Exhibit 99.1

                   FACTORS AFFECTING FUTURE OPERATING RESULTS

         This Form 10-K, the Company's Annual Report to  Shareholders,  any Form
10-Q or any Form 8-K of the Company or any other written or oral statements made
by or on behalf of the Company  include  forward-looking  statements  within the
meaning of Section 21E of the Securities  Exchange Act of 1934 which reflect the
Company's current views with respect to future events and financial performance.
These forward-looking statements are subject to certain risks and uncertainties,
including  those  discussed  below,  that could cause  actual  results to differ
materially from historical  results or those  anticipated.  The words "believe",
"expect",   "anticipate"  and  similar  expressions   identify   forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  these
forward-looking  statements,  which  speak only as of their  dates.  The Company
undertakes  no  obligation  to  publicly  update or revise  any  forward-looking
statements, whether as a result of new information, future events or otherwise.

         Although the Company  believes  that it has the product  offerings  and
resources  needed for  continuing  success,  future net sales and margin  trends
cannot be reliably predicted and may cause the Company to adjust its operations.
Factors external to the Company can result in volatility of the Company's common
stock price.  Because of the  foregoing  factors,  recent  trends  should not be
considered reliable indicators of future stock prices or financial results.

         The following  factors could cause actual  operating  results to differ
materially from historical results or those anticipated:

Highly Competitive Industry and Affect of New Products on Results

         The  eyeglass  lens and  coating  industry is highly  competitive.  The
Company competes  principally on the basis of customer service,  the quality and
breadth of product offerings,  and price. The eyeglass lens and coating industry
is characterized by price  competition,  which can be severe in certain markets,
particularly for standard products.  Sola attempts,  to the extent possible,  to
counter  competition  on the basis of price by  focusing  on  providing  a rapid
response to orders,  maintaining high fill rates, developing  differentiated new
products, and educating processing laboratories and eyecare practitioners on the
benefits of Sola lenses and coatings.  There can be no assurance,  however, that
the Company's  competitors  will not develop  products or services that are more
effective or less  expensive  than the Company's  products or which could render
certain of the Company's  products less  competitive.  Since  recently-developed
products  comprise a substantial  portion of the Company's  sales, the Company's
performance  and future  growth are  dependent  upon its  continuing  ability to
develop and market new products. The Company's quarterly results can be affected
by the ability to generate sales from new products as anticipated  and the costs
of such introductions.

         Some of the Company's  competitors have significantly greater financial
resources than the Company to fund expansion and research and  development.  See
"--Substantial  Indebtedness"  and  "--Management's  Discussion  and Analysis of
Financial Condition and Results of Operations--Liquidity and Capital Resources".
Within a particular  market,  certain of the Company's  competitors  may enjoy a
"home-country"  advantage  over foreign  competition.  In  addition,  in certain
markets (primarily Europe),  the Company also faces competition from a number of
its  principal  competitors  which are  vertically  integrated  with  processing
centers  to a  greater  extent  than the  Company,  enabling  them to  customize
prescription  lenses.  This  limits the number of  independent  lens  processing
customers to which the Company can market its products.

International Operations

         The Company  operates  manufacturing  and  distribution  sites in three
major regions of the world--North America (including Mexico), Europe and Rest of
World (comprising  primarily  Australia,  Asia and South  America)--and  derived
approximately  half of its net  sales in fiscal  1999 from the sale of  products



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outside the United States.  As a result, a significant  portion of the Company's
sales  and  operations  are  subject  to  certain   risks,   including   adverse
developments in the foreign political and economic environment,  exchange rates,
tariffs and other trade barriers,  staffing and managing foreign  operations and
potentially adverse tax consequences.  Although the Company and its predecessors
have been  successfully  conducting  business outside of the United States since
its inception in 1960,  there can be no assurance that any of these factors will
not have a material  adverse  effect on the  Company's  financial  condition  or
results of operations in the future.

         The Company's  interest  expense is denominated  predominantly  in U.S.
dollars;  its cash flow,  however,  is  comprised  of a variety  of  currencies.
Although the Company may enter into  currency  swap  agreements  with  financial
institutions to reduce its exposure to  fluctuations in foreign  currency values
relative to its debt obligations,  such hedging  transactions,  if entered into,
will not eliminate  that risk entirely.  As a result of the Company's  worldwide
operations,  currency  exchange rate  fluctuations  tend to affect the Company's
results of  operations  and  financial  position.  The Company  has  significant
operations   in   Brazil,    which   has,   until   recently,    experienced   a
hyper-inflationary  environment  and whose  currency risk may not be effectively
hedged.  The  functional  currency of the Company's  operations in Brazil is the
U.S.  dollar.   Under  U.S.   generally  accepted   accounting   principles  for
hyper-inflationary  countries,  all translation  and transaction  adjustments of
foreign operations are reflected in the Company's statements of operations.  The
Company's  statements  of  operations  reflect  significant  charges  to  income
primarily  attributable to significant  devaluations of the Brazilian  currency.
There can be no assurance that hyper-inflationary  conditions will not return to
Brazil or be present in other  countries  in which the Company  has  significant
operations.  See "--Management's  Discussion and Analysis of Financial Condition
and Results of Operations--Currency Exchange Rates" and "--Inflation".

