WESLEY JESSEN VISIONCARE INC, S-3, 1999-05-26

WESLEY JESSEN VISIONCARE INC
S-3, 1999-05-26
OPHTHALMIC GOODS

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<PAGE>

As filed with the Securities and Exchange Commission on May 26, 1999
Registration No. 333-

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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
FORM S-3
REGISTRATION STATEMENT
Under
The Securities Act of 1933
----------------
Wesley Jessen VisionCare, Inc.
(Exact name of registrant as specified in its charter)

Delaware 36-4023739
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

333 East Howard Avenue
Des Plaines, Illinois 60018-5903
(847) 294-3000
(Address, including zip code, and telephone number, including area code, of
registrants principal executive offices)
----------------
Kevin J. Ryan
Chairman, President and Chief Executive Officer
Wesley Jessen VisionCare, Inc.
333 East Howard Avenue
Des Plaines, Illinois 60018-5903
(847) 294-3000
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
----------------
Copies of all communications, including communications
sent to agent for service, should be sent to:
----------------
DENNIS M. MYERS, ESQ. DAVID B. WALEK, ESQ.
Kirkland & Ellis Ropes & Gray
200 East Randolph Drive One International Place
Chicago, Illinois 60601 Boston, Massachusetts 02110
(312) 861-2000 (617) 951-7000
----------------
Approximate date of commencement of proposed sale to the public: As soon as
practicable after this Registration Statement becomes effective.
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box. [_]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [_]
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CALCULATION OF REGISTRATION FEE

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<TABLE>
<CAPTION>
Proposed Maximum
Title of Each Class of Proposed Maximum Aggregate
Securities to be Amount to be Offering Price Offering Amount of
Registered Registered(1) Per Unit(2) Price(1)(2) Registration Fee
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<S> <C> <C> <C> <C>
Common Stock, par value
$.01 per share........ 5,287,428 $33.8125 $178,781,159 $49,701
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</TABLE>
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(1) Includes 687,428 shares of common stock that the underwriters have the
option to purchase to cover over-allotment, if any.
(2) Based on the average of the high and low sales prices on the Nasdaq
National Market of the common stock on May 21, 1999, pursuant to Rule
457(c) under the Securities Act of 1933.
----------------
The registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until this Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.

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<PAGE>

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+The information in this preliminary prospectus is not complete and may be +
+changed. These securities may not be sold until the registration statement +
+filed with the Securities and Exchange Commission becomes effective. This +
+preliminary prospectus is not an offer to sell these securities nor does it +
+seek offers to buy these securities in any jurisdiction where the offer or +
+sale is not permitted. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Subject to Completion,
Dated May 26, 1999

4,600,000 Shares

Wesley Jessen VisionCare, Inc.

Common Stock

All of the 4,600,000 shares of common stock are being offered by the selling
stockholders identified in this prospectus. We will not receive any of the
proceeds from the sale of the shares by the selling stockholders. See "Selling
Stockholders."

Our common stock is traded on the Nasdaq National Market under the symbol
"WJCO." On May 24, 1999, the last reported sale price of our common stock on
the Nasdaq National Market was $33.44 per share.

Investing in our common stock involves risks. See "Risk Factors" beginning on
page 6.

<TABLE>
<CAPTION>
Per Share Total
--------- -----
<S> <C> <C>
Public offering price......................................... $ $
Underwriting discounts and commissions........................ $ $
Proceeds to the selling stockholders.......................... $ $
</TABLE>

Neither the Securities and Exchange Commission nor any other regulatory body
has approved or disapproved of these securities or passed upon the accuracy or
adequacy of this prospectus. Any representation to the contrary is a criminal
offense.

The selling stockholders have granted the underwriters the right to purchase
up to 687,428 additional shares at the public offering price to cover any over-
allotments.

-----------

The underwriters are severally underwriting the shares being offered. The
underwriters expect to deliver the shares against payment in Baltimore,
Maryland on , 1999.

BT Alex. Brown Bear, Stearns & Co. Inc.

Robert W. Baird & Co.
Incorporated
A.G. Edwards & Sons, Inc.

Merrill Lynch & Co.

, 1999
<PAGE>

[picture of a typical print advertisement used by WJ, featuring model Elsa
Benitez]

Aquaflex(R), CSI Clarity(R), CSI(R), DuraSoft(R), DuraSoft 2, DuraSoft 3,
DuraSoft Optifit, Elegance, FreshLook(R), FreshLook Colorblends, Gentle Touch,
Hydrocurve, Hydrocurve II(R), Natural Touch, Optifit, Optifit Custom,
Polycon(R), Precision UV, SoftPerm(R), Wesley-Jessen(R) and WJ(R) are
trademarks of WJ and its subsidiaries.

-i-
<PAGE>

PROSPECTUS SUMMARY

This summary highlights information contained elsewhere in this prospectus.
This summary is not complete and may not contain all of the information that
you should consider before deciding to invest in our common stock. We urge you
to read this entire prospectus carefully, including the "Risk Factors" section
and our audited consolidated financial statements and the notes thereto. In
this prospectus, "WJ," "Wesley Jessen," "we," "us" or "our" each refers to
Wesley Jessen VisionCare, Inc., its consolidated subsidiaries and their
respective predecessors and "Predecessor" refers to the operations of the
Wesley Jessen division of Schering-Plough Corporation prior to its acquisition
by Bain Capital, Inc. and management on June 29, 1995. Except as otherwise
specified, all information in this prospectus assumes that the underwriters do
not exercise their over-allotment option.

Our Business

We are the leading worldwide developer, manufacturer and marketer of
specialty soft contact lenses, based on our share of the specialty lens market.
Our specialty lens products include cosmetic lenses, which change or enhance
the wearer's eye color appearance; toric lenses, which correct vision for
people with astigmatism; and premium lenses, which offer value-added features
such as improved comfort for dry eyes and protection from ultraviolet light. We
offer both conventional contact lens products, which can typically be used for
up to 24 months before replacement, and a broad range of disposable lenses,
which are intended to be replaced at least every week. Founded in 1946 by
pioneers in the contact lens industry, we have a long-standing reputation for
innovation and new product introductions. For the twelve months ended December
31, 1998, our net sales were $292.3 million and our operating income was $48.7
million.

The contact lens industry is large and rapidly growing. In 1998,
manufacturers' sales of soft contact lenses worldwide totaled $2.3 billion,
representing a compound annual growth rate of 10% from $1.1 billion in 1990.
According to industry analysts, the U.S. market for contact lenses is expected
to grow by approximately 10% per year through the year 2000. We believe that
market growth outside the United States will likely exceed domestic growth
because of lower contact lens penetration rates internationally. Future growth
in the contact lens market is expected to result from (1) continued increases
in the number of wearers, as more people use contact lenses as an alternative
to eyeglasses, and (2) increased revenues per wearer, as specialty products and
disposable lenses grow in popularity. Because the hard contact lens portion of
the industry is relatively mature, we expect that most future growth will occur
in the soft lens portion, which is comprised of the clear lens segment (lenses
that do not provide value-added features) and the specialty lens segment.

We operate primarily in the specialty segment of the soft lens market, where
we have the leading share in each of the cosmetic and premium lens segments and
the fourth leading share in the toric lens segment. We have the leading
position in the specialty segment of the soft lens market as a whole, which
accounts for one-third of industry sales volume and is projected to grow at
approximately 15% per year through the year 2000. In recent years, in both the
clear and specialty lens segments, there has been a pronounced shift in
consumers' preferences toward disposable lenses and away from conventional
lenses, which has led to a significant increase in contact lens expenditures
per wearer. We estimate that currently more than 40% of U.S. soft lens wearers
use disposable lenses, up from 21% in 1993. We believe that our leading
portfolio of disposable specialty lenses has positioned us to benefit from the
preference shift toward disposable lenses. For the first quarter of 1999,
approximately 50% of our revenues were generated from the sale of disposable
lenses as compared to 11% in 1995. We also offer a complete line of
conventional and disposable clear lenses, which are positioned as companion
products to our cosmetic lenses.

1
<PAGE>

According to an independent research firm, more than 75% of all contact lens
prescribers in the United States offer our products, which permits us to
rapidly launch new categories of products. We develop technology, manufacturing
processes and products through a combination of our in-house staff of more than
100 engineers and scientists and WJ-sponsored research by third-party experts.
We market our products (1) to consumers through one of the largest advertising
campaigns in the industry and (2) to eyecare practitioners through our 211-
person salesforce and network of more than 60 independent distributors, which
together sell our products in more than 75 countries.

We believe that several characteristics of the contact lens industry, in
addition to its projected growth, make it an attractive market for us to serve.
First, because the need for corrective eyewear is chronic, contact lens wearers
typically replace their lenses regularly over an extended period of time.
Second, contact lens wearers frequently repurchase the same brand of lenses. We
believe this occurs because a doctor's prescription is required for a change in
lenses (including a change in brands) and eyecare practitioners are reluctant
to change the contact lens brand of a satisfied wearer. The combination of
customers' needs for repeat purchases and their brand loyalty provides a
recurring revenue stream for established lens manufacturers such as Wesley
Jessen. Third, to compete successfully in the contact lens industry requires,
among other things, (1) a significant investment in sales and marketing in
order to persuade wearers to switch to a new product; (2) the development and
cost-efficient application of sophisticated manufacturing processes required to
produce contact lenses; (3) U.S. Food and Drug Administration ("FDA") product
clearances; and (4) a patent portfolio covering materials, design and
processes. As a result, no new significant competitors have entered the soft
contact lens industry in the last ten years.

Our Competitive Strengths

We believe we have achieved our leading worldwide market position in
specialty soft contact lenses because of the following competitive strengths:

. High-Quality Branded Products. We produce a broad range of high-quality
contact lenses that meet customers' demand for improved cosmetic, comfort,
ease-of-care and vision-correction features and are sold under brand names
recognized by ophthalmologists and optometrists worldwide.

. Successful Development and Introduction of New Products. We have a strong
track record of developing new specialty contact lens products, with new
product lines introduced since 1994 accounting for over 50% of our net sales in
1998.

. Broad Patent Portfolio. We believe that our intellectual property,
including more than 70 U.S. patents in product design, materials and
manufacturing processes, makes imitation of our products difficult, supports
our strong gross margins and provides us with a competitive advantage.

. Established Sales and Distribution Network. We believe our salesforce and
distributor network constitute the largest and most sophisticated sales
organization in the specialty contact lens segment. Our salesforce has focused
on developing strong relationships with eyecare practitioners by not only
serving their product needs but also offering them opportunities to increase
profitability and build their practices through the sale of our value-added
products.

. Strong International Market Presence. We derived approximately 42% of our
net sales from sales outside the United States in 1998, and our specialty
contact lens products have leading market shares in Europe, Japan and Latin
America.

. Low-Cost, Proprietary Manufacturing Capabilities. We produce substantially
all of our contact lens products in four state-of-the-art manufacturing
facilities, which apply proprietary technology, and allow us to be a flexible,
low-cost manufacturer of specialty lenses.

2
<PAGE>

. Experienced Management with a Proven Record of Improving Operating
Performance. Our senior management team averages more than 10 years of
experience in the contact lens industry, and has improved our results from
operating losses of $50.5 million in 1994 to operating income of $48.7 million
in 1998.

Our Growth Strategy

Our principal objective is to expand our contact lens business in the faster-
growing specialty segment of the market in order to achieve continued growth in
revenues and operating profit. Our business strategy is to:

. Capitalize on favorable industry trends, including continued increases in
the number of contact lens wearers and an ongoing shift among wearers from
conventional lenses to more profitable disposable lenses and from clear lenses
to specialty lenses;

. Increase our market share, using both targeted marketing to eyecare
practitioners and direct consumer advertising;

. Develop and successfully launch new products, particularly category-
creating products such as our new lines of disposable toric lenses and
disposable specialty color lenses, since industry dynamics have historically
provided considerable advantages to a firm that successfully introduces the
first product in a category;

. Increase the international penetration of our products, both in countries
where we have market leadership positions and in new markets; and

. Benefit from our significant operating leverage, by utilizing our
manufacturing capacity, investing in new low-cost manufacturing technologies
and achieving economies of scale in development, manufacturing, distribution
and administration.

Our History

We were founded in 1946 by contact lens pioneers Drs. Newton K. Wesley and
George Jessen, after the two doctors discovered that hard contact lenses could
be used to prevent a rare sight-threatening eye disease suffered by Dr. Wesley.
Originally known as The Plastic Contact Lens Company, we went on to pioneer the
design, manufacturing and fitting techniques of hard contact lenses. From 1980
to 1995, we operated as a wholly owned subsidiary of Schering-Plough
Corporation ("Schering-Plough"). On June 29, 1995, Bain Capital, Inc. ("Bain
Capital"), together with new and certain then-existing members of management
acquired the Predecessor in a leveraged acquisition.

On October 2, 1996, we acquired substantially all the assets and assumed
certain liabilities of the contact lens business of the Barnes-Hind division of
Pilkington plc ("Barnes-Hind"). Founded in 1939, Barnes-Hind is widely
recognized in the contact lens industry as a leader in product and material
innovation and design. At the time of the acquisition, Barnes-Hind was the
third largest manufacturer of specialty contact lenses in the world, with a
leading market position in premium and toric lenses.

WJ is a Delaware corporation organized in May 1995. We completed the initial
public offering of our common stock in February 1997. Our principal executive
offices are located at 333 East Howard Avenue, Des Plaines, Illinois 60018-5903
and our telephone number is (847) 294-3000.

3
<PAGE>

The Offering

<TABLE>
<C> <S>
Common stock offered by the selling
stockholders................................. 4,600,000 shares
Common stock outstanding after this offering.. 17,172,219 shares
Use of proceeds............................... We are not selling shares in this offering
and will not receive any of the proceeds from
the sale of the shares offered hereby.
Nasdaq National Market symbol................. "WJCO"
</TABLE>

The common stock to be outstanding after this offering is based on shares
outstanding as of May 24, 1999 and excludes: (1) 2,753,029 shares of common
stock reserved for issuance upon the exercise of outstanding options and (2)
1,823,635 shares of common stock reserved for issuance to employees or non-
employee directors under our stock incentive plans (collectively, the "Stock
Plans"). See "Management."

4
<PAGE>

Summary Consolidated Financial Data
(in thousands, except per share amounts)

The following table presents summary consolidated financial data for WJ for
the periods and dates indicated. The data presented in this table are derived
from "Selected Historical Consolidated Financial Data" and our audited
consolidated financial statements and the notes thereto which are included
elsewhere in this prospectus. You should read those sections for a further
explanation of the financial data summarized here.

<TABLE>
<CAPTION>
Twelve Months
Ended Three Months
December 31, Ended,
---------------------------- ------------------
March 28, April 3,
1996 1997 1998 1998 1999
-------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C>
Statement of Operations Data:
Net sales.................... $156,752 $282,178 $292,259 $70,595 $76,311
Operating costs and expenses:
Cost of goods sold.......... 43,152 92,780 90,471 21,939 25,118
Cost of goods sold --
inventory step-up.......... 20,706 22,666 -- -- --
Marketing and
administrative............. 88,274 137,650 143,309 37,563 38,403
Research and development.... 7,178 11,997 10,818 2,386 2,873
Amortization of intangible
assets (negative
goodwill).................. (784) (862) (997) (274) (229)
-------- -------- -------- ------- -------
Income (loss) from
operations.................. (1,774) 17,947 48,658 8,981 10,146
Other (income) expenses:
Interest expense, net....... 5,385 5,559 4,811 996 1,023
Other income, net........... (3,051) -- -- -- --
-------- -------- -------- ------- -------
Income (loss) before income
taxes and extraordinary
loss........................ (4,108) 12,388 43,847 7,985 9,123
Income tax (expense)
benefit..................... 3,037 (4,188) (14,250) (2,715) (2,919)
-------- -------- -------- ------- -------
Net income (loss) before
extraordinary loss.......... (1,071) 8,200 29,597 5,270 6,204
Extraordinary loss, net of
tax benefit................. (1,671) (4,902) -- -- --
-------- -------- -------- ------- -------
Net income (loss)............ $ (2,742) $ 3,298 $ 29,597 $ 5,270 $ 6,204
======== ======== ======== ======= =======
Net income (loss) per common
share:
Basic:
Income (loss) before
extraordinary loss......... $ (0.07) $ 0.49 $ 1.70 $ 0.30 $ 0.36
Extraordinary loss, net of
income tax benefit......... $ (0.12) $ (0.29) -- -- --
Net income (loss)........... $ (0.19) $ 0.20 $ 1.70 $ 0.30 $ 0.36
Diluted:
Income (loss) before
extraordinary loss......... $ (0.07) $ 0.45 $ 1.57 $ 0.27 $ 0.34
Extraordinary loss, net of
income tax benefit......... $ (0.12) $ (0.27) -- -- --
Net income (loss)........... $ (0.19) $ 0.18 $ 1.57 $ 0.27 $ 0.34
Weighted average common
shares outstanding:
Basic....................... 14,638 16,898 17,432 17,784 17,039
Diluted..................... 14,638 18,451 18,904 19,396 18,455
</TABLE>

<TABLE>
<CAPTION>
December 31, April 3,
1998 1999
------------ ----------
<S> <C> <C>
Balance Sheet Data:
Working capital......................................... $ 83,717 $ 86,739
Total assets............................................ 204,518 202,235
Total debt.............................................. 69,000 72,000
Stockholders' equity.................................... $ 49,952 $ 55,327
</TABLE>

5
<PAGE>

RISK FACTORS

You should consider, in addition to the other information set forth elsewhere
in this prospectus, the following matters in evaluating WJ and our common stock
offered hereby.

We operate in the highly competitive contact lens market and compete against
larger contact lens manufacturers.

The contact lens market is highly competitive. We face competition from other
companies within each segment of the contact lens market in which we operate.
In the specialty segment of the market, we principally compete with divisions
of large medical and pharmaceutical companies as well as with smaller
companies. To the extent we operate in the clear lens segment, we face
competition primarily from Vistakon (a division of Johnson & Johnson) and other
large contact lens manufacturers. Certain of our competitors in each segment
have lower costs of operations, products with enhanced features, substantially
greater resources to invest in product development and customer support,
greater vertical integration and greater access to financial and other
resources than WJ. To a lesser extent, we also compete with manufacturers of
eyeglasses and other forms of vision correction such as surgical refractive
procedures, including new refractive laser procedures like PRK, or
photorefractive keratectomy, and like LASIK, or laser in situ keratomileusis.
If surgical refractive procedures become increasingly accepted as an effective
and safe technique for permanent vision correction, they could substantially
reduce the demand for contact lenses by enabling patients to avoid the ongoing
cost and inconvenience of contact lenses. We cannot assure you that we will not
encounter increased competition in the future, particularly from large
manufacturers of clear lenses that have entered or are seeking to enter the
specialty lens segment, which could have a material adverse effect on our
financial condition or results of operations.

The contact lens industry has experienced significant growth in recent years.
We cannot assure you that such growth will continue in the future or that a
general economic slowdown or recession will not have a material adverse effect
on our results of operations. During 1998, the average selling prices for
disposable clear lenses declined significantly due to competitive market
conditions. Because we operate primarily in the specialty segment of the
market, these competitive conditions did not require us to reduce the prices
for our specialty lens products. Further declines in the prices of disposable
clear lenses could, however, cause decreased demand for our products if
consumers begin to substitute clear lenses for our products because of the
price difference. We cannot assure you that competitive market conditions will
not result in further declines in the prices for disposable clear lenses or
that we will not have to reduce our prices to remain competitive. In addition,
we believe that we currently benefit from significant advertising expenditures
by certain of our competitors, which serve to raise consumer awareness of the
benefits of disposable contact lenses. We cannot assure you that our operations
would not be adversely affected in the event such advertising campaigns were
discontinued or substantially reduced.

Our success depends in part on our ability to develop new and enhanced products
for the soft contact lens market.

The specialty segment of the soft contact lens market is characterized by
rapid technological advancements and new product innovations. We believe that
the manufacturer who is the first to introduce a new product in a particular
category is likely to maintain the leading market share in such category.
Although we have in the past been successful in attaining an early market share
lead in new product categories, we cannot assure you that we will be successful
in doing so in the future. In addition, the expense involved in developing new
products, as well as the cost of obtaining regulatory approval to market such
products, can be substantial. We cannot assure you that such new products will
be successful in the marketplace and, as a result, justify the expenses
involved in their development and approval. In addition, we cannot assure you
that our competitors will not develop

6
<PAGE>

new products or technology which will lead to the obsolescence of our products,
which could have a material adverse effect on our business, financial condition
or results of operations.

We are subject to risks associated with manufacturing our products at our four
dedicated facilities and relying on single source suppliers from time to time.

We produce substantially all of our contact lens products in four state-of-
the-art manufacturing facilities. Each facility is dedicated to producing a
particular type of contact lens. As a result, any prolonged disruption in the
operations of any one of our facilities, whether due to technical or labor
difficulties, destruction of or damage to any facility or other reasons, could
have a material adverse effect on our financial condition or results of
operations.

We utilize a number of advanced polymers and other sophisticated materials in
the production of our contact lenses. Due to the highly technical and
specialized nature of certain of our production materials, we rely from time to
time on a single supplier to provide us with sufficient quantities of certain
materials used in the production of one or more of our product lines. To
minimize our reliance on a particular vendor, we continually seek to identify
multiple vendors qualified to supply our production materials and currently
have only two materials that are significant to our operations that are
available from a single source. Although we believe that we are not dependent
on any single supplier, our inability to obtain sufficient quantities of
certain production inputs could have a material adverse effect on our financial
condition or results of operations.

We are subject to certain operational, financial, political and foreign
exchange risks due to our significant level of international sales.

We derived approximately 42% of our net sales from the sale of products
outside the United States in the twelve months ended December 31, 1998. We
expect that sales to international customers will continue to represent a
significant portion of our net sales. Risks inherent in our international
business activities generally include difficulties and unexpected changes in
the regulatory environment, currency fluctuation risk, longer accounts
receivable payment cycles and greater difficulty in collecting accounts
receivable, costs and risks associated with localizing products for foreign
countries, the burdens of complying with foreign laws, tariffs and other trade
barriers, trade embargoes, political instability and difficulties in staffing
and managing foreign operations. In addition, the laws of certain countries in
which our products are or may be sold may not provide our products and
intellectual property rights with the same degree of protection as the laws of
the United States. We cannot assure you that these factors or other factors
relating to our international business operations will not have a material
adverse effect on our financial condition or results of operations.

We are dependent to a large degree on the services of our senior management
team.

We are dependent to a large degree on the services of our senior management
team, including Kevin J. Ryan, Chairman, President and Chief Executive Officer.
While Mr. Ryan has entered into an employment agreement with us, there can be
no assurance that he or other members of the senior management team will remain
with us. The loss of any of these individuals could have a material adverse
effect on our financial condition or results of operations. As of March 31,
1999, our senior management team collectively owned 196,398 shares of common
stock and held options to purchase an additional 1,687,115 shares of common
stock, representing on a fully-diluted basis approximately 10% of the
outstanding common stock. Each employee's options expire upon or shortly
following the termination of such person's employment with WJ for any reason.
See "Management--Employment Agreements."

7
<PAGE>

Our business may be adversely impacted by our indebtedness, which requires the
use of a substantial amount of our cash flow.

As of April 3, 1999, we had approximately $72.0 million of long-term
indebtedness. Subject to the restrictions in our bank credit agreement, we may
incur additional indebtedness from time to time to finance acquisitions or
capital expenditures or for other purposes. The level of our indebtedness could
have important consequences, including:

. a substantial portion of our cash flow from operations must be dedicated
to debt service and will not be available for other purposes;

. our ability to obtain additional debt financing in the future for
working capital, capital expenditures or acquisitions may be limited;
and

. our level of indebtedness could limit our flexibility in reacting to
changes in the industry and economic conditions generally. Certain of
our competitors currently have greater operating and financing
flexibility than us.

We believe that, based upon current levels of operations, we should be able
to meet our debt service obligations when due. Our ability to service such
indebtedness, however, will be dependent on our future performance, which will
be affected by prevailing economic conditions and financial, business and other
factors, certain of which are beyond our control. In addition, our bank credit
agreement imposes certain operating and financial restrictions on us.

We cannot assure you that we will be successful in our efforts to make
strategic acquisitions.

We expect to continue to seek acquisitions, joint ventures or other strategic
arrangements that would enable us to expand our existing product line, broaden
our geographic coverage or allow us to offer complementary product lines. We
cannot assure you that we will continue to acquire businesses or establish such
arrangements on satisfactory terms or that any acquired business will be
integrated successfully into our operations or be able to operate profitably.
Future acquisitions or other strategic arrangements could require additional
financing, which could result in an increase in our indebtedness.

Our manufacturing facilities and products are subject to stringent regulation
by the FDA and by various state, local and foreign jurisdictions in which our
products are manufactured and/or sold.

Our manufacturing facilities and products are subject to stringent regulation
by the FDA and by various governmental agencies for the states and localities
in which our products are manufactured and/or sold, as well as by governmental
agencies in certain foreign countries in which our products are manufactured
and/or sold. Pursuant to the Federal Food, Drug, and Cosmetic Act (the "FDC
Act"), and the regulations promulgated thereunder, the FDA regulates the
preclinical and clinical testing, manufacture, labeling, distribution and
promotion of medical devices such as contact lenses. Noncompliance with
applicable requirements can result in, among other things, fines, injunctions,
civil penalties, recall or seizure of products, total or partial suspension of
production, failure of the government to grant premarket clearance or premarket
approval for devices, withdrawal of marketing clearances or approvals and
criminal prosecution. The FDA also has the authority to request the recall,
repair, replacement or refund of the cost of any device manufactured or
distributed by us. In addition, as we continue to expand internationally, we
will be subject to regulations in most of the foreign countries in which we
sell our products; such regulations may or may not be similar to those of the
FDA. Compliance with U.S. and foreign governmental regulations, which are
subject to change, can delay new product introduction and may have a material
adverse effect on our financial condition or results of operations.

8
<PAGE>

Under the FDC Act, products developed by us, and significant changes or
modifications to existing products, generally require FDA clearance ("510(k)
clearance") pursuant to the Section 510(k) notification process ("510(k)
notice") or approval of a premarket approval application ("PMA"). We
manufacture and market contact lenses which have received 510(k) clearances as
well as lenses which have been the subject of approved PMA applications.

We have made modifications to our products which we believe do not require
the submission of new 510(k) notices or PMA supplements. There can be no
assurance, however, that the FDA would agree with any of our determinations not
to submit a new 510(k) notice or PMA supplement for any of these changes or
would not require us to submit a new 510(k) notice or PMA supplement for any of
the changes made to the device. If the FDA requires us to submit a new 510(k)
notice or PMA supplement for any device modification, we may be prohibited from
marketing the modified device until the 510(k) notice or PMA supplement is
cleared or approved by the FDA.

The process of obtaining FDA approvals is lengthy, expensive and uncertain.
Moreover, approvals, if granted, may limit the uses for which a product may be
marketed. No assurance can be given that future changes in the FDC Act or the
FDAs regulations will not have a material adverse effect on any FDA clearance
or approval previously received with respect to our products.

In addition, we cannot assure you that the selling and prescribing practices
for contact lenses will not change at some point in the future. These changes
could have a material adverse effect on our business, results of operations or
financial condition. We are aware of a pending lawsuit against other
manufacturers of contact lenses challenging certain of their selling and
distribution practices. We have not been named in this lawsuit.

Our products are also subject to regulation in other countries in which we
sell our products. The laws and regulations of such countries range from
comprehensive medical device approval procedures such as those described above
to simple requests for product data or certifications. The number and scope of
these laws and regulations are increasing. Specifically, our products are
subject to the "CE marking" approval process in the European Union ("EU").
Additional approvals from foreign regulatory authorities may be required for
international sale of our products in non-EU countries. Failure to comply with
applicable regulatory requirements can result in the loss of previously
received approvals and other sanctions and could have a material adverse effect
on our business, financial condition and results of operations.

Our business could be adversely affected if we are unable to protect our
intellectual property rights.

We consider certain of our intellectual property rights, including patents,
trademarks and licensing agreements, to be an integral component of our
business. Our policy is to file patent applications to protect technology,
inventions and improvements that are considered important to the development of
our business. We cannot assure you that the patent applications filed by us
will result in the issuance of patents or that any of our intellectual property
will continue to provide competitive advantages for our products or will not be
challenged, circumvented by others or invalidated. Our policy is to
aggressively prosecute and defend our patents and other proprietary technology.
The prosecution and defense of intellectual property protection, like any
lawsuit, is inherently uncertain and carries no guarantee of success. The
protection of intellectual property in certain foreign countries is
particularly uncertain.

We face an inherent risk of exposure to product liability claims in the event
that the use of our products results in personal injury.

We face an inherent risk of exposure to product liability claims in the event
that the use of our products results in personal injury. Although we have not
experienced any material losses due to

9
<PAGE>

product liability claims, we cannot assure you that we will not experience such
losses in the future. Also, in the event that any of our products prove to be
defective, we may be required to recall or redesign such products. We maintain
insurance against product liability claims, but there can be no assurance that
such coverage will be adequate to cover any liabilities that we may incur or
that such insurance will continue to be available on terms acceptable to us. A
successful claim brought against us in excess of available insurance coverage,
or any claim or product recall that results in significant adverse publicity
against us, may have a material adverse effect on our financial condition or
results of operations.

Certain provisions of our charter documents and Delaware law could discourage
potential acquisitions proposals and could delay, deter or prevent a change in
control.

Certain provisions of our certificate of incorporation and by-laws may
inhibit changes in control of WJ not approved by our board of directors. These
provisions include:

. a classified board of directors;

. a prohibition on stockholder action through written consents;

. a requirement that special meetings of stockholders be called only by
the board of directors or our chief executive officer;

. advance notice requirements for stockholder proposals and nominations;

. limitations on the ability of stockholders to amend, alter or repeal the
by-laws; and

. the authority of the board to issue without stockholder approval
preferred stock with such terms as the board may determine.

We are also afforded the protections of Section 203 of the Delaware General
Corporation Law, which could have similar effects. See "Description of Capital
Stock."

We do not expect to pay dividends on our common stock for the foreseeable
future.

Trading in our shares has in the past been, and could in the future be, subject
to price and volume fluctuations.

The market for our shares has in the past been, and could in the future be,
subject to price and volume fluctuations. We believe that a number of factors,
both within and outside our control, could cause the price of our common stock
to fluctuate. These factors include, but are not limited to:

. announcements of developments related to our business or our
competitors' or customers' businesses;

. fluctuations in our financial results;

. general conditions or developments in the contact lens market;

. potential sales of our common stock into the marketplace by WJ or our
stockholders;

. announcements of technological innovations or new or enhanced products
by us or our competitors or customers;

10
<PAGE>

. FDA regulatory actions or litigation by competitors seeking to enjoin us
from manufacturing or selling our products;

. a shortfall in revenue, gross margin, earnings or other financial
results or changes in research analysts expectations; and

. the limited number of shares of our common stock traded on a daily
basis.

We cannot be certain that the market price of our common stock will not
experience significant fluctuations in the future, including fluctuations that
are material, adverse and unrelated to our performance.

Our failure to identify and remediate all material Year 2000 risks could
significantly disrupt our business if we are forced to devote substantial
resources to Year 2000 remediation efforts, or if Year 2000 problems among our
suppliers or customers cause delays in shipping or receiving products.

We have implemented a multi-phase Year 2000 project consisting of assessment
and remediation, and testing following remediation. We cannot, however, be
certain that we have identified all of the potential risks. Failure by us to
identify and remediate all material Year 2000 risks could adversely affect our
business, financial condition and results of operations. We have identified the
following risks you should be aware of:

. we cannot be certain that the entities on whom we rely for certain goods
and services that are important for our business will be successful in
addressing all of their software and systems problems in order to
operate without disruption in the year 2000 and beyond;

. we cannot be certain that all defects in hardware and software
(including embedded chips) used in our production equipment have been
identified and will be fully remediated on a timely basis;

. our customers or potential customers may be affected by Year 2000 issues
that may, in part:

--cause a reduction, delay or cancellation of customer orders

--cause a delay in payments for products shipped

--cause customers to expend significant resources on Year 2000
compliance matters, rather than investing in our products; and

. we have not fully developed a contingency plan related to a failure of
our, or a third-party's, Year 2000 remediation efforts and may not be
prepared for such an event.

