EX-99.1

TLCVision Reports Fourth Quarter and Full Year 2005 Financial Results; Reaffirms Outlook for
2006

ST. LOUIS, MO, March 16, 2006: TLC Vision Corporation (NASDAQ:TLCV; TSX:TLC), North America’s premier eye care services company, today announced its financial results for the fourth quarter and full year ended December 31, 2005. All dollar amounts are expressed in U.S. currency and results are reported in accordance with U.S. generally accepted accounting principles (U.S. GAAP) unless otherwise noted.

Editor’s Note: “Operating Business” (or “Operating”) is defined as TLCVision’s operating activities excluding the impact of the AMD segment, principally represented by our investment in OccuLogix Inc. To provide maximum transparency for investors, Operating Business financial results are listed separately from consolidated results in this press release.

“TLCVision delivered solid, broad-based revenue growth over prior year in the operating business, which is especially noteworthy given the uneven demand in the core LASIK market in the fourth quarter,” said Jim Wachtman, President and Chief Executive Officer. “We met analysts mean earnings expectations for the quarter, even while funding the initial start up investment in our new LASIK Select(SM) centers. The implementation of our refractive expansion strategy is well on track, including the integration of TruVision and the opening of 5 new LASIK Select(SM) locations in the first quarter of 2006, bringing our total number of refractive centers to 83.”

Q4 2005: TLCVision’s fourth quarter consolidated net revenues were $60.5 million, an increase of 6% from the comparable period in 2004. Excluding the AMD business segment, revenues from the Operating Business were $60.3 million versus $56.5 million last year, an increase of $3.8 million or 7%.

•

Total refractive revenues were up 1% to $40.8 million, with total refractive procedures of 39,800 compared to 42,200 the prior year, down 6%. Center revenues were 5% higher during the quarter, as softer economic conditions resulted in a 3% decline in same store procedures that were more than offset by revenues from new centers. Access revenues were down by 15% due to lower demand and the loss of fixed site business.

•

Other healthcare services revenues (excluding AMD) increased 21% to $19.5 million, with strong growth in our mobile cataract (+22%) and ambulatory surgery centers businesses (+37%). Vision Source grew by 21% over the same period in 2004.

Full Year 2005: TLCVision’s full year consolidated net revenues were up 5% to $260 million, and net revenues from the Operating Business were $258 million (up 5%).

•

Annual refractive revenues of $186.6 million were up 2% from 2004, with a total of 190,900 procedures. Centers revenues of $150.2 million were up 6% from 2004, as same store revenue growth of 3% combined with the revenues from the refractive acquisitions closed earlier in the year. Access revenues for the year of $36.5 million were 10% lower than 2004 due to lower demand and the loss of fixed site customers.

•

Other healthcare services revenues (excluding AMD) of $71.6 million grew by 12% on a full year basis and 17% in the second half of 2005.

Q4 2005: The consolidated business generated a net pre-tax loss for the fourth quarter of $2.6 million, as OccuLogix loss from operations combined with several non-cash charges related to its revaluation of certain assets as a result of their preliminary analysis of the MIRA-1 clinical trial. After removing the loss from the AMD business, net pre-tax income from the Operating Business was $0.9 million or $0.01 per share. It is important to note that current year earnings include the start-up costs of the LASIK Select (SM) branded centers (approximately $0.4 million) and the costs to close or renegotiate three underperforming locations (approximately $1.7 million). Comparable pre-tax earnings for 2004 were $1.3 million.

Also included in the fourth quarter financial results was $1.7 million of principally non-cash income tax expense, of which $1.2 million related to the correction on understated income tax expense in 2004.

The resulting consolidated net loss for the quarter of $4.3 million compared with net income of $26.1 million for the prior period, including a one-time gain of $25.8 million from the company’s sale of OccuLogix shares in its initial public offering. The net loss for the Operating Business was $0.8 million or $0.01 per fully diluted share.

