Directors, and, one of      the Company’s significant shareholders, owns, operates, manages and/or is      otherwise involved with other companies in the retail optical industry,      which are in competition with the Company’s Sterling Stores and/or COM      Members, and may result in potential conflicts.   Dr. Cohen      is also a principal shareholder and executive officer and director of Real      Optical, LLC.  Real Optical operates and franchises retail      optical stores similar to Sterling Stores and COM Members in the States of      Connecticut, Florida, New Hampshire, Massachusetts, New Jersey and New      York and may, in the future, operate in other states as      well.  In the future, Real Optical may open or franchise      additional stores that are located in the same areas as Sterling Stores      and/or COM Member locations.  These competing businesses could      reduce the revenues generated at the Company’s competing Sterling Stores      and/or from COM Members. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company significantly depends on the ability and experience of certain      members of its management, and their departure may prevent or delay the      successful execution of the Company’s business plan.  The      Company relies on the skills of certain members of its      senior management team to guide its operations including, but      not limited to, Mr.  Christopher G. Payan, the Company’s Chief      Executive Officer, the loss of whom could have an adverse effect on the      Company’s operations.  The Company currently has an employment      agreement with Mr. Payan through November 2009; however, only one other      member of senior management has an employment      agreement.  Accordingly, the loss of their services could      prevent or delay the successful execution of its business plan and      attainment of profitability. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company does not control the management of all of the Sterling Stores that      operate under its name, nor does it control any of the COM or TOG Members,      and these stores may be managed by unsuccessful franchisees, COM Members      and/or TOG Members, which would reduce the Company’s revenues from these      stores.  The Company relies, in substantial part, on      franchisees, COM Members and TOG Members for revenues.  Since      the Company does not control the management of these locations, it is      possible that a franchisee/owner may not have the business acumen or      financial resources to successfully operate his or her franchised Sterling      Store, COM Member location and/or TOG Member location.  The      Company, together with a substantial number of franchisees, has recently      experienced an increase in the sales generated from the operation of      Sterling Stores; however it cannot guarantee continued increases in the      future.  If a substantial number of franchisees, COM Members      and/or TOG Members experience a future decline in their sales and/or are      ultimately not successful; revenues from franchisees, COM Members and/or      TOG Members would decrease.  Some of the factors that could lead      to future decline in sales, include, among others:  decreased      spending by consumers, due to a weaker economy; increased competition by      large discount eyewear chains, which increases the need for franchisees,      COM Members and/or TOG Members to provide more aggressive promotional      sales, thus decreasing their profit margins; and the limitations of vision      care benefits available under medical and third party benefit      plans. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Better      financed competitors that provide greater levels of advertising obtain      favorable discounts from suppliers and offer customers aggressive discount      pricing.   The Company competes with many types of eyewear      providers, which may prevent it from increasing or maintaining market      share.  The retail optical business is highly competitive and      includes chains of retail optical stores, superstores, individual retail      outlets and a large number of individual opticians, optometrists and      ophthalmologists that provide professional services and dispense      prescription eyewear.  These competitors may take advantage of      prompt      payment  discount  plans,  aggressive  discounting  and      price-cutting  for  customers,  and  increased  advertising.   As      retailers of prescription eyewear, the Company and its franchisees      generally service local markets and, therefore, competition varies      substantially from one location or geographic area to      another.  If the Company is not successful in dealing with      competition, the Company will not be able to increase or maintain its      customer base or market share. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company often offers incentives to its customers, which lower profit      margins.  At times when major competitors offer significantly      lower prices for their products, the Company is required to do the same.      Certain of major competitors      offer  promotional  incentives to their      customers  including free eye exams, "50% Off" on designer      frames and "Buy One,  Get One Free" eyecare      promotions.  In response to these promotions, the Company has      offered the same or similar incentives to its customers.  This      practice has resulted in lower profit margins and these competitive      promotional incentives may further reduce revenues, gross margins and cash      flows.  Although the Company believes that Sterling Stores      provide quality service and products at competitive prices, several of the      large retail optical chains have greater financial resources. Therefore,      the Company may not be able to continue to deliver cost efficient products      in the event of aggressive pricing by competitors, which would reduce the      Company’s profit margins, net income and cash  flow. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Laser      surgery could eliminate the need for certain eyeglasses and contact      lenses.  As refractive laser surgery gains market acceptance,      the Company may lose revenue from traditional eyewear      customers. As traditional eyewear users undergo laser vision      correction procedures or other vision correction techniques, the      demand for certain contact lenses and eyeglasses will      decrease.  Due to the fact that the marketing and sale      of eyeglasses and contact lenses is a significant part of the      Company’s business, a decrease in customer demand for these products could      have a material adverse effect on sales of prescription eyewear, as      well as those of the Company’sfranchisees. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is subject to a variety of federal, state and local laws, rules      and regulations that affect the health care industry, which may      affect its ability to generate revenues or subject the Company to      additional expenses. The regulatory requirements that the Company and      its franchisees must satisfy to conduct its businesses, varies from      state to state. For example, some states have enacted laws governing      the ability of ophthalmologists and optometrists to enter into      contracts with business corporations or lay persons, and some states      prohibit companies from computing their royalty fees based upon a      percentage of the gross revenues generated by optometrists from exam      fees. Various federal and state regulations also limit the financial      and non-financial terms of agreements with health care providers and,      therefore, potential revenues may differ depending upon the nature of      the Company’s various health care provider    affiliations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company and its franchisees are also subject to the requirements of the      Health Insurance Portability and Accountability Act of 1996 (“HIPAA”),      which governs participation in managed care programs.  The      Company also must comply with the privacy regulations under      HIPAA.  In addition, all states have passed laws that govern or      affect arrangements with the optometrists who practice in vision      centers.  Additionally, the Company and its franchisees are also      subject to regulations regarding franchise business and in-store      laboratory operations, as well as the operation, in California, of      VCC, which is regulated by the State of California Department of      Managed Health Care.  As a franchisor, the Company is subject      to various registrations and disclosure requirements imposed by the      Federal Trade Commission and by many of the states in which the      Company conducts franchising operations.  The Federal      Occupational Safety and Health Act regulates the Company’s in-store      laboratory operations.  Although the Company believes that it is      in material compliance with all applicable laws and/or regulations,      the Company may not be able to sustain compliance if these laws      and/or regulations change in the future and, in that event, the      Company may have to incur significant expenses to maintain      compliance. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | If      the Company’s subsidiary, VCC, is no longer permitted to      employ optometrists, then the revenue generated from its California      Sterling Stores would, in all likelihood, decrease materially,      thereby decreasing net income and cash  flow. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company may be exposed to significant risk from liability claims if it is      unable to obtain insurance, at acceptable costs, to protect the Company      against potential liability claims. The provision of      professional eyecare services entails an inherent risk      of professional malpractice and other similar claims.  The      Company does not influence or control the practice of optometry by      the optometrists that it employs or affiliates with, nor does it have      responsibility for their compliance with certain regulatory and other      requirements directly applicable to these      individual professionals.  As a result of the relationship      between the Company and its employed or affiliated optometrists, the      Company may become subject to professional malpractice actions or      claims under various theories relating to the professional services      provided by these individuals.  The Company may not be able      to continue to obtain adequate liability insurance at reasonable      rates, in which event, its insurance may not be adequate to cover      claims asserted against the Company, thus, potentially decreasing the      Company’s future cash position and potentially jeopardizing the      Company’s ability to continueoperations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s operations and success are highly dependent upon health care      providers, and the Company may be unable to enter into favorable      arrangements with these providers. Certain states prohibit the      Company from employing optometrists to render professional      services.  Accordingly, the success of the Company’s      operations as full-service eye care providers depends upon its      ability to enter into agreements with these health care providers to      render professional services at Sterling Stores, COM Member and/or TOG      Member locations.  Due to the increased competition, among      large discounters of retail eyewear, to enter into agreements with      health care providers and the finite number of available health care      providers, the costs of compensating these health care providers      has increased materially.  The Company, its franchisees,      COM Members and/or TOG Members may not be able to enter      into agreements with these health care providers on satisfactory      terms, or these agreements may not be profitable, which would reduce      the revenues the Company, its franchisees, COM Members and/or TOG Members      could generate from theiroperations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Certain      events could result in a dilution of your ownership of the Company’s      common stock.  As of December 31, 2007, the Company had      22,472,311 shares that were reserved for issuance under outstanding      warrants, options and senior convertible preferred      stock.  The exercise and conversion prices, as the case may      be, of common stock equivalents range from $0.04 to $8.25 per      share.  If converted or exercised, these securities will      result in a dilution of your percentage ownership of the Company’s common      stock.  In addition, if the Company acquires new companies through      the issuance of common or preferred stock, your percentage of      ownership will be further diluted. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s potential limitation on the use of its net operating loss      carry-forwards in accordance with Section 382 of the Internal Revenue Code      of 1986, as amended, due to certain changes in ownership that have      occurred or could occur in the future. Furthermore, in order to limit the      potential that future transactions could have a similar effect on the      Company’s tax attributes, the Company amended its by-laws to provide the      Board of Directors with the ability to void certain transactions in      Company securities that may impair or limit the future utilization of its      tax attributes, including its net operating loss      carry-forwards.  However, there can be no assurance that the      Company has been, or will in the future be, successful in preventing an      event which could materially impair or limit the Company’s utilization of      its net operating loss carry-forwards and other tax      attributes. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      acquisition of Combine, which conducts business with approximately 850      retail optical stores (COM Members), could create an appearance of      conflict amongst the COM Members.  COM Members operate retail      optical stores similar to Sterling Stores in the states of California,      Delaware, Florida, Illinois, Maryland, Massachusetts, Nevada, New Jersey,      New York, North Dakota, Pennsylvania, South Dakota, Virginia, West      Virginia, Wisconsin, and in the District of Columbia and the Virgin      Islands, and may, in the future, operate in other states as      well.  As of the date hereof, many COM Member locations are in      the same shopping center or mall as, or in close proximity to, certain      Sterling Stores; and in the future, the Company may open Sterling Stores      that are located in the same areas as COM Members.  These      competing businesses could reduce the revenues generated at, both, the      Company’s Sterling Stores and COM Member locations, or could cause      COM Members to leave COM because they view COM as the      competition. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | COM      and TOG operations and success are highly dependent upon the purchases of      eye care products by independent optical retailers (COM/TOG      Members).  If COM/TOG Member’s decide to purchase their eye care      products through a competing optical purchasing group business or purchase      direct from a vendor, then revenues generated from COM and/or TOG would      decrease. A decrease in the number of COM/TOG Members could reduce      COM and/or TOG profit margins, net income and cash    flow. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | COM      and TOG utilize certain key vendors to provide its members with a broad      spectrum of product purchasing options.  If one of these key      vendors ceases to do business with COM and/or TOG, or ceases to exist, COM      and/or TOG could see a decrease in the amount of product purchased by its      members, thus decreasing its revenues and net  income. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company relies heavily on computer systems in managing financial      results.  The Company is subject to damage and interruption from      power outages, computer and telecommunications failures, computer viruses,      security breaches, catastrophic events and usage by      employees.  This includes any damage to the systems that allow      for electronic payments from the Company’s franchisees and credit card      payments from its Sterling Store customers.  Any repairs      necessary to replace and/or fix these systems could result in a      significant expense to the Company.  Additionally, certain of      the Company’s financial reporting processes are not part of an integrated      financial reporting system, which requires additional hours and      administrative costs to operate, manage and control these      systems.  The Company is working to transition most of the      processes to an integrated financial reporting system.  The      conversion of these systems and processes to become SOX compliant could      result in a significant expense to the Company and may pose greater risks      associated with maintaining internal controls as the systems are      integrated. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s leasing space for a majority of its Sterling Stores could expose      it to possible liabilities and losses.  The Company’s leases are      generally for 10 years.  Many of the leases provide for annual      increases over the term of the lease in addition to the costs associated      with insurance, taxes, repairs, maintenance and utilities.  If      an existing Sterling Store becomes non-profitable and the Company decides      to close the location, the Company may still be required to pay the base      rent, taxes and other rental charges for the balance of the      lease. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company may be unable to service its debt obligations.  In      connection with the purchases of COM and TOG, along with other debt      obligations, the Company has approximately $5,630,000 of outstanding debt      as of December 31, 2007.  If the Company is unable to generate      sufficient cash flows from operations in the future, it may be unable to      make principal or interest payments on such borrowings when they become      due and may need to refinance all or a portion of the existing debt, or      obtain additional financing.  The Company cannot guarantee that      such refinancing or financing would be available on favorable terms, or at      all. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company is Plaintiff in a pending civil action (the “Action”) against For      Eyes Optical Company (“For Eyes” or “Defendant”) in which the Company      claims, among other things, , that (i) there is no likelihood of confusion      between the Company’s and Defendant’s mark, and that the Company has not      infringed, and is not infringing, Defendant’s mark; (ii) the Company is      not bound by that certain settlement agreement, executed in 1981 by a      prior owner of the Site For Sore Eyes trademark; and (iii) Defendant’s      mark is generic and must be cancelled.  For Eyes, in its Answer,      asserted defenses to the Company’s claims, and asserted counterclaims      against the Company, including, among others, that (i) the Company has      infringed For Eyes’ mark; (ii) the Company wrongfully obtained a trademark      registration for its mark and that said registration should be cancelled;      and (iii) the acts of the Company constitute a breach of the      aforementioned settlement agreement.  For Eyes seeks injunctive      relief, cancellation of the Company’s trademark registration, trebled      monetary damages, payment of any profits made by the Company in respect of      the use of such tradename, and costs and attorney fees.  While      the Company believes that it will be successful in prosecuting its claims      against the Defendant, and in defending against the counterclaims made by      Defendant, there can be no assurance of such success.  In the      event that the Company is not successful, it is possible that, under      certain circumstances, the Company may be limited in, or precluded from      continuing, its use of the Site for Sore Eyes    tradename. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|              |   | 2007   |   |   | 2006   |   |
|-------------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended:    |   | High   |   |   | Low    |   |   | High |   |   | Low |   |
|              |   |   |   |   |   |   |   |   |   |   |   |   |
| March      31     |   | $      | 0.21   |   |   | $      | 0.15 |   |   | $ | 0.16 |   |   | $ | 0.10 |   |
| June      30      |   | $      | 0.47   |   |   | $      | 0.17 |   |   | $ | 0.16 |   |   | $ | 0.12 |   |
| September      30 |   | $      | 0.38   |   |   | $      | 0.22 |   |   | $ | 0.21 |   |   | $ | 0.13 |   |
| December      31  |   | $      | 0.33   |   |   | $      | 0.18 |   |   | $ | 0.21 |   |   | $ | 0.15 |   |