The forward-looking statements contained in this prospectus are based on our
predictions of future performance. As a result, you should not place undue
reliance on these forward-looking statements.

This prospectus contains forward-looking statements within the meaning of
Section27A of the Securities Act. Such forward-looking statements are based on
the beliefs of our management as well as on assumptions made by and information
currently available to us at the time such statements were made. When used in
this prospectus, the words "anticipate," "believe," "estimate," "expect,"
"intends," and similar expressions, as they relate to us are intended to
identify forward-looking statements, which include statements relating to,
among other things,

. the ability of WJ to continue to compete successfully in the contact
lens market;

. the anticipated benefits from new product introductions;

. the continued effectiveness of our sales and marketing strategy;

11
<PAGE>

. the ability of WJ to continue to successfully develop and launch new
products;

. the timely resolution of the Year 2000 issue by WJ and our suppliers;
and

. the Euro conversion.

Actual results could differ materially from those projected in the forward-
looking statements as a result of the matters discussed herein under heading
"Risk Factors" and certain economic and business factors, some of which may be
beyond our control.

USE OF PROCEEDS

We are not selling shares of common stock in this offering and will not
receive any of the proceeds from the sale of the shares of common stock offered
hereby.

MARKET PRICE FOR COMMON STOCK

Our common stock is traded on the Nasdaq National Market ("Nasdaq") under the
symbol "WJCO." Our common stock commenced trading on February 13, 1997. The
following table sets forth the high and low sale prices per share for our
common stock as reported by Nasdaq for the period indicated:

<TABLE>
<CAPTION>
High Low
------ ------
<S> <C> <C>
1997:
First Quarter (from February 13, 1997) ................ $16.75 $14.63
Second Quarter......................................... 25.88 13.00
Third Quarter.......................................... 31.00 22.50
Fourth Quarter......................................... 39.00 26.25
1998:
First Quarter.......................................... $40.25 $31.38
Second Quarter......................................... 35.63 18.19
Third Quarter.......................................... 26.38 16.13
Fourth Quarter......................................... 28.25 16.13
1999:
First Quarter.......................................... $28.13 $20.25
Second Quarter (through May 24, 1999).................. 35.50 26.63
</TABLE>

As of the close of business on May 24, 1999, we had approximately 204 holders
of record of our common stock. We believe that there are a significantly larger
number of beneficial holders of our common stock. A recent reported last sale
price of our common stock on Nasdaq is set forth on the cover page of this
prospectus.

DIVIDEND POLICY

Since our incorporation in 1995, we have not declared or paid any cash or
other dividends on our common stock and do not expect to pay dividends for the
foreseeable future. Instead, we currently intend to retain earnings to support
our growth strategy and reduce indebtedness. As a holding company, our ability
to pay dividends in the future is dependent upon the receipt of dividends or
other payments from our principal operating subsidiary. Our bank credit
agreement permits the payment of dividends of up to $3.0 million annually plus
certain excess cash available at the time of payment, if any. Any future
determination to pay dividends will be at the discretion of our board of
directors and will depend upon, among other factors, our results of operations,
financial condition, capital requirements and contractual restrictions.

12
<PAGE>

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
(in thousands, except per share amounts)

Set forth below are selected historical consolidated financial data of the
Predecessor and WJ for the dates and for the periods indicated. The selected
historical consolidated financial data of the Predecessor as of December 31,
1994 and for the year ended December 31, 1994 and the period from January 1,
1995 through June 28, 1995, were derived from the historical financial
statements of the Predecessor that were audited by PricewaterhouseCoopers LLP.
The selected historical consolidated financial data of WJ as of December 31,
1995, 1996, 1997 and 1998 and for the period from June 29, 1995 through
December 31, 1995 for the years ended December 31, 1996, 1997 and 1998 were
derived from the historical financial statements of WJ that were audited by
PricewaterhouseCoopers LLP. The selected historical consolidated financial data
of WJ for the three months ended March 28, 1998 and April 3, 1999 have been
derived from unaudited financial statements of WJ and reflect all adjustments
which, in the opinion of management, are necessary for a fair presentation of
the consolidated financial statements for an interim period. All such
adjustments are of a normal, recurring nature. Results of operations for an
interim period are not necessarily indicative of results for the full year. The
information in this table should be read in conjunction with, and are qualified
by reference to, "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and our audited consolidated financial statements
and the notes thereto which are included elsewhere in this prospectus.

<TABLE>
<CAPTION>
Predecessor WJ
---------------------- -----------------------------------------------------------------------
Twelve January 1 June 29 Twelve Months Ended December 31, Three Months Ended
Months Ended through through -------------------------------------- ------------------
December 31, June 28, December 31, March 28, April 3,
1994 1995 1995 1995(a) 1996 1997 1998 1998 1999
------------ --------- ------------ -------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Statement of Operations
Data:
Net sales................ $109,640 $ 51,019 $ 54,315 $105,334 $156,752 $282,178 $292,259 $70,595 $76,311
Operating costs and expenses:
Cost of goods sold...... 65,591 20,871 19,916 38,442 43,152 92,780 90,471 21,939 25,118
Cost of goods sold
--inventory step-up.... -- -- 33,929 -- 20,706 22,666 -- -- --
Marketing and
administrative......... 79,185 43,236 29,476 69,162 88,274 137,650 143,309 37,563 38,403
Research and
development............ 9,843 4,569 2,524 4,677 7,178 11,997 10,818 2,386 2,873
Amortization of
intangible assets
(negative goodwill).... 5,472 2,736 (392) (784) (784) (862) (997) (274) (229)
-------- --------- -------- -------- -------- -------- -------- ------- -------
Income (loss) from
operations.............. (50,451) (20,393) (31,138) (6,163) (1,774) 17,947 48,658 8,981 10,146
Other (income) expenses:
Interest expense, net... -- -- 2,599 4,889 5,385 5,559 4,811 996 1,023
Financing charge........ 7,172 3,511 -- -- -- -- -- -- --
Other income, net....... (202) (1,360) -- (1,360) (3,051) -- -- -- --
-------- --------- -------- -------- -------- -------- -------- ------- -------
Income (loss) before
income taxes and
extraordinary loss...... (57,421) (22,544) (33,737) (9,692) (4,108) 12,388 43,847 7,985 9,123
Income tax (expense)
benefit................. 26,935 9,401 14,022 4,032 3,037 (4,188) (14,250) (2,715) (2,919)
-------- --------- -------- -------- -------- -------- -------- ------- -------
Net income (loss) before
extraordinary loss...... (30,486) (13,143) (19,715) (5,660) (1,071) 8,200 29,597 5,270 6,204
Extraordinary loss, net
of tax benefit.......... -- -- -- -- (1,671) (4,902) -- -- --
-------- --------- -------- -------- -------- -------- -------- ------- -------
Net income (loss)........ $(30,486) $ (13,143) $(19,715) $ (5,660) $ (2,742) $ 3,298 $ 29,597 $ 5,270 $ 6,204
======== ========= ======== ======== ======== ======== ======== ======= =======
</TABLE>

13
<PAGE>

<TABLE>
<CAPTION>
Predecessor WJ
---------------------- --------------------------------------------------------------------
Twelve Months Ended
Twelve January 1 June 29 December 31, Three Months Ended
Months Ended through through ------------------------------------ ------------------
December 31, June 28, December 31, March 28, April 3,
1994 1995 1995 1995(a) 1996 1997 1998 1998 1999
------------ --------- ------------ ------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net income (loss) per
common share (b):
Basic:
Income (loss) before
extraordinary loss.... $ (1.37) $ (0.07) $ 0.49 $ 1.70 $ 0.30 $ 0.36
Extraordinary loss, net
of income tax
benefit............... -- $ (0.12) $ (0.29) -- -- --
Net income (loss)...... $ (1.37) $ (0.19) $ 0.20 $ 1.70 $ 0.30 $ 0.36
Diluted:
Income (loss) before
extraordinary loss.... $ (1.37) $ (0.07) $ 0.45 $ 1.57 $ 0.27 $ 0.34
Extraordinary loss, net
of income tax
benefit............... -- $ (0.12) $ (0.27) -- -- --
Net income (loss)...... $ (1.37) $ (0.19) $ 0.18 $ 1.57 $ 0.27 $ 0.34
Weighted average common
shares outstanding:
Basic.................. 14,416 14,638 16,898 17,432 17,784 17,039
Diluted................ 14,416 14,638 18,451 18,904 19,396 18,455
Balance Sheet Data
(at end of period):
Working capital......... $ 30,940 $ 30,262 $ 77,747 $ 65,835 $ 83,717 $ 78,893 $ 86,739
Total assets............ 191,429 67,330 180,600 173,076 204,518 178,722 202,235
Total debt.............. -- 42,000 102,975 57,000 69,000 62,000 72,000
Stockholders equity
(deficit).............. $173,409 $(12,190) $(13,292) $ 36,846 $ 49,952 $ 44,289 $ 55,327
</TABLE>
- -------
(a)The pro forma operating results for the year ended December 31, 1995 combine
the operations of the Predecessor from January 1, 1995 through June 28, 1995
and WJ from June 29, 1995 through the end of the period and have been
adjusted to reflect the period as if the acquisition of WJ and related
financing transaction had occurred on January 1, 1995. Because of the
purchase accounting adjustments made to the Predecessor's financial
statements, the financial statements of the Predecessor for the periods prior
to June 29, 1995 are not comparable to those of subsequent periods. The
combined pro forma data are intended to assist in making comparisons for
periods prior to the acquisition of Barnes-Hind. See "Management's Discussion
and Analysis of Financial Condition and Results of Operations" and the Notes
to Consolidated Financial Statements of WJ included herein.
(b)No historical earnings per share data is presented for periods prior to 1995
as we do not consider such data to be meaningful.

14
<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We are the leading worldwide developer, manufacturer and marketer of
specialty soft contact lenses, based on our share of the specialty lens market.
Our specialty lens products include cosmetic lenses, which change or enhance
the wearer's eye color appearance; toric lenses, which correct vision for
people with astigmatism; and premium lenses, which offer value-added features
such as improved comfort for dry eyes and protection from ultraviolet light.
Founded in 1946 by pioneers in the contact lens industry, we have a long-
standing reputation for innovation and new product introductions. We develop
technology, manufacturing processes and products through a combination of our
in-house staff of more than 100 engineers and scientists and Company-sponsored
research by third-party experts. We market and sell our products to consumers
through the second largest advertising campaign in the industry and to eyecare
practitioners through our 211-person salesforce and network of independent
distributors, which together sell our products in more than 75 countries.

Wesley Jessen Acquisition

On June 29, 1995, Bain Capital, together with new and certain then-existing
members of management, acquired the Wesley Jessen contact lens business from
Schering-Plough (the "Wesley Jessen Acquisition"). The cash purchase price in
the Wesley Jessen Acquisition of $47.0 million (plus fees and expenses of $3.5
million) was funded with $7.5 million of equity and $43.0 million of borrowings
under a bank credit agreement. The aggregate purchase price in the Wesley
Jessen Acquisition, including assumed liabilities, was $76.6 million. The
Wesley Jessen Acquisition was accounted for under the purchase method of
accounting. As a result of the Wesley Jessen Acquisition, we recognized a
significant non-cash increase in cost of goods sold of $6.6 million in 1996
related to the amortization of Wesley Jessen purchased inventory step-up to
fair value at the acquisition date. An adjustment for this non-recurring charge
has been reflected in the pro forma column of our Unaudited Statement of
Operations Data. See "Results of Operations."

Barnes-Hind Acquisition

On October 2, 1996, we acquired the contact lens business of Pilkington plc,
operating as the Pilkington Barnes-Hind Group (the "Barnes-Hind Acquisition").
The Barnes-Hind Acquisition was completed for a total purchase price of $117.6
million, consisting of cash paid of $62.3 million and liabilities assumed of
$55.3 million. In addition, we paid acquisition-related fees and expenses of
$4.4 million. The acquisition was financed through borrowings on our then-
existing credit agreement and a $5.0 million seller note.

In connection with the Barnes-Hind Acquisition, we entered into a voluntary
consent order with the Federal Trade Commission, which required, among other
things, that we divest Barnes-Hind's U.S. Natural Touch product line. On March
17, 1997, we completed the sale of the product line for which we received
aggregate consideration of $7.5 million, consisting of $3.0 million in cash and
a four-year $4.5 million promissory note which accrues interest at a compound
rate of 12% per annum, 8% of which is payable currently and 4% of which is
payable-in-kind. On July 31, 1997, the purchaser made a voluntary prepayment of
$3.0 million on the promissory note. On May 7, 1998, the purchaser made an
additional voluntary prepayment of $1.0 million. As part of the divestiture
agreement, we also entered into a supply agreement pursuant to which we will
supply the purchaser with Natural Touch lenses for sale in the United States
and granted licenses to the purchaser applicable to certain Barnes-Hind
patents.

15
<PAGE>

In connection with the Barnes-Hind Acquisition, we identified significant
operating synergies and substantial cost saving opportunities. We have
completed the majority of our initial cost reduction measures which, as
expected, have improved our operating results. We announced the closing of our
manufacturing operations in San Diego, California, expected to be substantially
completed by March 2000, with a shift of conventional lens production to our
plant in Cidra, Puerto Rico. We believe this consolidation of facilities will
generate additional cost savings and further operating leverage. However, there
can be no assurance that we will be able to achieve such cost savings in future
periods.

As a result of the Barnes-Hind Acquisition, we incurred significant non-
recurring charges as follows: (1) a non-cash increase in cost of goods sold of
$14.1 million in 1996 and $22.7 million in 1997 related to the amortization of
the Barnes-Hind purchased inventory step-up to fair value at the acquisition
date; and (2) extraordinary debt extinguishment costs of $2.8 million ($1.7
million, net of income tax benefit) in 1996 related to the write-off of
capitalized financing fees incurred in connection with the refinancing of our
then-existing credit agreement. Adjustments for these non-recurring charges and
expected cost savings related to the reduction of certain operating expenses
including the consolidation of corporate offices, a reduction in the number of
corporate level employees and related expenses and the curtailment of certain
manufacturing activities have been reflected in the pro forma columns of our
Unaudited Statement of Operations Data. See "'Results of Operations."

The IPO and the 1997 Offering

In February 1997, we consummated an initial public offering (the "IPO") of
2.8 million shares of our common stock at $15.00 per share. In August 1997, we
completed a secondary public offering (the "1997 Offering") of 4.3 million
shares of our common stock at $23.50 per share, of which 3.8 million shares
were sold by certain selling stockholders and 0.5 million shares were sold by
us.

In connection with the IPO, we incurred a non-recurring charge for
extraordinary debt extinguishment costs of $7.4 million ($4.9 million, net of
income tax benefit) related to the write-off of capitalized financing fees
incurred in connection with the Barnes-Hind Acquisition financing.
Additionally, we incurred and capitalized financing fees of $2.5 million, which
are being amortized over 60 months.

In September 1997, in connection with the 1997 Offering, we entered into an
amended bank credit agreement which increased the total borrowing availability
thereunder to $135.0 million, converted all of our remaining term loan
borrowings into revolving loans, and reduced the interest rate thereunder. We
incurred an additional $0.6 million of fees and expenses associated with the
amended bank credit agreement. These costs have been capitalized and are being
amortized through September 2002.

Interest expense reductions as if the IPO had occurred on January 1, 1996 are
reflected in the pro forma columns of our Unaudited Statement of Operations
Data. See "Results of Operations." However, there can be no assurance that our
interest expense will not increase in future periods either as a result of
increased borrowings or higher interest rates.

Results of Operations

The Wesley Jessen and Barnes-Hind Acquisitions occurred on June 29, 1995 and
October 2, 1996, respectively. Because of the revaluation of the assets and
liabilities, the related impact on cost of sales and expenses and the several
cost-reduction and operating improvements undertaken in connection with such
acquisitions, the financial statements of WJ for the years ended December 31,
1998, 1997 and 1996 are not comparable. In addition, we completed our IPO in
February 1997, which had a significant impact on our on-going interest expense.
To improve the comparability of our last three

16
<PAGE>

fiscal years, and to assist the reader in better understanding the changes in
our operations over such periods, we have set forth below certain pro forma
operating results for the years ended December 31, 1996 and 1997 giving effect
to the cost-reduction and operating improvements as if such transactions
occurred on January 1, 1996. The pro forma adjustments are set forth in the
notes to the table. The pro forma information included herein for the prior
year periods is presented for informational purposes only and should not be
viewed as a substitute for our results of operations calculated in accordance
with generally accepted accounting principles. In addition, the following pro
forma information does not purport to represent the results of operations of WJ
had such transactions in fact occurred on such date, nor does it purport to be
indicative of the results of operations of any future periods. The following
pro forma information should be read in conjunction with our audited
consolidated financial statements and the notes thereto included elsewhere in
this prospectus.

Unaudited Statement of Operations Data
(in thousands, except per share data)

<TABLE>
<CAPTION>
Three
Twelve Months Ended December 31, Months Ended
------------------------------------------------ -----------------------
Pro Pro
Actual Forma Actual Forma Actual March 28, April 3,
1996 1996(a) 1997 1997(b) 1998 1998 1999
-------- -------- -------- -------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales............... $156,752 $249,999 $282,178 $282,178 $292,259 $70,595 $76,311
Operating costs and
expenses:
Cost of goods sold..... 63,858 86,568 115,446 92,780 90,471 21,939 25,118
Marketing and
administrative........ 88,274 127,030 137,650 136,565 143,309 37,563 38,403
Research and
development........... 7,178 12,050 11,997 11,997 10,818 2,386 2,873
Amortization of
goodwill, net......... (784) (784) (862) (862) (997) (274) (229)
-------- -------- -------- -------- -------- ------- -------
Income (loss) from
operations............ (1,774) 25,135 17,947 41,698 48,658 8,981 10,146
Other (income) expense:
Interest expense, net.. 5,385 5,809 5,559 5,148 4,811 996 1,023
Other income, net...... (3,051) (3,051) -- -- -- -- --
-------- -------- -------- -------- -------- ------- -------
Income (loss) before
income taxes and
extraordinary loss..... (4,108) 22,377 12,388 36,550 43,847 7,985 9,123
Income tax (expense)
benefit................ 3,037 (7,608) (4,188) (12,244) (14,250) (2,715) (2,919)
-------- -------- -------- -------- -------- ------- -------
Income (loss) before
extraordinary loss..... (1,071) 14,769 8,200 24,306 29,597 5,270 6,204
Extraordinary loss, net
of related income tax
benefit................ (1,671) -- (4,902) -- -- -- --
-------- -------- -------- -------- -------- ------- -------
Net income (loss)....... $ (2,742) $ 14,769 $ 3,298 $ 24,306 $ 29,597 $ 5,270 $ 6,204
======== ======== ======== ======== ======== ======= =======
Net income (loss) per
common share:
Basic.................. $ 0.19 $ 0.85 $ 0.20 $ 1.40 $ 1.70 $ 0.30 $ 0.36
Diluted................ $ 0.19 $ 0.79 $ 0.18 $ 1.29 $ 1.57 $ 0.27 $ 0.34
Weighted average common
shares
outstanding:
Basic.................. 14,638 17,459 16,898 17,302 17,432 17,784 17,039
Diluted................ 14,638 18,684 18,451 18,856 18,904 19,396 18,455
</TABLE>
- --------
(a) The pro forma results comprise the Wesley Jessen operations and the Barnes-
Hind operations and include adjustments for: (i) the divestiture of the
U.S. Natural Touch product line of $1,039; (ii) the elimination of
inventory step-up amortization of $20,706; (iii) the net reduction in
depreciation and amortization expense of $2,876 as a result of our
application of purchase accounting; (iv) the net cost savings of $20,712
relating to the reduction of certain operating expenses including the
consolidation of corporate offices, a reduction in the number of corporate-
level employees and related expenses, and the curtailment of certain
manufacturing activities; (v) the net increase in interest expense
associated with the financing of the Barnes-Hind Acquisition and the
refinancing in connection with the IPO of $386; (vi) the elimination of the
extraordinary write-off of capitalized financing fees of $1,671; and (vii)
the adjusted income tax expense resulting from the preceding adjustments at
an effective income tax rate of 34%.

(b) The pro forma results include adjustments for (i) the elimination of
inventory step-up amortization of $22,666; (ii) the cost savings of $1,085
relating to the reduction of certain operating expenses including the
consolidation of corporate offices, a reduction in the number of corporate-
level employees and related expenses, and the curtailment of certain
manufacturing activities; (iii) the net decrease in interest expense of
$411 associated with the refinancing in connection with the IPO; (iv) the
elimination of the extraordinary write-off of capitalized financing fees of
$4,902; and (v) the adjusted income tax expense resulting from the
preceding adjustments at an effective income tax rate of 33.5%.

17
<PAGE>

Three Months Ended April 3, 1999 (Unaudited) Compared to Three Months Ended
March 28, 1998 (Unaudited)

Net sales for the three months ended April 3, 1999 increased $5.7 million, or
8.1%, to $76.3 million from $70.6 million for the three months ended March 28,
1998. This increase resulted primarily from 42.8% growth in the sales of
disposable and planned replacement contact lenses, from $27.4 million to $39.1
million, offset by a 13.9% decline in the sales of conventional lens products,
from $43.2 million to $37.2 million. Sales of disposable and planned
replacement lenses grew 59.2% in the U.S. and 23.7% internationally, while
sales of conventional lenses fell 8.2% domestically and 22.7% in the rest of
the world. Total sales in the United States grew 16.1%, with total
international sales posting a decrease of 2.8% for the three month period.

Gross profit for the three months ended April 3, 1999 increased $2.5 million,
or 5.2%, to $51.2 million from $48.7 million in the comparable 1998 period.
Gross profit margin decreased 1.8% to 67.1% in 1999, reflecting temporary
inefficiencies related to increased production to meet the sales demand for new
products.

Marketing and administrative expenses for the three months ended April 3,
1999 increased by $0.8 million, or 2.2%, to $38.4 million from $37.6 million
for the three months ended March 28, 1998. This increase was largely due to
higher selling expenses incurred to support an expansion of the international
direct salesforce. As a percentage of net sales, marketing and administrative
expenses decreased to 50.3% in the 1999 period from 53.2% in the 1998 period.

Research and development expenses increased $0.5 million, or 20.4%, to $2.9
million for the three months ended April 3, 1999 from $2.4 million for the
three months ended March 28, 1998. As a percentage of net sales, research and
development expenses increased to 3.8% in the 1999 period from 3.4% in the 1998
period. The increase was driven by developmental spending for a bifocal lens
product and regulatory costs for gaining approval to market new products in
Japan.

Interest expense increased 8.1% to $1.2 million for the three months ended
April 3, 1999 from $1.1 million for the three months ended March 28, 1998 due
to higher average debt balances in 1999, partially offset by the effects of
lower current year interest rates available to WJ under our revolving credit
facility.

Net income for the three months ended April 3, 1999 increased $0.9 million,
or 17.7%, to $6.2 million from $5.3 million for the three months ended March
28, 1998 as improvement in gross profit was partially offset by increased
spending in marketing and administrative expenses along with higher research
and development costs and a more favorable year-over-year effective tax rate.
The decrease in the effective tax rate to 32% in 1999 from 34% in 1998 was
primarily due to a shift in the mix of earnings among our various operations.

Year Ended December 31, 1998 Compared to Pro Forma Year Ended December 31, 1997
(Unaudited)

Net sales for the year ended December 31, 1998 increased $10.1 million, or
3.6%, to $292.3 million from $282.2 million for the year ended December 31,
1997. This increase resulted primarily from 27.3%

18
<PAGE>

growth in the sales of disposable and planned replacement contact lenses, from
$98.0 million to $124.8 million, offset by a 9.1% decline in the sales of
conventional lenses, from $184.1 million to $167.4 million. Sales of disposable
and planned replacement lenses grew 40.4% in the U.S. and 15.0% internationally
while sales of conventional lenses fell 8.4% domestically and 10.2% in the rest
of the world. For the year, total U.S. sales increased 6.1% while international
sales were flat. The sales returns and allowances reserve increased slightly
from $10.4 million at December 31, 1997 to $10.6 million at December 31, 1998.
This increase resulted primarily from a price rebate provision, which was only
partially offset by lower distributor return reserve requirements in the
current year.

Gross profit for the year ended December 31, 1998 increased $12.4 million, or
6.5%, to $201.8 million from $189.4 million in the comparable 1997 period.
Gross margin improved 1.9% to 69.0% in 1998, reflecting sales-driven increases
in production of the high margin disposable and planned replacement lenses, as
well as cost savings from improved plant utilization and other operating
efficiencies including those associated with benefits of consolidation.

Marketing and administrative expenses increased by $6.7 million, or 4.9%, to
$143.3 million in 1998 from $136.6 million in 1997. As a percentage of net
sales, marketing and administrative expenses increased to 49.0% in 1998 from
48.4% in 1997. This increase was largely due to added promotional spending to
support the launch of the FreshLook toric lens and the market expansion of the
disposable and planned replacement product lines, along with higher performance
related compensation expenses.

Research and development expenses for 1998 decreased by $1.2 million, or
9.8%, to $10.8 million from $12.0 million in 1997. As a percentage of net
sales, research and development expenses declined to 3.7% from 4.3% in the
prior year period. The decrease was driven by the realization of operational
synergies related to the Barnes-Hind Acquisition, successful completion of
various production-related development projects and nonrecurring development
efforts in 1997.

Amortization of goodwill increased by $0.1 million, or 15.7%, to $1.0 million
in 1998 from $0.9 million in 1997 due to the impact on negative goodwill of the
purchase price reduction, pension valuation and integration of cost estimate
changes related to the Barnes-Hind Acquisition.

Interest expense, net decreased 6.5% to $4.8 million in 1998 from $5.1
million in 1997 due to the paydown of debt throughout 1997 and early 1998 with
proceeds from the offerings and funds generated from operations.

Net income for the year ended December 31, 1998 increased by $5.3 million to
$29.6 million from $24.3 million for the year ended December 31, 1997 due to
improvement in gross margin partially offset by higher spending in marketing
and administrative expenses and a more favorable year-over-year effective tax
rate.

Pro Forma Year Ended December 31, 1997 (Unaudited) Compared to Pro Forma Year
Ended December 31, 1996 (Unaudited)

Net sales for the year ended December 31, 1997 increased $32.2 million, or
12.9%, to $282.2 million from $250.0 million for the year ended December 31,
1996. This increase resulted primarily from 38.1% growth in sales of our
disposable and planned replacement contact lenses, from $71.0 million to $98.0
million, along with a moderate increase in the conventional lens product lines
of 3.1%. Sales of disposable and planned replacement contact lenses grew 51.4%
in the U.S. and 27.6% internationally. Total sales in the United States grew
17.4%, while sales in the rest of the world grew 7.8% for the year. The sales
returns and allowances reserve decreased slightly from $10.6 million at
December 31, 1996 to $10.4 million at December 31, 1997. This is a result of
lower actual sales returns and allowances trends which we experienced
throughout the year.

19
<PAGE>

Gross profit for the year ended December 31, 1997 increased $26.0 million, or
15.9%, to $189.4 million from $163.4 million in the comparable 1996 period.
Gross profit margin improved 1.7% to 67.1% in 1997, reflecting the higher
margins realized on our disposable and planned replacement lenses due to higher
production volumes, as well as cost savings from improved plant utilization and
other operating efficiencies.

Marketing and administrative expenses increased by $9.5 million, or 7.5%, to
$136.6 million in 1997 from $127.0 million in 1996, largely due to higher
promotional spending for all product lines, particularly the former Barnes-Hind
conventional lens products, along with higher performance related compensation
expenses. As a percentage of net sales, though, marketing and administrative
expenses decreased to 48.4% in 1997 from 50.8% in 1996.

Income from operations of $41.7 million for the year ended December 31, 1997
increased 65.9% from $25.1 million for the year ended December 31, 1996 due to
the overall increase in sales volume along with improvement in our gross margin
offset slightly by the increase in marketing and administrative expenses.

Interest expense, net decreased 11.4% to $5.1 million in 1997 from $5.8
million in 1996 due to the paydown of debt with proceeds from the offerings as
well as interest income earned on the promissory note receivable related to the
sale of our Natural Touch product line.

Other income for the year ended December 31, 1996 includes $3.7 million of
non-recurring licensing fee income. There was no such income in the comparable
1997 period.

Net income for the year ended December 31, 1997 increased $9.5 million to
$24.3 million from $14.8 million for the year ended December 31, 1996.
Excluding the 1996 licensing fee income, net income increased $12.0 million.
This resulted from higher sales volume and improvement in our gross margins,
partially offset by increased spending in marketing and administrative
expenses.

Liquidity and Capital Resources

We finance our operations primarily through funds provided from operations
and through borrowings under our revolving credit facility. For the three
months ended April 3, 1999, we generated approximately $2.7 million in cash
from operating activities, primarily as a result of profitability gains and a
higher income taxes payable balance, along with improved customer collections
and decreased inventory levels, partially offset by payments made for the prior
year's performance related compensation and integration costs related to the
Barnes-Hind Acquisition. For the three months ended March 28, 1998, we used
approximately $6.1 million in cash from operating activities. This use resulted
from increases in accounts receivable and inventories, along with payments made
for the prior year's performance related compensation and integration costs
relating to the Barnes-Hind Acquisition, partially offset by improvements in
profitability and an increase in accounts payable. Since December 31, 1998, we
have incurred additional borrowings of $3.0 million, primarily to fund capital
expenditures.

For the year ended December 31, 1998, we provided approximately $31.2 million
in cash from operating activities. This source of funds resulted from improved
profitability, along with higher income taxes payable and accounts payable
balances, partially offset by increased inventory and accounts receivable
levels. For the year ended December 31, 1997, we provided approximately $6.9
million in cash from operating activities, primarily as a result of increases
in profitability (giving effect to the inventory step-up amortization and the
extraordinary loss), partially offset by working capital requirements and
payments under the plan to integrate the Barnes-Hind operations. For the year
ended December 31, 1996, we provided approximately $19.2 million in cash from
operating activities, primarily as a result of increases in profitability
(giving effect to the inventory step-up amortization), a

20
<PAGE>

decrease in accounts receivable and increases in income taxes payable and
accrued liabilities offset by a decrease in accounts payable.

For the three month periods ended April 3, 1999 and March 28, 1998, we made
capital expenditures of approximately $7.8 million and $2.0 million,
respectively. The majority of these capital expenditures were for production
capacity expansion, information technology enhancements, and site
consolidations. For the years ended December 31, 1998, 1997 and 1996, we made
capital expenditures of approximately $17.2 million, $16.3 million and
$6.6 million, respectively. The majority of these capital expenditures were for
facility and equipment improvement, information technology enhancements and
site consolidations. We anticipate additional capital expenditures of
approximately $23.4 million to be made throughout 1999 to continue to expand
production capacity, further consolidate locations, and improve management
information systems. We expect to fund these capital expenditures primarily by
cash generated from operating activities and borrowings under our revolving
credit facility.

As a result of the Barnes-Hind Acquisition, we expect to incur integration
costs of approximately $20.4 million, principally for severance costs and lease
expenses on vacated premises. Management expects that this restructuring will
be substantially completed by March 2000. As of April 3, 1999, we have paid
$13.7 million of these integration costs.

Effective July 29, 1998, we entered into the first amendment and consent of
the amended bank credit agreement to increase the borrowing availability under
the revolving credit facility to $170.0 million and to permit the repurchase of
a maximum of $35.0 million of our common stock. See "Share Repurchase Program."
As of April 3, 1999, we had approximately $98.0 million in borrowing
availability under the revolving credit facility portion of the amended bank
credit agreement. The amended bank credit agreement imposes certain
restrictions on us, including restrictions on our ability to incur
indebtedness, declare dividends or other distributions, make investments and
capital expenditures, grant liens, sell our assets and engage in certain other
activities. In addition, the indebtedness under the amended bank credit
agreement is secured by substantially all of our assets, including our real and
personal property, inventory, accounts receivable, intellectual property and
other tangible assets.