Full Year 2005: Consolidated pre-tax income was $14.8 million or $0.21 per share. Pre-tax income from the Operating Business totaled $22.6 million for 2005, up $1.5 million or 7% from 2004. Pre-tax earnings per share were $0.32, meeting analysts mean estimates for the year after deducting cash income tax expense of $0.01.

Income tax expense of $7.9 million for the full year includes a non-cash charge of $7.1 million. This charge corrects the reversal of deferred tax valuation allowances that are more properly recorded as reductions in intangible asset values and an increase to equity. Accordingly, the Company’s financials have been restated for the first three quarters of 2005 to reflect an increase in income tax expense totaling $5.7 million in addition to the $1.2 million adjustment for 2004 noted above.

On an annual basis, consolidated net income was $6.9 million or $0.10 per share. The Operating Business generated full year net income of $14.7 million or $0.21 per share.

Consolidated: The business model continues to generate strong cash flow to fund the Company’s growth strategy. Consolidated operating cash flow was $3.4 million ($0.05 per share) for the fourth quarter and $22.5 million ($0.32 per share) for the full year. Year-end consolidated cash and short-term investments totaled $69.9 million.

Operating Business: Operating cash flow from the Operating Business in the fourth quarter was $7.9 million ($0.11 per share), up $2.3 million or 42% from last year. For the full year, operating cash flow of $41.6 million, or $0.58 per share, was $6.5 million or 19% ahead of last year. The Company continues to maintain a strong financial position, with cash and short-term investments for the Operating Business totaling $28.7 million.

“We remain very confident that our strategy will continue to deliver consistent, strong growth in revenues, earnings and cash flow. With that in mind, we are reaffirming our 2006 financial guidance for the Operating Business,” said Jim Wachtman.

•

2006 net revenues of between $308 million and $318 million, or a growth of between 19% and 23% from full year 2005 results;

•

Fully diluted pre-tax earnings per share of $0.33 and $0.36, including approximately $1.1 million of compensation expense related to stock options which will be recorded for the first time in 2006, and costs related to our rollout of LASIK Select (SM) which are anticipated to cost $0.03 in 2006.

•

Fully-taxed earnings per share of between $0.20 to $0.22, reflecting a book income tax expense at a 40% effective rate;

TLCVision is pleased to invite all interested parties to participate in a conference call during which these results will be discussed. The call will be held today, March 16, at 10:30 am Eastern Time at 1-877-888-7019. The call will also be broadcast live and archived on the Company’s web site at www.tlcv.com under the “Webcasts” link in the Investor Relations section. In addition, the live web cast will be available at various other popular portals and financial web sites.

TLCVision is North America’s premier eye care services company, providing eye doctors with the tools and technologies needed to deliver high-quality patient care. Through its centers management and technology access service models, and its managed care contracting strength, TLCVision maintains leading positions in Refractive and Cataract markets. More information about TLCVision can be found on the website at www.tlcv.com.

This press release contains certain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, which statements can be identified by the use of forward looking terminology, such as “may”, “will”, “expect”, ”intend”, “anticipate”, “estimate”, “predict”, “plans” or “continue” or the negative thereof or other variations thereon or comparable terminology referring to future events or results. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous factors, including the timing of expenditures, effects of competition, changes to pricing, acquisitions and expansion opportunities, any of which could cause actual results to vary materially from current results or TLCVision’s anticipated future results. See the Company’s reports filed with the Canadian Securities Regulators and the U.S. Securities and Exchange Commission from time to time for cautionary statements identifying important factors with respect to such forward looking statements, including certain risks and uncertainties, that could cause actual results to differ materially from results referred to in forward looking statements. TLCVision assumes no obligation to update the information contained in this press release.


TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
				Three Months Ended									Three Months Ended
				December 31, 2005									December 31, 2004

	Results Before AMD									Results Before AMD
	Segment			AMD Segment			Total TLCVision			Segment			AMD Segment			Total TLCVision

Revenues:
Refractive:
Centers	$	33,425		$	—		$	33,425		$	31,724		$	—		$	31,724
Access		7,368			—			7,368			8,676			—			8,676
Other healthcare services		19,518			206			19,724			16,130			346			16,476

Total revenues		60,311			206			60,517			56,530			346			56,876
Cost of revenues:
Refractive:
Centers		25,879			—			25,879			24,599			—			24,599
Access		6,045			—			6,045			6,646			—			6,646
Other healthcare services		11,920			2,345			14,265			10,259			492			10,751

Total cost of revenues		43,844			2,345			46,189			41,504			492			41,996

Gross profit (loss)		16,467			(2,139	)		14,328			15,026			(146	)		14,880

General and administrative		6,538			2,981			9,519			6,833			466			7,299
Marketing and sales		5,308			168			5,476			5,063			77			5,140
Research and development, clinical and regulatory		—			1,456			1,456			—			576			576
Amortization of intangibles		950			—			950			1,013			—			1,013
Other expenses, net		1,769			1			1,770			80			—			80
Total operating costs		14,565			4,606			19,171			12,989			1,119			14,108

Operating income (loss)		1,902			(6,745	)		(4,843	)		2,037			(1,265	)		772
Gain on sale of OccuLogix, Inc. stock		—			—			—			—			25,792			25,792
Interest income		513			406			919			564			52			616
Interest expense		(421	)		—			(421	)		(418	)		—			(418	)
Minority interests		(1,834	)		2,891			1,057			(1,362	)		411			(951	)
Earnings from equity investments		718			—			718			490			—			490

Income (loss) before income taxes		878			(3,448	)		(2,570	)		1,311			24,990			26,301
Income tax expense		(1,689	)		3			(1,686	)		(206	)		—			(206	)

Net income (loss)	$	(811	)	$	(3,445	)	$	(4,256	)	$	1,105		$	24,990		$	26,095

Earnings (loss) per share — diluted	$	(0.01	)	$	(0.05	)	$	(0.06	)	$	0.02		$	0.34		$	0.36

Weighted average number of common shares outstanding — diluted		68,645			68,645			68,645			71,846			71,846			71,846
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.).
TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands except per share amounts)
				Year Ended December									Year Ended December
					31, 2005									31, 2004

	Results Before AMD									Results Before AMD
	Segment			AMD Segment			Total TLCVision			Segment			AMD Segment			Total TLCVision

Revenues:
Refractive:
Centers	$	150,168		$	—		$	150,168		$	141,782		$	—		$	141,782
Access		36,453			—			36,453			40,659			—			40,659
Other healthcare services		71,563			1,841			73,404			63,969			837			64,806

Total revenues		258,184			1,841			260,025			246,410			837			247,247
Cost of revenues:
Refractive:
Centers		106,476			—			106,476			101,440			—			101,440
Access		26,974			—			26,974			28,863			—			28,863
Other healthcare services		43,537			3,738			47,275			39,389			1,046			40,435

Total cost of revenues		176,987			3,738			180,725			169,692			1,046			170,738

Gross profit (loss)		81,197			(1,897	)		79,300			76,718			(209	)		76,509

General and administrative		27,647			8,850			36,497			26,009			857			26,866
Marketing and sales		21,055			659			21,714			18,541			164			18,705
Research and development, clinical and regulatory		—			5,250			5,250			—			1,825			1,825
Amortization of intangibles		4,039			—			4,039			4,098			—			4,098
Other expenses, net		935			(166	)		769			940			—			940
Total operating costs		53,676			14,593			68,269			49,588			2,846			52,434

