MILAN, Italy and BELLEVUE, Wash.—Luxottica Group S.p.A. (NYSE:LUX) and drugstore.com, inc. (Nasdaq:DSCM), a leading online retailer of health, beauty, vision, and pharmacy products, have formed a strategic, multi-year ecommerce alliance to expand online access to contact lenses in the North American market.

Valerio Giacobbi, executive vice president, business development, Luxottica Group, commented, “This agreement is a key step in Luxottica’s goal to increase consumers’ awareness of contact lenses as an important vision care option. Together with annual eye exams and high-quality eyewear and sunglasses, contact lenses are an excellent alternative for total eye health in a way that suits consumers’ differing lifestyles and needs.”

Under this exclusive agreement, Vision Direct, Inc., a leading online contact lens retailer and a wholly-owned subsidiary of drugstore.com, will collaborate with Luxottica Group to develop branded, contact lens e-commerce sites for the company’s North American business, and provide customer care and fulfillment services. The alliance will enable Luxottica, starting with its retail brands, to offer a comprehensive solution for consumers to conveniently purchase contact lenses in-person, by telephone or online. In addition, the two companies will pursue synergies such as purchasing contact lenses on behalf of the alliance.

The two companies also plan to cooperate in a number of other related areas, including Luxottica’s North America-based wholesale business.

Dawn Lepore, CEO and chairman, drugstore.com, inc., commented, “Luxottica is a market leader and their retail brands are among the best known in the industry—we are very pleased to be able to utilize drugstore.com’s e-commerce platform and our strengths in online technology, marketing, customer care and fulfillment on Luxottica’s behalf. This alliance represents an unparalleled opportunity to extend our partnership strategy.”

As of Sept. 30, 2009, Luxottica operated 2,939 optical stores across North America, including LensCrafters and Pearle Vision. The new contact lens e-commerce services are expected to launch in mid-2010.

Drugstore.com will incur a one-time advisory fee in connection with entering into this alliance. ■