Management believes that, based on current levels of operations and
anticipated internal growth, cash flow from operations, together with other
available sources of funds including borrowings under the amended bank credit
agreement and cash on hand at April 3, 1999, of $7.6 million, will be adequate
over the next twelve months to make required payments of principal and interest
on our indebtedness, to fund anticipated capital expenditures and working
capital requirements, including the aforementioned restructuring and
integration costs, and to enable us and our subsidiaries to comply with the
terms of our debt agreements. However, actual capital requirements may change,
particularly as a result of any acquisitions we may pursue. Our ability to meet
our debt service obligations and reduce our total debt will be dependent upon
our future performance and our subsidiaries' future performance which, in turn,
will be subject to general economic conditions and to financial, business and
other factors, including factors beyond our control. A significant portion of
our consolidated debt bears interest at floating rates; therefore, our
financial condition is and will continue to be affected by changes in
prevailing interest rates. In December 1996, we purchased an interest rate cap
on $35.0 million notional principal amount at a fixed rate of 8.5%, which
expires on December 31, 1999. The cap is intended to provide partial protection
from potential exposure relating to our variable rate debt instruments.

Approximately 38% of our net sales for the three months ended April 3, 1999
and approximately 42% of our net sales for the year ended December 31, 1998
were to international customers and we expect that sales to international
customers will continue to represent a material portion of our net

21
<PAGE>

sales. Historically, fluctuations in foreign currency exchange rates have had
only a minor impact on our results of operations and we do not expect such
fluctuations to be material in the foreseeable future.

Share Repurchase Program

The board of directors approved a share repurchase plan on June 10, 1998 and
we completed the program on September 18, 1998. Under the plan, we repurchased
one million shares of our outstanding common stock at an average cost of $21
per share. Repurchases were made in normal market trading at prevailing prices
and were funded from operating cash flow and our existing bank credit
agreement.

Recent Acquisitions

In May 1999, we, through our Hong Kong subsidiary, acquired certain assets of
Eycon Lens (Hong Kong) Co., Ltd. On June 26, 1998, we acquired the operations
of Plastic Contact Lens Argentina SAIC ("'PCL") from its sole shareholder. On
July 31, 1998, we, through our Australian subsidiary, acquired certain assets
and assumed certain liabilities of Eycon Lens Laboratories, Pty, Ltd. from its
shareholders. The total adjusted purchase price for the three acquisitions of
approximately $3.2 million (including additional fees and expenses) was funded
with existing liquidity. None of these acquisitions were material to our
financial statements. We have accounted for the acquisitions under the purchase
method of accounting.

Seasonality and Quarterly Information

Historically, we have experienced limited seasonality, with slightly greater
revenues in the quarters ended June and September and slightly lower revenues
in the quarters ended March and December.

The following table sets forth our unaudited operating results for the last
eight fiscal quarters, excluding the impact of the inventory step-up. The
information for each of the quarters is unaudited but includes all adjustments,
consisting of only normal receiving adjustments, which management considers
necessary for the fair presentation thereof.

<TABLE>
<CAPTION>
1997 1998 1999
------------------------- ---------------------------------- -------
Second Third Fourth First Second Third Fourth First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Statement of Operations
Data:
Net sales............... $72,083 $75,235 $70,789 $70,595 $73,417 $75,254 $72,992 $76,311
Operating income........ 710 11,989 12,220 8,981 12,840 13,535 13,302 10,146
Net income (loss)....... (371) 7,095 7,305 5,270 7,727 8,051 8,549 6,204
Other Data:
Amortization of
goodwill, net.......... (196) (196) (274) (274) (273) (247) (203) (229)
Depreciation............ 231 231 317 475 470 842 335 1,135
Inventory step-up....... 9,574 -- -- -- -- -- -- --
</TABLE>

Inflation

Management believes that inflation has not had a material impact on our
results of operations during the three years ended December 31, 1998 and the
three months ended April 3, 1999.

Recently Issued Accounting Pronouncements

Statement of Financial Accounting Standards ("SFAS") No.133, "Accounting for
Derivative Instruments and Hedging Activities" issued in June 1998, establishes
accounting and reporting

22
<PAGE>

standards for derivative instruments and for hedging activities. Amending SFAS
52, "Foreign Currency Translation" and SFAS 107, "Disclosures about Fair Value
of Financial Instruments" and superseding SFAS 80, "Accounting for Futures
Contracts," SFAS 105, "Disclosure of Information about Financial Instruments
with Off-Balance-Sheet Risk and Financial Instruments with Concentrations of
Credit Risk" and SFAS 119, "Disclosure about Derivative Financial Instruments
and Fair Value of Financial Instruments," SFAS 133 requires the recognition of
all derivatives as either assets or liabilities in the statement of financial
position and measurement of those instruments at fair value. SFAS 133 is
effective for fiscal quarters of fiscal years beginning after June 15, 1999 and
does not permit retroactive application to prior period financial statements,
however the FASB has issued an exposure draft that may delay the effective date
to fiscal years beginning after June 15, 2000. We expect to implement SFAS 133
in our financial statements for the year ending December 31, 2000, unless the
exposure draft is adopted as a final statement. This Statement is not expected
to have a material impact on our financial statements.

Year 2000

We utilize and rely upon computer technology in many facets of our
operations, such as in the manufacture of contact lenses, the distribution of
lenses to customers, the arrangement of credit in connection with the purchase
of goods and the internal and external reporting of financial and operational
information. The technologies employed by us throughout our operation include
hardware and software as well as microprocessors and other electronic devices
which are components of production equipment ("embedded chips"). In the past,
certain computer programs were written using two digits rather than four to
define the applicable year. Consequently, any of our systems and equipment that
involve the use of time-sensitive software programmed in that manner may
recognize a date identified as "00" as the year "1900" rather than "2000",
which could result in miscalculations or system failures. This is commonly
referred to as the Year 2000 or Y2K issue.

We have undertaken a global approach to addressing the Year 2000 issue. Thus
far, we have identified the areas of our operations in which the Year 2000
issue may arise and conducted a global survey of all personal computer,
software and other essential equipment to identify components that must be
modified or replaced. A formal plan has been established to acquire new and
repair existing Company personal computers and associated software by June
1999. An assessment of manufacturing equipment and software has been completed.
We are using both internal and external resources to identify and test systems
for Year 2000 compliance and to modify or replace them when necessary.
Mainframe system software modifications are progressing according to plan, and
critical components are being tested. In addition, we have initiated written
communications with significant suppliers and all banking institutions with
which we have financial arrangements to determine the extent to which our
systems and operations are vulnerable to those third parties' failures to
remediate their Year 2000 compliance problems. Our global steering committee
meets bi-weekly to monitor the progress of testing all Company Information
Technology ("IT") and relevant non-IT systems, to establish milestones for
completion of specific Year 2000-related tasks throughout our facilities, and
to supervise generally the measures taken by us to address the Year 2000 issue.

We presently believe that, as a result of our actions, the Year 2000 issue
will not pose significant operational problems for our computer systems. If,
however, the modifications, conversions and testing described above are not
accomplished in a timely manner, the Year 2000 issue could have a material
impact on our operations. In addition, there can be no guarantee that the
systems of third parties will be made compliant in a timely manner and would
not have an adverse effect on us. To minimize the potential risk related to
unsuccessful remediation on either our part or the part of our significant
suppliers or bankers, a contingency plan is being developed.

We are using both internal and external resources to identify and test
systems for Year 2000 compliance and to modify or replace them where necessary.
To assure Year 2000 compliance, we have made commitments of $1.9 million to
date, of which $0.8 million and $0.6 million was spent in

23
<PAGE>

1998 and 1999, respectively, and have projected commitments of $1.2 million in
future periods. The majority of these costs will be expensed as incurred, with
the remainder treated as capital expenditures. Costs related to Year 2000
compliance were not significant in years prior to 1998.

At this time, management is unable to estimate the effect of noncompliance
with the Year 2000 issue on our results of operations, liquidity and financial
condition beyond the belief that noncompliance would be material in nature.

Conversion to Euro Currency

On January 1, 1999, eleven member countries of the European Union established
fixed conversion rates between their existing currencies ("legacy currencies")
and one common currency--the euro. The conversion to the euro will eliminate
currency exchange risk between member countries. Beginning in January 2002, new
euro-denominated bills and coins will be issued, and legacy currencies will be
withdrawn from circulation. The transition period for the introduction of the
euro will be between January 1, 1999 and June 30, 2002.

We conduct business in some member countries affected. The more important
issues facing us include: converting information technology systems;
negotiating and amending business agreements and contracts; processing tax and
accounting records; and potentially the competitive impact of cross-border
price transparency. Our operating subsidiaries affected by the euro currency
conversion are addressing the issues involved, currently with preliminary
emphasis on order processing, banking and assessment of financial systems. Due
to the uncertainties involved, the issue of one common currency's effect on
pricing and its impact on results of operations cannot be reasonably estimated
at this time.

Based on our work to date, we believe the euro currency conversion has not
and will not have a material impact on our consolidated financial condition and
results of operations.

Quantitative and Qualitative Disclosure About Market Risk

We are primarily exposed to market risks that relate to interest rates and
foreign currency exchange rates. Our attempts to manage these risks to an
acceptable level based on management's judgment of the appropriate trade-off
between risk, opportunity and costs. Selectively, we enter into interest rate
caps and foreign currency forward exchange contracts to manage market risks. We
do not hold financial instruments for trading or speculative purposes.

Foreign currency exchange rate risk

We use forward exchange contracts to minimize the effects of foreign currency
fluctuations between the British Pound Sterling and the Japanese Yen. These
contracts are used to hedge certain intercompany amounts owed, and the notional
amounts and fair values of those contracts were not material at December 31,
1998.

Interest rate risk

Virtually all of our debt bears interest at floating rates, approximately 6%
at December 31, 1998. Therefore, increases and decreases in interest rates have
significant impact on our overall profitability, but do not have a significant
impact on the fair value of the debt overall. A 10% increase in the interest
rate would increase our interest expense by approximately 10%, or $544,000. We
purchased an interest rate cap of 8.5% on $35.0 million of notional principal
amount in order to partially offset adverse impacts of potential interest rate
increases. We currently do not expect to incur any expense or receive any
significant benefit from the interest rate cap because of the large difference
between the current interest rate and the interest rate cap.

24
<PAGE>

BUSINESS

General

We are the leading worldwide developer, manufacturer and marketer of
specialty soft contact lenses, based on our share of the specialty lens market.
Our specialty lens products include cosmetic lenses, which change or enhance
the wearer's eye color appearance; toric lenses, which correct vision for
people with astigmatism; and premium lenses, which offer value-added features
such as improved comfort for dry eyes and protection from ultraviolet light. We
offer a broad range of both conventional contact lenses, which can typically be
used for up to 24 months before replacement, and disposable contact lenses,
which are intended to be replaced at least every week. Founded in 1946 by
pioneers in the contact lens industry, we have a long-standing reputation for
innovation and new product introductions. For the twelve months ended December
31, 1998, our net sales were $292.3 million and our operating income was $48.7
million.

We operate primarily in the specialty segment of the soft lens market. In
recent years, in both the clear and specialty lens segments, there has been a
pronounced shift in consumers' preferences toward disposable lenses and away
from conventional lenses, which has led to a significant increase in contact
lens expenditures per wearer. We estimate that more than 40% of U.S. soft lens
wearers use disposable lenses, up from 21% in 1993. We also offer a complete
line of conventional and disposable clear lenses, which are positioned as
companion products to our cosmetic lenses.

According to an independent research firm, more than 75% of all contact lens
prescribers in the United States offer our products, which permits us to
rapidly launch new categories of products. Wesley Jessen develops proprietary
technologies, manufacturing processes and products through a combination of its
in-house staff of more than 100 engineers and scientists and Company-sponsored
research by third-party experts. We are among the largest advertisers in the
industry and market our products to consumers through advertising campaigns and
to eyecare practitioners through our 211 person salesforce and network of
independent distributors, which together sell our products in more than 75
countries.

We were founded by Drs. Newton K. Wesley and George Jessen, who went on to
pioneer the design, manufacture and fitting techniques of hard contact lenses.
From 1980 to 1995, we operated as a wholly owned subsidiary of Schering-Plough.
On June 29, 1995, Bain Capital and management acquired the Predecessor in a
leveraged acquisition. On October 2, 1996, we acquired Barnes-Hind division
from Pilkington plc. At the time of the acquisition, Barnes-Hind was the third
largest manufacturer of specialty contact lenses in the world, with a leading
market position in premium and toric lenses.

Industry Overview

Industry analysts estimate that over 50% of the world's population needs some
type of corrective eyewear. In the United States alone, there are over 156
million people who require some form of corrective eyewear. Most individuals
who wear contact lenses begin to do so in their early teens and the majority of
wearers are between the ages of 18 and 39. We believe that the number of
contact lens wearers will expand as technology improves the convenience,
comfort and fit of contact lenses, so that lenses provide cost-effective and
comfortable vision correction to a larger segment of the population.

The contact lens industry is large and rapidly growing. In 1998,
manufacturers' sales of soft contact lenses worldwide totaled $2.3 billion,
representing a compound annual growth rate of approximately 10% from $1.1
billion in 1990. We believe that market growth outside the United States will
likely exceed domestic growth because of lower contact lens penetration rates
internationally.

25
<PAGE>

Since 1991, the number of contact lens wearers in the United States has
increased by 4% per year while revenue per wearer has increased by 5% per year
as conventional users have shifted to more costly specialty and disposable
lenses. While the market for hard contact lenses has been relatively flat since
1991 with approximately 6 million U.S. wearers, the number of people wearing
soft contact lenses has grown at a compound annual growth rate of 6% since that
time.

The contact lens industry can be divided into the soft lens portion, which
represents approximately 80% of U.S. wearers, and the hard lens portion,
primarily rigid gas permeable ("RGP"), which represents approximately 20% of
U.S. wearers. Within the soft contact lens market, there are three principal
replacement regimes: conventional, disposable and planned replacement.
Conventional lenses are typically replaced after 12 to 24 months and require
periodic cleaning throughout the life of the lens. Disposable soft contact
lenses were introduced in the late 1980s based on the concept that changing
lenses on a more frequent basis helped to improve comfort, convenience and
health of the eye for many wearers. Disposable lenses are intended to be
changed as often as daily or weekly depending on the product. Planned
replacement lenses are designed to be changed as often as every month or up to
every three months and currently represent 15% of the overall soft lens market.

The two primary segments within the soft lens market are clear and specialty.
Clear lenses, which do not provide value-added features that specialty lenses
offer, represent approximately 67% of the U.S. soft lens market and include
both conventional and disposable products. Growth in the clear lens segment has
been driven primarily by growth in the population of 14- to 25-year-olds, the
prime age group for new lens wearers, the substitution of soft for hard contact
lenses and the continuous evolution in the contact lens market toward more
frequent replacement of contact lenses.

Specialty lenses represent the remaining 33% of the U.S. soft lens market and
generally command a premium price because they are designed for patients who
have a medical need for a specialized lens or who desire a lens with additional
features. Specialty lenses include cosmetic lenses which change or enhance the
natural color of eyes while correcting vision, toric lenses for astigmatics,
bifocal lenses for presbyopes and premium lenses that offer protein deposit
resistance, improved visual acuity, enhanced comfort for dry eyes or UV
protection. The specialty lens segment of the soft contact lens market has
higher projected growth rates than the clear lens segment. During the past
several years the number of specialty lens wearers has increased at a rate of
11% per year; more than double the rate of increase of clear wearers. We
believe that continued rapid growth in sales of specialty lenses will result
from:

. the continued trend toward disposables;

. increased awareness among consumers and eyecare practitioners of the
value-added features available with specialty lenses; and

. new product innovations, such as disposable toric contact lenses, new
cosmetic designs, ultraviolet protection lenses and effective bifocal
contact lenses.

An important characteristic of the contact lens industry is that an
individual's need for corrective eyewear is chronic. The need for vision
correction is often diagnosed at an early age and increases over time. Contact
lenses represent an alternative to eyeglasses, while offering improved
peripheral vision and additional features, such as eye color enhancement and UV
protection. Contact lens wearers will typically purchase lenses regularly for
several years.

Contact lenses require a prescription specifying a particular brand of
lenses. Such prescriptions are written by either ophthalmologists or
optometrists referred to in the contact lens industry as "fitters." An
ophthalmologist is a physician with a Doctor of Medicine ("MD") degree who
specializes in eyecare, and an optometrist is a state-licensed eyecare
specialist who holds a Doctor of Optometry ("OD") degree. Fitters have the
ability to influence patients' choice of which contact lens brand they

26
<PAGE>

will wear. Therefore, if a contact lens manufacturer successfully markets its
products to a fitter, that fitter will carry that manufacturer's brand of
contact lenses in inventory and offer it to patients. Once the brand is in the
fitter's inventory, the manufacturer will likely receive a stream of revenues
from new patients for whom the brand is prescribed as well as from patients who
are refitted, change lens types or need different prescriptions. Also, the
manufacturer will be more likely to successfully place new products in the
fitter's inventory. Prescriptions for contact lenses are filled by either
ophthalmologists, optometrists, optical chains, health maintenance
organizations (HMOs), pharmacies or mail order houses.

The contact lens industry is characterized by high brand loyalty. We believe
that wearers resist switching brands once a particular brand is prescribed and
fitted successfully. By staying with an existing brand, a customer can replace
his or her current lens without an eye examination. Even for an adjusted
prescription, customers typically acclimate to a particular lens design and may
experience discomfort if refitted with a new brand. Typically, only when a
customer is experiencing difficulty with a lens or the customer wants to switch
from conventional to disposable lenses or from clear to specialty lenses will a
fitter refit with a different brand of lens. We believe, based on historical
patterns in the contact lens industry that once a product category has matured,
brand loyalty causes competitive market share to remain relatively constant.
However, overall market share may shift because of different growth rates of
each category or the creation of new categories.

No new significant competitors have entered the soft contact lens industry in
the last ten years. To compete successfully in the industry entails substantial
risks and requires significant investment of time and resources. In particular,
we believe a new entrant must successfully (1) develop innovative product
offerings; (2) master the sophisticated processes required to manufacture
contact lenses; (3) invest the significant capital required to develop
manufacturing capacity; (4) overcome existing patent protections covering the
design, materials and manufacturing processes of contact lenses; and (5) obtain
FDA product clearances, each of which may take several years.

Competitive Strengths

We believe we have achieved our leading worldwide market position in
specialty contact lenses because of the following competitive strengths:

High-Quality Branded Products. We produce a broad range of high-quality
contact lenses that meet customer demand for improved cosmetic, comfort,
ease-of-care and vision-correction features and are sold under brand names
recognized by ophthalmologists and optometrists worldwide. Our cosmetic
lens products are marketed under the DuraSoft, Elegance, Wild Eyes,
FreshLook and FreshLook Colorblends brand names, our toric lenses under the
Optifit, Hydrocurve and CSI brand names, and our premium lenses under the
Gentle Touch, Precision UV, Aquaflex and CSI brand names. Both eyecare
practitioners and wearers tend to show significant brand loyalty once a
particular brand of lenses is properly fitted and prescribed. As a result,
our large installed base of contact lens fitters and current wearers
affords us a recurring revenue stream.

Successful Development and Introduction of New Products. We have a strong
track record of developing new specialty contact lens products, with new
product lines introduced since 1994 accounting for over 50% of our net
revenues for 1998. We introduced the first disposable opaque lens and the
first disposable lens that offers UV protection in 1994. We believe that
being the first to introduce a new specialized lens is a competitive
advantage over subsequent entrants to that product category because of the
significant brand loyalty in the contact lens industry.

Broad Patent Portfolio. We believe that our intellectual property,
including more than 70 U.S. patents in product design, materials and
manufacturing processes, makes imitation of our

27
<PAGE>

products difficult, supports our strong gross margins and provides us with
a competitive advantage. Our most important patents cover the design of our
toric lenses; the material, process and design of clear-pupil cosmetic
lenses; and the technology necessary to produce certain advanced polymer
lenses. We believe that our patent portfolio and manufacturing expertise
allow us to produce and sell specialty lens products that are not otherwise
available on the market.

Established Sales and Distribution Network. We believe our salesforce and
distributor network constitute the largest and most sophisticated sales
organization in the specialty contact lens market. Our salesforce has
focused on developing strong relationships with eyecare practitioners
throughout North America, Europe, Asia and Latin America. Through our sales
efforts, we seek to educate and inform eyecare practitioners as to (1) the
breadth of our specialized product line; (2) the extent to which they can
build their practice through the use of our products; and (3) their ability
to generate more revenue per patient by prescribing our value-added lenses
instead of conventional or disposable clear lenses.

Strong International Market Presence. We derived approximately 42% of our
1998 net sales from sales outside the United States, and our specialty
contact lens products have leading market shares in Europe, Japan and Latin
America. We have over 107 international sales representatives and more than
60 distributors covering more than 75 countries. We believe that such
international markets offer attractive opportunities for increased sales as
a result of lower contact lens penetration rates as compared to the United
States.

Low-Cost, Proprietary Manufacturing Capabilities. We produce
substantially all of our contact lens products in four state-of-the-art
manufacturing facilities, which apply proprietary technology, allow us to
be a flexible, low-cost manufacturer of specialty lenses. We believe that
we enjoy a competitive advantage over other contact lens manufacturers as a
result of our ability to produce cost-effective specialized contact lenses
using short production runs. Consequently, we can offer approximately
180,000 stock-keeping units (SKUs). Furthermore, our manufacturing
operations in Puerto Rico provide us with significant tax benefits.

Experienced Management with a Proven Record of Improving Operating
Performance. Our senior management team averages more than 10 years of
experience in the contact lens industry, and has improved our results from
operating losses of $50.5 million in 1994 to operating income of $48.7
million in 1998. This operating improvement was accomplished through the
successful implementation of cost reduction programs, rationalization of
manufacturing processes, refocusing of research and development programs,
and execution of targeted marketing strategies.

Growth Strategy

Our principal objective is to expand our contact lens business in the faster-
growing specialty segments of the market in order to achieve continued growth
in revenues and operating profit. Our continuing business strategy is to:

Capitalize on Favorable Industry Trends. According to industry analysts,
the number of soft contact lens wearers in the United States has increased
from 19 million in 1990 to over 27 million in 1998. We estimate that the
number of soft contact lens wearers will increase by approximately 5%
annually through the year 2000 as soft contact lenses continue to gain
popularity and the number of 14- to 25-year-olds, the prime age group for
new lens wearers, increases. In addition, there has been an ongoing shift
among wearers from conventional lenses to more profitable disposable lenses
as well as from clear lenses to specialty lenses, which favors our product
line, including our FreshLook disposable cosmetic lenses and Precision UV
disposable premium lenses. For the first quarter of 1999, approximately 50%
of our net sales were generated from the sale of disposable lenses as
compared to 11% in 1995.

28
<PAGE>

Increase Our Market Share. We employ a two-pronged marketing strategy to
increase our market share, using both direct consumer advertising and
targeted marketing to eyecare practitioners. In 1998, we spent
approximately $15.0 million on a national consumer advertising campaign
featuring model Elsa Benitez to raise brand awareness and demand among
consumers. In addition, we use our highly trained salesforce to market our
specialty lens products to eyecare practitioners. The salesforce seeks to
train new ODs and MDs to fit our lenses and to educate eyecare
practitioners as to the value-added features and revenue potential of our
products.

Develop and Successfully Launch New Products. Our research and
development program is geared toward developing new products with
commercial appeal, particularly category-creating products such as our new
line of disposable toric lenses and disposable specialty color lenses, as
industry dynamics have historically provided considerable advantages to a
firm that successfully introduces the first product in a category. In the
last twelve months, we have introduced four new products or line
extensions, including disposable toric lenses, a new line of specialty
color lenses, novelty cosmetic lenses and ultraviolet-absorbing disposable
lenses. The ultraviolet protection lens allows us to further penetrate the
emerging health-conscious market and permits cross-promotion with our
current specialty lens wearers.

Increase the International Penetration of our Products. We believe that
several international markets, particularly Europe, Japan and Brazil, offer
significant opportunities for growth. In Europe, we intend to expand our
direct sales organization, and in Japan, we will continue to develop
strategic partnerships with leading local manufacturers and distributors.

Benefit from Our Significant Operating Leverage. We plan to further
improve our results of operations by utilizing our manufacturing capacity,
investing in new low-cost manufacturing technologies and achieving
economies of scale in development, manufacturing, distribution and
administration. We enjoy significant operating leverage (i.e., a
disproportionately greater impact on earnings resulting from a change in
revenues) due to significant fixed-cost components of our manufacturing
operations, research and development program and marketing efforts.

We regularly consider the expansion of our contact lens business through
acquisitions, joint ventures and other strategic alliances. Through such
arrangements, we will seek to broaden our product lines within the contact lens
industry and our geographic coverage and to acquire complementary product
lines.

Products

The following table sets forth the approximate composition, by product line,
of our net sales for the year ended December 31, 1998:

Net Sales by Product Line
(dollars in thousands)

<TABLE>
<CAPTION>
Year Ended
December 31,
1998
----------------
Amount Percent
-------- -------
<S> <C> <C>
Product Line
Specialty Lenses....................................... $241,948 83%
Clear Lenses........................................... 41,784 14%
Hard/Other Lenses...................................... 8,527 3%
-------- ---
Total Lenses......................................... $292,259 100%
======== ===
</TABLE>

29
<PAGE>

Specialty Lenses. Our products primarily consist of specialty soft contact
lenses, including cosmetic, toric and premium lenses. With the broadest product
offering in the industry, we captured nearly 38% of the U.S. specialty lens
segment in 1998. Our specialty soft contact lens products include the
following:

Cosmetic Lenses. Cosmetic lenses enhance or change the color of a wearer's
eyes. Our opaque color lenses, which change the color of dark eyes (e.g., brown
to green), utilize a patented dot matrix technology that we believe allows for
superior cosmetic appeal. As a result, our opaque cosmetic lens products have
become the standard in the market. In early 1996, we introduced our FreshLook
Enhancers lenses, which enhance the natural color of light eyes and which we
believe will become the market standard due to its patented color printing
process that allows the pupil-covering zone of the lens to remain clear. In
September 1998, we launched FreshLook ColorBlends in North America. This new
cosmetic disposable lens is made with proprietary technology which imprints
three distinct color patterns on a lens to better replicate the natural iris
coloration. We manufacture a complete line of cosmetic lenses including: (1)
the conventional DuraSoft 2 daily wear lens, which is removed and cleaned daily
and typically is replaced after 12 to 24 months; (2) the conventional DuraSoft
3 extended wear lens, which can be worn overnight for up to seven days and is
also typically replaced after 12 to 24 months; and (3) the disposable FreshLook
contact lens, which is intended to be replaced weekly. With the broadest
product offering in the cosmetic lens segment, we have obtained over 60% share
of the U.S. cosmetic lens market in 1998.

Toric Lenses. Toric lenses are designed to correct vision for people with
astigmatism, which is characterized by an irregularly shaped cornea. Prior to
the introduction of our toric lenses and other competing products in the late
1980s, this condition was not effectively correctable through the use of soft
contact lenses. In February 1997, we introduced a toric version of our enhancer
colored lenses. Over 30% of the U.S. population requiring vision correction are
diagnosed with astigmatism, of which only about 5% currently wear soft contact
lenses. Our FreshLook Toric, Optifit, Hydrocurve and CSI toric lens sales
represented 15% of the U.S. toric lens market in 1998.

Premium Lenses. Premium lenses offer the wearer value-added features such as
protein deposit resistance, improved visual acuity, enhanced comfort for dry
eyes and UV protection. We manufacture the premium CSI lens, which has long
been regarded by eyecare practitioners and optical retailers as having superior
visual acuity and deposit resistance. We also recently repositioned Precision
UV, the first disposable lens available with UV protection, which is gaining
share from many clear disposable lenses. Our market research suggests that some
90% of contact lens wearers are interested in lenses offering UV protection.
Our Gentle Touch product, which is typically replaced every three months, was
the first lens designed specifically for and approved by the FDA for use
without intensive cleaning or special handling required of conventional lenses
and offers the unique combination of enhanced comfort for dry eyes, deposit
resistance and low cost relative to disposable alternatives. We held 90% of the
U.S. premium lens segment in 1998.

The following table sets forth certain of the brand names under which our
specialty contact lenses are sold:

<TABLE>
<CAPTION>
Type of Lens Specialty Contact Lens
- ------------------------------- ---------------------------------------------
Cosmetic Toric Premium
--------------------- ---------- ------------
<S> <C> <C> <C>
Conventional: DuraSoft CSI Aquaflex
Elegance (a) Optifit CSI
Natural Touch (a) Hydrocurve Hydrocurve
Wild Eyes
Disposable/Planned Replacement: FreshLook Colors FreshLook Gentle Touch
FreshLook Enhancers Precision UV
FreshLook ColorBlends
</TABLE>
- --------
(a) Sold only in international markets.

30
<PAGE>

We have successfully entered into the private label market with the offering
of a private label UV protection lens. We sell our specialty contact lenses
under private label primarily in Japan, the United Kingdom, France, Belgium,
Spain, Italy and Canada. We believe that the private label market offers
significant growth opportunities due to our unique product offerings and low-
cost manufacturing capabilities.

Clear Lenses. Wesley Jessen manufactures a complete line of conventional and
disposable clear lenses that are positioned as companion lenses to the DuraSoft
and FreshLook cosmetic product lines. We believe that eyecare practitioners can
increase their revenues and profitability, as well as the value provided to
lens wearers, by fitting patients with either a DuraSoft or FreshLook clear or
cosmetic lens and then selling the patient a companion cosmetic or clear lens
with no additional fitting expense. In fact, approximately 70% of color lens
wearers also own clear lenses.

Hard/Other Lenses. We also sell Polycon RGP lenses to a large base of eyecare
practitioners who fit RGP lenses. In addition, we manufacture prosthetic
lenses, which are custom cosmetic products that return damaged or disfigured
eyes to normal appearance. We donate all profits generated from our prosthetic
product line to professional associations to generate goodwill with eyecare
practitioners.

Research and Development

Our research and development efforts are focused on product development and
process technology to support our specialty lens business. We maintain a core
research and development staff of over 100 engineers and scientists, which
oversees our research projects. Most such projects are conducted in-house by
the technical staff. Other projects are conducted by independent laboratories
and universities at our direction and expense. Our research and development
expenses totaled $10.8 million, or 3.7% of net sales, for the year ended
December 31, 1998.

In the last twelve months, we have introduced four new products or line
extensions, including disposable toric lenses, a new line of specialty color
lenses, novelty cosmetic lenses and additional UV-absorbing disposable lenses.
The UV protection lens allows us to further penetrate the emerging health-
conscious market and permits cross-promotion with our current specialty lens
wearers.

We have a history of innovation and new product introductions. We are
currently investing in the development of, among other specialty products,
extensions to our lines of cosmetic contact lenses, new disposable UV-
protection lenses, new disposable bifocal contact lenses (for persons,
typically over age 45, who experience both farsightedness and nearsightedness)
and new premium disposable lenses. Finally, we have targeted additional
research and development projects to cut manufacturing costs in the cosmetic,
premium and toric product lines.

Manufacturing

Substantially all of our products are manufactured in our four principal
production facilities, which are located in Cidra, Puerto Rico; Des Plaines,
Illinois; San Diego, California; and Southampton, United Kingdom. See "--
Properties." We utilize state-of-the-art manufacturing equipment and process
technology to control the quality of our products and to minimize costs. We
engage in manufacturing processes that are designed to handle short production
runs. As a result, we believe that we enjoy a competitive advantage over other
contact lens manufacturers because we can be more versatile and cost-
competitive in market segments that require special features and products
manufactured to meet more stringent specifications. Our disposable lens
manufacturing facilities are currently operating at approximately 80% of their
capacity. We are currently expanding our production capacity at our Des
Plaines, Illinois facility. This expansion is expected to be completed by the
end of 1999.

31
<PAGE>

We produce our hard and soft contact lens products primarily through
manufacturing processes known as lathing and cast molding. Lathing is a
machining process through which a piece of rigid lens material is shaped into a
concave form with refractive characteristics by using a high-precision lathe.
Following this machining, soft lenses are hydrated in a saline solution and
sterilized, while RGP lenses are produced using polymers that do not absorb
moisture and do not require sterilization. Lathing technology is particularly
well suited for use in short production runs and is used by us to produce soft
lenses at our Cidra, Puerto Rico; San Diego, California; and Southampton,
United Kingdom facilities and to produce RGP lenses at our Atlanta, Georgia and
Farnham, United Kingdom facilities. In connection with the 1996 Barnes-Hind
Acquisition, we are in the process of closing our manufacturing operations in
San Diego, California and shifting conventional lens production to our plant in
Cidra, Puerto Rico. In addition, we have obtained alternate production sources
for our RGP contact lenses.