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| TABLE OF CONTENTS                                                                        |   |
|------------------------------------------------------------------------------------------|--------|
|                                                                                     |   |
|                                                                                     |   |
|                                                                                     | PAGE   |
|                                                                                     |   |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING      FIRM                             | 19     |
|                                                                                     |   |
| CONSOLIDATED      FINANCIAL STATEMENTS                                                   |   |
|                                                                                     |   |
| Consolidated      Balance Sheets as of December 31, 2007 and 2006                        | 20     |
|                                                                                     |   |
| Consolidated      Statements of Income and Comprehensive Income for the Years      Ended | 21     |
| December 31,      2007 and 2006                                                          |   |
|                                                                                     |   |
| Consolidated      Statements of Shareholders' Equity for the Years                       | 22     |
| Ended December      31, 2007 and 2006                                                    |   |
|                                                                                     |   |
| Consolidated      Statements of Cash Flows for the Years Ended                           | 23-24  |
| December 31,      2007 and 2006                                                          |   |
|                                                                                     |   |
| Notes to      Consolidated Financial Statements                                          | 25-47  |

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM

Table of contents

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| EMERGING VISION, INC. AND SUBSIDIARIESCONSOLIDATED      BALANCE SHEETS(In      Thousands, Except Share Data)                                                                                                              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| ASSETS                                                                                                                                                                                                                    |   | December      31, |   |
|                                                                                                                                                                                                                      |   | 2007 |   |   | 2006 |   |
| Current      assets:                                                                                                                                                                                                      |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                                                                                            |   | $ | 2,846 |   |   | $ | 1,289 |   |
| Restricted      cash                                                                                                                                                                                                      |   |   | - |   |   |   | 250 |   |
| Franchise      receivables, net of allowance of $147 and $110,    respectively                                                                                                                                            |   |   | 1,842 |   |   |   | 1,620 |   |
| Optical      purchasing group receivables, net of allowance of $60 and $40,      respectively                                                                                                                             |   |   | 4,840 |   |   |   | 1,914 |   |
| Other      receivables, net of allowance of $5 and $2, respectively                                                                                                                                                       |   |   | 369 |   |   |   | 312 |   |
| Current      portion of franchise notes receivable, net of allowance of $38 and $44,      respectively                                                                                                                    |   |   | 191 |   |   |   | 79 |   |
| Inventories,      net                                                                                                                                                                                                     |   |   | 466 |   |   |   | 431 |   |
| Prepaid      expenses and other current assets                                                                                                                                                                            |   |   | 447 |   |   |   | 507 |   |
| Deferred      tax asset, current portion                                                                                                                                                                                  |   |   | 600 |   |   |   | 600 |   |
| Total      current assets                                                                                                                                                                                                 |   |   | 11,601 |   |   |   | 7,002 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                                                                                                                                                          |   |   | 1,496 |   |   |   | 923 |   |
| Franchise      notes receivable, net of allowance of $0 and $5,    respectively                                                                                                                                           |   |   | 121 |   |   |   | 214 |   |
| Deferred      tax asset, net of current portion                                                                                                                                                                           |   |   | 1,074 |   |   |   | 800 |   |
| Goodwill                                                                                                                                                                                                                  |   |   | 4,237 |   |   |   | 2,544 |   |
| Intangible      assets, net                                                                                                                                                                                               |   |   | 3,065 |   |   |   | 808 |   |
| Other      assets                                                                                                                                                                                                         |   |   | 271 |   |   |   | 306 |   |
| Total      assets                                                                                                                                                                                                         |   | $ | 21,865 |   |   | $ | 12,597 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS'      EQUITY                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities                                                                                                                                                                             |   | $ | 5,607 |   |   | $ | 4,595 |   |
| Optical      purchasing group payables                                                                                                                                                                                    |   |   | 4,486 |   |   |   | 1,760 |   |
| Accrual      for store closings                                                                                                                                                                                           |   |   | 300 |   |   |   | 37 |   |
| Short-term      debt                                                                                                                                                                                                      |   |   | 32 |   |   |   | 396 |   |
| Related      party obligations, current portion                                                                                                                                                                           |   |   | 404 |   |   |   | 778 |   |
| Total      current liabilities                                                                                                                                                                                            |   |   | 10,829 |   |   |   | 7,566 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Long-term      debt                                                                                                                                                                                                       |   |   | 4,424 |   |   |   | 20 |   |
| Related      party obligations, net of current portion                                                                                                                                                                    |   |   | 770 |   |   |   | 1,173 |   |
| Franchise      deposits and other liabilities                                                                                                                                                                             |   |   | 442 |   |   |   | 487 |   |
| Total      liabilities                                                                                                                                                                                                    |   |   | 16,465 |   |   |   | 9,246 |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Shareholders'      equity:                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Preferred      stock, $0.01 par value per share; 5,000,000 shares      authorized:  Senior Convertible Preferred Stock, $100,000      liquidation preference per share; 0.74 shares issued and      outstanding |   |   |   74 |   |   |   |   74 |   |
| Common      stock, $0.01 par value per share; 150,000,000 shares authorized;      125,475,143 shares issued and 125,292,806 shares    outstanding                                                                         |   |   | 1,254 |   |   |   | 705 |   |
| Treasury      stock, at cost, 182,337 shares                                                                                                                                                                              |   |   | (204 | ) |   |   | (204 | ) |
| Additional      paid-in capital                                                                                                                                                                                           |   |   | 127,971 |   |   |   | 127,062 |   |
| Accumulated      comprehensive income                                                                                                                                                                                     |   |   | 165 |   |   |   | - |   |
| Accumulated      deficit                                                                                                                                                                                                  |   |   | (123,860 | ) |   |   | (124,286 | ) |
| Total      shareholders' equity                                                                                                                                                                                           |   |   | 5,400 |   |   |   | 3,351 |   |
| Total      liabilities and shareholders' equity                                                                                                                                                                           |   | $ | 21,865 |   |   | $ | 12,597 |   |

