REF Refac Optical Grp

Refac Optical Group (AMEX: REF) today announced an extension in the expiration date for the exercise of the non-transferable payment right (the "Payment Right") granted to qualifying stockholders in connection with its February 28, 2003 merger (the "Palisade Merger") with a wholly owned subsidiary of Palisade Concentrated Equity Partnership, L.P. pursuant to an Agreement and Plan of Merger, dated as of August 19, 2002, as amended (the "Palisade Merger Agreement"). The expiration date has been extended for one year from September 30, 2006 to September 30, 2007. Under the terms of the Palisade Merger Agreement, the Payment Right applies to stockholders who received their Refac common stock, par value $0.001 per share, as part of the consideration in the Palisade Merger (the "Merger Shares") and have continuously held such Merger Shares from the date of the Palisade Merger. The Payment Right gives such stockholders the right to sell their Merger Shares to Refac at $8.29 per share. Since the Palisade Merger, Refac's financial statements have reflected the estimated amount required to satisfy all Payment Rights as temporary equity with a similar amount reducing additional paid-in capital. It has also restricted a portion of its investments being held to maturity to maintain the "Contingent Fund" called for by the Palisade Merger Agreement. As of July 31, 2006, Refac estimated that approximately 502,000 shares of its common stock were subject to the Payment Right and accordingly maintained the Contingent Fund at $4,162,000. Refac will be mailing eligible stockholders instructions on how to exercise their Payment Right. About Refac Optical Group Refac Optical Group, a leader in the retail optical industry and the sixth largest retail optical chain in the United States, operates 532 retail locations in 47 states and Canada, consisting of 509 licensed departments, five freestanding stores, 18 eye health centers and professional optometric practices, two surgery centers, one of which is a laser correction center, and two manufacturing laboratories. The licensed departments include 352 located at J.C. Penney stores, 63 at Sears, 29 at Macy's and Marshall Field's department stores, 23 at Boscov's department stores, and 30 at The Bay. These licensed departments are full-service retail vision care stores that offer an extensive selection of designer brands and private label prescription eyewear, contact lenses, sunglasses, ready-made readers and accessories.