We use cast molded technology to produce our disposable contact lenses. In
this process, a disposable plastic mold is made through the use of an automated
injection molding press containing highly-engineered optical tooling. A liquid
monomer is then dispensed into the mold which polymerizes to form the lens. In
dry cast molding, the lenses are formed in a rigid state and are hydrated to
their final characteristics after being removed from the mold. In wet cast
molding, the lenses are formed fully hydrated. We use dry cast molded
technology at our Southampton, United Kingdom facility and wet cast molded
technology at our Des Plaines, Illinois facility.

Sales and Marketing

We have implemented a two-pronged sales and marketing strategy that reflects
our belief that both consumers and eyecare practitioners are important to the
success of our products. To generate consumer awareness and increase demand for
its products, we have spent approximately $15 million in 1998 on a national
advertising campaign featuring supermodel Elsa Benitez. In total, we spent
approximately $31.5 million worldwide during 1998 for the advertisement and
promotion of our disposal cosmetic lenses. We also developed a successful
national consumer mail-in rebate program in 1998. We continued our "free gift
with purchase" offer designed to increase sales of our cosmetic lenses.

Due to the fitter's influence over a patient's choice of contact lens brand,
we believe that developing and maintaining strong relationships with eyecare
practitioners is the most critical aspect of our sales and marketing strategy.
We have a salesforce of 211-persons who market our products to eyecare
practitioners. Our salesforce seeks to train new ODs and MDs to fit our lenses
and to inform them of the revenue potential and value-added features of our
products. In marketing to eyecare practitioners, we stress the quality and
features offered by our products, the breadth of our product line and the
ability of such practitioners to generate more revenue per patient by offering
our value-added products. We also advertise our products to eyecare
practitioners through promotional materials, trade publications and
conventions.

We currently sell through a direct salesforce in North America, U.K., Italy,
France, Spain, Belgium, Holland, Germany, Mexico, Brazil, Argentina, Japan and
Australia. Countries in Europe, Asia and Latin America not directly served by
us are serviced by a broad network of distributors. The Barnes-Hind Acquisition
strengthened our global distribution infrastructure by contributing direct
salesforces in Germany, Spain, Belgium, Netherlands, Luxembourg and Australia,
in addition to strengthening existing salesforces in the United States, France,
Italy, Canada and the United Kingdom.

32
<PAGE>

The following table sets forth our net sales to the geographic regions
indicated for the year ended December 31, 1998:

Net Sales to Geographic Regions
(dollars in thousands)

<TABLE>
<CAPTION>
Region Amount Percent
------ -------- -------
<S> <C> <C>
United States............................. $170,189 58%
Rest of World............................. 122,070 42%
-------- ---
Total................................... $292,259 100%
======== ===
</TABLE>

For additional information about our geographic sales, refer to footnote 15
of our audited consolidated financial statements which are included elsewhere
in this prospectus.

Customers

We currently sell our products through a variety of channels including
fitters and wholesalers who sell to fitters and lens-replacement suppliers. We
sell to a highly fragmented account base with no one customer accounting for
more than 5% of our revenues for the year ended December 31, 1998. Furthermore,
our top 10 customers accounted for less than 25% of our revenues for the year
ended December 31, 1998.

In the United States, we sell to three customer segments: private
practitioners, chain warehouses and wholesalers. There are approximately 17,100
private practitioners (MDs and ODs not affiliated with a retail chain) who fit
our products. In addition, we have distribution in over 10,000 retail chain
locations, such as Cole National Corporation, LensCrafters, National Vision
Association and Wal-Mart Stores, Inc., that advertise, promote and fill
prescriptions for our products. Wholesalers supply but do not fit our lenses.
The chart below illustrates the mix of our distribution channels in the United
States in 1998:

Net Sales by Distribution Channel
(as a percentage of net sales)
<TABLE>
<CAPTION>
Percent of
1998 U.S.
Distribution Channel Sales
-------------------- ----------
<S> <C>
Private practitioners............................ 54%
Chain warehouses................................. 14%
Wholesalers...................................... 32%
---
Total.......................................... 100%
===
</TABLE>

In Europe, key corporate accounts like Boots in the United Kingdom and Optic
2000 in France have selected our lenses as their private label as well as
offering our branded products. In Japan, the world's second largest contact
lens market, we have a direct salesforce and also have formed strategic
relationships with several hard and soft contact lens manufacturers.

The Barnes-Hind Acquisition provided us with access to a new set of accounts
and the opportunity to cross-sell existing product lines between the extensive
customer bases of Barnes-Hind and us.

Distribution

We perform most warehousing, inventory management, order taking and order
fulfillment functions in-house. Our fulfillment system provides the flexibility
to receive, fill and ship orders as

33
<PAGE>

small as a single lens and as large as a full truckload. Approximately 8,500
orders are received daily, primarily by telephone and facsimile in nine
customer service centers in North America, Europe, Japan, Argentina and
Australia.

In the U.S., approximately 68% of our lenses are shipped primarily by common
carriers directly to eyecare practitioners from a distribution center in Des
Plaines, Illinois. The remaining 32% are shipped to wholesalers, who resell
lenses to practitioners and mail-order houses. In several key markets outside
the U.S., we sell and distribute lenses directly to eyecare practitioners. In
other international markets, we serve customers through our network of
independent distributors.

Competition

The contact lens market is highly competitive. We face competition from other
companies within each segment of the contact lens market in which we operate.
In the specialty segment of the market, we principally compete with divisions
of large medical and pharmaceutical companies, including Ciba Vision (a
division of Novartis Corporation) and Bausch & Lomb, Inc. as well as with
smaller companies. To the extent we operate in the clear lens segment, we face
competition primarily from Vistakon (a division of Johnson & Johnson) and other
large contact lens manufacturers such as Ciba Vision, Bausch & Lomb, Inc. and
Ocular Sciences, Inc. Certain of our competitors in each segment have lower
costs of operations, products with enhanced features, substantially greater
resources to invest in product development and customer support, greater
vertical integration and greater access to financial and other resources than
us. While we are the leading manufacturer and distributor of specialty contact
lenses, we rank fourth in the contact lens market overall in terms of net
revenues. To a lesser extent, we also compete with manufacturers of eyeglasses
and providers of other methods of vision correction, including refractive
surgical procedures.

Within the contact lens market, we believe that the principal competitive
factors in the specialty segment include product innovation, brand awareness,
product quality and price. Due to the manner in which contact lenses are
distributed (i.e., through prescription), we also compete on the basis of our
relationships and reputation with eyecare practitioners.

Suppliers

We have a broad base of suppliers. We have qualified multiple vendors to
supply substantially all of the materials we use in our manufacturing processes
and actively seek to qualify new vendors to insure adequate access to such
materials. The primary raw materials we use in the production of contact lenses
are specialty chemicals. For the year ended December 31, 1998, no supplier
accounted for more than 5% of our costs of goods sold.

We use a number of advanced polymers and other sophisticated materials in the
production of our contact lenses. Due to the highly technical and specialized
nature of certain of our production materials, we rely from time to time on
single suppliers to provide us with sufficient quantities of certain materials
used in the production of one or more of our product lines. To minimize our
reliance on a particular vendor, we continually seek to identify multiple
vendors qualified to supply our production materials. Although we believe that
we are not dependent on any single supplier, our inability to obtain sufficient
quantities of certain production inputs could have a material adverse effect on
our financial condition or results of operations.

Patents and Trademarks

Our business and competitive position benefit from the validity and
enforcement of our intellectual property protection. We own a variety of
patents, trademarks, trade secrets, know-how and other intellectual property
which we believe to be important to our current and future success. The

34
<PAGE>

market for our products rewards product innovation, which tends to amplify the
importance of intellectual property protection.

We hold numerous U.S. and foreign patents and patent applications which
relate to aspects of the technology used in our products. Our policy is to file
patent applications to protect technology, inventions and improvements that are
considered important to the development of our business. There can be no
assurance that patent applications filed by us will result in the issuance of
patents or that any of our intellectual property will continue to provide
competitive advantages for our products or will not be challenged, circumvented
by others or invalidated.

We hold more than 70 U.S. patents, many of which have been extended into key
foreign countries. The most important part of our patent portfolio relates to
the design and production techniques of our cosmetic lenses. These patents
begin to expire in the year 2004. Our patents include patterns for changing the
color of and enhancing the iris, as well as methods for performing the printing
operation and promoting the adhesion of the printed ink to the lens. This group
of patents covers both the technology used by us in the production of our
cosmetic lenses, as well as many viable alternatives which could be used to
replicate such production techniques. Another important group of patents covers
our newest lens molding technology, which accommodates a high degree of
automation with correspondingly lower manufacturing cost. The features covered
are casting cup design, numerous process techniques and blister package design.
We have filed but not yet received a patent for our automatic lens inspection
system. We also hold patents covering a UV-absorbing compound used for making
UV-absorbing lenses, the design and manufacture of toric lenses, lens materials
and bifocal lens technology.

Our policy is to aggressively prosecute and defend our patents and other
proprietary technology. We are currently seeking to enforce our intellectual
property rights to cosmetic lenses in lawsuits filed by us and pending in Italy
and have similar actions planned in other countries. The prosecution and
defense of intellectual property protections, like any lawsuit, is inherently
uncertain and carries no guarantee of success. The protection of intellectual
property in certain foreign countries is particularly uncertain. We cannot
assure you that the prosecution and defense of our intellectual property will
be successful or that we will be able to secure adequate intellectual property
protections in the future.

Our trademarks include the following well recognized brand names:
Aquaflex(R), CSI(R), DuraSoft(R), Elegance, FreshLook(R), FreshLook
Colorblends, Gentle Touch, Hydrocurve, Optifit(R), Polycon(R), Precision UV and
SoftPerm(R). Our policy is to register trademarks in countries where
registration is available and deemed necessary or appropriate. Trademark
applications are pending for various marks in the United States and other
countries. There are gaps in registrations, and some marks may not be available
for use in various countries.

In addition to patents and trademarks, we own certain trade secrets,
copyrights, know-how and other intellectual property. We seek to protect these
assets, in part, by entering into confidentiality agreements with our business
partners, consultants and vendors and appropriate non-competition agreements
with our officers and employees. We cannot assure you that these agreements
will not be breached, that we will have adequate remedies for any such breach
or that our trade secrets and other intellectual property will not otherwise
become known or be independently developed by others and thereby become
unprotected.

Government Regulation

Our products are generally regulated in the United States and in foreign
countries as "medical devices." As a manufacturer of medical devices, we are
subject to regulation in the United States by the FDA and corresponding state
and foreign regulatory agencies where we sell our products. These

35
<PAGE>

regulations generally govern the introduction of new medical devices, the
maintenance of certain records, the tracking of devices and other matters. The
regulatory environment in which we operate can be expensive, time-consuming and
uncertain.

FDA Regulation

Pursuant to the FDC Act, and the regulations promulgated thereunder, the FDA
regulates the preclinical and clinical testing, manufacture, labeling,
distribution, and promotion of medical devices.

Noncompliance with applicable requirements can result in, among other things,
fines, injunctions, civil penalties, recall or seizure of products, total or
partial suspension of production, failure of the government to grant premarket
clearance or PMA for devices, withdrawal of marketing clearances or approvals
and criminal prosecution. The FDA also has the authority to request the recall,
repair, replacement or refund of the cost of any device manufactured or
distributed by us.

Under the FDC Act, clearance or approval by the FDA is required prior to the
commercialization of a medical device. The FDA classifies medical devices as
Class I, Class II or Class III, depending on the nature of the medical device
and the existence in the market of any similar devices. The nature of the
clearance or approval procedures is dependent on the classification of the
medical device in question. Class I medical devices are subject to general
controls, including labeling, premarket notification and adherence to the FDA's
good manufacturing practice regulations ("GMP Regulations"). Class II medical
devices are subject to general and special controls, including performance
standards, postmarket surveillance, patient registries and FDA guidelines.
Class III medical devices are those which must receive premarket approval by
FDA to ensure their safety and effectiveness, are generally life-sustaining,
life-supporting devices or implantable devices or new devices which have been
found not to be substantially equivalent to currently marketed medical devices.
Our products are generally regulated as Class II medical devices, with some
products (extended wear lenses) regulated as Class III medical devices.

Before a new device can be introduced into the U.S. market, it must receive
from the FDA clearance or approval, either premarket notification clearance
under Section 510(k) of the FDC Act or approval pursuant to the more costly and
time-consuming PMA procedure. Our daily wear contact lenses are generally
subject to the 510(k) clearance procedure while our extended wear contact
lenses are subject to the PMA requirements. A PMA application must be supported
by valid scientific evidence to demonstrate the safety and effectiveness of the
device, typically including the results of clinical trials, bench tests,
laboratory and animal studies. The PMA must also contain a complete description
of the device and its components, and a detailed description of the methods,
faculties and controls used to manufacture the device. In addition, the
submission must include the proposed labeling, advertising literature and any
training materials. The PMA process can be expensive, uncertain and lengthy,
and a number of devices for which FDA approval has been sought by other
companies have never been approved for marketing. Modifications to a device
that is the subject of an approved PMA, its labeling, or manufacturing process
may require approval by the FDA of PMA supplements or new PMAs. Supplements to
a PMA often require the submission of the same type of information required for
an initial PMA, except that the supplement is generally limited to that
information needed to support the proposed change from the product covered by
the original PMA.

A 510(k) clearance will be granted if the submitted information establishes
that the proposed device is "substantially equivalent" to a legally marketed
Class I or Class II medical device or a Class III medical device for which the
FDA has not called for PMAs. For any devices that are cleared through the
510(k) process, modifications or enhancements that could significantly affect
safety or effectiveness, or constitute a major change in the intended use of
the device, will require new 510(k) submissions. While less expensive and time-
consuming than obtaining PMA clearance, securing 510(k) clearance may involve
the submission of a substantial volume of data, including clinical data, and
may require a substantive review of six months or more. We market contact
lenses which have received 510(k) clearances as well as lenses which have been
the subject of approved PMA applications.

36
<PAGE>

Any products manufactured or distributed pursuant to 510(k) clearance or an
approved PMA are subject to pervasive and continuing regulation by the FDA,
including recordkeeping requirements and reporting of adverse experience with
the use of the device.

We currently have over 20 PMAs and 510(k) clearances for our products
marketed in the United States. New products may require clinical studies to
support a PMA or 510(k) clearance. There is no certainty that clinical studies
involving new products will be completed in a timely manner or that the data
and information obtained will be sufficient to support the filing of a PMA or
510(k) clearance. We cannot assure you that we will be able to obtain necessary
approvals to market new devices or any other products under development on a
timely basis, if at all, and delays in receipt or failure to receive such
approvals, the loss of previously received approvals, or failure to comply with
existing or future regulatory requirements could have a material adverse effect
on our business, financial condition and results of operations.

We have made modifications to our devices which we believe do not require the
submission of new 510(k) notices or PMA supplements. We cannot assure you,
however, that the FDA would agree with any of our determinations not to submit
a new 510(k) notice or PMA supplement for any of these changes or would not
require us to submit a new 510(k) notice or PMA supplement for any of the
changes made to the device. If the FDA requires us to submit a new 510(k)
notice or PMA supplement for any device modification, we may be prohibited from
marketing the modified device until the 510(k) notice or PMA supplement is
cleared by the FDA. We cannot assure you that future clearances or approvals,
whether under the 510(k) clearance procedure or the PMA procedure, will be
obtained in a timely fashion or at all. The failure to obtain such clearances
or approvals in a timely fashion or at all, could have a material adverse
effect on our business, financial condition or results of operations.

If human clinical trials of a device are required, whether for a 510(k) or a
PMA, and the device presents a "significant risk," the sponsor of the trial
(usually the manufacturer or the distributor of the device) is required to file
an investigational device exemption ("IDE") application prior to commencing
human clinical trials. IDE regulations generally require FDA approval and
approval by an independent institutional review board before a clinical study
may begin. Conforming with IDE regulations can add significant cost and/or
delay to the process of obtaining FDA approval for a medical device. Submission
of an application IDE does not give assurance that the FDA will approve the IDE
application and, if it is approved, we cannot assure you that the FDA will
determine that the data derived from these studies support the safety and
efficacy of the device or warrant the continuation of clinical studies.
Sponsors of clinical trials are permitted to sell investigational devices
distributed in the course of the study provided such compensation does not
exceed recovery of the costs of manufacture, research, development and
handling. An IDE supplement must be submitted to and approved by the FDA before
a sponsor or investigator may make a change to the investigational plan that
may affect its scientific soundness or the rights, safety or welfare of human
subjects.

As a manufacturer of medical devices, we are required to register with the
FDA and comply with the FDA's good manufacturing practice ("GMP") regulations.
GMP regulations require that we manufacture our products and maintain our
manufacturing, testing and control activities records in a prescribed manner.
Further, we are required to comply with FDA requirements for labeling and
promoting our products. We are subject to periodic inspections by the FDA and
can be subjected to a number of regulatory actions if we are found not to be in
compliance with applicable laws and regulations. If the FDA believes that a
company may not be operating in compliance with applicable laws and
regulations, it can record its observations on a Form FDA 483; place it under
observation and reinspect the facilities; institute proceedings to issue a
warning letter apprising of violative conduct; detain or seize products;
mandate a recall; enjoin future violations; and assess civil and criminal
penalties against us, our officers or our employees. In addition, clearances or
approvals could be withdrawn in appropriate circumstances. Failure to comply
with regulatory requirements or any

37
<PAGE>

adverse regulatory action could have a material adverse affect on us. On
occasion, we have received notifications from the FDA of alleged deficiencies
in our compliance with FDA requirements. Our San Diego, California; Cidra,
Puerto Rico; and Des Plaines, Illinois facilities have been inspected within
the past two years. A Form FDA 483 was issued following the inspection of our
San Diego facility. We responded and no follow up inspection was required. We
do not expect such inspections to give rise to any material FDA compliance
issues or to otherwise have a material adverse effect on us. On April 19, 1998,
the FDA issued a warning letter challenging certain claims by us regarding
Precision UV contact lenses. We responded by suspending use of the challenged
materials. We later submitted to the FDA a PMA supplement and a 510(k)
submission substantiating the claims. We also took additional steps to address
the FDAs concerns. The PMA supplement and the 510(k) submission were approved
by the FDA and we have resumed use of the claims. We do not expect any future
action by the FDA regarding the warning letter.

Manufacturers of medical devices for marketing in the United States must also
comply with medical device reporting ("MDR") requirements that a firm report to
FDA any incident in which its product may have caused or contributed to a death
or serious injury, or in which its product malfunctioned and, if the
malfunction were to recur, it would be likely to cause or contribute to a death
or serious injury. Labeling and promotional activities are subject to scrutiny
by the FDA and, in certain circumstances, by the FTC. Current FDA enforcement
policy prohibits the marketing of approved medical devices for unapproved uses.

We are subject to routine inspection by the FDA and certain state agencies
for compliance with GMP requirements, MDR requirements, and other applicable
regulations. The FDA has recently finalized changes to the GMP regulations,
including the addition of design control requirements, which will likely
increase the cost of compliance with GMP requirements. We cannot assure you
that we will not incur significant costs to comply with laws and regulations in
the future or that laws and regulations will not have a material adverse effect
upon our business, financial condition or results of operation. We believe that
all of our products offered for sale have received all required FDA approvals
or clearance, and that we are in substantial compliance with FDA regulations,
including GMP and MDR requirements.

International Regulation

Under the system established by the Directive, all medical devices other than
active implants and in vitro diagnostic products currently must qualify for CE
marking. "CE marking" means the manufacturer certifies that its product bearing
the CE mark satisfies all requirements essential for the product to be
considered safe and fit for its intended purpose.

In order to qualify for CE marking, the manufacturer must comply with the
"Essential Requirements" of the Directive, relating to the safety and
performance of the product. In order to demonstrate compliance, a manufacturer
is required to undergo a conformity assessment, which includes assessment of
the manufacturer's quality assurance system by self-selected certification
organizations referred to as a "Notified Body." After all necessary conformity
assessment tests have been completed to the satisfaction of the Notified Body
and the manufacturer is convinced that it is in full compliance with the
Directive, CE marking may be affixed on the products concerned. We have
undergone such conformity assessment, with two Dutch and one British non-
governmental entities chosen by us as our Notified Bodies. We have received CE
marking authorization for all products we currently market in the EU.

38
<PAGE>

Although member countries must accept for marketing medical devices bearing a
CE marking without imposing further requirements related to product safety and
performance, each country may require the use of its own language or labels and
instructions for use. "National Competent Authorities" who are required to
enforce compliance with the requirements of the Directive, can restrict,
prohibit and recall CE-marked products if they are unsafe. Such a decision must
be confirmed by the European Commission in order to be valid. Member countries
can impose additional requirements as long as they do not violate the Directive
or constitute technical barriers to trade.

Additional approvals from foreign regulatory authorities may be required for
international sale of our products in non-EU countries. Failure to comply with
applicable regulatory requirements can result in the loss of previously
received approvals and other sanctions and could have a material adverse effect
on our business, financial condition and results of operations.

Additional Regulation

We also are subject to numerous federal, state and local laws relating to
such matters as safe working conditions, manufacturing practices, environmental
protection, fire hazard control and disposal of hazardous or potentially
hazardous substances. We cannot assure you that we will not be required to
incur significant costs to comply with such laws and regulations in the future
or that such laws or regulations will not have a material adverse effect upon
our ability to do business.

Our success depends to a significant extent upon the success of our customers
in the retail optical industry. These customers are subject to a variety of
federal, state and local laws, regulations and ordinances, including those
regarding advertising, location and design of stores, products sold and
qualifications and practices of the industry. The state and local legal
requirements vary widely among jurisdictions and are subject to frequent
change. Furthermore, numerous health-care related legislative proposals have
been made in recent years in the United States Congress and in various state
legislatures. The potential impact of these proposals with respect to the
business of our customers is uncertain, and we cannot assure you that the
proposals, if adopted, would not have a material adverse impact on us.

Employees

As of April 3, 1999, we had approximately 2,690 full-time and part-time
employees, including 1,767 in the United States (including Puerto Rico), 766 in
Europe, and 157 in the rest of the world. We have no collective bargaining
agreements with any union and believe that our overall relations with employees
are satisfactory.

Environmental, Health and Safety Matters

We are subject to federal, state, local and foreign environmental laws and
regulations and are subject to liabilities and compliance costs associated with
the past and current handling, processing, storing and disposing of hazardous
substances and wastes. Our operations are also subject to federal, state and
local occupational health and safety laws and regulations. We devote resources
to maintaining environmental regulatory compliance and managing environmental
risk and believe that we conduct our operations in substantial compliance with
applicable environmental and occupational health and safety laws and
regulations. We do not expect to incur material capital expenditures for
environmental controls in the current or succeeding fiscal year.

In connection with the Wesley Jessen Acquisition and the Barnes-Hind
Acquisition, the respective sellers, subject to certain limitations, agreed to
retain responsibility for, and indemnify us from and against, certain
environmental matters. These matters include addressing a limited area of
historical contamination at our Des Plaines facility and settling any liability
of Barnes-Hind at Superfund sites

39
<PAGE>

located in Whittier, California and Santa Barbara County, California.
Notwithstanding these contractual agreements, we could be pursued in the first
instance by governmental authorities or third parties with respect to certain
indemnified matters, subject to our right to seek indemnification from the
appropriate seller. Management does not currently believe that any such matter
will have a material adverse effect on our business or financial condition.

Properties

Our principal manufacturing facilities are located in Cidra, Puerto Rico; Des
Plaines, Illinois; San Diego, California; and Southampton, United Kingdom. Our
headquarters is located in Des Plaines, Illinois (a suburb of Chicago). In
Europe, Barnes-Hind has consolidated warehouses and customer service centers
into one distribution center in the United Kingdom and two customer service
centers in the United Kingdom and France.

We believe that substantially all of our property and production equipment is
in good condition and, after the completion of our current expansion at our Des
Plaines, Illinois facility, that we have sufficient capability to meet our
current and projected manufacturing and distribution needs for the foreseeable
future. All of our owned properties are subject to a mortgage as collateral
under our bank credit agreement. The following table describes our principal
properties as of December 31, 1998:

<TABLE>
<CAPTION>
Square
Location Function Footage Owned/Leased
--------------------------------- ------------------------------ ------- ------------
<C> <S> <C> <C>
Des Plaines, Illinois............ Corporate 340,000 Owned
Headquarters/Disposable
Manufacturing/R&D/Distribution
Des Plaines, Illinois............ Distribution Center 62,883 Leased
Chicago, Illinois ............... Distribution Center (1) 48,000 Leased
San Diego, California............ Conventional Manufacturing 19,000 Owned
San Diego, California............ Conventional 69,700 Leased
Manufacturing/Distribution
Atlanta, Georgia ................ RGP Manufacturing 7,200 Leased
Cidra, Puerto Rico............... Conventional Lens 65,000 Owned
Manufacturing
Southampton, United Kingdom...... Disposable Manufacturing/R&D 66,200 Leased
Southampton, United Kingdom...... Conventional Manufacturing 12,250 Leased
Farnham, United Kingdom.......... RGP Manufacturing 5,000 Leased
Chandlers Ford, United Kingdom .. Conventional Manufacturing 20,000 Leased
Eastleigh, United Kingdom........ Distribution Center 25,000 Leased
Mississauga, Ontario ............ Sales Office/Distribution 7,000 Leased
Rome, Italy ..................... Sales Office/Distribution 7,750 Leased
Paris, France ................... Sales Office 12,000 Leased
Sydney, Australia ............... Sales Office/Distribution 7,500 Leased
Sydney, Australia ............... Manufacturing 7,050 Leased
Tokyo, Japan .................... Sales Office/Distribution 5,000 Leased
Madrid, Spain ................... Sales Office/Distribution * Leased
Rotterdam, Holland .............. Sales Office * Leased
Sao Paulo, Brazil................ Sales Office/Distribution * Leased
Munich, Germany ................. Sales Office * Leased
Hong Kong ....................... Sales Office * Leased
Singapore........................ Sales Office * Leased
Mexico City, Mexico.............. Sales Office * Leased
Buenos Aires, Argentina.......... Manufacturing * Leased
Buenos Aires, Argentina.......... Sales Office/Distribution * Leased
</TABLE>
- --------
*Less than 5,000 square feet.
(1) This facility was sublet to a third party in September 1998.

40
<PAGE>

Cidra, Puerto Rico. This 65,000 square foot facility was completed in 1991
and produces our DuraSoft and Optifit conventional clear and specialty lenses.

Des Plaines, Illinois. This 340,000 square foot facility currently produces
all of our FreshLook disposable lenses, and also houses our corporate
headquarters, research and development activities and other administrative
services.

San Diego, California. This 88,700 square foot facility produces our CSI,
Hydrocurve and Gentle Touch premium and toric lenses. Additionally, the
facility is used for customer service and management information systems. The
U.S. distribution function was transferred to the Des Plaines, Illinois
facility in February 1999. For additional information about the phase out of
this facility, refer to Management's Discussion and Analysis of Financial
Condition and Results of Operations.

Southampton, United Kingdom. This 66,200 square foot facility was
substantially completed in 1996 and supports production of our Precision UV
lenses.

Legal Proceedings

We are currently a party to various claims and legal actions which arise in
the ordinary course of business. We believe such claims and legal actions,
individually or in the aggregate, will not have a material adverse effect on
our business, financial condition or results of operations. We carry insurance
coverage in the types and amounts that management considers reasonably adequate
to cover the risks we face in the industry in which we compete. We cannot
assure you, however, that such insurance coverage will be adequate to cover all
losses which we may incur in future periods.

In connection with the Barnes-Hind Acquisition, Pilkington agreed, subject to
certain limitations, to retain responsibility for, and indemnify us from and
against, certain litigation and other claims. Notwithstanding these contractual
agreements, we could be pursued in the first instance by third parties with
respect to certain indemnified matters, subject to our right to seek
indemnification from such seller. Management does not currently believe that
any such matter will have a material adverse effect on our business or
financial condition.

41
<PAGE>

MANAGEMENT

Directors, Executive Officers and Key Employees

The following table sets forth certain information with respect to our
directors, executive officers and certain key employees as of March 31, 1999:

<TABLE>
<CAPTION>
Name Age Position
- ---- --- --------
<S> <C> <C>
Kevin J. Ryan (1)....... 59 Chairman of the board, President and Chief Executive Officer
Edward J. Kelley........ 51 Vice President, Finance, Chief Financial Officer and Director
Raleigh S. Althisar,
Jr..................... 50 Vice President, Worldwide Manufacturing
Ronald J. Artale........ 48 Vice President and Controller
Lawrence L. Chapoy...... 56 Vice President, Research & Development
William M. Flynn........ 40 Vice President, Pan Asia
Joseph F. Foos.......... 47 Vice President, Scientific Affairs
George H. McCrary....... 56 Vice President, Americas
Daniel M. Roussel....... 50 Vice President, Europe
Thomas F. Steiner....... 53 Vice President, Marketing
Michael A. D'Amato (2).. 45 Director
Adam W. Kirsch.......... 37 Director
Sol Levine (1)(2)....... 70 Director
John W. Maki (2)........ 38 Director
John J. O'Malley........ 51 Director
Stephen G. Pagliuca
(1).................... 44 Director
</TABLE>
- --------
(1)Member of the Compensation Committee.
(2)Member of the Audit Committee.

Kevin J. Ryan has served as President, Chief Executive Officer and a Director
of WJ since June 1995 and has served as Chairman of the board since February
1999. From 1991 to 1995, Mr. Ryan was President of Biosource Technologies Inc.,
a company engaged in discovery, development and production of new
biopharmaceuticals and gene-based agricultural products. From 1987 to 1990, Mr.
Ryan served as President of Barnes-Hind's contact lens business; from 1983 to
1987, as President of Revlon VisionCare (a division of Revlon, Inc.); and from
1978 to 1983, as President of Barnes-Hind (then a part of Revlon VisionCare).

Edward J. Kelley has served as Vice President, Finance, Chief Financial
Officer and a Director of WJ since June 1995. Prior to joining WJ, Mr. Kelley
served as the President, Asia Pacific and Latin America of Barnes-Hind's
contact lens business from 1994 to 1995 and its Chief Financial Officer from
1989 to 1994. Prior to joining Barnes-Hind, Mr. Kelley held positions of
increasing responsibility with Simon & Schuster, Revlon Health Care and Peat
Marwick Mitchell & Company.

Raleigh S. Althisar, Jr. has served as Vice President, Worldwide
Manufacturing of WJ since October 1996. Prior to joining WJ, Mr. Althisar
served as Executive Vice President, Worldwide Manufacturing of Barnes-Hind.
Prior thereto, he held positions of increasing responsibility with the Sola
division of Barnes-Hind, Syntex Ophthalmics, Retail Optical Management and
Milton Roy Ophthalmics.

Ronald J. Artale has served as Vice President of WJ since February 1997 and
Controller since March 1996. Prior to joining WJ, Mr. Artale served as
Corporate Vice President, Planning with Simon & Schuster. In addition, Mr.
Artale has held positions of increasing responsibility with Revlon VisionCare,
including Vice President, Finance for Barnes-Hind.

42
<PAGE>

Lawrence L. Chapoy has served as Vice President, Research & Development of WJ
since 1993. Prior to joining WJ, Dr. Chapoy spent eight years with Montedison
Chemical Company as a Project Researcher and fifteen years as a Chemical
Engineering Professor at the Polytechnic University of Denmark. In these
positions, Dr. Chapoy conducted and managed research in a variety of materials
science related areas. Dr. Chapoy holds more than 25 patents, has authored more
than 75 publications and presented over 100 lectures during the course of his
career.

William M. Flynn has served as the Vice President, Pan Asia of WJ since 1994.
Prior to being named to his current position, Mr. Flynn served as International
Finance Manager for two years and in other positions in the Finance Department
of Schering-Plough Corporation for two years. In addition, Mr. Flynn held a
variety of finance positions with Prudential Insurance Company of America and
RCA Records.

Joseph F. Foos has served as Vice President, Scientific Affairs of WJ since
1994. Mr. Foos joined Wesley Jessen in 1987 and has served as Manager, Quality
for two years, Project Manager for Research and Development Pilot Manufacturing
and various other positions of increasing responsibility.

George H. McCrary has served as Vice President, Americas of WJ since 1996.
Prior to joining WJ, Mr. McCrary held the position of Senior Vice President of
Sales, Marketing and Distribution for Foster Grant Corporation and prior to
that, Vice President Sales and Marketing, Consumer Products Division for Revlon
VisionCare. Before joining Revlon VisionCare, he held sales and marketing
positions of increasing responsibility with the Warner-Lambert Company.