Restrictions on Payment of Dividends from Subsidiaries

         The   Company's   foreign   operations   are   conducted   through  its
subsidiaries.  These operations contribute  significantly to the Company's sales
and profitability. The payment of dividends and the making of loans and advances
to the Company by its subsidiaries may be subject to statutory restrictions, are
contingent  upon the earnings of those  subsidiaries  and are subject to various
business  considerations.  Dividends  and other  payments  to the  Company  from
subsidiaries in certain  jurisdictions are subject to legal restrictions and may
have adverse tax  consequences to the Company.  Management  reviews the need for
cash  distributions  to the Company from its foreign  subsidiaries  on a case by
case basis.  If the need for cash  distributions  from the  subsidiaries  should
arise in the future,  there can be no assurance  that the  subsidiaries  will be
permitted to make such cash distributions  without legal restrictions or adverse
tax  consequences  to the Company.  Commencing  in fiscal 1996,  the Company has
provided  for U.S.  federal and state  income  taxes on  unremitted  earnings of
certain foreign subsidiaries.

Substantial Indebtedness

         The  Company's  substantial  indebtedness  may  limit its  capacity  to
respond  to  market  conditions   (including  its  ability  to  satisfy  capital
expenditure  requirements) or to meet its contractual or financial  obligations.
In  addition,   pursuant  to  the  debt  instruments   governing  the  Company's
indebtedness,  the Company is subject to restrictive  covenants that could limit
its ability to conduct its business.  Furthermore, the ability of the Company to
satisfy its  obligations  will be dependent upon its future  performance,  which
will be subject to prevailing economic conditions and to financial, business and
other factors,  including factors beyond the control of the Company. The Company
entered into an Amended credit agreement with The Bank of America National Trust
and  Savings  Association,  for  itself  and as agent for a  syndicate  of other
financial  institutions,  covering an aggregate  amount of $300  million.  As of
March 31, 1999,  $103 million was outstanding  under this agreement,  and $194.6
million was available  for future  borrowings.  Through and including  March 15,
2008,  interest on the Company's $100 million  aggregate  principal  amount of 6
7/8% Senior Notes due 2008 (the "Notes")  will be payable in cash  semiannually.
Although the Company  believes that cash flow from operations will be sufficient
to meet all of its debt service requirements and to fund its capital expenditure
requirements, there can be no assurance that this will be the case.



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Reliance on Key Management

         The  operation  of the  Company  requires  managerial  and  operational
expertise. There can be no assurance that the Company's key management employees
will remain with the  Company.  If, for any reason,  such key  personnel  do not
continue to be active in the Company's management, operations could be adversely
affected. The Company does not maintain key-man life insurance policies.

Medical Procedures

         A number of  companies  have  developed,  or are  developing,  surgical
equipment  or  implants  used to correct  refractive  error,  including  myopia,
hyperopia  and  astigmatism.  These  procedures  are  ineffective  at correcting
presbyopia,  which  affects the vast majority of people above the age of 45, and
is a major cause of demand for Sola's  progressive and other multifocal  lenses.
However,  there can be no assurance  that current  medical  procedures,  or ones
developed in the future,  will not  materially  impact  demand for the Company's
lenses.

Forward Integration

         In  some  instances,   Sola's   competitors   have  made  or  may  make
acquisitions of wholesale  distributors or independent  processing  laboratories
that are customers of Sola. In these instances,  Sola aims to continue to supply
lens products to these wholesale operations. However, there is no assurance that
sales will continue at previous levels to these wholesalers.

Dividend Policy; Restrictions on Payment of Dividends

         The Company has not declared or paid any cash dividends on any class of
its capital  stock,  and does not intend to pay dividends on its Common Stock in
the  foreseeable  future.  The Company's Bank Credit  Agreement with The Bank of
America National Trust and Savings Association,  and the Indenture governing the
Notes (the  "Indenture"),  restrict  and limit the payment of  dividends  on the
Common Stock. See "--Price Range of Common Stock and Dividend Policy".

Antitakeover Provisions

         The Company's  Amended and Restated  Certificate of  Incorporation  and
Amended and Restated  By-Laws  contain  certain  provisions that could make more
difficult the  acquisition  of the Company by means of a tender  offer,  a proxy
contest or otherwise.  These  provisions  include advance notice  procedures for
stockholders to nominate candidates for election as directors of the Company and
for  stockholders  to  submit  proposals  for   consideration  at  stockholders'
meetings.  In  addition,  the Company is subject to Section 203 of the  Delaware
General  Corporation  Law,  which limits  transactions  between a publicly  held
company  and  "interested  stockholders"  (generally,  those  stockholders  who,
together with their  affiliates and  associates,  own 15% or more of a company's
outstanding  capital  stock).  This  provision of Delaware law also may have the
effect of deterring certain potential  acquisitions of the Company. In addition,
the  Company's  shareholder  rights  plan could have the effect of  delaying  or
hindering a possible  takeover of the Company.  The Company  believes that these
measures enhance the ability of the Board of Directors of the Company to respond
to proposals  to acquire  control of the Company in a manner that is in the best
interests  of the  Company,  its  stockholders,  employees  and  other  affected
constituents.