Operating income (loss)		27,521			(16,490	)		11,031			27,130			(3,055	)		24,075
Gain on sale of OccuLogix, Inc. stock		—			—			—			—			25,792			25,792
Interest income		2,687			1,593			4,280			1,902			52			1,954
Interest expense		(1,737	)		—			(1,737	)		(2,617	)		—			(2,617	)
Minority interests		(8,401	)		7,058			(1,343	)		(7,364	)		411			(6,953	)
Earnings from equity investments		2,545			—			2,545			2,057			—			2,057

Income (loss) before income taxes		22,615			(7,839	)		14,776			21,108			23,200			44,308
Income tax expense		(7,891	)		—			(7,891	)		(600	)		—			(600	)

Net income (loss)	$	14,724		$	(7,839	)	$	6,885		$	20,508		$	23,200		$	43,708

Earnings (loss) per share — diluted	$	0.21		$	(0.11	)	$	0.10		$	0.29		$	0.32		$	0.61

Weighted average number of common shares outstanding — diluted		71,380			71,380			71,380			71,088			71,088			71,088
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.).
TLC VISION CORPORATION
CONSOLIDATING BALANCE SHEETS
(In thousands)
				December 31, 2005
				(Unaudited)									December 31, 2004

										Results Before
	Results Before AMD									AMD Segment			AMD Segment
	Segment			AMD Segment			Total TLCVision			(Unaudited)			(Unaudited)			Total TLCVision

ASSETS
Current assets
Cash and cash equivalents	$	22,122		$	9,607		$	31,729		$	15,847		$	17,588		$	33,435
Short-term investments		6,550			31,663			38,213			68,515			42,500			111,015
Accounts receivable		20,056			527			20,583			16,489			954			17,443
Prepaid expenses, inventory and other		11,604			5,519			17,123			12,212			1,609			13,821

Total current assets		60,332			47,316			107,648			113,063			62,651			175,714
Intercompany		1,693			(1,693	)		—			1,877			(1,877	)		—
Restricted cash		975			—			975			932			—			932
Investments and other assets		19,838			—			19,838			10,482			—			10,482
Goodwill		99,402			—			99,402			53,774			—			53,774
Other intangible assets		23,886			135			24,021			18,037			103			18,140
Fixed assets		48,646			513			49,159			45,636			563			46,199

Total assets	$	254,772		$	46,271		$	301,043		$	243,801		$	61,440		$	305,241

LIABILITIES
Current liabilities
Accounts payable	$	10,517		$	514		$	11,031		$	8,491		$	225		$	8,716
Accrued liabilities		22,158			2,295			24,453			23,425			3,714			27,139
Current maturities of long-term debt		5,268			—			5,268			8,664			—			8,664

Total current liabilities		37,943			2,809			40,752			40,580			3,939			44,519
Long-term debt, less current maturities		12,665			—			12,665			9,991			—			9,991
Other long-term liabilities		3,427			—			3,427			2,242			480			2,722
Minority interests		14,284			21,510			35,794			9,307			27,915			37,222

Total liabilities		68,319			24,319			92,638			62,120			32,334			94,454
STOCKHOLDERS’ EQUITY
Common stock		419,936			30,767			450,703			428,877			30,082			458,959
Option and warrant equity		1,861			—			1,861			2,872			—			2,872
Accumulated deficit		(235,344	)		(8,815	)		(244,159	)		(250,068	)		(976	)		(251,044	)

Total stockholders’ equity		186,453			21,952			208,405			181,681			29,106			210,787

Total liabilities and stockholders’ equity	$	254,772		$	46,271		$	301,043		$	243,801		$	61,440		$	305,241

Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.).
TLC VISION CORPORATION
CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands except per share amounts)
				Year Ended December									Year Ended December
					31, 2005									31, 2004

	Results Before AMD									Results Before AMD
	Segment			AMD Segment			Total TLCVision			Segment			AMD Segment			Total TLCVision