Daniel M. Roussel has served as Vice President, Europe for WJ since 1995. Mr.
Roussel opened WJ's French subsidiary and served for three years as General
Manager Wesley Jessen, France. Previously, Mr. Roussel held positions in
marketing and sales with Schering-Plough in Hong Kong, Japan, and Portugal. Mr.
Roussel also worked as Regional Director, Asia Pacific, for Goupit Labs based
in Hong Kong.

Thomas F. Steiner has served as Vice President, Marketing of WJ since 1996.
Mr. Steiner has served in various marketing-related positions since joining WJ
in 1982. Prior to joining WJ, Mr. Steiner worked at Sara Lee Corporation for
seven years as Group Product Manager and Project Research Manager. Mr.Steiner
also worked at J. Walter Thompson Company as Associate Research Director.

Michael A. D'Amato has been a Director of WJ since September 1997. Mr.
D'Amato has served as the Executive Vice President of The Advisory Board
Company and the Chief Financial Officer of DGB Enterprises, Inc. since October
1997, and from 1996 until July 1998, he was the Chief Financial Officer of The
Advisory Board Company. From July 1998 until February 1999, Mr. D'Amato also
served as the Executive Vice President--Finance and the Secretary of The
Corporate Executive Board Company ("CEBC"). From October 1997 until November
1998, Mr. D'Amato served as the Chief Financial Officer of CEBC. From 1995 to
1996, Mr. D'Amato served as the Special Advisor to the Chairman of The Advisory
Board Company. Prior to joining The Advisory Board Company, Mr. D'Amato was a
Partner of Bain & Company from 1982 through 1995. Mr. D'Amato joined Bain &
Company in 1977. Mr. D'Amato also serves as a director of CEBC.

Adam W. Kirsch has been a Director of WJ since its incorporation in May 1995.
Mr. Kirsch also held the office of Executive Vice President of WJ from April
1995 to May 1998. Mr. Kirsch has been a Managing Director of Bain Capital since
May 1993 and a general partner of Bain Venture Capital since 1990. Mr. Kirsch
joined Bain Venture Capital in 1985 as an associate, and prior to joining Bain
Venture Capital, Mr. Kirsch was a consultant at Bain & Company, where he worked
in mergers and acquisitions. He serves on the board of several companies
including Therma-Wave, Inc., Brookstone, Inc., Dade Berhing Inc. and several
other private companies.

43
<PAGE>

Sol Levine has been a Director of WJ since September 1997. Mr. Levine is
currently the President of Mardan Corporation. Mr. Levine served as President
of Revlon, Inc. prior to his retirement in December 1991. Mr. Levine also
serves on the board of Biosource Technologies, Inc. and several other private
companies.

John W. Maki has been a Director of WJ since November 1996. Mr. Maki is
currently a Managing Director of Technology Directors Inc. Mr. Maki was a
Principal at Bain Capital from 1995 to July 1997 and was an associate at Bain
Capital from 1993 to 1995 and at Bain Venture Capital from 1988 to 1993. Prior
to joining Bain Venture Capital, Mr. Maki was a consultant at Bain & Company,
an international management consulting firm, where he specialized in healthcare
and consumer product companies. He also serves on the board of Biosource
Technologies, Inc. and Chroma Graphics, Inc.

John J. O'Malley has been a Director of WJ since November 1996. Mr. O'Malley
is currently a Managing Director of Technology Directors Inc. Mr. O'Malley was
an Executive Vice President of Bain Capital from 1993 to February 1999. From
1991 to 1993, Mr. O'Malley was President and Chief Executive Officer of
Robertson Ceco, an international construction products and engineering company.
From 1986 to 1991, he was Executive Vice President of HMK Group Inc., a
diversified manufacturing and services company. Mr. O'Malley is also a director
of GS Industries, Inc., Medical Specialties Group, Inc., Biosource
Technologies, Inc. and Chroma Graphics, Inc.

Stephen G. Pagliuca has been a Director of WJ since its incorporation in May
1995. Mr. Pagliuca served as Chairman of the board from April 1995 to February
1999. Mr. Pagliuca has been a Managing Director of Bain Capital since May 1993
and a general partner of Bain Venture Capital since 1989, where he founded
Information Partners. Prior to joining Bain Venture Capital, Mr. Pagliuca was a
partner at Bain & Company, where he provided strategic and operational advice
for clients in the healthcare and information industries. He also worked as a
senior accountant and international tax specialist for Peat Marwick Mitchell &
Company in the Netherlands. Mr. Pagliuca also serves as director of Dade
Berhing Inc., Coram Healthcare Corporation, Gartner Group, Inc. and The
Corporate Executive Board Company.

Our executive officers are duly elected by the board of directors to serve
until their respective successors are elected and qualified. There are no
family relationships between any of the directors or executive officers of WJ.

Our board is divided into three classes, as nearly equal in number as
possible, with each director serving a three-year term and one class being
elected at each year's annual meeting of stockholders. Our by-laws provide that
directors shall be elected by a plurality vote, with no cumulative voting.
Messrs. Maki and D'Amato are in the class of directors whose term expires at
the 2001 annual meeting of our stockholders. Messrs. Kirsch, Kelley and Levine
are in the class of directors whose term expires at the 1999 annual meeting of
our stockholders. Messrs. Pagliuca, Ryan and O'Malley are in the class of
directors whose term expires at the 2000 annual meeting of our stockholders. At
each annual meeting of our stockholders, successors to the class of directors
whose term expires at such meeting will be elected to serve for three-year
terms and until their respective successors are elected and qualified.

44
<PAGE>

Executive Compensation

General

The following table sets forth information concerning the compensation paid
or accrued for the years ended December 31, 1998, 1997 and 1996 for our chief
executive officer and each of the four other most highly compensated executive
officers of WJ as of the end of the last fiscal year. We collectively refer to
these five executive officers as our "named executives."

Summary Compensation Table

<TABLE>
<CAPTION>
Long Term
Compensation
Annual Compensation Awards
---------------------------------------- ------------
Other Securities
Annual Underlying All Other
Name and Principal Position Year Salary Bonus (a) Compensation (b) Options Compensation (c)
- --------------------------- ---- -------- --------- ---------------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
Kevin J. Ryan........... 1998 $250,008 $584,625 $-- 25,000 $4,466
Chairman, President 1997 250,008 477,125 -- 32,000 2,275
and Chief Executive 1996 250,008 590,000 -- 126,398 1,800
Officer

Edward J. Kelley........ 1998 $175,000 $414,038 $-- 15,000 $2,018
Chief Financial 1997 175,000 338,713 -- 25,000 717
Officer and Vice 1996 175,000 417,500 -- 35,800 688
President, Finance

Lawrence L. Chapoy...... 1998 $146,100 $213,993 $-- 5,000 $2,423
Vice President, 1997 146,100 176,888 -- 5,000 1,143
Research & Development 1996 146,100 216,228 -- 5,592 841

Daniel M. Roussel....... 1998 $134,341 $179,308 $-- 6,000 $ --
Vice President, 1997 120,622 144,432 -- 5,000 --
Europe 1996 133,843 184,703 -- 15,621 --

Thomas F. Steiner....... 1998 $140,000 $205,058 $-- 6,000 $1,557
Vice President, 1997 140,000 169,502 -- 5,000 746
Marketing 1996 120,000 177,600 -- 16,103 668
</TABLE>
- --------
(a) Reflects bonuses received by such named executives under our management
bonus plan as a result of our meeting certain performance targets in such
fiscal year. Bonuses for 1998 also include payments made under our profit
sharing plan in the following amounts: Mr. Ryan--$16,000; Mr. Kelley--
$16,000; Mr.Chapoy--$14,610; and Mr. Steiner--$14,000. In 1997, such
payments were as follows: Mr. Ryan--$15,750; Mr.Kelley--$15,750; Mr.
Chapoy--$14,610; and Mr. Steiner--$14,000. In 1996, such payments were as
follows: Mr. Ryan--$15,000; Mr. Kelley--$15,000; Mr. Chapoy--$14,610; and
Mr. Steiner--$12,000. Mr. Roussel is not eligible to participate in such
plan.

(b) None of the perquisites and other benefits paid to each named executive in
1998, 1997 or 1996 exceeded the lesser of $50,000 or 10% of the total
annual salary and bonus received by such named executive during that year.

(c) Reflects premium payments made by us on behalf of such named executives for
life and long-term disability insurance as follows:
<TABLE>
<CAPTION>
Long-term
Life Disability
Name Year Insurance Insurance
---- ---- --------- ----------
<S> <C> <C> <C>
Kevin J. Ryan................................... 1998 $4,050 $416
1997 1,800 475
1996 1,800 --
Edward J. Kelley................................ 1998 $1,728 $290
1997 435 282
1996 435 253
Lawrence L. Chapoy.............................. 1998 $2,180 $243
1997 865 278
1996 554 282
Thomas F. Steiner............................... 1998 $1,325 $232
1997 518 228
1996 403 265
</TABLE>

45
<PAGE>

Option Grants in Last Fiscal Year

The following table sets forth information regarding stock options granted by
us to the named executives in our last fiscal year:

<TABLE>
<CAPTION>
Potential Realizable
Value at Assumed
Number of Annual Rates of Stock
Securities Exercise Market Price Appreciation for
Underlying % of Total or Base Price on Option Term(d)
Options Options Granted Price Date of Expiration -----------------------
Granted(a) in Fiscal Year ($/Share) Grant(b) Date(c) 5% 10%
---------- --------------- --------- -------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Kevin J. Ryan .......... 25,000 4.5% $20.50 $20.50 11/9/08 $ 322,250 $ 811,750
Edward J. Kelley........ 15,000 2.7% 20.50 20.50 11/9/08 193,350 490,050
Lawrence L. Chapoy...... 5,000 0.9% 20.50 20.50 11/9/08 64,450 163,350
Daniel M. Roussel....... 6,000 1.1% 20.50 20.50 11/9/08 77,340 196,020
Thomas F. Steiner....... 6,000 1.1% 20.50 20.50 11/9/08 77,340 196,020
</TABLE>
- --------
(a) Options vest in four equal annual installments beginning on the first
anniversary of the date of grant. The grant date of such options was
November 9, 1998.
(b) Market price was determined based on the last reported sale price of the
common stock as reported by Nasdaq.
(c) Options will expire the earlier of 30 days after the date of termination or
November 9, 2008.
(d) Amounts reflect certain assumed rates of appreciation set forth in the
executive compensation disclosure rules of the SEC. Actual gains, if any,
on stock option exercises depend on future performance of our stock and
overall market conditions. At an annual rate of appreciation of 5% per year
for the option term, the price of the common stock would be approximately
$33.39 per share. At an annual rate of appreciation of 10% per year for the
option term, the price of the common stock would be approximately $53.17
per share.

46
<PAGE>

Aggregated Option Exercises in Last Fiscal Year and Fiscal Year End Option
Values

The following table sets forth information for the named executives
concerning stock option exercises during our last fiscal year and options
outstanding at the end of the last fiscal year:

<TABLE>
<CAPTION>
Number of Securities . Value of Unexercised
Underlying Unexercised In-the-Money Options at
Options at FY-End FY-End (a)
Shares Acquired on Value ------------------------- -------------------------
Name Exercise Realized Unexercisable/Exercisable Unexercisable/Exercisable
- ---- ------------------ ---------- ------------------------- -------------------------
<S> <C> <C> <C> <C>
Kevin J. Ryan........... 50,000 $1,683,014 146,904/979,696 $ 4,076,586/$27,186,564
Edward J. Kelley........ 41,000 1,268,954 53,331/156,439 $ 1,479,935/$ 4,341,182
Lawrence J. Chapoy...... 8,952 301,245 17,702/56,076 $ 491,231/$ 1,556,109
Daniel M. Roussel....... 0 0 27,652/133,238 $ 767,343/$ 3,697,355
Thomas F. Steiner....... 7,000 216,039 23,176/90,624 $ 643,134/$ 2,514,816
</TABLE>
- --------
(a) Fair market value of the common stock was determined based on the last
reported sale price of the common stock as reported by Nasdaq on December
31, 1998 which was $27.75 per share.

Employment Agreements

On June 28, 1995, WJ and Kevin J. Ryan entered into an employment agreement,
pursuant to which Mr. Ryan agreed to serve as President and Chief Executive
Officer of WJ for a period that will end with Mr. Ryan's resignation, death or
disability, or upon termination by WJ, with or without cause. Under the
employment agreement, Mr. Ryan will receive:

.an annual base salary equal to at least $250,000;

.an annual bonus based on our achievement of certain targeted operating
results; and

.certain fringe benefits.

If Mr. Ryan's employment is terminated by us without cause (as defined
therein), he will be entitled to receive his base salary and fringe benefits
for 12 months following such termination in addition to his bonus for the year
in which his employment was terminated, pro rated based on the number of days
elapsed in the year, if he would have otherwise been entitled to receive such
bonus had he not been terminated. Mr. Ryan has agreed not to compete with us
for a period of one year following his termination of employment with us and
not to disclose any confidential information at any time without the prior
written consent of WJ.

On June 28, 1995, Edward J. Kelley entered into an employment agreement with
us containing substantially similar terms as those described above. Under such
agreement, Mr. Kelley has agreed to serve as the Chief Financial Officer of WJ
for:

.an annual base salary equal to at least $175,000;

.an annual bonus based on our achievement of certain targeted operating
results; and

.certain fringe benefits.

Management Bonus Plan

In November 1997, the board adopted the Wesley Jessen Corporation
Professional Incentive Plan for calendar year 1998 (the "Bonus Plan"). Under
the Bonus Plan, participants are eligible to earn an annual bonus upon the
achievement by WJ of a specified level of earnings per share. The annual bonus
is equal to a specified percentage of a participant's annual salary, subject to
increase based on achievement beyond targeted levels. Bonuses under the Bonus
Plan are not subject to any cap. Approximately 140 employees participated in
the Bonus Plan for 1998, including each of the named executives.

47
<PAGE>

Director Compensation

Directors who are employees of WJ or are affiliated with our significant
stockholders do not receive a salary or an annual retainer for their services.
We pay non-employee directors not otherwise affiliated with us or our
significant stockholders an annual cash retainer of $10,000. In addition, we
reimburse all directors for reasonable expenses incurred in attending board
meetings. Pursuant to our 1997 Non-Employee Director Stock Option Plan (the
"Director Option Plan"), non-employee directors are granted options to purchase
10,000 shares of common stock upon their initial election or appointment to the
board (or upon the adoption of the Director Option Plan for those directors in
office on the date of such adoption) and will be entitled to options to
purchase an additional 2,000 shares of common stock on an annual basis on each
anniversary of such director's election or appointment to the board (which will
be granted on the date of our next annual meeting of stockholders following
such anniversary). See "Non-Employee Director Stock Option Plan."
Messrs. Pagliuca, Kirsch, Maki, O'Malley, Levine and D'Amato will be granted
annual options on the date of our 1999 annual meeting. The directors do not
receive any additional compensation for committee participation.

Committees of the board of directors

The board has two standing committees: the audit committee and the
compensation committee.

The compensation committee is authorized to provide a general review of our
compensation and benefit plans to ensure that they meet corporate objectives.
In addition, the compensation committee reviews our chief executive officer's
recommendations on (1) compensation of all officers of WJ and (2) adopting and
changing major compensation policies and practices, and reports its
recommendations to the whole board for approval and authorization. The
compensation committee administers our stock plans (subject to approval by the
full board of any awards made thereunder) and is currently comprised of
Messrs. Levine, Pagliuca and Ryan. The compensation committee held one meeting
in 1998.

The audit committee is authorized to make recommendations to the board
regarding the independent auditors to be nominated for election by the
stockholders and to review the independence of such auditors, approve the scope
of the annual audit activities of the independent auditors, approve the audit
fee payable to the independent auditors and review such audit results.
PricewaterhouseCoopers LLP presently serves as the independent accountants of
WJ. The audit committee is currently comprised of Messrs. D'Amato, Levine and
Maki. The audit committee held one meeting in 1998.

Compensation Committee Interlocks and Insider Participation

The compensation committee is currently comprised of Messrs. Pagliuca, Levine
and Ryan. Mr. Pagliuca is a Managing Director of Bain Capital, which is a party
to the Advisory Agreement with WJ. Mr. Ryan is the Chairman of the board,
President and Chief Executive Officer of WJ. The compensation for employees who
are also directors of WJ (Messrs. Ryan and Kelley) for the years ended 1996,
1997 and 1998 was established pursuant to the terms of their respective
employment agreements with WJ. See "Certain Relationships and Related
Transactions."

Stock Incentive Plan

In connection with the IPO, the board and stockholders of WJ approved the
Wesley Jessen VisionCare, Inc. Stock Incentive Plan (the "Stock Plan"). The
Stock Plan is administered by our

48
<PAGE>

compensation committee, composed of at least two Non-Employee Directors (as
that term is defined in Rule 16b-3 under the Exchange Act). Certain employees,
advisors and consultants of WJ are eligible to participate in the Stock Plan.
The compensation committee is authorized under the Stock Plan to select the
participants and determine the terms and conditions of the awards under the
Stock Plan. The Stock Plan provides for the issuance of the following types of
incentive awards: stock options, stock appreciation rights, restricted stock,
performance grants and other types of awards that the compensation committee
deems consistent with the purposes of the Stock Plan. An aggregate of 800,000
shares of our common stock have been reserved for issuance under the Stock
Plan, subject to certain adjustments reflecting changes in our capitalization.
As of May 26, 1999, our stockholders have approved an amendment to the Stock
Plan that increased the number of shares reserved for issuance by 1,000,000.
The Stock Plan provides that participants will be limited to receiving awards
relating to no more than 50,000 shares of common stock per year. As of March
31, 1999, options to purchase an aggregate of 537,200 shares were outstanding
under the Stock Plan.

Options granted under the Stock Plan may be either incentive stock options
("ISOs") or such other forms of non-qualified stock options ("NQOs") as the
committee may determine. ISOs are intended to qualify as "incentive stock
options" within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the "Code"). The exercise price of (i) an ISO granted to an
individual who owns shares possessing more than 10% of the total combined
voting power of all classes of stock of WJ (a "10% Owner") will be at least
110% of the fair market value of a share of common stock on the date of grant
and (ii) an ISO granted to an individual other than a 10% Owner and an NQO will
be at least 100% of the fair market value of a share of common stock on the
date of grant.

Options granted under the Stock Plan may be subject to time vesting and
certain other restrictions at the sole discretion of the committee. Subject to
certain exceptions, the right to exercise an option generally will terminate at
the earlier of (i) the first date on which the initial grantee of such option
is not employed by us for any reason other than termination without cause,
death or permanent disability or (ii) the expiration date of the option. If the
holder of an option dies or suffers a permanent disability while still employed
by us, the right to exercise all unexpired installments of such option shall be
accelerated and shall vest as of the latest of the date of such death, the date
of such permanent disability and the date of the discovery of such permanent
disability, and such option shall be exercisable, subject to certain
exceptions, for 180 days after such date. If the holder of an option is
terminated without cause, to the extent the option has vested, such option will
be exercisable for 30 days after such date.

All outstanding awards under the Stock Plan will terminate immediately prior
to consummation of a liquidation or dissolution of WJ, unless otherwise
provided by the board. In the event of the sale of all or substantially all of
the assets of WJ or the merger of WJ with another corporation, all restrictions
on any outstanding awards will terminate and participants will be entitled to
the full benefit of their awards immediately prior to the closing date of such
sale or merger, unless otherwise provided by the board.

The board generally will have the power and authority to amend the Stock Plan
at any time without approval of our stockholders, subject to applicable federal
securities and tax laws limitations (including regulations of Nasdaq).

Employee Stock Discount Purchase Plan

The Wesley Jessen VisionCare, Inc. Employee Stock Discount Purchase Plan,
including a substantially identical plan for international employees (the
"Employee Stock Purchase Plan") was established to give employees desiring to
do so a convenient means of purchasing shares of common

49
<PAGE>

stock through payroll deductions. The Employee Stock Purchase Plan provides an
incentive to participate by permitting purchases at a discounted price. We
believe that ownership of stock by employees will foster greater employee
interest in the success, growth and development of WJ. As of March 1, 1999, an
aggregate of 93,458 shares of common stock have been issued under the Employee
Stock Purchase Plan.

Subject to certain restrictions, each employee of WJ is eligible to
participate in the Employee Stock Purchase Plan. Participation is discretionary
with each eligible employee. We have reserved 500,000 shares of common stock
for issuance in connection with the Employee Stock Purchase Plan. Each eligible
employee is entitled to purchase a maximum of 125 shares per quarter. Elections
to participate can be made at any time and purchases of stock are made on a
quarterly basis. Each participating employee contributes to the Employee Stock
Purchase Plan by choosing a payroll deduction in any specified amount, with a
minimum deduction of $10 per payroll period. A participating employee may
increase or decrease the amount of such employee's payroll deduction, including
a change to a zero deduction at any time. Elected contributions are credited to
participants' accounts at the end of each calendar month. In addition,
employees may make lump sum contributions at the end of the quarter to enable
them to purchase the maximum number of shares available for purchase during the
plan year.

Each participating employee's contributions are used to purchase shares for
the employee's share account within 15 days after the last day of each calendar
month. The cost per share is 85% of the lower of the closing price of our
common stock on the Nasdaq National Market on the first or the last day of the
calendar month. The number of shares purchased on each employee's behalf and
deposited in his/her share account is based on the amount accumulated in such
participant's cash account and the purchase price for shares with respect to
any month. Shares purchased under the Employee Stock Purchase Plan carry full
rights to receive dividends declared from time to time. Under the Employee
Stock Purchase Plan, any dividends attributable to shares in the employee's
share account are automatically used to purchase additional shares for such
employee's share account. Share distributions and share splits are credited to
the participating employee's share account as of the record date and effective
date, respectively. A participating employee has full ownership of all shares
in such employee's share account and may withdraw them for sale or otherwise at
any time. Subject to applicable federal securities and tax laws, the board has
the right to amend or to terminate the Employee Stock Purchase Plan. Amendments
to the Employee Stock Purchase Plan will not affect a participating employee's
right to the benefit of the contributions made by such employee prior to the
date of any such amendment. In the event the Employee Stock Purchase Plan is
terminated, the Committee is required to distribute all shares held in each
participating employee's share account plus an amount of cash equal to the
balance in each participating employee's cash account.

Non-Employee Director Stock Option Plan

The Director Option Plan was established to encourage stock ownership by
certain directors of WJ and to provide those individuals with an additional
incentive to manage WJ in the shareholders' best interests and to provide a
form of compensation that will attract and retain highly qualified individuals
as members of the board. The Director Option Plan provides for the granting of
options to non-employee directors, as defined, covering an aggregate of 250,000
shares of common stock of WJ, subject to certain adjustments reflecting changes
in our capitalization. To date, options to purchase an aggregate of 68,000
shares of common stock have been granted under the Director Option Plan.
Options to acquire an additional 12,000 shares of common stock will be granted
on May 26, 1999, the date of our next annual meeting.

The committee or the full board is authorized under the Director Option Plan
to make discretionary grants of options and determine the terms and conditions
of such options. In addition,

50
<PAGE>

the Director Option Plan provides for an initial one-time grant of options to
purchase 10,000 shares of common stock to each non-employee director serving as
a member of the board upon the effectiveness of the Director Option Plan or to
any new non-employee director upon being elected to the board. The Director
Option Plan also provides that each non-employee director shall automatically
be entitled to options to purchase 2,000 shares of common stock upon each
anniversary of such director's election to the board (which will be granted at
our next annual meeting of stockholders following such anniversary). The
Director Option Plan requires that the exercise price for each option granted
under the plan must equal 100% of the fair market value of our common stock on
the date the option is granted. The initial one-time grants are immediately
exercisable and the annual grants will vest in three equal installments
commencing on the first anniversary of the grant date. Nothing contained in the
Director Option Plan or any agreement to be executed pursuant to the Director
Option Plan will obligate us, our board or our stockholders to retain an
optionee as a director of WJ.

Wesley Jessen Retirement Plan

Substantially all full-time United States and Puerto Rico employees of WJ
participate in the Wesley Jessen Cash Balance Pension Plan (the "Retirement
Plan"), a defined benefit plan intended to qualify under Section 401(a) of the
Code. The Retirement Plan became effective on January 1, 1996. The Retirement
Plan is a cash balance plan whereby each participant's benefits are determined
based on annual pay credits and interest credits made to each participant's
account. In general, a participant becomes vested under the Retirement Plan
upon completion of five years of service.

Annual pay credits range from 3.0% to 8.0% of compensation, depending on a
participant's length of service with WJ. Compensation refers to pension
eligible earnings of a participant under the Retirement Plan (up to $160,000
for 1998, as limited by the Code), including all direct compensation paid to
participants plus any pretax deferrals.

Interest credits are based on a participant's account balance on the first
day of each calendar year and the plans interest credit rate. This interest
credit rate is determined for each calendar year and equals the value as of
December of the immediately preceding calendar year of the average yield on 1-
year Treasury bills.

No pay or interest credits are granted under the Retirement Plan for periods
of employment prior to June 29, 1995. However, service is calculated from date
of hire for the purpose of determining the level of pay credit for the plan
year, subject to bridging service for participants from certain acquired
entities. The normal retirement age under the plan is age 65. Benefits are
computed on a straight line basis. We contribute actuarially determined amounts
to fund benefits under the Retirement Plan within regulatory minimum
requirements and maximum tax deductible limits.

The aggregate estimated annual benefits payable from the Retirement Plan to
Messrs. Ryan, Kelley, Chapoy and Steiner upon normal retirement age is $23,395,
$54,637, $14,672 and $38,125, respectively. Mr. Roussel is not eligible to
participate in the Retirement Plan. Messrs. Ryan, Kelley, Chapoy and Steiner
currently have approximately 15 (including 12 years of service with acquired
entities), 20 (including 17 years of service with acquired entities), 5 and 15
years of credited service, respectively, under the Retirement Plan.

There is a supplemental benefit payable to Mr. Ryan pursuant to a
Supplemental Executive Retirement Plan (SERP) earned during his employment with
Barnes-Hind and Revlon VisionCare, the obligation for which was assumed by us
as a result of the acquisition of PBH. The estimated annual benefit payable to
Ryan upon normal retirement age is equal to $30,480.

51
<PAGE>

PRINCIPAL STOCKHOLDERS

The table below sets forth certain information regarding our equity ownership
as of March 31, 1999 by: (1) each person or entity who beneficially owns five
percent or more of our common stock; (2) each director and the named
executives; and (3) all directors and executive officers of WJ as a group.
Unless otherwise stated, each of the persons named in the table has sole voting
and investment power with respect to the securities beneficially owned by it or
him as set forth opposite its or his name. Beneficial ownership of our common
stock listed in the table has been determined in accordance with the applicable
rules and regulations promulgated under the Exchange Act.

<TABLE>
<CAPTION>
Number
Name and Address of Shares Percent
- ---------------- --------- -------
<S> <C> <C>
Directors and Executive Officers:
Kevin J. Ryan(l)(2)......................................... 1,033,938 5.7%
Edward J. Kelley(3)......................................... 234,261 1.4%
Lawrence L. Chapoy(4)....................................... 75,196 *
Daniel M. Roussel(5)........................................ 156,002 *
Thomas F. Steiner(6)........................................ 104,514 *
Michael A. D'Amato(7)....................................... 15,000 *
Adam W. Kirsch(7)(8)........................................ 5,298,095 31.0%
Sol Levine(7)............................................... 25,000 *
John W. Maki(7)(8).......................................... 738,629 4.3%
John J. O'Malley(7)(8)...................................... 738,629 4.3%
Stephen G. Pagliuca(7)(8)................................... 5,298,095 31.0%
All Directors and executive officers as a group (16
persons)(9)................................................ 7,252,768 38.5%
5% Stockholders:
Bain Capital Funds(10)...................................... 5,287,428 30.9%
c/o Bain Capital, Inc.
Two Copley Place
Boston, Massachusetts 02116
Putnam Investments, Inc.(11)................................ 1,594,200 9.3%
One Post Office Square
Boston, Massachusetts 02109
Suzanne Zak(12)............................................. 1,176,190 6.9%
100 N. Sixth Street, Ste. 476A
Minneapolis, Minnesota 55403
The Northwestern Mutual Life Insurance Company(13).......... 1,029,300 6.0%
720 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
</TABLE>
- --------
* Represents less than one percent.
(1) The address of such person is c/o WJ, 333 East Howard Avenue, Des Plaines,
Illinois 60018-5903.
(2) Includes 987,696 shares of common stock that can be acquired through
currently exercisable options.
(3) Includes 147,689 shares of common stock that can be acquired through
currently exercisable options. Certain of Mr. Kelley's shares are held by
an individual retirement account for his sole benefit.
(4) Includes 61,802 shares of common stock that can be acquired through
currently exercisable options.
(5) Includes 143,439 shares of common stock that can be acquired through
currently exercisable options.
(6) Includes 98,587 shares of common stock that can be acquired through
currently exercisable options.

52
<PAGE>

(7) Includes currently exercisable options to purchase 10,667 shares of common
stock issued to such person pursuant to the Director Option Plan.
(8) Messrs. Pagliuca, Kirsch, Maki and O'Malley are each Directors of WJ.
Messrs. Pagliuca and Kirsch are each Managing Directors of Bain Capital
Investors, Inc. ("BCII") and limited partners of Bain Capital Partners IV,
L.P. ("BCPIV"). BCPIV is the sole general partner of Bain Capital Fund IV,
L.P. ("Fund IV") and Bain Capital Fund IV-B, L.P. ("Fund IV-B"). BCII is
the sole general partner of BCPIV. Accordingly, Messrs. Pagliuca and
Kirsch may be deemed to beneficially own shares owned by Fund IV and Fund
IV-B. In addition, Messrs. Pagliuca, Kirsch, Maki and O'Malley are each
general partners of BCIP Associates ("BCIP") and BCIP Trust Associates,
L.P. ("BCIP Trust" and collectively with Fund IV, Fund IV-B and BCIP, the
"Bain Capital Funds") and, accordingly, may be deemed to beneficially own
shares owned by such funds. Each such person disclaims beneficial
ownership of any such shares in which he does not have a pecuniary
interest. The address for Messrs. Pagliuca and Kirsch is c/o Bain Capital,
Inc., Two Copley Place, Boston, Massachusetts 02116. Messrs. Maki and
O'Malley are no longer employed by Bain Capital.
(9) Includes an aggregate of 1,748,942 shares of common stock that can be
acquired through currently exercisable options held by the Directors and
executive officers of WJ. Excluding the shares owned by the Bain Capital
Funds that are attributed to Messrs. Pagliuca, Kirsch, Maki and O'Malley,
the Directors and executive officers of WJ as a group would beneficially
own 1,965,340 shares of common stock, representing approximately 10.4% of
the outstanding common stock.
(10) Pursuant to an Amendment No. 1 to Schedule 13G filed with the SEC on
February 16, 1999, each of the following entities reported the shared
power to vote and to dispose of that number of shares as listed: (i) Fund
IV--2,126,215 shares of common stock; (ii) Fund IV-B--2,433,251 shares of
common stock; (iii) BCIP--340,285 shares of common stock; (iv) BCIP
Trust--387,677 shares of common stock; (v) each of BCPIV and BCII--
4,559,466 of the shares of common stock; (vi) W. Mitt Romney, as the sole
stockholder of BCPIV and as a member of the Management Committee of BCIP
and BCIP Trust--5,287,428 shares of common stock; and (vii) Mr. Joshua
Bekenstein, as the other member of the Management Committee of BCIP and
BCIP Trust--727,962 shares of common stock. Certain other Managing
Directors of BCII may also be deemed to have shared voting and dispositive
power with respect to the shares held by BCIP and BCIP Trust. The address
for each of these reporting persons is Two Copley Place, Boston,
Massachusetts 02116.
(11) Pursuant to an Amendment No. 1 to Schedule 13G filed with the SEC on
February 11, 1999: (i) Putnam Investments, Inc. ("PI") reported shared
voting power with respect to 266,900 shares and shared dispositive power
with respect to 1,513,400 shares; (ii) Putnam Investment Management, Inc.
("PIM") reported shared dispositive power with respect to 1,099,800
shares; (iii) The Putnam Advisory Company, Inc. ("PAC") reported shared
voting power with respect to 266,900 shares and shared dispositive power
with respect to 413,600 shares; (iv) Putnam Health Services Trust ("PHST")
reported shared dispositive power with respect to 984,370 shares; and (v)
Marsh & McLennan Companies, Inc. ("MMC"), as the parent holding company of
PI, was listed as a reporting person in the Schedule 13G but did not
report beneficial ownership with respect to any shares. The address for
PIM, PAC and PHST is the same as the address for PI listed in the table
above. The address for MMC is 1166 Avenue of the Americas, New York, New
York 10036.
(12) Pursuant to a Schedule 13G filed with the SEC on February 12, 1999: (i)
Suzanne Zak, the chief executive officer of Zak Capital, Inc. and the
managing member of the general partner of Zak Minotaur Fund, L.P.,
reported the shared power to vote and to dispose of 1,176,190 shares; (ii)
Zak Capital, Inc. reported the shared power to vote and to dispose of
1,150,490 shares; and (iii) Zak Minotaur Fund, L.P. reported the shared
power to vote and to dispose of 25,700 shares. The address for Zak
Capital, Inc. and Zak Minotaur Fund, L.P. is the same as the address
listed for Suzanne Zak in the table above.
(13) Pursuant to a Schedule 13G filed with the SEC on February 8, 1999, The
Northwestern Mutual Life Insurance Company reported the sole power to vote
and to dispose of 422,200 shares and the shared power to vote and to
dispose of 607,100 shares. Robert W. Baird & Co. Incorporated is a
subsidiary of The Northwestern Mutual Life Insurance Company.

