DHAIS plc
LSE : DHAP

June 12, 2009 02:00 ET

Acquisition and Supply Agreement

                                             DHAIS Plc
                                                 
                                     Acquisition of Hearsavers
                           Funding Loan and Supply Agreement with Phonak
                                                 
                 Fourth acquisition significantly expands retail health operations


DHAIS  Plc ("DHAIS" or the "Company") (PLUS: DHAP), a UK leader in the marketing and retailing  of
hearing  and  mobility  products, announces the completion of the acquisition  of  the  Hearsavers
business from Hearsavers Limited, a national hearing aid company in administration.

Hearsavers  comprised  57  hearing aid "pods" installed in Matalan  stores  across  the  UK  which
consisted  of  modern hearing test facilities geared towards providing good value digital  hearing
aids.  Based  in  Southport  and  with close links with the Head Offices  of  Matalan,  Hearsavers
employed 12 full-time and 1 part time qualified hearing aid dispensers.

The  acquisition consideration was GBP 100,000 payable in cash of which GBP 2,000 was  for  stock.
Goodwill  of  GBP 30,997 was included in the acquisition price, and GBP 67,003 paid for  fixtures,
fittings, equipment and customer records. A further GBP 150,000 of goodwill payments are likely to
be paid to creditors of the business in order to ensure a smooth transition.

Hearsavers achieved turnover of GBP 1.5 million in the year to 31 March 2009 but suffered  a  loss
of GBP 500k. The Directors believe that following the acquisition, a restructuring programme under
the DHAIS formula will rejuvenate the business and bring it to profitability.

Steve Wilkinson and Mark Harwood, the two directors of Hearsavers Limited, who have been appointed
directors  of  the Company's subsidiary Hearing Health and Mobility Ltd ("HHML"), have  subscribed
for  2,545,454  Ordinary Shares and 1,454,545 Ordinary Shares respectively in  the  Company  at  a
subscription  price of GBP 0.275 per share. The payment for these shares was by way  of  unsecured
interest  free  loans from the Company. The loans are repayable immediately on the sale  of  their
shares.

The Company has an option to acquire all the shares back from Steve Wilkinson and Mark Harwood  if
they cease to be employed by HHML, or any group companies, at a price to be determined at the time
the  employment  ceases. The price is determined by the nature of the cessation of the  employment
but can be no more than the market value prevailing at the time. The Company also has an option to
acquire  1,090,909 shares back from Steve Wilkinson subject to certain performance criteria  being
met.

As  a result of the allotment of shares to the Hearsavers directors, Steve Wilkinson will own 4.3%
and Mark Harwood will own 2.4% of the issued share capital of the Company.

DHAIS  is  confident  that through group integration this acquisition will prove  to  be  earnings
enhancing given the anticipated synergies going forward.

Phonak Group Limited Agreement ("Phonak")

The  Company  is  also  delighted to announce that it has entered into  a  funding  loan  and  non
exclusive supply agreement with Phonak, which is part of the Sonova Group ("Sonova"), one  of  the
world's  leaders in the design, development, production and distribution of wireless  and  hearing
systems.  With more than 5,300 employees worldwide and turnover of GBP 700 million,  Sonova  is  a
significant player in the hearing aid industry.

Under  an unsecured loan agreement, Phonak has lent DHAIS GBP 500,000 at an interest rate  of  5%,
payable  quarterly.  The loan is repayable piecemeal per unit of hearing aid  equipment  purchased
from Phonak with the balance at the end of 5 years.

The  funds will be used to fund the acquisition of Hearsavers and provide working capital for  the
integration of the business and for future growth.

The  supply  agreement, which will result in significant savings in respect  of  the  purchase  of
Phonak  hearing aids, has been satisfied by way of an issue of GBP 800,000 worth of DHAIS  shares.
As  a result 2,909,091 Ordinary Shares were issued to Phonak Group Limited who now own 4.9% of the
Company's entire share capital.

Following the issue of these shares, the shareholdings of the Directors has not changed,  but  the
Directors of DHAIS now hold 82.3% of the total issued share capital of the Company.

The Company now has 59,486,013 shares in issue.


Mark Moss, Chairman, commented:

"We  are  delighted  to have completed this fourth acquisition, which significantly  enlarges  our
retail  health business and adds another facet to our operations. Having these additional  hearing
aid testing and dispensing facilities in such accessible outlets will be of great benefit to those
concerned with hearing loss or their current hearing aids.

We  will continue to evaluate further opportunities for expansion of our retail stores within  the
hearing  and  mobility sector, while maintaining our key marketing operations  and  extending  our
product range to customers within our centres.

We are committed to continue building a diversified business with our focus on shareholder value."


                                                                                      12 June 2009
Enquiries:

DHAIS Plc                                         029 2066 6888
Amin Kiddy, Finance Director

Haggie Financial LLP                              020 7417 8989
Nicholas Nelson/Kathy Boate

PLUS Advisor:                                     020 7251 3762
Alfred Henry Corporate Finance Ltd
Jon Isaacs/Nick Michaels


The Directors accept responsibility for this announcement.


About DHAIS Plc:

Cardiff-based  DHAIS  developed a niche role in the marketing of hearing aids.   The  company  had
previously acquired three retail businesses and has also diversified its marketing role into other
consumer  health  related  areas  such as mobility products.  DHAIS  will  now  operate,  via  its
subsidiary  Hearing Health and Mobility Ltd, a chain of 27 retail outlets in Hearing and  Mobility
located throughout the UK in addition to the newly acquired outlets in 57 Matalan stores.

DHAIS is a PLUS Markets quoted company.

Contact Information

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