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| EMERGING VISION, INC. AND SUBSIDIARIESCONSOLIDATED      STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(In      Thousands, Except Per Share Data)  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                  |   | For      the Year Ended December 31, |   |
|                                                                                                                                                  |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                  |   |   |   |   |   |   |
| Revenues:                                                                                                                                             |   |   |   |   |   |   |
| Optical      purchasing group sales                                                                                                                   |   | $ | 33,848 |   |   | $ | 7,186 |   |
| Retail      sales                                                                                                                                     |   |   | 8,906 |   |   |   | 7,287 |   |
| Franchise      royalties                                                                                                                              |   |   | 6,626 |   |   |   | 7,042 |   |
| Other      franchise related fees                                                                                                                     |   |   | 241 |   |   |   | 197 |   |
| Total      revenue                                                                                                                                    |   |   | 49,621 |   |   |   | 21,712 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Costs      and expenses:                                                                                                                              |   |   |   |   |   |   |   |   |
| Cost      of optical purchasing group sales                                                                                                           |   |   | 32,105 |   |   |   | 6,742 |   |
| Cost      of retail sales                                                                                                                             |   |   | 1,469 |   |   |   | 970 |   |
| Selling,      general and administrative expenses                                                                                                     |   |   | 16,494 |   |   |   | 13,613 |   |
| Provision      for store closings                                                                                                                     |   |   | 263 |   |   |   | - |   |
| Total      costs and expenses                                                                                                                         |   |   | 50,331 |   |   |   | 21,325 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Operating      (loss) income                                                                                                                          |   |   | (710 | ) |   |   | 387 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Other      income (expense):                                                                                                                          |   |   |   |   |   |   |   |   |
| Interest      on franchise notes receivable                                                                                                           |   |   | 35 |   |   |   | 45 |   |
| Gain      on sale of company-owned stores to franchisees                                                                                              |   |   | 13 |   |   |   | 268 |   |
| Other      income                                                                                                                                     |   |   | 114 |   |   |   | 118 |   |
| Gain      on settlement of litigation                                                                                                                 |   |   | 1,012 |   |   |   | - |   |
| Interest      expense                                                                                                                                 |   |   | (289 | ) |   |   | (48 | ) |
| Total      other income                                                                                                                               |   |   | 885 |   |   |   | 383 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Income      from continuing operations before income tax benefit                                                                                      |   |   | 175 |   |   |   | 770 |   |
| Income      tax benefit                                                                                                                               |   |   | 251 |   |   |   | 1,249 |   |
| Income      from continuing operations                                                                                                                |   |   | 426 |   |   |   | 2,019 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| (Loss)      from discontinued operations                                                                                                              |   |   | - |   |   |   | (264 | ) |
| Income      tax benefit                                                                                                                               |   |   | - |   |   |   | 105 |   |
| (Loss)      from discontinued operations                                                                                                              |   |   | - |   |   |   | (159 | ) |
| Net      income                                                                                                                                       |   |   | 426 |   |   |   | 1,860 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Comprehensive      income:                                                                                                                            |   |   |   |   |   |   |   |   |
| Foreign      currency translation adjustments                                                                                                         |   |   | 165 |   |   |   | - |   |
| Comprehensive      income                                                                                                                             |   | $ | 591 |   |   | $ | 1,860 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Net      income per share – basic                                                                                                               |   |   |   |   |   |   |   |   |
| Income      from continuing operations                                                                                                                |   | $ | 0.01 |   |   | $ | 0.03 |   |
| (Loss)      from discontinued operations                                                                                                              |   |   | - |   |   |   | (0.00 | ) |
| Net      income                                                                                                                                       |   | $ | 0.01 |   |   | $ | 0.03 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Net      income per share – diluted                                                                                                             |   |   |   |   |   |   |   |   |
| Income      from continuing operations                                                                                                                |   | $ | 0.01 |   |   | $ | 0.02 |   |
| (Loss)      from discontinued operations                                                                                                              |   |   | - |   |   |   | (0.00 | ) |
| Net      income                                                                                                                                       |   | $ | 0.01 |   |   | $ | 0.02 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Weighted-average number of      common shares outstanding –                                                                                     |   |   |   |   |   |   |   |   |
| Basic                                                                                                                                                 |   |   | 84,489 |   |   |   | 70,324 |   |
| Diluted                                                                                                                                               |   |   | 93,131 |   |   |   | 111,556 |   |

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| EMERGING VISION, INC. AND SUBSIDIARIESCONSOLIDATED      STATEMENTS OF SHAREHOLDERS’ EQUITYFOR      THE YEARS ENDED DECEMBER 31, 2007 AND 2006(In      Thousands, Except Share Data) |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                      |   | Senior      Convertible Preferred      Stock |   |   | Common Stock |   |   | Treasury      Stock,at cost |   |   | Additional      Paid-In |   |   | Accumulated      Comprehensive |   |   | Accumulated |   |   | Total      Shareholders’ |   |
|                                                                                                                                                                                      |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Capital |   |   | Income |   |   | Deficit |   |   | Equity |   |
| Balance      – December 31, 2005                                                                                                                                                    |   |   | 1 |   |   | $ | 74 |   |   |   | 70,506,035 |   |   | $ | 705 |   |   |   | 182,337 |   |   | $ | (204 | ) |   | $ | 126,389 |   |   | $ | - |   |   | $ | (126,146 | ) |   | $ | 818 |   |
| Issuance      of stock options and warrants                                                                                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 534 |   |   |   | - |   |   |   | - |   |   |   | 534 |   |
| Issuance      of stock options in connection with the acquisition of    Combine                                                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 139 |   |   |   | - |   |   |   | - |   |   |   | 139 |   |
| Net      income                                                                                                                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,860 |   |   |   | 1,860 |   |
| Balance      – December 31, 2006                                                                                                                                                    |   |   | 1 |   |   | $ | 74 |   |   |   | 70,506,035 |   |   | $ | 705 |   |   |   | 182,337 |   |   | $ | (204 | ) |   | $ | 127,062 |   |   | $ | - |   |   | $ | (124,286 | ) |   | $ | 3,351 |   |
| Exercise      of stock options and warrants                                                                                                                                               |   |   | - |   |   |   | - |   |   |   | 54,848,264 |   |   |   | 548 |   |   |   | - |   |   |   | - |   |   |   | 797 |   |   |   | - |   |   |   | - |   |   |   | 1,345 |   |
| Issuance      of restricted stock for services rendered in connection with investor      relations                                                                                        |   |   | - |   |   |   | - |   |   |   | 120,844 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 112 |   |   |   | - |   |   |   | - |   |   |   | 113 |   |
| Effects      of foreign currency translation adjustments                                                                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 165 |   |   |   | - |   |   |   | 165 |   |
| Net      income                                                                                                                                                                           |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 426 |   |   |   | 426 |   |
| Balance      – December 31, 2007                                                                                                                                                    |   |   | 1 |   |   | $ | 74 |   |   |   | 125,475,143 |   |   | $ | 1,254 |   |   |   | 182,337 |   |   | $ | (204 | ) |   | $ | 127,971 |   |   | $ | 165 |   |   | $ | (123,860 | ) |   | $ | 5,400 |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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| EMERGING VISION, INC. AND SUBSIDIARIESCONSOLIDATED      STATEMENTS OF CASH FLOWS(Dollars      in Thousands)                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                   |   | For      the Year Ended December 31, |   |
|                                                                                                                                                                   |   | 2007 |   |   | 2006 |
| Cash      flows from operating activities:                                                                                                                             |   |   |   |   |   |
| Income      from continuing operations                                                                                                                                 |   | $ | 426 |   |   | $ | 2,019 |   |
| Adjustments      to reconcile income from continuing operations to net cash provided by      operating activities:                                                     |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                                     |   |   | 523 |   |   |   | 327 |   |
| Provision      for doubtful accounts                                                                                                                                   |   |   | 319 |   |   |   | 220 |   |
| Deferred      tax assets                                                                                                                                               |   |   | (274 | ) |   |   | (1,295 | ) |
| Provision      for store closings                                                                                                                                      |   |   | 263 |   |   |   | - |   |
| Non-cash      compensation charges related to options and warrants                                                                                                     |   |   | 113 |   |   |   | 534 |   |
| Gain      on the sale of property and equipment                                                                                                                        |   |   | (13 | ) |   |   | (268 | ) |
|         Changes      in operating assets and liabilities:                                                                      |   |   |   |   |   |   |   |   |
|                     Franchise      and other receivables           |   |   | (455 | ) |   |   | (151 | ) |
|                     Optical      purchasing group receivables      |   |   | 688 |   |   |   | (518 | ) |
|                     Inventories                                    |   |   | (35 | ) |   |   | 54 |   |
|                     Prepaid      expenses and other current assets |   |   | 60 |   |   |   | (253 | ) |
|                     Intangible      and other assets               |   |   | (343 | ) |   |   | (148 | ) |
|                     Accounts      payable and accrued liabilities  |   |   | 1,012 |   |   |   | 546 |   |
| Optical      purchasing group payables                                                                                                                                 |   |   | (950 | ) |   |   | 414 |   |
|                     Franchise      deposits and other liabilities  |   |   | (45 | ) |   |   | (180 | ) |
| Net      cash provided by operating activities                                                                                                                         |   |   | 1,289 |   |   |   | 1,301 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                             |   |   |   |   |   |   |   |   |
| Franchise      notes receivable issued                                                                                                                                 |   |   | (252 | ) |   |   | (143 | ) |
| Proceeds      from franchise and other notes receivable                                                                                                                |   |   | 293 |   |   |   | 277 |   |
| Proceeds      from the sale of property and equipment                                                                                                                  |   |   | 33 |   |   |   | 250 |   |
| Purchases      of property and equipment                                                                                                                               |   |   | (918 | ) |   |   | (388 | ) |
| Acquisition      of Combine                                                                                                                                            |   |   | - |   |   |   | (700 | ) |
| Acquisition      of 1725758 Ontario Inc.                                                                                                                               |   |   | (3,609 | ) |   |   | - |   |
| Net      cash used in investing activities                                                                                                                             |   |   | (4,453 | ) |   |   | (704 | ) |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                             |   |   |   |   |   |   |   |   |
| Proceeds      from the issuance of common stock uponthe      exercise of stock options and warrants                                                                    |   |   | 1,345 |   |   |   | - |   |
| Return      of restricted cash                                                                                                                                         |   |   | 250 |   |   |   | - |   |
| Proceeds      from equipment financing                                                                                                                                 |   |   | 79 |   |   |   | - |   |
| Net      borrowings under credit facility                                                                                                                              |   |   | 4,299 |   |   |   | - |   |
| Payments      on long-term debt                                                                                                                                        |   |   | (1,175 | ) |   |   | (85 | ) |
| Net      cash provided by (used in) financing activities                                                                                                               |   |   | 4,798 |   |   |   | (85 | ) |
| Net      cash provided by continuing operations                                                                                                                        |   |   | 1,634 |   |   |   | 512 |   |
| Net      cash used in discontinued operations                                                                                                                          |   |   | - |   |   |   | (39 | ) |
| Exchange      of foreign exchange rate changes on cash                                                                                                                 |   |   | (77 | ) |   |   | - |   |
| Net      increase in cash and cash equivalents                                                                                                                         |   |   | 1,557 |   |   |   | 473 |   |
| Cash      and cash equivalents – beginning of year                                                                                                               |   |   | 1,289 |   |   |   | 816 |   |
| Cash      and cash equivalents – end of year                                                                                                                     |   | $ | 2,846 |   |   | $ | 1,289 |   |