53
<PAGE>

SELLING STOCKHOLDERS

The following table sets forth certain information regarding the beneficial
ownership of common stock by the selling stockholders as of May 24, 1999 and as
adjusted to reflect the sale of the common stock being offered hereby by the
selling stockholders. Beneficial ownership of the common stock listed in the
table has been determined in accordance with the applicable rules and
regulations promulgated by the SEC under the Exchange Act.

<TABLE>
<CAPTION>
Shares Shares Shares
Beneficially Owned Number of Beneficially Owned Subject
Selling Stockholders Prior to Offering Shares After Offering(1) to Over-
-------------------- --------------------- Being --------------------- Allotment
Number Percent Offered Number Percent Option
----------- --------- --------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Bain Capital Fund IV, L.P.... 2,126,215 12.4% 1,849,782 276,433 1.9% 276,433
Bain Capital Fund IV-B, L.P.. 2,433,251 14.2 2,116,900 316,351 2.1 316,351
BCIP Trust Associates, L.P... 387,677 2.3 337,274 50,403 * 50,403
BCIP Associates.............. 340,285 2.0 296,044 44,241 * 44,241
</TABLE>
- --------
*Indicates less than 1%
(1)Assumes the over-allotment option granted to the underwriters by the selling
stockholders are not exercised.

For a description of the material relationships between us and the selling
stockholders, see "Principal Stockholders" and "Certain Transactions."

54
<PAGE>

CERTAIN TRANSACTIONS

Advisory Agreement

In June 1995, we entered into an Advisory Agreement with Bain Capital, which
was amended and restated in October 1996 (the "Advisory Agreement"), pursuant
to which Bain Capital agreed to provide management consulting, advisory
services and support, negotiation and analysis of financial alternatives,
acquisitions and dispositions and other services agreed upon by us and Bain
Capital. In exchange for such services, Bain Capital receives: (i) a quarterly
management fee of not more than $500,000, plus reasonable out-of-pocket
expenses, and (ii) a transaction fee in connection with the consummation of
each acquisition, divestiture or financing by us or our subsidiaries in an
amount equal to 1.0% of the aggregate value of such transaction. For the year
ended December 31, 1998, we paid Bain Capital fees of $2,000,000 under the
Advisory Agreement. The Advisory Agreement has an initial term ending on
January 31, 2004, subject to automatic one-year extensions unless WJ or Bain
Capital provides written notice of its desire not to extend such term.

Registration Agreement

WJ, certain investment funds controlled by Bain Capital (the "Bain Capital
Funds") and their related investors and BT Investment Partners, Inc. are
parties to a registration agreement. Under the registration agreement, the
holders of a majority of the registrable securities owned by the Bain Capital
Funds and their related investors have the right at any time, subject to
certain conditions, to require us to register any or all of their shares of
common stock under the Securities Act on Form S-1 (a "Long-Form Registration")
or on Form S-2 or Form S-3 (a "Short-Form Registration") each on an unlimited
number of occasions at our expense. We are not required, however, to effect any
such Long-Form Registration or Short-Form Registration within six months after
the effective date of a prior demand registration and may postpone the filing
of such registration for up to six months if the holders of a majority of the
registrable securities agree that such a registration would reasonably be
expected to have an adverse effect on any proposal or plan by us or any of our
subsidiaries to engage in an acquisition, merger or similar transaction. In
addition, all holders of registrable securities are entitled to request the
inclusion of any shares of common stock subject to the registration agreement
in any registration statement at our expense whenever we propose to register
any of our securities under the Securities Act, subject to certain conditions.
In connection with all such registrations, we have agreed to indemnify all
holders of registrable securities against certain liabilities, including
liabilities under the Securities Act. The holders of an aggregate of 5,250,481
shares of common stock have certain demand registration rights pursuant to the
registration agreement. This offering is being conducted pursuant to a demand
registration by the Bain Capital Funds pursuant to the registration agreement.

Indebtedness of Management

On May 7, 1997, we loaned Mr. Ryan, our Chairman, President and Chief
Executive Officer, $1.2 million pursuant to the terms of an unsecured
promissory note bearing interest at an annual rate of 8%, payable quarterly.
The note is due on the earlier of (i) May 9, 2002, or (ii) the date Mr. Ryan
ceases to be employed by us. As of March 15, 1999, an aggregate of $1.2 million
in principal was outstanding under the note.

Indemnification Agreements

Prior to the completion of our IPO, we entered into agreements to provide
indemnification for our directors and executive officers in addition to the
indemnification provided for in our restated certificate and by-laws.

55
<PAGE>

DESCRIPTION OF CAPITAL STOCK

General Matters

Our total amount of authorized capital stock consists of 50,000,000 shares of
common stock, par value $0.01 per share, and 5,000,000 shares of preferred
stock, par value $0.01 per share. As of May 24, 1999, we had 17,172,219 shares
of common stock issued and outstanding and no shares of preferred stock issued
and outstanding. The following summary of certain provisions of our capital
stock describes all material provisions of, but does not purport to be complete
and is subject to, and qualified in its entirety by, our restated certificate
of incorporation and our amended and restated by-laws, which are included as
exhibits to the registration statement of which this prospectus forms a part
and by the provisions of applicable law. See "Where You Can Find More
Information."

Our restated certificate of incorporation and by-laws contain certain
provisions that are intended to enhance the likelihood of continuity and
stability in the composition of the board of directors and which may have the
effect of delaying, deferring or preventing a future takeover or change in
control of WJ unless such takeover or change in control is approved by the
board of directors.

Common Stock

The issued and outstanding shares of common stock are validly issued, fully
paid and nonassessable. Subject to the prior rights of the holders of any
preferred stock, the holders of outstanding shares of common stock are entitled
to receive such dividends as may be lawfully declared at such time and in such
amounts as the board of directors may from time to time determine. See
"Dividend Policy." The shares of common stock are not convertible and the
holders thereof have no preemptive or subscription rights to purchase any
securities of WJ. Upon any liquidation, dissolution or winding up of WJ, the
holders of common stock are entitled to receive on a pro rata basis the assets
of WJ which are legally available for distribution, after payment of all debts
and other liabilities and subject to the prior rights of any holders of
preferred stock then outstanding. Each outstanding share of common stock is
entitled to one vote on all matters submitted to a vote of stockholders. There
is no cumulative voting. Additional shares of authorized common stock may be
issued, as determined by the WJ board from time to time, without stockholder
approval, except as may be required by applicable stock exchange requirements.

Our common stock is included for trading on Nasdaq under the symbol "WJCO."

Preferred Stock

Our board of directors may, without further action by our stockholders, from
time to time, direct the issuance of shares of preferred stock in series and
may, at the time of issuance, determine the rights, preferences and limitations
of each series. Satisfaction of any dividend preferences of outstanding shares
of preferred stock would reduce the amount of funds available for the payment
of dividends on shares of common stock. Holders of shares of preferred stock
maybe entitled to receive a preference payment in the event of any liquidation,
dissolution or winding-up of WJ before any payment is made to the holders of
shares of common stock. Under certain circumstances, the issuance of shares of
preferred stock may render more difficult or tend to discourage a merger,
tender offer or proxy contest, the assumption of control by a holder of a large
block of our securities or the removal of incumbent management. Upon the
affirmative vote of a majority of the total number of directors then in office,
the board of directors of WJ, without stockholder approval, may issue shares of
preferred stock with voting and conversion rights which could adversely affect
the holders of shares of common stock. There are no shares of preferred stock
outstanding, and we have no present intention to issue any shares of preferred
stock.

56
<PAGE>

Certain Provisions of the Restated Certificate of Incorporation and By-laws

Classified Board. The restated certificate provides for the board to be
divided into three classes, as nearly equal in number as possible, serving
staggered terms. Approximately one-third of the board will be elected each
year. See "Management." Under the Delaware General Corporation Law, directors
serving on a classified board can only be removed for cause. The provision for
a classified board could prevent a party who acquires control of a majority of
the outstanding voting stock from obtaining control of the board until the
second annual stockholders meeting following the date the acquiror obtains the
controlling stock interest. The classified board provision could have the
effect of discouraging a potential acquiror from making a tender offer or
otherwise attempting to obtain control of WJ and could increase the likelihood
that incumbent directors will retain their positions.

Elimination of Stockholder Action Through Written Consents. The restated
certificate provides that stockholder action can be taken only at an annual or
special meeting of stockholders and cannot be taken by written consent in lieu
of a meeting.

Elimination of the Ability to Call Special Meetings. The restated certificate
and the by-laws provide that, except as otherwise required by law, special
meetings of the stockholders can only be called pursuant to a resolution
adopted by a majority of the board of directors or by our chief executive
officer. Stockholders are not permitted to call a special meeting or to require
the board to call a special meeting.

Advanced Notice Procedures For Stockholder Proposals. The by-laws establish
an advance notice procedure for stockholder proposals to be brought before an
annual meeting of our stockholders, including proposed nominations of persons
for election to the board. Stockholders at our annual meeting may only consider
proposals or nominations specified in the notice of meeting or brought before
the meeting by or at the direction of the board or by a stockholder who was a
stockholder of record on the record date for the meeting, who is entitled to
vote at the meeting and who has given to our secretary timely written notice,
in proper form, of the stockholder's intention to bring that business before
the meeting. Although the by-laws do not give the board the power to approve or
disapprove stockholder nominations of candidates or proposals regarding other
business to be conducted at a special or annual meeting, the by-laws may have
the effect of precluding the conduct of certain business at a meeting if the
proper procedures are not followed or may discourage or defer a potential
acquiror from conducting a solicitation of proxies to elect its own slate of
directors or otherwise attempting to obtain control of WJ.

Amendments to the Restated Certificate and By-laws. The restated certificate
and by-laws provide that the affirmative vote of holders of at least 66 2/3% of
the total votes eligible to be cast in the election of directors is required to
amend, alter, change or repeal certain of their provisions. This requirement of
a super-majority vote to approve amendments to the restated certificate and by-
laws could enable a minority of our stockholders to exercise veto power over
any such amendments.

Certain Provisions of Delaware Law

We are subject to the "Business Combination" provisions of the Delaware
General Corporation Law. In general, such provisions prohibit a publicly held
Delaware corporation from engaging in various "business combination"
transactions with any "interested stockholder" for a period of three years
after the date of the transaction which the person became an "interested
stockholder," unless:

. the transaction is approved by the board of directors prior to the date
the "interested stockholder" obtained such status;

57
<PAGE>

. upon consummation of the transaction which resulted in the stockholder
becoming an "interested stockholder," the "interested stockholder" owned
at least 85% of the voting stock of the corporation outstanding at the
time the transaction commenced, excluding for purposes of determining
the number of shares outstanding those shares owned by (a) persons who
are directors and also officers and (b) employee stock plans in which
employee participants do not have the right to determine confidentially
whether shares held subject to the plan will be tendered in a tender or
exchange offer; or

. on or subsequent to such date the "business combination" is approved by
the board of directors and authorized at an annual or special meeting of
stockholders by the affirmative vote of at least 66 2/3% of the
outstanding voting stock which is not owned by the "interested
stockholder."

A "business combination" is defined to include mergers, asset sales and other
transactions resulting in financial benefit to a stockholder. In general, an
"interested stockholder" is a person who, together with affiliates and
associates, owns (or within three years, did own) 15% or more of a
corporation's voting stock. The statute could prohibit or delay mergers or
other takeover or change in control attempts with respect to WJ and,
accordingly, may discourage attempts to acquire us.

Limitations on Liability and Indemnification of Officers and Directors

The restated certificate limits the liability of directors to the fullest
extent permitted by the Delaware General Corporation Law. In addition, the
restated certificate provides that we shall indemnify our directors and
officers to the fullest extent permitted by such law. We have entered into
indemnification agreements with all our current directors and executive
officers. We expect that we will enter into a similar agreement with any new
directors or executive officers. We obtained director's and officer's insurance
prior to the completion of the IPO.

Transfer Agent and Registrar

The Transfer Agent and Registrar for our common stock is American Stock
Transfer & Trust Company.

58
<PAGE>

UNDERWRITING

Subject to the terms and conditions of the underwriting agreement with the
underwriters named below in which they have severally agreed to purchase from
the selling stockholders the number of shares of common stock set forth beside
their names below. BT Alex. Brown Incorporated, Bear, Stearns & Co. Inc.,
Robert W. Baird & Co. Incorporated, A.G. Edwards & Sons, Inc., and Merrill
Lynch, Pierce, Fenner & Smith Incorporated are the representatives of the
underwriters.

<TABLE>
<CAPTION>
Number of
Underwriter Shares
- ----------- ---------
<S> <C>
BT Alex. Brown Incorporated...........................................
Bear, Stearns & Co. Inc...............................................
Robert W. Baird & Co. Incorporated....................................
A.G. Edwards & Sons, Inc..............................................
Merrill Lynch, Pierce, Fenner & Smith
Incorporated.................................................
---------
Total............................................................... 4,600,000
=========
</TABLE>

The underwriting agreement provides that the obligations of the underwriters
to purchase the common stock is subject to the terms and conditions set forth
in the underwriting agreement. The underwriting agreement requires the
underwriters to purchase all of the shares of the common stock offered by this
prospectus, if any are purchased. The shares of common stock offered by the
underwriters pursuant to this prospectus are subject to prior sale, when, as
and if delivered to and accepted by the underwriters, and subject to the
underwriters' right to reject any order in whole or in part.

The underwriters have advised the selling stockholders that they propose to
offer the shares of common stock to the public at the public offering price of
$ per share. Any shares sold by the underwriters to securities dealers may
be sold at a discount of up to $ per share from the public offering price.
Any such securities dealers may resell any shares purchased from the
underwriters to certain other brokers or dealers at a discount of up to $
per share from the public offering price. The underwriters may change the
public offering price after the common stock is released for sale to the
public.

The underwriters may sell more shares than the total number set forth in the
table above. To cover these sales, the selling stockholders have granted the
underwriters an option to purchase up to an aggregate of 687,428 additional
shares of common stock at the public offering price, less the underwriting
discounts and commissions. The underwriters may exercise this option at any
time within 30 days after the date of this prospectus only to cover these
sales. To the extent the underwriters exercise this option, each of the
underwriters will purchase shares in approximately the same proportion as the
number of shares of common stock to be purchased by it shown in the above table
bears to 687,428, and the selling stockholders will be obligated, pursuant to
the option, to sell those shares to the underwriters. If purchased, the
underwriters will offer the additional shares on the same terms as those on
which the 4,600,000 shares are being offered. If the underwriters exercise
their over-allotment option in full, the total public offering price will be
$ , the total underwriting discount will be $ , and the total proceeds to
the selling stockholders will be $ .

We and the selling stockholders have agreed to indemnify the underwriters
with respect to certain liabilities, including liabilities under the Securities
Act.

To facilitate the offering of the common stock, the underwriters may engage
in transactions that stabilize, maintain or otherwise affect the market price
of the common stock. Specifically, the underwriters may over-allot shares of
our common stock in connection with this offering, thereby creating a short
position in the underwriters' account. A short position results when an
underwriter

59
<PAGE>

sells more shares of common stock than such underwriter is committed to
purchase. Additionally, to cover over-allotments or to stabilize the market
price of the common stock, the underwriters may bid for, and purchase, shares
of our common stock at a level above that which might otherwise prevail in the
open market. The underwriters are not required to engage in these activities,
and, if they do, they may discontinue doing so at any time. The underwriters
also may reclaim selling concessions allowed to an underwriter or dealer, if
the underwriters repurchase shares distributed by such underwriter or dealer.

We have agreed not to offer, sell or make any other disposition of any shares
of our common stock or other securities convertible into or exchangeable or
exercisable for shares of our common stock or derivatives of our common stock
for a period of 90 days after the date of this prospectus, directly or
indirectly, without the prior written consent of BT Alex. Brown Incorporated.
We may, however, without this consent, (1) issue options under our stock option
plan, issue shares upon exercise of options granted under the stock option plan
or sell shares under our stock purchase plan or (2) in connection with
acquisitions of businesses.

In connection with this offering, certain underwriters and other selling
group members or their affiliates may engage in passive market making
transactions in our common stock on the Nasdaq in accordance with Rule 103 of
Regulation M under the Exchange Act. Rule 103 permits passive market making
during the period when Regulation M would otherwise prohibit market making
activity by the participants in this offering. Passive market making consists
of displaying bids on the Nasdaq limited by the bid prices of independent
market makers and making purchases limited by such prices and effected in
response to order flow. Rule 103 limits the net purchases by a passive market
maker on each day to a specified percentage of the passive market maker's
average daily trading volume in our common stock during a specified period. The
passive market maker must stop its passive market making transactions for the
rest of that day when such limit is reached.

Certain of the representatives of the underwriters have provided investment
banking and other financial services to us and to our subsidiaries from time to
time. Bankers Trust Corporation ("BTC") is the parent company of BT Alex. Brown
Incorporated. BT Investment Partners, Inc., an affiliate of BTC, is a limited
partner in Fund IV of the Bain Capital Funds. Bankers Trust Company, an
affiliate of BTC, is the administrative agent and lender under our bank credit
agreement.

Deutsche Bank AG has agreed to acquire BTC. The acquisition is scheduled to
close in June 1999. It is anticipated that following the closing, the
investment banking business of BT Alex. Brown Incorporated will be transferred
to Deutsche Bank Securities, Inc.

We estimate that the total expenses of the offering, excluding underwriting
discounts and commissions, will be approximately $350,000.

EXPERTS

The consolidated financial statements of WJ as of December 31, 1998 and 1997
and for each of the three years in the period ended December 31, 1998 included
in this prospectus have been so included in reliance upon the report of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.

LEGAL MATTERS

The validity of the common stock offered hereby will be passed upon for us by
Kirkland & Ellis, Chicago, Illinois, a partnership which includes professional
corporations. Certain legal matters will be passed upon for the underwriters by
Ropes & Gray, Boston, Massachusetts. Kirkland & Ellis and Ropes & Gray have
from time to time represented, and may continue to represent, certain of the
underwriters in connection with various legal matters and Bain Capital and
certain of its affiliates, including WJ, in connection with certain legal
matters.

60
<PAGE>

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and special reports, proxy statements and other
information with the SEC. You may read and copy any reports, statements or
other information we file at the SEC's public reference rooms at Room 1024, 450
Fifth Street, N.W., Washington, D.C. 20549, as well as at the SEC's regional
offices at 500 West Madison Street, Suite 1400, Chicago, Illinois 60661 and 7
World Trade Center, Suite 1300, New York, New York 10048. Copies of these
materials may also be obtained from the SEC at prescribed rates by writing to
the Public Reference Section of the SEC, 450 Fifth Street, N.W., Washington,
D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on
the public reference rooms. Our filings are also available to the public from
commercial document retrieval services and at the web site maintained by the
SEC at "http://www.sec.gov."

We have filed with the SEC a registration statement on form S-3 with respect
to our common stock being offered hereby. This prospectus is a part of that
registration statement. Other parts of the registration statement are omitted
from this prospectus in accordance with the rules and regulations of the SEC.
Copies of the registration statement, including exhibits, may be inspected,
without charge, at the offices of the SEC at 450 Fifth Street, N.W.,
Washington, D.C. 20549, and copies may be obtained from the SEC at prescribed
rates.

The SEC permits us to "incorporate by reference" information into this
prospectus, which means that we can disclose important information to you by
referring you to another document filed separately with the SEC. The following
documents previously filed with the SEC by us (SEC File Number 0-22033) are
incorporated by reference into this prospectus:

1. Annual Report on Form 10-K for the fiscal year ended December 31, 1998;

2. Proxy Statement relating to the Annual Meeting of Stockholders of WJ
held on May 26, 1999;

3. Current Report on Form 8-K, dated May 5, 1999 (announcing our results
for the three month period ended April 3, 1999);

4. Quarterly Report on Form 10-Q for the quarterly period ended April 3,
1999; and

5. The description of our common stock contained in our Registration
Statement on Form 8-A filed with the SEC on January 22, 1997.

We are also incorporating by reference additional documents that we file with
the SEC between the date of this prospectus and the date of the completion of
the offering.

You can obtain any of the documents incorporated by reference through us or
the SEC. Documents incorporated by reference are available from us without
charge, excluding all exhibits unless we have specifically incorporated by
reference an exhibit in this prospectus. You may obtain documents incorporated
by reference in this prospectus by requesting them in writing or by telephone
from the appropriate party at the following address or telephone number: Ronald
J. Artale, Vice President and Controller, Wesley Jessen VisionCare, Inc., 333
East Howard Avenue, Des Plaines, Illinois 60018-5903, telephone number: (847)
294-3000.

61
<PAGE>

INDEX TO FINANCIAL STATEMENTS

WESLEY JESSEN VISIONCARE, INC.

<TABLE>
<S> <C>
Report of Independent Accountants........................................ F-2
Consolidated Statements of Operations for the years ended December 31,
1998, 1997 and 1996..................................................... F-3
Consolidated Balance Sheets at December 31, 1998 and 1997................ F-4
Consolidated Statements of Cash Flows for the years ended December 31,
1998, 1997 and 1996..................................................... F-5
Consolidated Statements of Changes in Stockholders' Equity for the years
ended December 31, 1998, 1997 and 1996.................................. F-6
Notes to Consolidated Financial Statements............................... F-7

UNAUDITED INTERIM FINANCIAL DATA

Condensed Consolidated Balance Sheets at April 3, 1999 (unaudited) and
December 31, 1998....................................................... F-26
Condensed Consolidated Statements of Operations for the three months
ended April 3, 1999 and March 28, 1998 (unaudited)...................... F-27
Condensed Consolidated Statements of Cash Flows for the three months
ended April 3, 1999 and March 28, 1998 (unaudited)...................... F-28
Notes to Condensed Consolidated Financial Statements (unaudited)......... F-29
</TABLE>

F-1
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Stockholders
of Wesley Jessen VisionCare, Inc.

In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of operations, of cash flows and of changes in
stockholders' equity present fairly, in all material respects, the financial
position of Wesley Jessen VisionCare, Inc. and its subsidiaries (the "Company")
at December 31, 1998 and 1997 and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 1998 in
conformity with generally accepted accounting principles. These financial
statements are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for the
opinion expressed above.

PRICEWATERHOUSECOOPERS LLP

Chicago, Illinois
February 23, 1999

F-2
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

<TABLE>
<CAPTION>
Twelve Months Ended
--------------------------------------
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Net sales.............................. $292,259 $282,178 $156,752
Operating costs and expenses:
Cost of goods sold................... 90,471 92,780 43,152
Cost of goods sold--inventory step-
up.................................. -- 22,666 20,706
Marketing and administrative......... 143,309 137,650 88,274
Research and development............. 10,818 11,997 7,178
Amortization of goodwill, net........ (997) (862) (784)
-------- -------- --------
Income (loss) from operations.......... 48,658 17,947 (1,774)
Other (income) expense:
Interest income...................... (633) (522) --
Interest expense..................... 5,444 6,081 5,385
Other income, net.................... -- -- (3,051)
-------- -------- --------
Income (loss) before income taxes and
extraordinary loss.................... 43,847 12,388 (4,108)
Income tax benefit (expense)........... (14,250) (4,188) 3,037
-------- -------- --------
Income (loss) before extraordinary
loss.................................. 29,597 8,200 (1,071)
Extraordinary loss, net of related
income tax benefit of $2,526 in 1997
and $1,093 in 1996.................... -- (4,902) (1,671)
-------- -------- --------
Net income (loss)...................... $ 29,597 $ 3,298 $ (2,742)
======== ======== ========
Income (loss) per common share:
Basic
Income (loss) before extraordinary
loss................................ $ 1.70 $ 0.49 $ (0.07)
Extraordinary loss, net of income tax
benefit............................. $ -- $ (0.29) $ (0.12)
Net income (loss).................... $ 1.70 $ 0.20 $ (0.19)
Diluted
Income (loss) before extraordinary
loss................................ $ 1.57 $ 0.45 $ (0.07)
Extraordinary loss, net of income tax
benefit............................. $ -- $ (0.27) $ (0.12)
Net income (loss).................... $ 1.57 $ 0.18 $ (0.19)
Weighted average common shares
outstanding
Basic................................. 17,432 16,898 14,638
Diluted............................... 18,904 18,451 14,638
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-3
<PAGE>

WESLEY JESSEN VISIONCARE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

<TABLE>
<CAPTION>
December 31,
------------------
1998 1997
-------- --------
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents................................ $ 8,859 $ 4,759
Accounts receivable--trade, net (Note 5)................. 47,363 42,642
Other receivables........................................ 6,840 4,773
Inventories.............................................. 62,055 49,262
Deferred income taxes.................................... 18,602 18,102
Prepaid expenses......................................... 6,977 7,675
Assets held for sale..................................... 1,222 1,222
-------- --------
Total current assets.................................... 151,918 128,435
-------- --------
Property, plant and equipment, net......................... 36,338 21,480
Other assets............................................... 6,011 6,894
Deferred income taxes...................................... 3,528 10,838
Notes receivable........................................... 1,803 2,773
Goodwill, net.............................................. 2,569 --
Capitalized financing fees, net............................ 2,351 2,656
-------- --------
Total assets............................................ $204,518 $173,076
======== ========
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Trade accounts payable................................... $ 17,689 $ 14,229
Accrued compensation and benefits........................ 25,565 19,806
Accrued advertising...................................... 4,060 4,113
Other accrued liabilities................................ 9,744 11,212
Transition reserve....................................... 7,886 11,225
Income taxes payable..................................... 3,257 2,015
-------- --------
Total current liabilities............................... 68,201 62,600
-------- --------
Negative goodwill, net..................................... 12,587 13,681
Long term debt............................................. 69,000 57,000
Other liabilities.......................................... 4,778 2,949
-------- --------
Total liabilities....................................... 154,566 136,230
-------- --------
Commitments and contingencies (Note 13) -- --
Stockholders' equity
Common stock, $.01 par value, 50,000,000 shares
authorized, 16,994,884 and 17,736,011 issued and
outstanding at December 31, 1998 and December 31, 1997,
respectively............................................ 180 177
Additional paid in capital............................... 60,847 56,390
Accumulated earnings (deficit)........................... 10,438 (19,159)
Treasury stock, 1,000,000 shares at December 31, 1998, at
cost.................................................... (21,306) --
Accumulated other comprehensive loss..................... (207) (562)
-------- --------
Total stockholders' equity.............................. 49,952 36,846
-------- --------
Total liabilities and stockholders' equity.............. $204,518 $173,076
======== ========
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-4
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

<TABLE>
<CAPTION>
Twelve Months Ended
--------------------------------------
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Operating activities:
Net income (loss)...................... $29,597 $ 3,298 $(2,742)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Extraordinary loss on early
extinguishment of debt.............. -- 7,428 2,764
Depreciation expense................. 2,121 901 462
Purchased inventory step-up.......... -- 22,666 20,706
Amortization of capitalized financing
fees................................ 584 508 699
Amortization of goodwill............. (997) (862) (784)
(Gain) loss on disposal of property,
plant, and equipment................ 17 (120) 187
Deferred income tax.................. 7,772 (1,622) (6,087)
Stock compensation................... -- 257 --
Changes in balance sheet items:
Accounts receivable--trade, net...... (3,057) (3,941) 5,625
Other receivables.................... (1,716) (545) 799
Inventories.......................... (11,198) (3,723) 402
Prepaid expenses..................... 750 (1,192) (1,664)
Other assets......................... 882 (491) 83
Notes receivable..................... (30) (1,227) --
Trade accounts payable............... 2,458 2,179 (4,690)
Accrued liabilities.................. (562) (14,139) 1,883
Other liabilities.................... 1,740 2,181 145
Income taxes payable................. 2,807 (4,679) 1,450
------- -------- -------
Cash provided by operating
activities........................ 31,168 6,877 19,238
------- -------- -------
Investing activities:
Cash paid for assets acquired.......... (2,994) -- (61,816)
Proceeds from Natural Touch sale....... 1,000 6,000 --
Capital expenditures................... (17,238) (16,298) (6,617)
Proceeds from the sale of property,
plant and equipment................... 133 417 427
------- -------- -------
Cash used in investing activities.. (19,099) (9,881) (68,006)
------- -------- -------
Financing activities:
Issuance of stock...................... 2,150 48,513 272
Repurchase of shares................... (21,306) -- --
Proceeds from long term debt........... 43,000 150,000 122,255
Payments of long term debt............. (31,000) (194,375) (61,380)
Payment of financing fees.............. (279) (3,076) (7,778)
------- -------- -------
Cash provided by (used in)
financing activities.............. (7,435) 1,062 53,369
------- -------- -------
Effect of exchange rates on cash and
cash equivalents...................... (534) (372) (50)
Net increase (decrease) in cash and
cash equivalents...................... 4,100 (2,314) 4,551
Cash and cash equivalents:
Beginning of period.................... 4,759 7,073 2,522
------- -------- -------
End of period.......................... $ 8,859 $ 4,759 $ 7,073
======= ======== =======
Supplemental disclosure of cash flow
information
Cash paid during the period for
interest.............................. $ 4,074 $ 6,287 $ 4,359
======= ======== =======
Cash paid during the period for taxes,
net................................... $ 3,316 $ 7,474 $ 744
======= ======== =======
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-5
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)

<TABLE>
<CAPTION>
Class L Common Stock Accumulated
Common Stock Common Stock Repurchase Additional Accumulated Other
------------- ------------- --------------- Paid in Earnings Comprehensive Comprehensive
Shares Amount Shares Amount Shares Amount Capital (Deficit) Income (Loss) Income (Loss)
------ ------ ------ ------ ------ -------- ---------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December
31, 1995.............. 429 $ 4 3,862 $ 38 -- $ -- $ 7,483 $(19,715) $ -- $ --
Issuance of stock..... 1 -- 7 -- -- -- 15 -- -- --
Stock subscription
receivable............ -- -- -- 1 -- -- 256 -- -- --
Exchange of stock..... (109) (1) 221 2 -- -- -- -- -- --
Retroactive effect of
February 12, 1997
Class L Common Stock
Reclassification...... (321) (3) 1,461 15 -- -- -- -- -- --
Retroactive effect of
February 12, 1997
Class L Common Stock
split................. -- -- 8,725 87 -- -- (100) -- -- --
Comprehensive income
Net income........... -- -- -- -- -- -- -- (2,742) -- (2,742)
Other comprehensive
income
Currency translation
adjustment........... -- -- -- -- -- -- -- -- 1,368 1,368
---- ---- ------ ---- ----- -------- ------- -------- ------- -------
Balance at December
31, 1996.............. -- $-- 14,276 $143 -- $ -- $ 7,654 $(22,457) $ 1,368 $(1,374)
=======
Issuance of stock..... -- -- 3,460 34 -- -- 47,261 -- -- --
Stock compensation.... -- -- -- -- -- -- 257 -- -- --
Stock option related
tax benefit........... -- -- -- -- -- -- 1,218 -- -- --
Comprehensive income
Net income........... -- -- -- -- -- -- -- 3,298 -- 3,298
Other comprehensive
income
Currency translation
adjustment........... -- -- -- -- -- -- -- -- (1,930) (1,930)
---- ---- ------ ---- ----- -------- ------- -------- ------- -------
Balance at December
31, 1997.............. -- $-- 17,736 $177 -- $ -- $56,390 $(19,159) $ (562) $ 1,368
=======
Issuance of stock..... -- -- 259 3 -- -- 2,147 -- -- --
Repurchase of common
stock................. -- -- -- -- 1,000 (21,306) -- -- -- --
Stock option related
tax benefit........... -- -- -- -- -- -- 2,310 -- -- --
Comprehensive income
Net income........... -- -- -- -- -- -- -- 29,597 -- 29,597
Other comprehensive
income
Currency translation
adjustment........... -- -- -- -- -- -- -- -- 355 355
---- ---- ------ ---- ----- -------- ------- -------- ------- -------
Balance at December
31, 1998.............. -- $-- 17,995 $180 1,000 $(21,306) $60,847 $ 10,438 $ (207) $29,952
==== ==== ====== ==== ===== ======== ======= ======== ======= =======
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-6
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of presentation and description of business

Basis of presentation

The consolidated financial statements include the accounts of Wesley Jessen
VisionCare, Inc., its wholly owned subsidiary, Wesley Jessen Corporation, and
Wesley Jessen Corporation's wholly owned subsidiaries (collectively, the
"Company").