Year 2000

         The Year 2000 issue is the result of computer  programs  being  written
using two  digits  rather  than four to define  the  applicable  year.  Computer
programs or hardware  that have  date-sensitive  software or embedded  chips may
recognize  a date using "00" as the year 1900  rather  than the year 2000.  This
could  result in a system  failure or  miscalculations  causing  disruptions  of
operations,  including,  among other



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things, a temporary inability to process transactions,  send invoices, or engage
in similar normal business activities.

         The Company has completed its Year 2000 assessment of critical business
systems.  Based on these  assessments,  the Company  determined  that it will be
required to modify or replace  certain  portions  of its  software so that those
systems  will  properly  utilize  dates beyond  December  31, 1999.  The Company
presently believes that with modifications or replacements of existing software,
the Year 2000 issue can be mitigated.  Year 2000  expenditures  to-date have not
been  material,  and the overall  cost to the Company of making its  Information
Technology  ("IT")  systems  Year 2000  compliant  is also  estimated  to not be
material to the  Company's  results of  operations  (less than $2 million over a
three fiscal year period).

         The Company has also performed extensive testing of operating equipment
("embedded  chips")  to ensure  that they are Year  2000  compliant.  To date no
material exposures have been detected.

         For  those IT  systems  that  require  upgrades  to make them Year 2000
compliant,  the Company  believes it has commenced  upgrade programs in a timely
manner so that the systems  will be available  for  extensive  testing  prior to
implementation. The majority of remediation work has been completed. However, in
certain instances, the Company will not meet the timetable for implementation of
their main Year 2000  strategy,  primarily  in  Australia  and  France.  In both
instances  contingency  plans have been developed and  implemented  which should
deliver  adequate  computer   functionality  until  the  main  strategy  can  be
completed.

         The cost of the Company's  Year 2000 program and its beliefs  regarding
its  compliance  program are based on the Company's best  estimates,  which were
derived  utilizing a number of  assumptions  about  future  events,  such as the
availability  and cost of personnel  trained in this area, the ability to locate
and correct all relevant  computer  codes,  the  performance of key software and
hardware vendors and other similar uncertainties.  However, we are not sure that
our estimates will be achieved and actual results could differ  materially  from
those anticipated.

         As part of its overall assessment  package,  the Company is also in the
process of assessing  the possible  effects on the  Company's  operations of the
Year 2000 readiness of key suppliers and customers.  The Company has developed a
worksheet  for all sites to utilize as an aid in  collecting  information  about
Year 2000 compliance  including that of business partners.  Initial emphasis has
been on partners with Electronic Data Interfaces ("EDI"),  with the second stage
being  communication  with key suppliers and customers on their  readiness.  The
Company's  largest  customer  accounts for less than 5% of net sales and the ten
largest customers account for approximately 23% of net sales.

         Due to the Company's decentralized operations,  and lack of reliance on
one Companywide IT system,  the Company  believes that the risk of isolated Year
2000 failures should not be material to the Company's  consolidated  operations.
However,  difficulties in making the Company's IT systems Year 2000 compliant in
a number of its significant geographic regions or the failure of a number of the
Company's  major  vendors,  customers  or other  material  service  providers to
adequately  address their Year 2000 issues would have a material  adverse effect
on the Company.

         Certain  of the  Company's  North  American  operations  implemented  a
significant  upgrade of their computer  operating systems (unrelated to the Year
2000 issue), which entailed the installation of certain modules of an enterprise
wide IT system. This system underwent extensive testing in the month of November
1998, and since December 1998 the system has been fully operational.

European Union Conversion to the "Euro"

         The  Company  has  instituted  a  "Euro"   conversion  team  and  begun
preliminary  preparation  for the  conversion  by  eleven  member  states of the
European Union to a common currency, the "Euro". Conversion to the Euro by these
member states of the union will take place on a "no compulsion,  no prohibition"
basis  between  January  1, 1999 and  January  1,  2002.  By January 1, 2002 all
companies



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operating in the eleven member  states will be required to be fully  operational
using the new currency.  The Euro  conversion  team has primarily  addressed the
accounting  and  information  systems  changes that are  necessary to facilitate
trading in the Euro, the possible market place implications of a common currency
and the currency  exchange rate risks,  with the initial  emphasis placed on the
system  modifications.  The  Company has not  completed  the  evaluation  of the
possible  effect of the changes to the Euro on foreign  currency  loans,  or the
impact  if  any,  on  the  market  place  implications  of  a  common  currency.
Preliminary  assessments  indicate that the financial  impact of conversion to a
Euro based currency will not be material to the Company's consolidated financial
position, results of operations or cash flows.