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|                                                                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Supplemental      disclosures of cash flow information:                                                                                   |   |   |   |   |   |   |
| Cash      paid during the year for:                                                                                                       |   |   |   |   |   |   |
| Interest                                                                                                                                  |   | $      | 59     |   |   | $      | 8 |   |
| Taxes                                                                                                                                     |   | $      | 36     |   |   | $      | 34 |   |
|                                                                                                                                      |   |   |   |   |   |   |   |   |
| Non-cash      investing and financing activities:                                                                                         |   |   |   |   |   |   |   |   |
| Accounts      receivable, property and equipment, intangible assets and goodwill      acquired in connection with the purchase of Combine |   | $      | -      |   |   | $      | 1,773 |   |

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EMERGINGVISION, INC. AND SUBSIDIARIES

|          |   | December      31, |   |
|---------------|--------|-------------------|--------|
|          |   | 2007              |   |   | 2006 |   |
|          |   |              |   |   |   |   |
| Vendor      A |   |              | 32.5   | % |   |   | 39.8 | % |
| Vendor      B |   |              | 12.0   | % |   |   | 10.7 | % |
| Vendor      C |   |              | 5.0    | % |   |   | 15.9 | % |
|          |   |              | 49.5   | % |   |   | 66.4 | % |

| Working      Capital                                |   | $      | 4,000     |   |
|-----------------------------------------------------|--------|--------|-----------|--------|
|     Other      long-term assets |   |   | 92,000    |   |
| Prepaid      Expenses and Other Current Assets      |   |   | 109,000   |   |
| Property      and Equipment                         |   |   | 312,000   |   |
| Intangible      Assets, net                         |   |   | 833,000   |   |
| Goodwill                                            |   |   | 1,278,000 |   |
| Net      assets acquired                            |   | $      | 2,628,000 |   |
|                                                |   |   |      |   |

| Working      capital        |   | $      | 1,000      |   |
|-----------------------------|--------|--------|------------|--------|
| Accounts      receivable    |   |   | 3,817,000  |   |
| Property      and equipment |   |   | 41,000     |   |
| Intangible      assets      |   |   | 1,844,000  |   |
| Goodwill                    |   |   | 1,582,000  |   |
| Accounts      payable       |   |   | (3,676,000 | )      |
| Net      assets acquired    |   | $      | 3,609,000  |   |
|                        |   |   |       |   |

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|                                                                 |   | (In      thousands) |   |
|----------------------------------------------------------------------|--------|---------------------|--------|
|                                                                 |   | 2007                |   |   | 2006 |   |
| Business      Segment Net Revenues:                                  |   |                |   |   |   |   |
|      Retail      Optical Stores             |   | $                   | 15,773 |   |   | $ | 14,526 |   |
|      Optical      Purchasing Group Business |   |                | 57,390 |   |   |   | 49,396 |   |
| Net      revenues                                                    |   | $                   | 73,163 |   |   | $ | 63,922 |   |
|                                                                 |   |                |   |   |   |   |   |   |
| Business      Segment Income from Continuing Operations:             |   |                |   |   |   |   |   |   |
|      Retail      Optical Stores             |   | $                   | (63    | ) |   | $ | 1,926 |   |
|      Optical      Purchasing Group Business |   |                | 1,239  |   |   |   | 1,209 |   |
| Income      from continuing operations                               |   | $                   | 1,176  |   |   | $ | 3,135 |   |
|                                                                 |   |                |   |   |   |   |   |   |
| Business      Segment Loss from Discontinued Operations:             |   |                |   |   |   |   |   |   |
| Retail      Optical Stores                                           |   | $                   | -      |   |   | $ | (159 | ) |
| Optical      Purchasing Group Business                               |   |                | -      |   |   |   | - |   |
| Loss      from discontinued operations                               |   | $                   | -      |   |   | $ | (159 | ) |

|                                                                   |   | (In      thousands) |   |
|------------------------------------------------------------------------|--------|---------------------|--------|
|                                                                   |   | 2007                |   |   | 2006 |   |
| Numerator:                                                             |   |                |   |   |   |   |
|      Income      from continuing operations   |   | $                   | 426    |   |   | $ | 2,019 |   |
|      (Loss)      from discontinued operations |   |                | -      |   |   |   | (159 | ) |
| Net      income                                                        |   | $                   | 426    |   |   | $ | 1,860 |   |
|                                                                   |   |                |   |   |   |   |   |   |
| Denominator:                                                           |   |                |   |   |   |   |   |   |
| Weighted      average common shares outstanding                        |   |                | 84,489 |   |   |   | 70,324 |   |
| Dilutive      effect of stock options and warrants                     |   |                | 8,642  |   |   |   | 41,232 |   |
| Weighted      average common shares outstanding, assuming dilution     |   |                | 93,131 |   |   |   | 111,556 |   |
|                                                                   |   |                |   |   |   |   |   |   |
| Per Share Information -    Basic:                                      |   |                |   |   |   |   |   |   |
| Income      from continuing operations                                 |   | $                   | 0.01   |   |   | $ | 0.03 |   |
|      (Loss)      from discontinued operations |   |                | -      |   |   |   | (0.00 | ) |
| Net      income                                                        |   | $                   | 0.01   |   |   | $ | 0.03 |   |
|                                                                   |   |                |   |   |   |   |   |   |
| Per Share Information -      Diluted:                                  |   |                |   |   |   |   |   |   |
| Income      from continuing operations                                 |   | $                   | 0.01   |   |   | $ | 0.02 |   |
|      (Loss)      from discontinued operations |   |                | -      |   |   |   | (0.00 | ) |
| Net      income                                                        |   | $                   | 0.01   |   |   | $ | 0.02 |   |

| 2008                                       |   | $      | 218 |   |
|--------------------------------------------|--------|--------|-----|--------|
| 2009                                       |   |   | 56  |   |
| 2010                                       |   |   | 76  |   |
|                                       |   |   | 350 |   |
| Less:      allowance for doubtful accounts |   |   | (38 | )      |
|                                       |   | $      | 312 |   |

|                                                                                              | (In      thousands)     |   |
|---------------------------------------------------------------------------------------------------|-------------------------|--------|
|                                                                                              | As      of December 31, |   |
|                                                                                              |                    |   |   |   |   |   |
|                                                                                              |                    | 2007   |   |   | 2006 |   |
|     Balance,      beginning of year                                           |                    | $      | 110 |   |   | $ | 195 |   |
|           Charged      to expense               |                    |   | 94 |   |   |   | 2 |   |
|           Reductions,      including write-offs |                    |   | (58 | ) |   |   | (262 | ) |
|           Additions      and transfers          |                    |   | 1 |   |   |   | 175 |   |
|      Balance,      end of year                                           |                    | $      | 147 |   |   | $ | 110 |   |
|                                                                                              |                    |   |   |   |   |   |   |   |
| Optical      Purchasing Group Receivables:                                                        |                    |   |   |   |   |   |   |   |
|      Balance,      beginning of year                                     |                    | $      | 40 |   |   | $ | - |   |
|           Charged      to expense               |                    |   | 20 |   |   |   | 40 |   |
|           Reductions,      including write-offs |                    |   | - |   |   |   | - |   |
|           Additions      and transfers          |                    |   | - |   |   |   | - |   |
|      Balance,      end of year                                           |                    | $      | 60 |   |   | $ | 40 |   |
|                                                                                              |                    |   |   |   |   |   |   |   |
| Franchise      Notes Receivables:                                                                 |                    |   |   |   |   |   |   |   |
|      Balance,      beginning of year                                     |                    | $      | 49 |   |   | $ | 191 |   |
|           Charged      to expense               |                    |   | 1 |   |   |   | 59 |   |
|           Reductions,      including write-offs |                    |   | (11 | ) |   |   | (26 | ) |
|           Additions      and transfers          |                    |   | (1 | ) |   |   | (175 | ) |
|      Balance,      end of year                                           |                    | $      | 38 |   |   | $ | 49 |   |
|                                                                                              |                    |   |   |   |   |   |   |   |
| Other      Company Receivables:                                                                   |                    |   |   |   |   |   |   |   |
|      Balance,      beginning of year                                     |                    | $      | 2 |   |   | $ | 2 |   |
|           Charged      to expense               |                    |   | 21 |   |   |   | 32 |   |
|           Reductions,      including write-offs |                    |   | (18 | ) |   |   | (32 | ) |
|           Additions      and transfers          |                    |   | - |   |   |   | - |   |
|      Balance,      end of year                                           |                    | $      | 5 |   |   | $ | 2 |   |
|                                                                                              |                    |   |   |   |   |   |   |   |
| Accrual      for Store Closings:                                                                  |                    |   |   |   |   |   |   |   |
|      Balance,      beginning of year                                     |                    | $      | 37 |   |   | $ | 37 |   |
|           Charged      to expense               |                    |   | 236 |   |   |   | - |   |
|           Reductions,      including write-offs |                    |   | - |   |   |   | - |   |
|           Additions      and transfers          |                    |   | 27 |   |   |   | - |   |
|      Balance,      end of year                                           |                    | $      | 300 |   |   | $ | 37 |   |
|                                                                                              |                    |   |   |   |   |   |   |   |