Description of business

The Company's primary business activity is the research, development,
manufacture, marketing and sale of conventional and disposable soft contact
lenses in the United States and certain other countries. The Company is
headquartered in Des Plaines, Illinois and operates in one business segment.

The IPO

In February 1997 and March 1997 the Company completed an initial public
offering ("IPO") of 2,821,000 shares of common stock at $15.00 per share.
Concurrent with the offering, the board of directors declared a 4.549-to-one
conversion of Class L Common Stock into Common Stock (the "Conversion") and a
3.133-to-one split of the Common Stock (the "Split"). For balance sheet
presentation purposes the Conversion and the Split have been given effect as if
they had occurred on December 31, 1996. All per share data have been presented
as if the Conversion and Split had occurred on June 29, 1995. Additionally,
concurrent with the IPO, the board of directors amended the Company's Articles
of Incorporation, authorizing 5,000,000 and 50,000,000 shares of Serial
Preferred Stock and Common Stock, respectively.

The Offering

In August 1997 and September 1997, the Company completed a public offering of
4,300,000 shares of common stock at $23.50 per share (the "Offering"). Of the
4,300,000 shares, 500,000 were offered by the Company and the remaining
3,800,000 shares were offered by certain selling stockholders.

Net proceeds received by the Company, after deducting underwriting discounts,
commissions and offering expenses, were used to repay certain outstanding debt
from the Barnes-Hind Acquisition (Note 3) and to reduce the Company's
indebtedness under it's bank credit agreement.

2. Summary of significant accounting policies

Use of estimates

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates.

Principles of consolidation

All significant intercompany accounts and transactions have been eliminated in
consolidation.

F-7
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Revenue recognition

Revenue is recognized when product is shipped. Net sales include estimates for
returns and allowances. The Company grants credit terms to its customers
consistent with normal industry practices and does not require collateral. No
individual customer accounts for more than 10 percent of sales or accounts
receivable.

Other income

Other income for the year ended December 31, 1996 includes income of $3.7
million relating to licensing of a patent by the Company.

Cash and cash equivalents

All highly liquid investments with an original maturity of three months or less
are considered to be cash equivalents. These amounts are stated at cost which
approximates fair value.

Inventories

Inventories are stated at the lower of cost, determined by the first-in, first-
out method, or market value. Market value for raw materials is based on
replacement costs and for other inventory classifications on net realizable
value. Consideration is given to deterioration, obsolescence and other factors
in evaluating net realizable value.

Prepaid expenses

Prepaid expenses include sample inventory to be used for promotional purposes.
The sample value is charged to promotional expense during the period in which
the samples are shipped.

Property, plant and equipment

Property, plant and equipment is recorded at cost. Depreciation is determined
using the straight-line method over the estimated useful lives of the assets,
which are as follows (in years):

<TABLE>
<S> <C>
Buildings and improvements........................................ 5 to 25
Machinery and equipment........................................... 7
Furniture and fixtures............................................ 7
Automobiles....................................................... 3
</TABLE>

Expenditures for renewals and betterments are capitalized. Maintenance and
repairs are charged to operations.

Goodwill

Goodwill resulting from the Argentina PCL Acquisition (Note 3) and the Eycon
Lens Laboratories Acquisition (Note 3) is being amortized on a straight line
basis over a period of fifteen years. Goodwill was $2.6 million, net of $0.1
million of accumulated amortization at December 31, 1998.

F-8
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Negative goodwill resulting from the Wesley Jessen Acquisition (Note 3) and the
Barnes-Hind Acquisition (Note 3) is being amortized on a straight-line basis as
a credit to income over a period of fifteen years. Negative goodwill was $12.6
million, $13.7 million and $10.6 million, net of $3.1 million, $2.0 million and
$1.2 million of accumulated amortization, at December 31, 1998, 1997 and 1996,
respectively.

Capitalized financing fees

Capitalized financing fees are amortized over the term of the underlying debt
utilizing the effective interest method.

Research and development costs

Expenditures related to the development of new products and processes,
including significant improvements and refinements of existing products, are
expensed as incurred.

Foreign currency translation

The functional currency of each of the Company's foreign subsidiaries is the
local currency of its respective country. Asset and liability accounts of each
entity are translated at the exchange rate in effect at each period-end, and
income and expense accounts are translated at average exchange rates prevailing
during the period. Gains and losses resulting from the translation of these
foreign currency financial statements are included in the other comprehensive
loss in stockholders' equity.

Concentration of credit risk

The Company provides credit, in the normal course of business, to distributors,
optical store chains and physicians' offices. The Company performs ongoing
credit evaluations of its customers and maintains reserves for potential credit
losses.

Fair value of financial instruments

Cash, accounts receivable, accounts payable, and accrued liabilities are
reflected in the financial statements at cost which approximates fair value,
primarily because of the short-term maturity of those instruments. The Company
believes that due to the adjustable interest rates applicable to its long-term
debt, the fair value approximates the carrying value of the obligations.

Earnings per share

The Company calculates earnings per share in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings per Share." The difference
between the weighted average shares used in the computations of basic and
diluted earnings per share for the years ended December 31, 1998 and 1997 is
the dilutive effect of outstanding stock options, using the treasury stock
method from the date of grant. Weighted average shares used in the computations
for the year ended December 31, 1996 does not include the effect of these stock
options, as the effect would be antidilutive.

3. Acquisitions

On June 29, 1995, Bain Capital, together with new and certain then-existing
members of management, acquired the Wesley Jessen contact lens business from
Schering-Plough Corporation (the "Wesley

F-9
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
Jessen Acquisition"). The Wesley Jessen Acquisition was completed for a total
purchase price of $76.6 million, consisting of cash paid of $47.0 million and
liabilities assumed of $29.6 million. As a result of the Wesley Jessen
Acquisition, Wesley-Jessen Corporation acquired certain assets from Schering-
Plough, consisting of manufacturing facilities in Des Plaines, Illinois and
Cidra, Puerto Rico, a distribution facility in Chicago, Illinois, and a number
of non-U.S. sales and service offices, assumed certain liabilities and paid
certain acquisition costs directly attributable to the Wesley Jessen
Acquisition. The Wesley Jessen Acquisition was financed by $43.0 million of
bank debt and $7.5 million of proceeds from the issuance of the Company's
common stock.

On October 2, 1996, the Company acquired the contact lens business of
Pilkington plc, operating as the Pilkington Barnes-Hind Group (the "Barnes-Hind
Acquisition"). The Barnes-Hind Acquisition was completed for a total purchase
price of $117.6 million, consisting of cash paid of $62.3 million and
liabilities assumed of $55.3 million. In addition, the Company paid
acquisition-related fees and expenses of $4.4 million. The acquisition was
financed through borrowings on the Company's then-existing credit agreement and
a $5.0 million seller note.

The purchase method of accounting was used to record the acquisitions. The
results of operations of the acquired companies have been included in the
results of operations of the Company since the acquisition date. The excess of
the estimated fair values of the net assets acquired over the purchase prices
paid for the Wesley Jessen Acquisition of $11.8 million and the Barnes-Hind
Acquisition of $4.0 million have been recorded as negative goodwill (Note 2).
The Company's total inventories were written up to fair value at the date of
acquisition for the Wesley Jessen Acquisition and the Barnes-Hind Acquisition
by $40.6 million and $36.7 million, respectively. Of these amounts, $22.7
million and $20.7 million was charged to cost of goods sold during the years
ended December 31, 1997 and 1996, respectively.

In connection with the Barnes-Hind Acquisition, the Company entered into a
voluntary consent order with the Federal Trade Commission which provided, among
other things, that the Company divest Barnes-Hind's U.S. Natural Touch Product
Line. On March 17, 1997, the Company completed the sale of the product line,
for which it received aggregate consideration of $7.5 million, consisting of
$3.0 million in cash and a four-year $4.5 million promissory note. The
promissory note accrues compounded interest at a rate of 12% per annum, 8% of
which is paid currently and 4% of which is payable-in-kind. As part of the
sale, the Company entered into a supply agreement pursuant to which the Company
will supply the purchaser with Natural Touch lenses for sale in the United
States. On July 31, 1997, the purchaser made a voluntary prepayment of $3.0
million on the promissory note. On May 7, 1998, the purchaser made an
additional voluntary prepayment of $1.0 million.

Also in connection with the Barnes-Hind Acquisition, the Company undertook a
plan to integrate the acquired operations with those of the Company and to
restructure the Company's pre-existing operations (Note 4).

On June 26, 1998, the Company acquired the operations of Plastic Contact Lens
Argentina SAIC (PCL) from its sole shareholder. On July 31, 1998, the Company,
through its Australian subsidiary, executed a purchase agreement to acquire
certain assets and assume certain liabilities of Eycon Lens Laboratories, Pty,
Ltd. from its shareholders. The total adjusted purchase price for both
acquisitions of approximately $2.7 million (plus additional fees and expenses
of $0.3 million) was funded with existing liquidity. The Company has accounted
for the acquisitions under the purchase method of accounting.

F-10
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

4. Transition reserve and restructuring charge

In connection with the Barnes-Hind Acquisition, management approved a plan to
integrate the acquired operations, for which an accrual of $20.4 million
("transition reserve") was established in purchase accounting. The transition
reserve includes costs related to the closure of the Barnes-Hind corporate
offices in Sunnyvale, California which was completed in the third quarter of
1997 and resulted in the termination of 123 employees. The Company announced
the closing of its manufacturing operations in San Diego, California, expected
to be substantially complete by March 2000, with a shift of conventional lens
production to its plant in Cidra, Puerto Rico. The plant closing will result in
the termination of 471 employees (of whom 199 had been terminated as of
December 31, 1998). Payments related to the transition reserve are as follows
(in thousands):

<TABLE>
<CAPTION>
Lease Facility
Employee Termination Restoration
Related Costs Costs and Other Costs Total
------------- ----------- --------------- -------
<S> <C> <C> <C> <C>
Transition reserve at
October 2, 1996........... $16,772 $ 2,243 $1,385 $20,400
Charges against reserve.... (1,149) (223) (134) (1,506)
------- ------- ------ -------
Transition reserve at
December 31, 1996......... 15,623 2,020 1,251 18,894
Charges against reserve.... (6,072) (1,323) (274) (7,669)
------- ------- ------ -------
Transition reserve at
December 31, 1997......... 9,551 697 977 11,225
Charges against reserve.... (2,382) (155) (802) (3,339)
------- ------- ------ -------
Transition reserve at
December 31, 1998......... $ 7,169 $ 542 $ 175 $ 7,886
======= ======= ====== =======
</TABLE>

In addition to the transition plan, the Company committed to a plan to
restructure the Wesley Jessen operations following the Barnes-Hind Acquisition,
resulting in a $3.4 million charge in the fourth quarter of 1996
("restructuring reserve"). Pursuant to the restructuring plan, the Chicago
distribution facilities were consolidated with those at Des Plaines, Illinois
in October 1997. The restructuring reserve, totaling $0.6 million at December
31, 1998, consists of costs related to employee termination, lease termination
and other restructuring costs associated with the consolidation of certain
Wesley Jessen facilities in Europe with facilities acquired in the Barnes-Hind
Acquisition. Usage of the restructuring reserve is as follows (in thousands):

<TABLE>
<CAPTION>
Employee Lease
Related Termination Other
Costs Costs Costs Total
-------- ----------- ------- -------
<S> <C> <C> <C> <C>
Restructuring reserve at December 31,
1996.................................. $ 813 $ 897 $ 1,690 $ 3,400
Charges against reserve................ (437) (235) (1,480) (2,152)
----- ----- ------- -------
Restructuring reserve at December 31,
1997.................................. 376 662 210 1,248
Charges against the reserve............ (189) (374) (96) (659)
----- ----- ------- -------
Restructuring reserve at December 31,
1998.................................. $ 187 $ 288 $ 114 $ 589
===== ===== ======= =======
</TABLE>

F-11
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

5. Accounts receivable-trade, net

Accounts receivable-trade, net consist of the following (in thousands):

<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Trade receivables..................................... $ 62,968 $ 59,293
Less allowances:
Doubtful accounts................................... (4,992) (6,290)
Sales returns and adjustments....................... (10,613) (10,361)
-------- --------
$ 47,363 $ 42,642
======== ========
</TABLE>

6. Inventories

Inventories consist of the following (in thousands):

<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Raw materials......................................... $ 5,934 $ 3,558
Work-in-process....................................... 6,463 7,613
Finished goods........................................ 49,658 38,091
------- -------
$62,055 $49,262
======= =======
</TABLE>

7. Property, plant and equipment

Property, plant and equipment consist of the following (in thousands):

<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Buildings and improvements............................ $ 9,449 $ 8,369
Machinery, equipment, furniture and fixtures.......... 19,638 10,246
Construction-in-progress.............................. 11,450 4,159
------- -------
40,537 22,774
Less accumulated depreciation......................... (4,199) (1,294)
------- -------
$36,338 $21,480
======= =======
</TABLE>

8. Advertising costs

The Company participates in several cooperative advertising programs with
customers. The costs incurred under these programs are accrued and expensed at
the inception of the contract. All of the Company's other production costs of
advertising are expensed the first time the advertising takes place.
Advertising expense for the years ended December 31, 1998, 1997, and 1996 was
$23.2 million, $17.9 million and $14.0 million, respectively.

9. Long-term debt

At December 31, 1998 the Company maintained a $170 million credit facility, the
availability of which will be reduced by $20 million in September 2000 and $20
million in September 2001. The facility matures on September 11, 2002. This
agreement became effective on July 29, 1998 when the then-existing bank credit
agreement was amended to increase the borrowing availability to permit the

F-12
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
repurchase of a maximum of $35 million of the Company's common stock. Relating
to this agreement, the Company incurred $3.4 million of financing fees, which
are being amortized through September 2002.

As part of the Barnes-Hind Acquisition (Note 3) refinancing, the Company
recognized an extraordinary loss of $2.8 million ($1.7 million net of tax
benefit) in 1996, relating to the write-off of capitalized financing fees
incurred in connection with the Wesley Jessen Acquisition (Note 3).

In connection with a refinancing of the Company's credit arrangements as part
of the IPO (Note 1), the Company recognized an extraordinary loss of $7.4
million ($4.9 million, net of income tax benefit) in 1997, relating to the
write off of capitalized financing fees incurred in connection with the Barnes-
Hind Acquisition.

At December 31, 1998, the weighted average borrowing rate was 6.008%.
Additionally, the Company is required to pay a commitment fee on the unutilized
revolving loan commitments, as defined in the credit agreement, ranging from
0.175% to 0.400% based on leverage ratios calculated as of certain dates. The
unutilized portion of the credit facilities at December 31, 1998 was $101.0
million. The credit facilities are guaranteed by each of the Company's domestic
subsidiaries and secured by essentially all assets of the domestic
subsidiaries. Amounts borrowed under the amended bank credit agreement bear
interest at either the Base Rate (higher of (i) 0.5% in excess of the Federal
Reserve reported adjusted certificate of deposit rate and (ii) the lender's
prime lending rate plus a margin up to 0.5% based on leverage ratios calculated
as of certain dates) or the Eurodollar Rate as determined by the lenders plus a
margin of 0.375% to 1.500% based on the type of loan and leverage ratios
calculated as of certain dates as defined in the credit agreement.

The amended bank credit agreement contains a number of covenants restricting
the Company and its subsidiaries with respect to the incurrence of
indebtedness, the creation of liens, the consummation of certain transactions
such as sales of substantial assets, mergers or consolidations, the making of
certain investments, capital expenditures, and payment of dividends. In
addition, the Company is required to maintain certain financial covenants and
ratios.

Interest rate instrument

The Company has purchased an interest rate cap on $35.0 million of notional
principal amount at 8.5%, which expires on December 31, 1999. The cap is
intended to provide partial protection to the Company from potential exposure
relating to its variable rate debt instruments.

10. Stockholders' equity

Pre-IPO capital structure

The Company's authorized capital stock consisted of 600,000 shares of Class L
Common Stock, par value $.01 per share ("Class L Common"), and 5,400,000 shares
of Common Stock, par value $.01 per share ("Common Stock"). Concurrent with the
Wesley Jessen Acquisition, the Company issued 415,000 shares of Class L Common
(issued at $17.41 per share) and 3,735,000 shares of Common Stock (issued at
$0.081 per share).

Holders of Class L Common and Common Stock were entitled to one vote per share
on all matters to be voted on by the Company's stockholders, and the holders of
both classes of stock vote together as a single class. The outstanding shares
of one class of stock could not be the subject of a stock split or a stock
dividend unless the outstanding shares of the other class were similarly
affected.

F-13
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Holders of Class L Common were entitled to a preferential payment ("Yield") in
the amount of 12.5% per year on the original cost paid for the shares ($17.41
per share) plus any accumulated and unpaid Yield thereon. The Yield accumulated
until such time as distributions were made by the Company. No distributions
were made by the Company during the periods ended December 31, 1995 and 1996
and the accumulated and unpaid Yield at December 31, 1995 and 1996, amounted to
$0.5 million and $1.5 million, respectively. As part of the Conversion this
unpaid Yield was converted to Common Stock.

Post-IPO capital structure

Since February 1997, the Company's authorized capital stock has consisted of
50,000,000 shares of Common Stock and 5,000,000 shares of Serial Preferred
Stock.

Holders of the Common Stock shares, subject to the prior rights of the Serial
Preferred Stock, are entitled to receive dividends, are entitled to one vote
per share and are entitled to receive, pro rata, the assets of the Company
which are legally available for distribution, after payment of all debts and
other liabilities and subject to the prior rights of any holders of Serial
Preferred Stock then outstanding.

The Company's board of directors may, without further action by the Company's
stockholders, direct the issuance of shares of Serial Preferred Stock and may
at the time of issuance, determine the rights, preferences and limitations of
each series.

Stock options

The Company applies Accounting Principles Board Opinion 25 and related
Interpretations in accounting for its stock-based compensation plans, and
recognized expense of $0.3 million for the year ended December 31, 1996. Had
compensation cost for the Company's stock-based compensation plans been
determined based on the fair value of the options at the grant dates for the
awards under the plan consistent with the alternative method of Statement of
Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation," the pro forma effect on the Company's net income (loss) and
income (loss) per share for the periods presented would have been as follows
(in thousands, except per share data):

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Pro forma income (loss)
Income (loss) before extraordinary
loss................................. $29,253 $ 7,785 $(1,447)
Extraordinary loss, net of income tax
benefit.............................. -- (4,902) (1,671)
Net income (loss)..................... 29,253 2,883 (3,118)
Pro forma basic income (loss) per share
Income (loss) before extraordinary
loss................................. $ 1.68 $ 0.46 $ (0.10)
Extraordinary loss, net of income tax
benefit.............................. -- (0.29) (0.12)
Net income (loss)..................... 1.68 0.17 (0.22)
Pro forma diluted income (loss) per
share
Income (loss) before extraordinary
loss................................. $ 1.55 $ 0.42 $ (0.10)
Extraordinary loss, net of income tax
benefit.............................. -- (0.27) (0.12)
Net income (loss)..................... 1.55 0.15 (0.22)
</TABLE>

F-14
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

The fair value of each option is estimated on the date of grant using the
Black-Scholes option-pricing model with the following weighted average
assumptions for options granted in 1998, 1997 and 1996, respectively: expected
volatility of 26.37%, 31.29% and 22.69%; risk-free interest rate of 4.69%,
6.38% and 6.36%; and expected lives of 3 years, 3 years and 7 years.

1995 and 1996 stock option plans

The board of directors granted non-qualified stock options to certain members
of management for an aggregate of 2,193,051 shares of Common Stock pursuant to
the Company's 1995 Stock Purchase and Option Plan. The stock option grants are
of two types: time options and target options. Of the 783,233 time option
grants, 469,940 vest in four equal annual installments beginning on June 28,
1996 and 313,293 vest in five equal annual installments beginning on April 5,
1996. The time options were granted at the fair market value of the Common
Stock on the date of grant. The 1,409,818 target option grants are exercisable
immediately and were granted at prices that were in excess of fair market value
of the Common Stock on the date of grant. All options expire in 10 years and
include certain repurchase and participation rights which cease upon (1) a sale
of the Company or (2) sale of its Common Stock by the Company pursuant to a
Registration Statement under the Securities Act of 1933 in connection with
which Bain Capital, Inc. and affiliated investors cease to own at least 20% of
the Company.

In October 1996, pursuant to the 1996 Stock Option Plan, the board of directors
authorized and granted options to purchase an aggregate of 424,519 shares of
Common Stock at an exercise price which approximates fair market value at the
date of grant. Options to purchase 267,872 shares were immediately exercisable,
and options to purchase 156,647 shares vest in five equal annual installments
beginning October 22, 1997.

1997 Stock Incentive Plan

The Wesley Jessen VisionCare, Inc. 1997 Stock Incentive Plan (the "1997 Stock
Plan") was approved by the board of directors in February 1997. The 1997 Stock
Plan provides for the issuance of the following types of incentive awards:
stock options, stock appreciation rights, restricted stock, performance grants
and other types of awards. An aggregate of 800,000 shares of Common Stock of
the Company have been reserved for issuance under the 1997 Stock Plan, subject
to certain adjustments reflecting changes in the Company's capitalization. The
1997 Stock Plan provides that individual participants will be limited to
receiving awards of no more than 50,000 shares of Common Stock per year.

Options granted under the 1997 Stock Plan may be subject to time vesting and
certain other restrictions. Subject to certain exceptions, the right to
exercise an option generally will terminate at the earlier of (i) the first
date on which the initial grantee of such option is not employed by the Company
for any reason other than termination without cause, death or permanent
disability or (ii) the expiration date of the option. All outstanding awards
under the 1997 Stock Plan will terminate immediately prior to consummation of a
liquidation or dissolution of the Company, unless otherwise provided by the
board. In the event of the sale of all or substantially all of the assets of
the Company or the merger of the Company with another corporation, all
restrictions on any outstanding awards will terminate and participants will be
entitled to the full benefit of their awards immediately prior to the closing
date of such sale or merger, unless otherwise provided by the board.

F-15
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Non-Employee Director Stock Option Plan

The 1997 Non-Employee Director Stock Option Plan (the "Director Option Plan")
was approved by the board of directors in February 1997. The Director Option
Plan provides for the granting of options to non-employee Directors, as
defined, covering an aggregate of 250,000 shares of Common Stock of the
Company.

The board of directors is authorized under the Director Option Plan to make
discretionary grants of options and determine the terms and conditions of such
options. In addition, the Director Option Plan provides for an initial one-time
grant of options to purchase 10,000 shares of Common Stock to each non-employee
director serving as a member of the board or to any new non-employee director
upon being elected to the board. The Director Option Plan also provides that
each non-employee director shall automatically be granted options to purchase
2,000 shares of Common Stock upon each anniversary of the director's election
to the board. The Director Option Plan requires that the exercise price for
each option granted under the plan must equal 100% of the fair market value of
the Company's Common Stock on the date the option is granted. The initial one-
time grants will be immediately exercisable and the annual grants will vest in
three equal installments commencing on the first anniversary of the grant date.

A summary of the Company's stock option plans as of December 31, 1998, 1997 and
1996, and changes during the periods then ended is presented below:

<TABLE>
<CAPTION>
1998 1997 1996
------------------------- ------------------------- ------------------------
Weighted- Weighted- Weighted-
Average Average Average
Shares Exercise Price Shares Exercise Price Shares Exercise Price
--------- -------------- --------- -------------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Outstanding at beginning
of period.............. 2,816,658 $ 3.97 2,617,570 $ 2.13 2,038,658 $1.14
Granted................. 294,100 20.72 326,700 17.24 578,912 5.63
Exercised............... (203,786) 2.13 (127,612) 0.27 -- --
Forfeited............... (11,615) 11.60 -- -- -- --
--------- --------- ---------
Outstanding at end of
year................... 2,895,357 $ 5.76 2,816,658 $ 3.97 2,617,570 $2.13
========= ========= =========
Options exercisable at
year-end............... 2,075,143 $ 3.22 2,001,695 $ 2.89 1,857,841 $2.38
========= ========= =========
Weighted-average fair
value of options
granted during the
year................... $ 5.02 $ 5.23 $ 2.36
========= ========= =========
</TABLE>

F-16
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

The following table summarizes information about stock options outstanding at
December 31, 1998:

<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
-------------------------------- ---------------------
Weighted-
Average Weighted Weighted-
Number Remaining Average Number Average
Outstanding Contractual Exercise Exercisable Exercise
Exercise Prices at 12/31/98 Life Price at 12/31/98 Price
- --------------- ----------- ----------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C>
$0.03.................... 584,384 6.49 $ 0.03 345,157 $ 0.03
$1.18.................... 614,797 6.46 1.18 614,797 1.18
$2.34.................... 703,905 6.47 2.34 703,905 2.34
$7.24.................... 382,471 7.83 7.24 288,484 7.24
$15.00................... 40,000 8.17 15.00 40,000 15.00
$16.75................... 255,700 8.33 16.75 62,800 16.75
$28.25................... 20,000 8.75 28.25 20,000 28.25
$28.44................... 8,000 9.42 28.44 -- 28.44
$20.50................... 286,100 9.83 20.50 -- 20.50
--------- ---- ------ --------- ------
2,895,357 7.20 $ 5.76 2,075,143 $ 3.22
========= ==== ====== ========= ======
</TABLE>

Stock Purchase Plan

The Wesley Jessen VisionCare, Inc. Employee Stock Discount Purchase Plan and
International Employee Stock Discount Purchase Plan (the "Stock Purchase
Plans") were approved by the board of directors in 1997 and provide that,
subject to certain restrictions, each employee of the Company will be eligible
to participate in the Stock Purchase Plans. The Company has reserved 500,000
shares of Common Stock for issuance in connection with the Stock Purchase Plans
and each eligible employee is entitled to purchase a maximum of 125 shares per
quarter. Each participating employee contributes to the Stock Purchase Plans by
choosing a payroll deduction in any specified amount, with a minimum deduction
of $10.00 per payroll period. Each participating employee's contributions will
be used to purchase shares for the employee's share account, and the cost per
share will be 85% of the price of the Company's Common Stock on the Nasdaq
National Market on specified dates.

11. Income taxes

Income (loss) before income tax benefit (expense) and extraordinary loss is as
follows (in thousands):

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Domestic (including Puerto Rico)........ $34,498 $20,088 $(7,721)
International........................... 9,349 (7,700) 3,613
------- ------- -------
$43,847 $12,388 $(4,108)
======= ======= =======
</TABLE>

F-17
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Income tax benefit (expense) is as follows (in thousands):

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Current income tax benefit (expense):
Domestic federal...................... $ (3,853) $(2,694) $(2,126)
Domestic state and local (including
Puerto Rico)......................... (1,293) (1,359) (922)
International......................... (1,332) (1,757) (116)
-------- ------- -------
(6,478) (5,810) (3,164)
-------- ------- -------
Deferred income tax benefit (expense):
Domestic federal...................... (2,017) 328 4,307
Domestic state and local (including
Puerto Rico)......................... (1,006) (994) (1,237)
International......................... (4,749) 2,288 3,131
-------- ------- -------
(7,772) 1,622 6,201
-------- ------- -------
$(14,250) $(4,188) $ 3,037
======== ======= =======
</TABLE>

Differences between the U.S. federal income tax statutory rates and the income
tax benefit (expense) recorded are attributable to the following:

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Income tax at statutory rate............ (35.0)% (35.0)% 35.0 %
State and local taxes (including
Puerto Rico), net of federal tax
benefit.............................. 5.9 20.5 39.4
Effect of international operations.... (11.2) (17.5) (4.5)
Amortization of negative goodwill..... 0.9 2.4 6.8
Recognition of net operating loss
benefits............................. 8.7 -- --
Other................................. (1.8) (4.2) (2.8)
----- ----- ----
(32.5)% (33.8)% 73.9 %
===== ===== ====
</TABLE>

F-18
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Deferred tax assets and liabilities are comprised of the following (in
thousands):

<TABLE>
<CAPTION>
December 31, December 31,
1998 1997
------------ ------------
<S> <C> <C>
Deferred tax assets:
Accounts receivable valuation allowances........... $ 5,653 $ 6,179
Inventory reserves................................. 4,826 4,746
Fixed assets....................................... 8,242 10,143
Accrued expenses................................... 8,122 7,177
Domestic net operating losses and AMT credit....... 689 4,716
Other deductible temporary differences............. 659 934
International net operating losses................. 5,963 6,297
------- -------
34,154 40,192
======= =======
Deferred tax liabilities:
Prepaid pension cost............................... (2,485) (2,485)
Puerto Rico tollgate tax........................... (4,677) (2,470)
------- -------
Total deferred tax liabilities..................... (7,162) (4,955)
------- -------
Valuation allowance for international net operating
losses............................................ (4,862) (6,297)
------- -------
$22,130 $28,940
======= =======
</TABLE>

The Company has certain foreign net operating losses ("NOLs") which expire in
one to seven years from December 31, 1998. All other foreign NOLs are available
to the Company indefinitely. The Company has domestic net operating losses
which expire through the year 2012. At December 31, 1998 and 1997, the Company
has not provided a valuation allowance against its deferred tax assets except
for certain assets relating to foreign NOLs because, based upon its current
operating plans, the Company believes that it is more likely than not that the
assets will be realized through future profitable operations. During 1998,
income tax expense was reduced by $3,823 due to the reversal of valuation
allowances.

Estimated taxes have been provided for the Company's international operations
assuming repatriation of all available earnings. The Company's manufacturing
operations in Puerto Rico qualify for income tax credit available under Section
936 of the Internal Revenue Code. Current legislation will phase out the income
tax credit allowed under Section 936 over a period ending in 2005. The phase
out period will allow a tax credit under present law through December 31, 2001.
The credit will be subject to further limitation through December 31, 2005, and
thereafter the credit is eliminated.

12. Retirement benefits

Defined benefit pension plans

The Wesley Jessen Plan is a defined benefit plan, effective as of January 1,
1996, covering substantially all domestic employees (including Puerto Rico).
Under the Wesley Jessen Plan, the Company allocates a percentage of
compensation for each participant (annual pay credits) based upon years of
service, beginning after December 31, 1995. Additionally, the Wesley Jessen
Plan provides for a specified

F-19
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
return (interest credits) on participants' account balances. Under the Wesley
Jessen Plan, annual pay credits and interest credits will be accumulated in
participants' accounts as the basis for their Wesley Jessen Plan benefits. The
Company will contribute actuarially determined amounts to fund Wesley Jessen
Plan benefits within regulatory minimum requirements and maximum tax deductible
limits. Vesting occurs after five years of service and includes service during
the period June 29, 1995 to December 31, 1995.

In connection with the Barnes-Hind Acquisition the Company acquired a fully
funded portion of the Pilkington VisionCare Pension Plan, a non-contributory
defined benefit pension plan, which covers substantially all Barnes-Hind
domestic employees. Additionally, the Company acquired an international fully-
funded contributory single-employer defined benefit pension plan covering
certain Barnes-Hind employees in the United Kingdom.

