Professional Fax HEAD OFFICE

Level 5, 390 St Kilda Rd

Melbourne VIC 3004

Tel: (03) 8844 4000

Fax: (03) 8844 4099

25 May 2015
Page 1 of 2
ASX Limited
Company Announcements Office
Level 4, South Tower Rialto
525 Collins Street
MELBOURNE VIC 3000

VISION EYE INSTITUTE LIMITED (ASX: VEI) GOLD COAST FACILITIES

www.visioneyeinstitute.com.auinfo@visioneyeinstitute.com.au Vision Eye Institute Ltd

ABN 21 098 890 816

Sale of Gold Coast Consulting Clinics

Vision Eye Institute ("VEI" or "the Company") today announces that it has entered into a binding agreement to sell its Gold Coast clinic assets to Eye Specialist Institute Pty Ltd ("the Buyer"), an entity controlled by
Dr Robert Bourke. This concludes discussions of ongoing arrangements with VEI's Gold Coast partner doctors, who have elected, in the main, not to renew their contracts with VEI.
Key terms of the sale are as follows:
Change of ownership will take effect on 1st July 2015

Sale of equipment and leasehold improvements for $1.125 million

Goodwill exit payment of $1 million

All clinic leases will either terminate on 30 June 2015 or be assigned to the Buyer from 1 July 2015

All Gold Coast permanent VEI employees will be offered employment by buyer.

The Gold Coast clinics will contribute EBIT of approximately $1.7 million in the 2015 financial year, before any goodwill write off.
On balance, this outcome is in the best interests of patients, staff and VEI shareholders.

Southport Day Surgery Business

The Southport Day Surgery facility is leased by Ramsay Health, and the staff are provided by Ramsay under a management agreement that expired on 30 October 2013. VEI previously negotiated an extension of the existing arrangement to 31 December 2015. VEI owns the business assets within the facility and is currently negotiating the sale of these business assets.
There will be a negative financial impact commencing January 2016 in respect of the above.
Page 2 of 2

Strategic Growth Initiatives

As previously communicated, the Company continues to evaluate a number of growth strategies, some of which have now progressed to due diligence, and anticipates announcing these over the coming months.

Earnings Guidance

VEI confirms market earnings guidance for the 2015 financial year as $25 to $26 million at the EBITDA level, excluding any goodwill write off.
The Company is currently preparing its financial plan for the 2016 financial year and intends to provide 2016 earnings guidance at the time of announcement of the 2015 financial results.
Shane Tanner
Chairman
Contact: 0411 107 099

distributed by