|                                                                                                                                               |   | (In      thousands)As      of December 31, |   | Estimated |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|-----------|
|                                                                                                                                               |   | 2007                                       |   |      | 2006 |   | Useful      Lives |
|                                                                                                                                               |   |                                       |   |      |   |   |   |
| Furniture      and fixtures                                                                                                                        |   | $                                          | 382    |      |   | $ | 277 |   | 5-7      years |
| Machinery      and equipment                                                                                                                       |   |                                       | 2,084  |      |   |   | 1,707 |   | 3-5      years |
| Software                                                                                                                                           |   |                                       | 846    |      |   |   | 685 |   | 3-5      years |
| Leasehold      improvements                                                                                                                        |   |                                       | 1,347  |      |   |   | 1,048 |   | 10      years* |
|                                                                                                                                               |   |                                       | 4,659  |      |   |   | 3,717 |   |   |
| Less:      accumulated depreciation                                                                                                                |   |                                       | (3,163 | )         |   |   | (2,794 | ) |   |
|                    Property      and equipment, net |   | $                                          | 1,496  |      |   | $ | 923 |   |   |
|                                                                                                                                               |   |                                       |   |      |   |   |   |   |   |

|                                                                                                                                          |   | (In      thousands)As      of December 31, |   | Estimated |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|-----------|
|                                                                                                                                          |   | 2007                                       |   |      | 2006 |   | Useful      Lives |
|                                                                                                                                          |   |                                       |   |      |   |   |   |
| Customer      lists                                                                                                                           |   | $                                          | 1,107  |      |   | $ | 333 |   | 10-11      years |
| Non-compete      agreement                                                                                                                    |   |                                       | 465    |      |   |   | 290 |   | 5      years |
| Other                                                                                                                                         |   |                                       | 151    |      |   |   | 22 |   | 2      years |
| Trade      name                                                                                                                               |   |                                       | 1,543  |      |   |   | 210 |   | Indefinite |
|                                                                                                                                          |   |                                       | 3,266  |      |   |   | 855 |   |   |
| Less:      accumulated amortization                                                                                                           |   |                                       | (201   | )         |   |   | (47 | ) |   |
|                    Intangible      assets, net |   | $                                          | 3,065  |      |   | $ | 808 |   |   |
|                                                                                                                                          |   |                                       |   |      |   |   |   |   |   |

|                                     |   | December      31,  |
|------------------------------------------|--------|-------------------------|
|                                     |   | 2007                    |   |   | 2006 |
|                                     |   |                    |   |   |   |
| Accounts      payable                    |   | $                       | 2,961 |   |   | $ | 1,945 |   |
| Accrued      payroll and fringe benefits |   |                    | 536 |   |   |   | 477 |   |
| Accrued      professional fees           |   |                    | 128 |   |   |   | 120 |   |
| Accrued      advertising                 |   |                    | 1,310 |   |   |   | 1,328 |   |
| Accrued      rent under sublease         |   |                    | 227 |   |   |   | 218 |   |
| Accrued      interest                    |   |                    | - |   |   |   | 117 |   |
| Other      accrued expenses              |   |                    | 445 |   |   |   | 390 |   |
|                                     |   | $                       | 5,607 |   |   | $ | 4,595 |   |

|   Year |   | Related      PartyBorrowings(1)      (2) |   |   | Other      Debt(3)      (4) |   |
|------------------|--------|------------------------------------------|--------|--------|-----------------------------|--------|
|             |   |                                     |   |   |                        |   |
| 2008             |   | $                                        | 404    |   |                        | $      | 32 |   |
| 2009             |   |                                     | 352    |   |                        |   | 4,374 |   |
| 2010             |   |                                     | 335    |   |                        |   | 16 |   |
| 2011             |   |                                     | 83     |   |                        |   | 17 |   |
| 2012             |   |                                     | -      |   |                        |   | 17 |   |
|             |   | $                                        | 1,174  |   |                        | $      | 4,456 |   |

| 1)   | On      December 31, 2002, the Company refinanced certain past due amounts owed to      Cohen’s Fashion Optical (“CF”), a retail optical chain owned by certain of      the principal shareholders and directors of the Company (Note      15).  As a result, the Company signed a 5-year, $200,000      promissory note, bearing interest at a rate of 10% per      annum.  Such note was in paid, in full, in February      2008. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | In      connection with the acquisition of all of the net tangible assets of      Combine, the Company entered into two promissory notes with      Combine.  The first note provides for four annual installments,      which commenced October 1, 2007, totaling $1,273,000 (which is      non-interest bearing with an imputed annual interest rate of      8.1%).  The second note, which commenced October 1, 2006,      provides for sixty monthly installments totaling $500,000 at 7% interest      per annum. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | The      Company had outstanding borrowings of $4,359,423 under its Credit Facility      with M&T Bank, which borrowings are payable (interest only) monthly      and bear interest at a rate of LIBOR plus 2.75%.  As of December      31, 2007, the interest rate was 7.98%.  The principal and any      accrued interest are due and payable in August  2009. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4)   | In      connection with the remodeling of one of the Company-owned stores, the      Company obtained $78,000 of equipment financing from De Lage Landen      Financial Services, Inc. in November 2007, which borrowings provide for      sixty monthly installments and bear interest at a rate of      10.2%. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | 2007   |    |   | 2006   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Deferred      tax assets:                           |   |   |    |   |   |   |
| Reserves      and allowances                        |   | $      | 1,150   |   |   | $      | 904 |   |
| Net      operating loss and credits carry forwards  |   |   | 16,003  |   |   |   | 17,999 |   |
| Stock      compensation expense                     |   |   | 258     |   |   |   | - |   |
| Valuation      allowance                            |   |   | (15,628 | )      |   |   | (17,195 | ) |
| Total      deferred tax assets                      |   |   | 1,783   |   |   |   | 1,708 |   |
|                                                |   |   |    |   |   |   |   |   |
| Deferred      tax liabilities:                      |   |   |    |   |   |   |   |   |
| Property,      plant and equipment, and intangibles |   |   | (109    | )      |   |   | (193 | ) |
| Deferred      revenue                               |   |   | -       |   |   |   | (24 | ) |
| Accrued      and other expenses                     |   |   | -       |   |   |   | (91 | ) |
| Total      deferred tax liabilities                 |   |   | (109    | )      |   |   | (308 | ) |
| Net      deferred tax asset                         |   | $      | 1,674   |   |   | $      | 1,400 |   |

|                                         |   | 2007   |   |    | 2006   |   |
|----------------------------------------------|--------|--------|--------|---------|--------|--------|
| Current:                                     |   |   |   |    |   |   |
| Federal                                      |   | $      | (3     | )  |   | $      | (13 | )  |
| State      and local                         |   |   | (10    | )       |   |   | (33 | ) |
| Foreign                                      |   |   | (10    | )       |   |   | - |   |
| Total      current                           |   |   | (23    | )       |   |   | (46 | )  |
|                                         |   |   |   |    |   |   |   |   |
| Deferred:                                    |   |   |   |    |   |   |   |   |
| Federal                                      |   |   | 233    |    |   |   | 1,190 |   |
| State      and local     |   |   | 47     |    |   |   | 210 |   |
| Foreign                                      |   |   | -      |    |   |   | - |   |
| Total      deferred                          |   |   | 274    |    |   |   | 1,400 |   |
| Income      tax benefit                      |   | $      | 251    |    |   | $      | 1,354 |   |

|   |   | Net      Operating Loss |   |   | AMT      Operating Loss |   |
|--------|--------|-------------------------|--------|--------|-------------------------|--------|
|   |   |                    |   |   |                    |   |
| 2011   |   | $                       | 1,838  |   |                    | $      | 1,162 |   |
| 2012   |   |                    | 3,845  |   |                    |   | 3,845 |   |
| 2018   |   |                    | 10,810 |   |                    |   | 10,810 |   |
| 2019   |   |                    | 1,358  |   |                    |   | 1,358 |   |
| 2020   |   |                    | 20,269 |   |                    |   | 20,269 |   |
| 2021   |   |                    | 2,369  |   |                    |   | 1,808 |   |
| 2022   |   |                    | 4,375  |   |                    |   | 4,310 |   |
| 2023   |   |                    | 166    |   |                    |   | 166 |   |
| 2024   |   |                    | 25     |   |                    |   | 25 |   |
| 2025   |   |                    | 292    |   |                    |   | 292 |   |
|   |   | $                       | 45,347 |   |                    | $      | 44,045 |   |

|                                                          |   | 2007   |   |   | 2006   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                          |   |   |   |   |   |   |
| Federal      statutory rate                                   |   |   | 34.0   | %      |   |   | 34.0 | % |
| State      and local income taxes, net of federal tax benefit |   |   | 2.2    | %      |   |   | 3.5 | % |
| Permanent      differences                                    |   |   | 3.0    | %      |   |   | 1.5 | % |
| Net      operating loss carry forward adjustments             |   |   | 12.4   | %      |   |   | 0.0 | % |
| Change      to valuation allowance                            |   |   | (195.0 | %)     |   |   | (201.2 | %) |
| Effective      tax rate                                       |   |   | (143.4 | %)     |   |   | (162.2 | %) |