OPERATING ACTIVITIES
Net income (loss)	$	14,724		$	(7,839	)	$	6,885		$	20,508		$	23,200		$	43,708
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization		16,233			120			16,353			17,594			87			17,681
Write-offs (reimbursements) of investments in research and development
arrangements		(300	)		—			(300	)		(400	)		1,249			849
Minority interests		8,401			(7,058	)		1,343			7,364			(411	)		6,953
Earnings from equity investments		(2,545	)		—			(2,545	)		(2,057	)		—			(2,057	)
Deferred taxes		6,301			—			6,301			—			—			—
Loss (gain) on disposals of fixed assets		75			(167	)		(92	)		839			—			839
Gain on sale of OccuLogix, Inc. stock		—			—			—			—			(25,792	)		(25,792	)
Gain on sales of subsidiaries		(319	)		—			(319	)		(1,143	)		—			(1,143	)
Non-cash compensation expense		648			790			1,438			484			—			484
Adjustments to the fair values of intangibles, long-term receivables and
long-term liabilities		888			—			888			(1,206	)		—			(1,206	)
Other		—			182			182			—			—			—
Changes in operating assets and liabilities, net of acquisitions and dispositions:		(2,513	)		(5,095	)		(7,608	)		(6,923	)		1,967			(4,956	)

Cash from operating activities		41,593			(19,067	)		22,526			35,060			300			35,360

INVESTING ACTIVITIES
Purchases of fixed assets		(8,139	)		(182	)		(8,321	)		(5,103	)		(88	)		(5,191	)
Proceeds from sales of fixed assets		1,494			285			1,779			1,565			—			1,565
Proceeds from divestitures of investments and subsidiaries, net		3,430			—			3,430			729			—			729
Proceeds from sale of OccuLogix, Inc. stock, net		—			—			—			25,792			—			25,792
Distributions and loan payments received from equity investments		3,039			—			3,039			2,518			—			2,518
Reimbursements from (investments in) research and development
arrangements		300			—			300			(849	)		—			(849	)
Acquisitions and equity investments		(67,573	)		—			(67,573	)		(10,067	)		—			(10,067	)
Proceeds from short-term investments		91,025			38,725			129,750			8,353			—			8,353
Purchases of short-term investments		(29,060	)		(28,035	)		(57,095	)		(68,555	)		(42,500	)		(111,055	)
Other		49			(36	)		13			60			—			60

Cash from investing activities		(5,435	)		10,757			5,322			(45,557	)		(42,588	)		(88,145	)

FINANCING ACTIVITIES
Restricted cash movement		(43	)		—			(43	)		444			—			444
Principal payments of debt financing and capital leases		(9,504	)		—			(9,504	)		(13,669	)		—			(13,669	)
Proceeds from debt financing		1,992			—			1,992			—			—			—
Distributions to minority interests		(8,440	)		—			(8,440	)		(7,216	)		—			(7,216	)
Purchases of treasury stock		(15,868	)		—			(15,868	)		—			—			—
Proceeds from issuances of common stock		1,980			—			1,980			25,231			—			25,231
Proceeds from issuances of OccuLogix, Inc. stock, net and cash
acquired upon consolidation		—			329			329			—			59,850			59,850

Cash from financing activities		(29,883	)		329			(29,554	)		4,790			59,850			64,640

Net increase (decrease) in cash and cash equivalents during the period		6,275			(7,981	)		(1,706	)		(5,707	)		17,562			11,855
Cash and cash equivalents, beginning of period		15,847			17,588			33,435			21,554			26			21,580

Cash and cash equivalents, end of period	$	22,122		$	9,607		$	31,729		$	15,847		$	17,588		$	33,435

Operating cash flow per diluted share	$	0.58		$	(0.26	)	$	0.32		$	0.49		$	0.01		$	0.50
Note: The AMD segment primarily includes the Company’s majority interest in OccuLogix, Inc. (formerly Vascular Sciences Corp.).


*News Release*		*Contact:*
*For Immediate Release*		Anna Austin, EVP, Corporate Communications (314) 523-8354 Email: investor.relations@tlcvision.com