Under the plans acquired in the Barnes-Hind Acquisition, benefit payments for
domestic employees are based principally on earnings during the last five-year
period prior to retirement and length of service. Employees are eligible to
participate in domestic plans within one year of employment and are vested
after five years of service. For the international employees, benefits are
based on length of service and on compensation during the last ten years of
service prior to retirement. Funding is on an actuarially determined basis, to
provide for the plans' current service costs and the plans' prior service cost
over their amortization periods.

F-20
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Information regarding the domestic pension plan is as follows (in thousands):

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Change in benefit obligation
Benefit obligation at beginning of
year.................................. $15,942 $15,016 $ 4,986
Service cost........................... 1,878 1,676 659
Interest cost.......................... 1,093 1,227 585
Amendments............................. 236 -- --
Actuarial (gains) losses............... 289 (1,909) (346)
Acquisitions........................... -- -- 9,148
Benefits paid........................ (2,052) (68) (16)
------- ------- -------
Benefit obligation at end of year...... $17,386 $15,942 $15,016
------- ------- -------
Change in plan assets
Fair value of plan assets at beginning
of year............................... $20,611 $21,190 $ 4,500
Actual return on plan assets........... 2,597 (36) 1,173
Acquisitions........................... -- -- 15,533
Employer contributions................. (1,657) (475) --
Benefits paid.......................... (2,052) (68) (16)
------- ------- -------
Fair value of plan assets at end of
year................................ $19,499 $20,611 $21,190
======= ======= =======
Funded status.......................... 2,113 4,669 6,174
Unrecognized prior service cost........ 777 621 681
Unrecognized net actuarial (gain)
loss.................................. (1,573) (1,127) (1,110)
------- ------- -------
Prepaid benefit cost................. $ 1,317 $ 4,163 $ 5,745
------- ------- -------
Components of net periodic benefit cost
Service cost........................... 1,878 1,676 659
Interest cost.......................... 1,093 1,227 585
Expected return on plan assets......... (1,863) (1,793) (664)
Amortization of prior service cost..... 80 60 60
Amortization of actuarial (gains)
losses................................ -- (63) --
------- ------- -------
Net periodic benefit cost............ $ 1,188 $ 1,107 $ 640
------- ------- -------
Weighted average assumptions as of
December 31,
Discount rate.......................... 6.50% 6.75% 7.50%
Rate of compensation increase.......... 5.00% 5.00% 5.00%
Expected return on plan assets......... 9.00% 9.00% 7.00%
</TABLE>

F-21
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

Information regarding the United Kingdom pension plan is as follows (in
thousands):

<TABLE>
<CAPTION>
Year ended Year ended Year ended
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Change in benefit obligation
Benefit obligation at beginning of
year.................................. $12,213 $ 8,410 $7,324
Service cost........................... 844 704 136
Interest cost.......................... 1,042 685 153
Actuarial (gains) losses............... 2,344 2,950 83
Benefits paid.......................... (186) (256) (67)
Transfer from other pension plan....... 1,218 -- --
Effect of exchange rates............... 82 (280) 781
------- ------- ------
Benefit obligation at end of year.... $17,557 $12,213 $8,410
------- ------- ------
Change in plan assets
Fair value of plan assets at beginning
of year............................... $11,685 $ 8,646 $7,442
Actual return on plan assets........... 1,901 2,445 239
Employer contributions................. 921 762 153
Employee contributions................. 461 381 77
Benefits paid.......................... (186) (256) (67)
Transfer from other pension plan....... 1,218 -- --
Effect of exchange rates............... 78 (293) 802
------- ------- ------
Fair value of plan assets at end of
year................................ $16,078 $11,685 $8,646
------- ------- ------
Funded status.......................... (1,479) (528) 236
Unrecognized net actuarial (gain)
loss.................................. 2,445 1,038 (94)
------- ------- ------
Prepaid benefit cost................. $ 966 $ 510 $ 142
------- ------- ------
Components of net periodic benefit cost
Service cost........................... 844 704 136
Interest cost.......................... 1,042 685 153
Expected return on plan assets......... (1,114) (787) (239)
Amortization of actuarial (gains)
losses................................ 150 160 83
------- ------- ------
Net periodic benefit cost............ $ 922 $ 762 $ 133
------- ------- ------
Weighted average assumptions as of
December 31,
Discount rate.......................... 5.75% 8.5% 8.5%
Rate of compensation increase.......... 4.25% 6.5% 6.5%
Expected return on plan assets......... 7.00% 8.5% 8.5%
</TABLE>

Defined contribution plans

The Company sponsors defined contribution plans covering substantially all U.S.
employees. The plans provide for specified Company matching of participants'
contributions. Contributions charged to operations for the years ended December
31, 1998, 1997 and 1996 totaled $1.5 million, $1.5 million and $0.7 million,
respectively.

F-22
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

13. Commitments and contingencies

Leases

The Company leases certain facilities and computer and other equipment under
operating leases. Total rent expense under these leases was as follows (in
thousands):

<TABLE>
<S> <C>
Year ended December 31, 1998............................................ $3,322
Year ended December 31, 1997............................................ 3,269
Year ended December 31, 1996............................................ 2,554
</TABLE>

Future minimum lease payments under non-cancelable operating leases at December
31, 1998 were as follows (in thousands):

<TABLE>
<CAPTION>
Year Ending
-----------
<S> <C>
December 31, 1999.................................... $2,968
December 31, 2000.................................... 2,505
December 31, 2001.................................... 2,250
December 31, 2002.................................... 1,996
December 31, 2003.................................... 1,784
Thereafter........................................... 6,225
</TABLE>

Litigation

The Company has certain patent infringement, product liability, personal injury
and employment related litigation and claims pending in the normal course of
its business. Management believes that any uninsured losses resulting from the
resolution of such litigation and claims would not have a material adverse
impact on the Company's financial position or results of operations as
presented in the accompanying financial statements.

14. Related party transactions

Management and advisory fees

In connection with the Wesley Jessen Acquisition, the Company entered into an
agreement with Bain Capital, Inc., an affiliate of the Company's major
stockholder, for the provision of management and advisory services. Included in
marketing and administrative expense for the years ended December 31, 1998,
1997 and 1996 are $2.0 million, $2.1 million and $1.3 million, respectively, of
management fees paid for the services provided pursuant to this agreement. In
addition, if the Company enters into any acquisition transactions, it must pay
specified fees to Bain Capital, Inc. based upon the purchase price. The Company
paid Bain Capital, Inc. fees of $3.0 million in connection with the structuring
of the Bank Credit Agreement used to finance the Barnes-Hind Acquisition.

Promissory Note

On May 7, 1997, Wesley Jessen Corporation, a wholly owned subsidiary of the
Company, loaned the Company's Chief Executive Officer ("CEO") $1.2 million in
exchange for an unsecured promissory

F-23
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
note bearing interest at the rate of 8%, interest payable quarterly. The note
is due at the earlier of (i) May 9, 2002, (ii) the date the CEO ceases to be
employed by the Company, or (iii) the date the CEO disposes of any of his
common stock holdings in the Company. The Company waived the requirement that
the CEO repay such loan pursuant to clause (iii) above.

15. Business segments and geographical information

The Company operates in one product segment--the development, manufacture and
marketing of contact lenses. The aggregation criteria for sales are based on
point of production and shipment while the aggregation criteria for assets are
based on their physical location.

Financial information by geographic area is as follows (in thousands):

<TABLE>
<CAPTION>
December 31, December 31, December 31,
1998 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
Net sales:
United States (including
Puerto Rico)........... $194,321 $190,329 $121,687
United Kingdom.......... 36,155 41,383 11,697
Rest of the world....... 61,783 50,466 23,368
-------- -------- --------
$292,259 $282,178 $156,752
======== ======== ========
Total assets:
United States (including
Puerto Rico)........... $124,536 $112,210 $104,220
United Kingdom.......... 42,649 36,763 49,968
Rest of the world....... 37,333 24,103 26,412
-------- -------- --------
$204,518 $173,076 $180,600
======== ======== ========
</TABLE>

16. Treasury stock purchase plan

The board of directors approved a share repurchase plan on June 10, 1998 and
the Company completed the program on September 18, 1998. Under the plan, the
Company repurchased one million shares of its outstanding common stock.
Repurchases were made periodically in normal market trading at prevailing
prices. The funding of the program came from operating cash flow and the
existing bank facility.

F-24
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
WESLEY JESSEN VISIONCARE, INC.

QUARTERLY INFORMATION--Unaudited
(in thousands, except per share amounts)

<TABLE>
<CAPTION>
For the Year Ended December 31, 1998
---------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Net Sales............... $ 70,595 $73,417 $75,254 $72,992
Operating income........ 8,981 12,840 13,535 13,300
Net income.............. 5,270 7,727 8,051 8,547
Basic earnings per
share.................. 0.30 0.43 0.47 0.50
Diluted earnings per
share.................. 0.27 0.40 0.43 0.47
Market price per share:
High.................... $ 40.25 $ 34.94 $ 25.75 $ 27.75
Low..................... $ 32.13 $ 18.38 $ 17.00 $ 16.88

<CAPTION>
For the Year Ended December 31, 1997
---------------------------------------------------------
First Quarter Second Quarter Third Quarter Fourth Quarter
------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Net Sales............... $ 64,071 $72,083 $75,235 $70,789
Operating income
(loss)................. (6,972) 710 11,989 12,220
Net income (loss)....... (10,731) (371) 7,095 7,305
Basic earnings (loss)
per share.............. (0.70) (0.02) 0.41 0.42
Diluted earnings (loss)
per share.............. (0.70) (0.02) 0.37 0.38
Market price per share:
High.................... $ 16.75 $ 25.88 $ 31.00 $ 39.00
Low..................... $ 14.63 $ 13.00 $ 22.50 $ 26.75
</TABLE>

F-25
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)

<TABLE>
<CAPTION>
April 3, December 31,
1999 1998
---------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
------
Current assets:
Cash and cash equivalents............................ $ 7,557 $ 8,859
Accounts receivable--trade, net...................... 43,178 47,363
Other receivables.................................... 6,828 6,840
Inventories.......................................... 59,949 62,055
Deferred income taxes................................ 18,583 18,602
Prepaid expenses..................................... 6,148 6,977
Assets held for sale................................. 1,222 1,222
-------- --------
Total current assets.............................. 143,465 151,918
-------- --------
Property, plant and equipment, net.................... 42,340 36,338
Other assets.......................................... 6,302 6,011
Deferred income taxes................................. 3,528 3,528
Notes receivable...................................... 1,846 1,803
Goodwill, net......................................... 2,560 2,569
Capitalized financing fees, net....................... 2,194 2,351
-------- --------
Total assets...................................... $202,235 $204,518
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Trade accounts payable............................... $ 17,910 $ 17,689
Accrued compensation and benefits.................... 15,456 25,565
Accrued advertising.................................. 4,030 4,060
Other accrued liabilities............................ 8,435 9,744
Transition reserve................................... 6,663 7,886
Income taxes payable................................. 4,232 3,257
-------- --------
Total current liabilities......................... 56,726 68,201
-------- --------
Negative goodwill, net................................ 12,313 12,587
Long term debt........................................ 72,000 69,000
Other liabilities..................................... 5,869 4,778
-------- --------
Total liabilities................................. 146,908 154,566
-------- --------
Stockholders' equity
Common stock, $.01 par value, 50,000,000 shares
authorized, 17,093,699
and 16,994,884 issued and outstanding at April 3,
1999 and December 31, 1998, respectively............ 181 180
Additional paid in capital........................... 62,077 60,847
Accumulated earnings ................................ 16,642 10,438
Treasury stock, 1,000,000 shares at April 3, 1999 and
December 31,
1998, at cost....................................... (21,306) (21,306)
Accumulated other comprehensive loss................. (2,267) (207)
-------- --------
Total stockholders' equity........................ 55,327 49,952
-------- --------
Total liabilities and stockholders' equity........ $202,235 $204,518
======== ========
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-26
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

<TABLE>
<CAPTION>
Three Months Ended
----------------------
April 3, March 28,
1999 1998
----------- ----------
(Unaudited) (Unaudited)
<S> <C> <C>
Net sales............................................... $76,311 $70,595
Operating costs and expenses:
Cost of goods sold..................................... 25,118 21,939
Marketing and administrative........................... 38,403 37,563
Research and development............................... 2,873 2,386
Amortization of goodwill............................... (229) (274)
------- -------
Income from operations.................................. 10,146 8,981
Other (income) expense:
Interest income........................................ (188) (124)
Interest expense....................................... 1,211 1,120
------- -------
Income before income taxes.............................. 9,123 7,985
Income tax expense...................................... (2,919) (2,715)
------- -------
Net income.............................................. $ 6,204 $ 5,270
======= =======
Net income per common share:
Basic.................................................. $ 0.36 $ 0.30
Diluted................................................ $ 0.34 $ 0.27
Weighted average common shares outstanding
Basic.................................................. 17,039 17,784
Diluted................................................ 18,455 19,396
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-27
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

<TABLE>
<CAPTION>
Three Months Ended
----------------------
April 3, March 28,
1999 1998
----------- ----------
(Unaudited) (Unaudited)
<S> <C> <C>
Operating activities:
Net income............................................ $ 6,204 $5,270
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation expense................................. 1,135 475
Amortization of capitalized financing fees........... 156 141
Amortization of goodwill............................. (229) (274)
Gain (loss) on disposal of property, plant, and
equipment........................................... 8 (20)
Deferred income tax.................................. (11) 2,187
Changes in balance sheet items:
Accounts receivable--trade, net...................... 3,086 (4,002)
Other receivables.................................... (130) (1,060)
Inventories.......................................... 919 (2,882)
Prepaid expenses..................................... 794 824
Other assets......................................... (305) 166
Notes receivable..................................... (43) --
Trade accounts payable............................... 529 1,329
Accrued liabilities.................................. (12,354) (5,649)
Other liabilities.................................... 1,188 (678)
Income taxes payable................................. 1,747 (1,884)
-------- ------
Cash provided by (used in) operating activities.... 2,694 (6,057)
-------- ------
Investing activities:
Capital expenditures.................................. (7,783) (1,972)
Proceeds from the sale of property, plant and
equipment............................................ 9 --
-------- ------
Cash used in investing activities.................. (7,774) (1,972)
-------- ------
Financing activities:
Issuance of stock..................................... 685 2,776
Proceeds from long term debt.......................... 8,000 5,000
Payments of long term debt............................ (5,000) --
-------- ------
Cash provided by financing activities.............. 3,685 7,776
-------- ------
Effect of exchange rates on cash and cash
equivalents.......................................... 93 171
Net decrease in cash and cash equivalents............. (1,302) (82)
Cash and cash equivalents:
Beginning of period................................... 8,859 4,759
-------- ------
End of period......................................... $ 7,557 $4,677
======== ======
Supplemental disclosure of cash flow information
Cash paid during the period for interest.............. $ 1,079 $ 977
======== ======
Cash paid during the period for taxes, net............ $ 371 $1,582
======== ======
</TABLE>

The accompanying notes are an integral part of these financial statements.

F-28
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)
1. Basis of Presentation and Description of Business

Basis of presentation

The unaudited financial information presented reflects all adjustments which
are, in the opinion of management, necessary for a fair presentation of the
consolidated financial statements for an interim period. All such adjustments
are of a normal, recurring nature. Results of operations for an interim period
are not necessarily indicative of results for the full year. These interim
financial statements should be read in conjunction with the financial
statements and related notes contained in the Annual Report on Form 10-K for
the year ended December 31, 1998.

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates.

Description of business

2. Net Income Per Common Share

The Company calculates net income per common share in accordance with Statement
of Financial Accounting Standards No. 128, "Earnings per Share." The difference
between the weighted average shares used in the computation of basic and
diluted earnings per share of 1,416 and 1,612 for the three months ended April
3, 1999 and March 28, 1998, respectively, is the dilutive effect of outstanding
stock options, using the treasury stock method from the date of grant.

F-29
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

(Unaudited)

3. Transition Reserve and Restructuring Charge

On October 2, 1996, the Company acquired the contact lens business of
Pilkington plc, operating as the Pilkington Barnes-Hind Group ("the Barnes-Hind
Acquisition"). In connection with the Barnes-Hind Acquisition, management
approved a plan to integrate the acquired operations, for which an accrual of
$20.4 million ("transition reserve") was established in purchase accounting.
The transition reserve included costs related to the closure of the Barnes-Hind
corporate offices in Sunnyvale, California which was completed in the third
quarter of 1997 and resulted in the termination of 123 employees. The Company
announced the closing of its manufacturing operations in San Diego, California
expected to be substantially complete by March 2000, with a shift of
conventional lens production to its plant in Cidra, Puerto Rico. The plant
closing will result in the termination of 471 employees (of whom 261 had been
terminated as of April 3, 1999). Payments related to the transition reserve are
as follows (in thousands):

<TABLE>
<CAPTION>
Facility
Employee Lease Restoration
Related Termination and Other
Costs Costs Costs Total
-------- ----------- ----------- -------
<S> <C> <C> <C> <C>
Transition reserve at December 31,
1998............................... $7,169 $ 542 $ 175 $ 7,886
Charges against reserve............. (885) (235) (103) (1,223)
------ ----- ----- -------
Transition reserve at April 3,
1999............................... $6,284 $ 307 $ 72 $ 6,663
====== ===== ===== =======

In addition to the transition plan, the Company committed to a plan to
restructure the Wesley Jessen operations following the Barnes-Hind Acquisition.
Pursuant to the restructuring plan, the Chicago distribution facilities were
consolidated with those at Des Plaines, Illinois in October 1997. The
restructuring reserve of $0.3 million at April 3, 1999, consists of costs
related to employee termination, lease termination and other restructuring
costs associated with the consolidation of certain Wesley Jessen facilities in
Europe with facilities acquired in the Barnes-Hind Acquisition. Usage of the
restructuring reserve is as follows (in thousands):

<CAPTION>
Employee Lease
Related Termination
Costs Costs Other Costs Total
-------- ----------- ----------- -------
<S> <C> <C> <C> <C>
Restructuring reserve at December
31, 1998........................... $ 187 $ 288 $ 114 $ 589
Charges against reserve............. (65) (55) (4) (124)
Reversed to income.................. -- (165) -- (165)
------ ----- ----- -------
Restructuring reserve at April 3,
1999............................... $ 122 $ 68 $ 110 $ 300
====== ===== ===== =======
</TABLE>

F-30
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

(Unaudited)

4. Accounts Receivable--Trade, Net

Accounts receivable--trade, net consist of the following (in thousands):

<TABLE>
<CAPTION>
April December 31,
3, 1999 1998
------- ------------
<S> <C> <C>
Trade receivables...................................... $58,175 $ 62,968
Less allowances:
Doubtful accounts.................................... (5,042) (4,992)
Sales returns and adjustments........................ (9,955) (10,613)
------- --------
$43,178 $ 47,363
======= ========
</TABLE>

5. Inventories

Inventories consist of the following (in thousands):

<TABLE>
<CAPTION>
April December 31,
3, 1999 1998
------- ------------
<S> <C> <C>
Raw materials........................................ $ 5,929 $ 5,934
Work-in-process...................................... 5,914 6,463
Finished goods....................................... 48,106 49,658
------- -------
$59,949 $62,055
======= =======
</TABLE>

6. Property, Plant and Equipment, Net

Property, plant and equipment, net consist of the following (in thousands):

<TABLE>
<CAPTION>
April 3, December 31,
1999 1998
-------- ------------
<S> <C> <C>
Buildings and improvements......................... $ 9,411 $ 9,449
Machinery, equipment, furniture and fixtures....... 19,403 19,638
Construction-in-progress........................... 18,178 11,450
-------- -------
46,992 40,537
Less accumulated depreciation...................... (4,652) (4,199)
-------- -------
$ 42,340 $36,338
======== =======
</TABLE>

7. Long-Term Debt

The Company's credit agreement consists of a $170.0 million revolving loan
facility, the availability of which will be reduced by $20.0 million on
September 11, 2000 and $20.0 million on September 11, 2001. The facility
matures on September 11, 2002. The agreement became effective on July 29, 1998
when the then-existing bank credit agreement was amended to increase the
borrowing availability to permit the repurchase of a maximum of $35.0 million
of the Company's common stock. Amounts

F-31
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

(Unaudited)

borrowed under the amended bank credit agreement bear interest at either the
Base Rate (higher of (i) 0.5% in excess of the Federal Reserve reported
adjusted certificate of deposit rate and (ii) the lender's prime lending rate
plus a margin up to 0.5% based on leverage ratios calculated as of certain
dates) or the Eurodollar Rate as determined by the lenders plus a margin of
0.375% to 1.500% based on the type of loan and leverage ratios calculated as of
certain dates as defined in the credit agreement. Additionally, the Company is
required to pay a commitment fee on the unutilized revolving loan commitment,
as defined in the credit agreement, ranging from 0.175% to 0.400% based on
leverage ratios calculated as of certain dates. The unutilized portion of the
credit facility at April 3, 1999 was $98.0 million. The credit facility is
guaranteed by each of the Company's domestic subsidiaries and secured by
essentially all assets of the domestic subsidiaries.

The amended bank credit agreement contains a number of covenants restricting
the Company and its subsidiaries with respect to the incurrence of
indebtedness, the creation of liens, the consummation of certain transactions
such as sales of substantial assets, mergers or consolidations, the making of
certain investments, capital expenditures and payment of dividends. In
addition, the Company is required to maintain certain financial covenants and
ratios.

8. Comprehensive Income

Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income," which requires
the disclosure of all non-owner changes in equity.

The components of comprehensive income for the three months ended April 3, 1999
and March 28, 1998 are as follows (in thousands):

<TABLE>
<CAPTION>
Three Months Ended
-------------------
April 3, March 28,
1999 1998
-------- ---------
<S> <C> <C>
Net income............................................ $ 6,204 $5,270
Foreign currency translation adjustments.............. (2,060) (603)
------- ------
Comprehensive income.................................. $ 4,144 $4,667
======= ======
</TABLE>

9. Treasury Stock Purchase Plan

F-32
<PAGE>

WESLEY JESSEN VISIONCARE, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

(Unaudited)

10. Acquisitions

In May 1999, the Company, through its Hong Kong subsidiary, executed a purchase
agreement to acquire certain assets of Eycon Lens (Hong Kong) Co., Ltd. from
its sole shareholder. In June 1998 and July 1998, the Company completed two
other international acquisitions. The total adjusted purchase price for the
three acquisitions, including related fees and expenses of approximately $3.2
million was funded with existing liquidity. The Company accounted for the
acquisitions under the purchase method of accounting. None of these
acquisitions were material to the Company's financial statements.

11. Business segments and geographical information

The Company operates in one product segment--the development, manufacture and
marketing of contact lenses. The aggregation criteria for sales are based on
point of production and shipment.

Financial information by geographic area is as follows (in thousands):

<TABLE>
<CAPTION>
For the Three
months Ended
-----------------
April March 28,
3, 1999 1998
------- ---------
<S> <C> <C>
Net sales:
United States (including Puerto Rico)................... $50,198 $50,228
United Kingdom.......................................... 8,661 7,049
Rest of the world....................................... 17,452 13,318
------- -------
$76,311 $70,595
======= =======
</TABLE>

F-33
<PAGE>

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

You may rely on the information contained in this prospectus. We have not
authorized anyone to provide information different from that contained in this
prospectus. Neither the delivery of this prospectus nor sale of common stock
means that information contained in this prospectus is correct after the date
of this prospectus. This prospectus is not an offer to sell or solicitation of
an offer to buy these shares of common stock in any circumstances under which
the offer or solicitation is unlawful.

---------

TABLE OF CONTENTS

<TABLE>
<CAPTION>
Page
----
<S> <C>
Prospectus Summary....................................................... 1
Risk Factors............................................................. 6
Use of Proceeds.......................................................... 12
Market Price for Common Stock............................................ 12
Dividend Policy.......................................................... 12
Management's Discussion and Analysis of Financial Condition and Results
of Operations........................................................... 15
Business................................................................. 25
Management............................................................... 42
Principal Stockholders................................................... 52
Selling Stockholders..................................................... 55
Certain Transactions..................................................... 56
Description of Capital Stock............................................. 57
Underwriting............................................................. 60
Experts.................................................................. 61
Legal Matters............................................................ 61
Where You Can Find More Information...................................... 62
Index to Financial Statements............................................ F-1
</TABLE>

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

4,600,000 Shares

Wesley Jessen
VisionCare, Inc.

Common Stock

------------

PROSPECTUS

------------

BT Alex. Brown

Bear, Stearns & Co. Inc.

Robert W. Baird & Co.
Incorporated

A.G. Edwards & Sons, Inc.

Merrill Lynch & Co.

, 1999

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 14. Other Expenses of Issuance and Distribution.

The following is a statement of estimated expenses of the issuance and
distribution of the securities being registered:

<TABLE>
<S> <C>
Securities and Exchange Commission registration fee................ $49,701
NASD filing fee................................................... $18,378
Blue Sky fees and expenses (including attorneys' fees and
expenses)......................................................... *
Printing expenses.................................................. *
Accounting fees and expenses....................................... *
Transfer agent's fees and expenses................................. *
Legal fees and expenses............................................ *
Miscellaneous expenses............................................. *
-------
Total............................................................ $ *
=======
</TABLE>
- --------
* To be provided by amendment

Item 15. Indemnification of Directors and Officers.

The Company is incorporated under the laws of the State of Delaware. Section
145 of the General Corporation Law of the State of Delaware ("Section 145")
provides that a Delaware corporation may indemnify any persons who are, or are
threatened to be made, parties to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative
(other than an action by or in the right of such corporation), by reason of the
fact that such person was an officer, director, employee or agent of such
corporation, or is or was serving at the request of such corporation as a
director, officer, employee or agent of another corporation or enterprise. The
indemnity may include expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement actually and reasonably incurred by such person
in connection with such action, suit or proceeding, provided such person acted
in good faith and in a manner he reasonably believed to be in or not opposed to
the corporation's best interests and, with respect to any criminal action or
proceeding, had no reasonable cause to believe that his conduct was illegal. A
Delaware corporation may indemnify any persons who are, or are threatened to be
made, a party to any threatened, pending or completed action or suit by or in
the right of the corporation by reason of the fact that such person was a
director, officer, employee or agent of such corporation, or is or was serving
at the request of such corporation as a director, officer, employee or agent of
another corporation or enterprise. The indemnity may include expenses
(including attorneys' fees) actually and reasonably incurred by such person in
connection with the defense or settlement of such action or suit, provided such
person acted in good faith and in a manner he reasonably believed to be in or
not opposed to the corporation's best interests except that no indemnification
is permitted without judicial approval if the officer or director is adjudged
to be liable to the corporation. Where an officer or director is successful on
the merits or otherwise in the defense of any action referred to above, the
corporation must indemnify him against the expenses which such officer or
director has actually and reasonably incurred.

The Company's Certificate of Incorporation and By-laws provide for the
indemnification of directors and officers of the Company to the fullest extent
permitted by Section 145.

In that regard, the By-laws provide that the Company shall indemnify any
person whom it has the power to indemnify by Section 145 from or against any
and all of the expenses, liabilities or other matters referred to or covered in
Section 145, and such indemnification is not exclusive of other rights

II-1
<PAGE>

to which such person shall be entitled under any By-law, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in such
person's official capacity for or in behalf of the Company and/or any
subsidiary of the Company and as to action in another capacity while holding
such office and shall continue as to such person who has ceased to be a
director, officer, employee, or agent of the Company and/or subsidiary of the
Company and shall inure to the benefit of the heirs, executors, and
administrators of such person.

The Company has entered into indemnification agreements with each of its
executive officers and directors.

Item 16. Exhibits.

(a) Exhibits.

<TABLE>
<CAPTION>
Number Description
------ -----------
<C> <S>
*1.1 Form of Underwriting Agreement.
Certificate representing shares of Common Stock, $0.01 par value per
4.1 share (1).
4.2 Amended and Restated Certificate of Incorporation (2).
4.3 Amended and Restated By-laws (2).
*5.1 Opinion and consent of Kirkland & Ellis.
23.1 Consent of PricewaterhouseCoopers LLP.
*23.2 Consent of Kirkland & Ellis (included in Exhibit 5.1).
24.1 Powers of Attorney (included in signature page).
</TABLE>
- --------
* To be filed by amendment.
(1) Incorporated by reference to applicable exhibit to Registrant's
Registration Statement on Form S-1, File No. 333-17353, dated February 10,
1997.

(2) Incorporated by reference to the applicable exhibit to the Registrant's
Quarterly Report on Form 10-Q for the quarterly period ended March 31,
1997.

Item 17. Undertakings.

(a) The undersigned Registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:

(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered would not exceed
that which was registered) and any deviation from the low or high end
of the estimated maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than a 20%
change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective registration
statement;

(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;

II-2
<PAGE>

provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the
Commission by the registrant pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
registration statement.

(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be the
initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.

(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934) that is incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the securities offered
herein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.

(c) The undersigned Registrant hereby undertakes to deliver or cause to be
delivered with the prospectus, to each person to whom the prospectus is sent or
given, the latest annual report to security holders that is incorporated by
reference in the prospectus and furnished pursuant to and meeting the
requirements of Rule 14a-3 or Rule 14c-3 under the Securities Exchange Act of
1934; and, where interim financial information required to be presented by
Article 3 of Regulation S-X are to set forth in the prospectus, to deliver, or
cause to be delivered to each person to whom the prospectus is sent or given,
the latest quarterly report that is specifically incorporated by reference in
the prospectus to provide such interim financial information.

(d) The undersigned Registrant hereby undertakes that for the purpose of
determining any liability under the Securities Act of 1933, each post-effective
amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.

(e) Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.

II-3
<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe it meets all the
requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Chicago, State of Illinois, on May 26, 1999.

Wesley Jessen Visioncare, Inc.

/s/ Kevin J. Ryan
By: _________________________________
Kevin J. Ryan President and Chief
Executive Officer

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Kevin J. Ryan, Edward J. Kelly, Stephen G.
Pagliuca and Adam W. Kirsch, and each of them, his true and lawful attorneys-
in-fact and agents, with full power of substitution and resubstitution, for him
and in his name, place and stead, in any and all capacities, to sign any or all
amendments (including post-effective amendments) to this Registration Statement
(and any registration statement filed pursuant to Rule 462(b) under the
Securities Act of 1933, as amended, for the offering which this Registration
Statement relates), and to file the same, with all exhibits thereto, and other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of them, full power
and authority to do and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully to all intents and
purposes as he might or could do in person, hereby ratifying and confirming all
that said attorneys-in-fact and agents or any of them, or their or his
substitute or substitutes, may lawfully do or cause to be done by virtue
hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement and power of attorney have been signed by the following persons in
the capacities and on the dates indicated:

<TABLE>
<CAPTION>
Signature Capacity Date
--------- -------- ----

<S> <C> <C>
/s/ Kevin J. Ryan Chairman of the board, May 26, 1999
______________________________________ President and Chief
Kevin J. Ryan Director Executive
Officer (principal
executive officer)

/s/ Edward J. Kelley Chief Financial Officer, May 26, 1999
______________________________________ Treasurer and Director
Edward J. Kelley (principal financial
officer)

/s/ Ronald J. Artale Vice President Controller May 26, 1999
______________________________________ (principal Director
Ronald J. Artale
</TABLE>

II-4
<PAGE>

<TABLE>
<S> <C> <C>
/s/ Michael A. D'Amato Director May 26, 1999
______________________________________
Michael A. D'Amato

/s/ Adam W. Kirsch Director May 26, 1999
______________________________________
Adam W. Kirsch

/s/ Sol Levine Director May 26, 1999
______________________________________
Sol Levine

/s/ John W. Maki Director May 26, 1999
______________________________________
John W. Maki

/s/ John J. O'Malley Director May 26, 1999
______________________________________
John J. O'Malley

/s/ Stephen G. Pagliuca Director May 26, 1999
______________________________________
Stephen G. Pagliuca
</TABLE>

II-5

<PAGE>

EXHIBIT 23.1

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in this Registration
Statement on Form S-3 of our report dated February 23, 1999 relating to the
financial statements and our report dated February 23, 1999 relating to the
financial statement schedules, which appear in Wesley Jessen VisionCare, Inc.'s
Annual Report on Form 10-K for the year ended December 31, 1998. We also
consent to the references to us under the headings "Experts" and "Selected
Historical Consolidated Financial Data" in such Registration Statement.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Chicago, Illinois
May 25, 1999