|                                                                 |   | (In      thousands) |   |
|----------------------------------------------------------------------|--------|---------------------|--------|
|                                                                 |   | 2007                |   |   | 2006 |   |
| Business      Segment Net Revenues:                                  |   |                |   |   |   |   |
|      Retail      Optical Stores             |   | $                   | 15,773 |   |   | $ | 14,526 |   |
|      Optical      Purchasing Group Business |   |                | 33,848 |   |   |   | 7,186 |   |
| Net      revenues                                                    |   | $                   | 49,621 |   |   | $ | 21,712 |   |
| Business      Segment Income from Continuing Operations:             |   |                |   |   |   |   |   |   |
|      Retail      Optical Stores             |   | $                   | 50     |   |   | $ | 1,926 |   |
|      Optical      Purchasing Group Business |   |                | 376    |   |   |   | 93 |   |
| Income      from continuing operations                               |   | $                   | 426    |   |   | $ | 2,019 |   |
|                                                                 |   |                |   |   |   |   |   |   |
| Business      Segment Loss from Discontinued Operations:             |   |                |   |   |   |   |   |   |
|      Retail      Optical Stores             |   | $                   | -      |   |   | $ | (159 | ) |
|      Optical      Purchasing Group Business |   |                | -      |   |   |   | - |   |
| Loss      from discontinued operations                               |   | $                   | -      |   |   | $ | (159 | ) |
|                                                                 |   |                |   |   |   |   |   |   |

|                               |   | Retail      Optical Stores |   |   | Optical      Purchasing Group Business |   |   | Total  |   |
|------------------------------------|--------|----------------------------|--------|--------|----------------------------------------|--------|--------|--------|--------|
|                               |   |                       |   |   |                                   |   |   |   |   |
| Total      Assets                  |   | $                          | 11,902 |   |                                   | $      | 9,963  |   |   | $ | 21,865 |   |
| Depreciation      and Amortization |   |                       | 320    |   |                                   |   | 203    |   |   |   | 523 |   |
| Capital      Expenditures          |   |                       | 799    |   |                                   |   | 119    |   |   |   | 918 |   |
| Goodwill                           |   |                       | 1,266  |   |                                   |   | 2,971  |   |   |   | 4,237 |   |
| Intangible      Assets             |   |                       | 369    |   |                                   |   | 2,696  |   |   |   | 3,065 |   |
| Goodwill      Additions            |   |                       | -      |   |                                   |   | 1,692  |   |   |   | 1,692 |   |
| Intangible      Asset Additions    |   |                       | 379    |   |                                   |   | 2,031  |   |   |   | 2,410 |   |
| Interest      Expense              |   |                       | 59     |   |                                   |   | 230    |   |   |   | 289 |   |

|                               |   | Retail      Optical Stores |   |   | Optical      Purchasing Group Business |   |   | Total  |   |
|------------------------------------|--------|----------------------------|--------|--------|----------------------------------------|--------|--------|--------|--------|
|                               |   |                       |   |   |                                   |   |   |   |   |
| Total      Assets                  |   | $                          | 8,934  |   |                                   | $      | 3,663  |   |   | $ | 12,597 |   |
| Depreciation      and Amortization |   |                       | 264    |   |                                   |   | 63     |   |   |   | 327 |   |
| Capital      Expenditures          |   |                       | 388    |   |                                   |   | 312    |   |   |   | 700 |   |
| Goodwill                           |   |                       | 1,266  |   |                                   |   | 1,479  |   |   |   | 2,745 |   |
| Intangible      Assets             |   |                       | 11     |   |                                   |   | 797    |   |   |   | 808 |   |
| Goodwill      Additions            |   |                       | -      |   |                                   |   | 1,479  |   |   |   | 1,479 |   |
| Intangible      Asset Additions    |   |                       | 22     |   |                                   |   | 833    |   |   |   | 855 |   |
| Interest      Expense              |   |                       | 39     |   |                                   |   | 9      |   |   |   | 48 |   |

|                                             |   | (In      thousands) |   |
|--------------------------------------------------|--------|---------------------|--------|
|                                             |   | 2007                |   |   | 2006 |   |
| Net      Revenues:                               |   |                |   |   |   |   |
|      Canada             |   | $                   | 16,957 |   |   | $ | - |   |
|      United      States |   |                | 32,664 |   |   |   | 21,712 |   |
| Net      revenues                                |   | $                   | 49,621 |   |   | $ | 21,712 |   |
|                                             |   |                |   |   |   |   |   |   |
| Income      from Continuing Operations:          |   |                |   |   |   |   |   |   |
|      Canada             |   | $                   | 270    |   |   | $ | - |   |
|      United      States |   |                | 156    |   |   |   | 2,019 |   |
| Income      from continuing operations           |   | $                   | 426    |   |   | $ | 2,019 |   |
|                                             |   |                |   |   |   |   |   |   |
| –Loss      from Discontinued Operations:   |   |                |   |   |   |   |   |   |
|      Canada             |   | $                   | -      |   |   | $ | - |   |
|      United      States |   |                | -      |   |   |   | (159 | ) |
| Loss      from discontinued operations           |   | $                   | -      |   |   | $ | (159 | ) |
|                                             |   |                |   |   |   |   |   |   |

|                               |   | United      States |   |   | Canada |   |   | Total  |   |
|------------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
|                               |   |               |   |   |   |   |   |   |   |
| Total      Assets                  |   | $                  | 15,049 |   |   | $      | 6,816  |   |   | $ | 21,865 |   |
| Depreciation      and Amortization |   |               | 476    |   |   |   | 47     |   |   |   | 523 |   |
| Capital      Expenditures          |   |               | 918    |   |   |   | -      |   |   |   | 918 |   |
| Goodwill                           |   |               | 2,544  |   |   |   | 1,693  |   |   |   | 4,237 |   |
| Intangible      Assets             |   |               | 1,078  |   |   |   | 1,987  |   |   |   | 3,065 |   |
| Goodwill      Additions            |   |               | -      |   |   |   | 1,613  |   |   |   | 1,613 |   |
| Intangible      Asset Additions    |   |               | 380    |   |   |   | 2,031  |   |   |   | 2,411 |   |
| Interest      Expense              |   |               | 199    |   |   |   | 90     |   |   |   | 289 |   |

|       |   | Total      Lease Obligations |   |   | SubleaseRentals |   |   | Net      Company Obligations |   |
|------------|--------|------------------------------|--------|--------|-----------------|--------|--------|------------------------------|--------|
|       |   |                         |   |   |            |   |   |                         |   |
| 2008       |   | $                            | 3,994  |   |            | $      | 3,262  |                         |   | $ | 732 |   |
| 2009       |   |                         | 1,573  |   |            |   | 1,389  |                         |   |   | 184 |   |
| 2010       |   |                         | 1,156  |   |            |   | 982    |                         |   |   | 174 |   |
| 2011       |   |                         | 935    |   |            |   | 781    |                         |   |   | 154 |   |
| 2012       |   |                         | 865    |   |            |   | 773    |                         |   |   | 92 |   |
| Thereafter |   |                         | 3,040  |   |            |   | 2,925  |                         |   |   | 115 |   |
|       |   | $                            | 11,563 |   |            | $      | 10,112 |                         |   | $ | 1,451 |   |

|                                                              |   | 2007   |       |   | 2006     |   |
|-------------------------------------------------------------------|--------|--------|------------|--------|----------|--------|
|                                                              |   |   |       |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                              |   |   |       |   | Average  |   |   |   |   |   | Average |   |
|                                                              |   |   |       |   | Exercise |   |   |   |   |   | Exercise |   |
|                                                              |   | Shares |       |   | Price    |   |   | Shares |   |   | Price |   |
|                                                              |   |   |       |   |     |   |   |   |   |   |   |   |
| Options      outstanding, beginning of period                     |   |   | 20,132,240 |   |     | $      | 0.44 |   |   |   | 17,151,615 |   |   | $ | 0.55 |   |
|      Granted                             |   |   | 575,000    |   |     | $      | 0.38 |   |   |   | 3,815,625 |   |   | $ | 0.15 |   |
|      Exercised                           |   |   | (6,000     | )      |     | $      | 0.14 |   |   |   | - |   |   | $ | - |   |
|      Canceled,      forfeited or expired |   |   | (133,333   | )      |     | $      | 5.12 |   |   |   | (835,000 | ) |   | $ | 1.44 |   |
|                                                              |   |   |       |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Options      outstanding, end of period                           |   |   | 20,567,907 |   |     | $      | 0.41 |   |   |   | 20,132,240 |   |   | $ | 0.44 |   |
|                                                              |   |   |       |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Options      exercisable, end of period                           |   |   | 20,467,907 |   |     | $      | 0.41 |   |   |   | 19,942,240 |   |   | $ | 0.44 |   |

|                 |               |   | Options      Outstanding |   |       | Options      Exercisable |   |
|----------------------|--------------------|--------|--------------------------|--------|------------|--------------------------|--------|
|                 |               |   |                     |   |       | Weighted-                |   |   | Weighted- |   |   |   |   |   | Weighted- |   |
|                 |               |   |                     |   |       | Average                  |   |   | Average |   |   |   |   |   | Average |   |
| Range      of        |               |   |                     |   |       | Remaining                |   |   | Exercise |   |   |   |   |   | Exercise |   |
| Exercise      Prices |               |   | Outstanding              |   |       | Contractual      Life    |   |   | Price |   |   | Exercisable |   |   | Price |   |
|                 |               |   |                     |   |       |                     |   |   |   |   |   |   |   |   |   |   |
| $                    | 0.05      to $0.08 |   |                     |   | 400,000    |                     |   |   | 5.41 |   |   | $ | 0.05 |   |   |   | 400,000 |   |   | $ | 0.05 |   |
| $                    | 0.09      to $0.14 |   |                     |   | 13,578,114 |                     |   |   | 7.19 |   |   | $ | 0.14 |   |   |   | 13,578,114 |   |   | $ | 0.14 |   |
| $                    | 0.15      to $0.23 |   |                     |   | 4,810,625  |                     |   |   | 7.97 |   |   | $ | 0.15 |   |   |   | 4,710,625 |   |   | $ | 0.15 |   |
| $                    | 0.24      to $0.36 |   |                     |   | 620,000    |                     |   |   | 3.34 |   |   | $ | 0.31 |   |   |   | 620,000 |   |   | $ | 0.31 |   |
| $                    | 0.37      to $0.54 |   |                     |   | 375,000    |                     |   |   | 9.45 |   |   | $ | 0.47 |   |   |   | 375,000 |   |   | $ | 0.47 |   |
| $                    | 1.32      to $1.98 |   |                     |   | 5,000      |                     |   |   | 1.83 |   |   | $ | 1.88 |   |   |   | 5,000 |   |   | $ | 1.88 |   |
| $                    | 3.00      to $4.50 |   |                     |   | 95,000     |                     |   |   | 1.45 |   |   | $ | 3.37 |   |   |   | 95,000 |   |   | $ | 3.37 |   |
| $                    | 4.51      to $6.77 |   |                     |   | 250,834    |                     |   |   | 1.34 |   |   | $ | 5.91 |   |   |   | 250,834 |   |   | $ | 5.91 |   |
| $                    | 6.78      to $8.25 |   |                     |   | 433,334    |                     |   |   | 2.14 |   |   | $ | 8.11 |   |   |   | 433,334 |   |   | $ | 8.11 |   |
|                 |               |   |                     |   | 20,567,907 |                     |   |   |   |   |   |   |   |   |   |   | 20,467,907 |   |   |   |   |   |

|                       |   | 2007   |      |   | 2006   |   |
|----------------------------|--------|--------|-----------|--------|--------|--------|
|                       |   |   |      |   |   |   |
| Expected      life (years) |   |   | 1         |   |   |   | 1-2 |   |
| Interest      rate         |   |   | 4.82-4.98 | %      |   |   | 5.00 | % |
| Volatility                 |   |   | 54-61     | %      |   |   | 62-80 | % |
| Dividend      yield        |   |   | -         |   |   |   | - |   |

|                                                              |   | 2007   |        |   | 2006     |   |
|-------------------------------------------------------------------|--------|--------|-------------|--------|----------|--------|
|                                                              |   |   |        |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                              |   |   |        |   | Average  |   |   |   |   |   | Average |   |
|                                                              |   |   |        |   | Exercise |   |   |   |   |   | Exercise |   |
|                                                              |   | Shares |        |   | Price    |   |   | Shares |   |   | Price |   |
|                                                              |   |   |        |   |     |   |   |   |   |   |   |   |
| Warrants      outstanding, beginning of period                    |   |   | 60,690,913  |   |     | $      | 0.05 |   |   |   | 60,690,913 |   |   | $ | 0.05 |   |
|      Granted                             |   |   | 425,000     |   |     | $      | 0.26 |   |   |   | - |   |   | $ | - |   |
|      Exercised                           |   |   | (54,842,264 | )      |     | $      | 0.05 |   |   |   | - |   |   | $ | - |   |
|      Canceled,      forfeited or expired |   |   | (4,367,764  | )      |     | $      | 0.05 |   |   |   | - |   |   | $ | - |   |
|                                                              |   |   |        |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Warrants      outstanding, end of period                          |   |   | 1,905,885   |   |     | $      | 0.17 |   |   |   | 60,690,913 |   |   | $ | 0.05 |   |
|                                                              |   |   |        |   |     |   |   |   |   |   |   |   |   |   |   |   |
| Warrants      exercisable, end of period                          |   |   | 1,905,885   |   |     | $      | 0.17 |   |   |   | 60,690,913 |   |   | $ | 0.05 |   |

|                 |               |   | Warrants      Outstanding |   |      | Warrants      Exercisable |   |
|----------------------|--------------------|--------|---------------------------|--------|-----------|---------------------------|--------|
|                 |               |   |                      |   |      | Weighted-                 |   |   | Weighted- |   |   |   |   |   | Weighted- |   |
|                 |               |   |                      |   |      | Average                   |   |   | Average |   |   |   |   |   | Average |   |
| Range      of        |               |   |                      |   |      | Remaining                 |   |   | Exercise |   |   |   |   |   | Exercise |   |
| Exercise      Prices |               |   | Outstanding               |   |      | Contractual      Life     |   |   | Price |   |   | Exercisable |   |   | Price |   |
|                 |               |   |                      |   |      |                      |   |   |   |   |   |   |   |   |   |   |
| $                    | 0.09      to $0.14 |   |                      |   | 1,380,885 |                      |   |   | 7.00 |   |   | $ | 0.14 |   |   |   | 1,380,885 |   |   | $ | 0.14 |   |
| $                    | 0.15      to $0.23 |   |                      |   | 200,000   |                      |   |   | 2.35 |   |   | $ | 0.21 |   |   |   | 200,000 |   |   | $ | 0.21 |   |
| $                    | 0.24      to $0.30 |   |                      |   | 325,000   |                      |   |   | 4.48 |   |   | $ | 0.28 |   |   |   | 325,000 |   |   | $ | 0.28 |   |
|                 |               |   |                      |   | 1,905,885 |                      |   |   |   |   |   |   |   |   |   |   | 1,905,885 |   |   |   |   |   |

|                       |   | 2007   |   |
|----------------------------|--------|--------|--------|
|                       |   |   |   |
| Expected      life (years) |   |   | 1      |   |
| Interest      rate         |   |   | 4.98   | % |
| Volatility                 |   |   | 48-55  | % |
| Dividend      yield        |   |   | -      |   |

Table of Contents

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| ·   | Ineffective controls related to      employee review of the Company’s Code of Ethics:  For      fiscal year ended December 31, 2007, the Company did not require all      current employees and any newly hired employees to review the Company’s      Code of Ethics, to ensure their understanding of their role      within the Company’s internal controls over financial      reporting.  In fiscal 2008, the Company will require all current      employees and any new hires to review and acknowledge that they have read      and understand their role in ensuring the Company’s internal controls over      financial reporting are workingeffectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ineffective controls related to      the creation and authorization of purchase orders:  For      fiscal year ended December 31, 2007, the Company did not require purchase      orders for all corporate purchases, mainly relating to supplies and other      miscellaneous office expenses.  In fiscal 2008, the Company will      require purchase orders for all purchases made by the    Company. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ineffective controls related to      IT change management procedures:  The Company did not      have a vendor management policy in place as of December 31, 2007 to ensure      that the IT consultants the Company engages do not have unauthorized      access to the Company’s financial reporting systems.  Because      this process was not in place, the Company could be vulnerable to      unauthorized access to financial systems and facilities, which could      result in changes to the actual systems or financial data.  In      2008, the Company implemented a vendor management policy, which will      restrict access rights to IT consultants, thus ensuring that financial      systems and data will not becompromised. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)              The      following documents are filed as a part of this Report:                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                  |
| 1.              Financial      Statements.                                                                                                                                      |
|                                                                                                                                                                                                                                                  |
| Consolidated      Balance Sheets as of December 31, 2007 and 2006                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                  |
| Consolidated      Statements of Income for the Years Ended December 31,    2007                                                                                                                                                                       |
| and      2006                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                  |
| Consolidated      Statements of Shareholders' Equity for the Years  Ended                                                                                                                                                                             |
| December 31, 2007      and 2006                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                  |
| Consolidated      Statements of Cash Flows for the Years Ended December    31,                                                                                                                                                                        |
| 2007 and      2006                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                  |
| Notes to      Consolidated Financial Statements                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                  |
| 2.              Financial      Statement Schedules:                                                                                                                             |
|                                                                                                                                                                                                                                                  |
| All      financial statement schedules have been omitted because they are not      applicable, are not required, or the information required to be set forth      therein is included in the Consolidated Financial Statements or Notes      thereto. |
|                                                                                                                                                                                                                                                  |
| 3.              Exhibits                                                                                                                                                        |

| (2.1)Asset      Purchase Agreement, dated September 29, 2006, among Emerging Vision, Inc.,      COM Acquisition, Inc., Combine Optical Management Corp. and Neil Glachman      (incorporated by reference to Exhibit 2.1 to the Company’s Quarterly      Report on Form 10-Q, dated November 14, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (2.2)Promissory      Note, dated September 29, 2006, made payable by COM Acquisition, Inc. and      Emerging Vision, Inc. to the order of Combine Optical Management Corp., in      the original principal amount of $1,273,000 (incorporated by reference to      Exhibit 2.2 to the Company’s Quarterly Report on Form 10-Q, dated November      14, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (2.3)Promissory      Note, dated September 29, 2006, made payable by COM Acquisition, Inc. and      Emerging Vision, Inc. to the order of Combine Optical Management Corp., in      the original principal amount of $500,000 (incorporated by reference to      Exhibit 2.3 to the Company’s Quarterly Report on Form 10-Q, dated November      14, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (2.4)Letter      of Intent, dated as of May 23, 2007, by and among OG Acquisition, Inc.,      757979 Ontario Inc. (d/b/a The Optical Group), Corowl Optical Credit      Services, Inc. and Grant Osborne (Incorporated by reference to Exhibit 2.4      to the Company’s Current Report on Form 8-K, dated May 31,      2007)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.1)Restated      Certificate of Incorporation of Sterling Vision, Inc., filed on December      20, 1995 (incorporated by reference to Exhibit 3.1 to the Company's Annual      Report on Form 10-K/A for the year ended December 31,  1995)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.2)Amended      and Restated By-Laws of Sterling Vision, Inc., dated December 18, 1995      (incorporated by reference to Exhibit 3.2 to the Company's Annual Report      on Form 10-K/A for the year ended December 31, 1995)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.3)Certificate      of Amendment of the Certificate of Incorporation of Sterling Vision, Inc.,      filed on January 26, 2000 (incorporated by reference to Exhibit 3.3 to the      Company’s Annual Report on Form 10-K for the year ended December 31, 2002,      Securities and Exchange Commission ("SEC") File Number 001-14128, Film      Number 03630359)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.4)Form      of Certificate of Amendment of the Certificate of Incorporation of      Sterling Vision, Inc., filed on February 8, 2000 (incorporated by      reference to Exhibit 10.94 to the Company’s Current Report on Form 8-K,      dated February 8, 2000, SEC File Number 001-14128, Film Number      03630359)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.5)Form      of Certificate of Amendment of the Certificate of Incorporation of      Sterling Vision, Inc., filed on February 10, 2000 (incorporated by      reference to Exhibit 10.96 to the Company’s Current Report on Form 8-K,      dated February 8, 2000, SEC File Number 001-14128, Film Number      03630359)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.6)Certificate      of Amendment of the Certificate of Incorporation of Sterling Vision, Inc.,      filed on April 17, 2000 (incorporated by reference to Exhibit 3.6 to the      Company’s Annual Report on Form 10-K for the year ended December 31, 2002,      SEC File Number 001-14128, Film Number 03630359)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.7)Certificate      of Amendment of the Certificate of Incorporation of Emerging Vision, Inc.,      filed on July 15, 2002 (incorporated by reference to Exhibit 3.7 to the      Company’s Annual Report on Form 10-K for the year ended December 31, 2002,      SEC File Number 001-14128, Film Number 03630359)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (3.8)First      Amendment to Amended and Restated By-Laws of Emerging Vision Inc., dated      November 13, 2003 (incorporated by reference to Exhibit 3.8 to the      Company’s Current Report in Form 8-K, dated December 31,    2003)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (4.1)Specimen      of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to      the Company's Registration Statement No. 33-98368)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (4.2)Form      of Warrant issued to Subject Shareholders in connection with Settlement      Agreements (incorporated by reference to Exhibit 4.8 to the Company's      Annual Report on Form 10-K for the year ended December 31,      2003)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (10.1)Sterling      Vision, Inc.'s 1995 Stock Incentive Plan (incorporated by reference to      Exhibit 10.2 to the Company's Registration Statement No.      33-98368)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| (10.2)Form      of Sterling Vision, Inc.'s Franchise Agreement (incorporated by reference      to Exhibit 10.3 to the Company's Registration Statement No.      33-98368)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (10.3)Form      of Franchisee Stockholder Agreement to be entered into between Sterling      Vision, Inc. and certain of its Franchisees (incorporated by reference to      Exhibit 10.47 to the Company's Registration Statement No.      33-98368)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (10.4)First      Amendment to Sterling Vision, Inc.’s 1995 Stock Incentive Plan      (incorporated by reference to Exhibit 10.63 to the Company's Quarterly      Report on Form 10-Q for the quarter ended June 30, 1996, File Number      000-27394, Film Number 96615244)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| (10.5)Form      of Settlement Agreement and General Release, dated as of April 1, 2002,      between Emerging Vision, Inc. and each of V.C. Enterprises, Inc., Bridget      Licht, Sitescope, Inc., Eyemagination Eyeworks, Inc. and Susan Assael,      including the form of Area Representation Agreement annexed thereto as an      Exhibit (incorporated by reference to Exhibit 10.37 to the Company’s      Annual Report on Form 10-K for the year ended December 31,      2001)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| (10.6)Credit      Agreement, dated August 19, 2005, between Emerging Vision, Inc. and      Manufacturers and Traders Trust Corporation (incorporated by reference to      Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year      ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| (10.7)Standard      LIBOR Grid Note, dated August 19, 2005, between Emerging Vision, Inc. and      Manufacturers and Traders Trust Corporation (incorporated by reference to      Exhibit 10.15 to the Company’s Annual Report on Form 10-K for the year      ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| (10.8)Security      Agreement, dated August 19, 2005, between Emerging Vision, Inc. and      Manufacturers and Traders Trust Corporation (incorporated by reference to      Exhibit 10.16 to the Company’s Annual Report on Form 10-K for the year      ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (10.9)Trademark      Security Agreement, dated August 19, 2005, between Emerging Vision, Inc.      and Manufacturers and Traders Trust Corporation (incorporated by reference      to Exhibit 10.17 to the Company’s Annual Report on Form 10-K for the year      ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| (10.10)VisionCare      Guaranty, dated August 19, 2005, between Emerging Vision, Inc. and      Manufacturers and Traders Trust Corporation (incorporated by reference to      Exhibit 10.18 to the Company’s Annual Report on Form 10-K for the year      ended December 31, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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| (10.11) Employment      Agreement, dated September 29, 2006, between Emerging Vision, Inc. and      Neil Glachman (incorporated by reference to Exhibit 10.19 to the Company’s      Annual Report on Form 10-K for the year ended December 31,      2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| (10.12) Employment      Agreement, dated December 1, 2006, between Emerging Vision, Inc. and      Christopher G. Payan (incorporated by reference to Exhibit 10.20 to the      Company’s Annual Report on Form 10-K for the year ended December 31,      2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (10.13)Business      Acquisition Agreement, dated June 29, 2007, by and among 1725758 Ontario      Inc. d/b/a The Optical Group, Corowl Optical Credit Services, Inc., Grant      Osborne and OG Acquisition, Inc. (incorporated by reference to Exhibit      10.1 the Company’s Current Report on Form 8-K, dated July 5,      2007) (10.14)Revolving      Line of Credit Note and Credit Agreement , dated as of August 7, 2007,      executed by Emerging Vision, Inc. in favor of Manufacturers and Traders      Trust Company (incorporated by reference to Exhibit 10.1 of the Company’s      Current Report on Form 8-K, dated August 14, 2007) (10.15)Absolute      Assignment of Franchisee Notes and Proceeds Due, dated as of August 7,      2007, executed by Emerging Vision, Inc. in favor of Manufacturers and      Traders Trust Company (incorporated by reference to Exhibit 10.2 of      the Company’s Current Report on Form 8-K, dated August 14,      2007) (10.16)General      Security Agreement –, dated as of August 7, 2007, executed      by Emerging Vision, Inc. in favor of Manufacturers and Traders Trust      Company(incorporated by reference to Exhibit 10.3 of the Company’s Current      Report on Form 8-K, dated August 14, 2007) (10.17)General      Security Agreement –, dated as of August 7, 2007, executed by Combine      Buying Group, Inc. in favor of Manufacturers and Traders Trust      Company (incorporated by reference to Exhibit 10.4 of the Company’s      Current Report on Form 8-K, dated August 14, 2007) (10.18)General      Security Agreement –, dated as of August 7, 2007, executed by OG      Acquisition, Inc. in favor of Manufacturers and Traders Trust Company      (incorporated by reference to Exhibit 10.5 of the Company’s Current Report      on Form 8-K, dated August 14, 2007) (10.19)General      Security Agreement –, dated as of August 7, 2007, executed by 1725758      Ontario Inc. d/b/a The Optical Group in favor of Manufacturers and Traders      Trust Company (incorporated by reference to Exhibit 10.6 of the Company’s      Current Report on Form 8-K, dated August 14, 2007) (10.20)Continuing      Guaranty –, dated as of August 7, 2007, executed by Combine Buying      Group, Inc. in favor of Manufacturers and Traders Trust Company      (incorporated by reference to Exhibit 10.7 of the Company’s Current Report      on Form 8-K, dated August 14, 2007) (10.21)Continuing      Guaranty –, dated as of August 7, 2007, executed by OG Acquisition,      Inc. in favor of Manufacturers and Traders Trust Company (incorporated by      reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K,      dated August 14, 2007) (10.22)Continuing      Guaranty –, dated as of August 7, 2007, executed by 1725758 Ontario      Inc. d/b/a The Optical Group in favor of Manufacturers and Traders Trust      Company (incorporated by reference to Exhibit 10.9 of the Company’s      Current Report on Form 8-K, dated August 14, 2007) (10.23)Pledge      Agreement and Assignment, dated as of August 7, 2007, by and between OG      Acquisition, Inc. and Manufacturers and Traders Trust      Company (incorporated by reference to Exhibit 10.10 of the Company’s      Current Report on Form 8-K, dated August 14, 2007) (10.24)United      States Trademark Collateral Assignment and Security Agreement,      executed by Emerging Vision, Inc. in favor of Manufacturers and      Traders Trust Company (incorporated by reference to Exhibit      10.11 of the Company’s Current Report on Form 8-K, dated August 14,      2007)  |
| (14.1)Corporate      Code of Ethics and Conduct of Emerging Vision, Inc., dated November 14,      2005 (incorporated by reference to Exhibit 14.1 to the Company’s Annual      Report on Form 10-K for the year ended December 31,  2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| (21.1) *List of Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| (31.1) *Certification of Chief Executive Officer      pursuant to Securities Exchange Act Rules 13a-14 and      15d-14                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (31.2) *Certification of Chief Financial Officer      pursuant to Securities Exchange Act Rules 13a-14 and      15d-14                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| (32.1) *Certification of Chief Executive Officer and      Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of    2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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| *  Exhibit      being filed herewith                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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| By: /s/ Christopher G.  Payan |
|-------------------------------|
| Christopher G.    Payan       |
| Chief Executive      Officer  |

| Signature | Title | Date |
|-----------|-------|------|

|                      |                                              |                      |
|---------------------------|---------------------------------------------------|---------------------------|
| /s/ Christopher G. Payan  | Chief      Executive Officer and Director         | March      31, 2008  |
| Christopher      G. Payan | (Principal      Executive Officer)                |                      |
|                      |                                              |                      |
| /s/ Brian P. Alessi       | Chief      Financial Officer and Treasurer        | March      31, 2008  |
| Brian      P. Alessi      | (Principal      Financial and Accounting Officer) |                      |
|                      |                                              |                      |
| /s/ Dr. Alan Cohen        | Chairman      of the Board of Directors           | March      31, 2008  |
| Dr.      Alan Cohen       |                                              |                      |
|                      |                                              |                      |
| /s/ Joel L. Gold          | Director                                          | March      31, 2008  |
| Joel      L. Gold         |                                              |                      |
|                      |                                              |                      |
| /s/ Harvey Ross           | Director                                          | March      31, 2008  |
| Harvey      Ross          |                                              |                      |
|                      |                                              |                      |
| /s/ Seymour G. Siegel     | Director                                          | March      31, 2008  |
| Seymour      G. Siegel    |                                              |                      |

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