Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

August 20, 2007 16:41 ET

Sonomax Announces Second Quarter Results

Important Milestone Achieved: 1st Million Dollar Quarter

MONTREAL, QUEBEC--(Marketwire - Aug. 20, 2007) - Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH), today announced its results for the second quarter ended June 30th, 2007.

Revenues for the quarter were $1,042,359, compared to $150,238, for the comparable 2006 quarter.

The Company incurred a net loss of $883,530, ($0.01 per share) for the second quarter ended June 30th, 2007 compared to a net loss of $1,161,933 ($0.02 per share) for the same quarter in 2006.

Sonomax will host a conference call on August 21st from 10:00 a.m. to 11:00 a.m. to discuss second quarter results, report on progress, and respond to listeners questions.

Sonomax invites all interested parties to participate by dialing 1-416-644-3415, or toll free 1-800-732-6179 (North America only). International callers please dial +1 416-644-3415. You will be put on hold until the conference call begins.

The first portion of the call will be dedicated to presenters. A question and answer session will follow, at which time the operator will direct participants as to the correct procedure for submitting questions.

A live Web cast will be available at:

A replay of the conference will be available on our website at:


In the first half of 2007, Sonomax's major industrial hearing protection licensee launched broad sales and marketing initiatives and agreed to collaborate with certain of our licensees in major overseas markets. This, in combination with the addition of formidable new licensees in Korea, Australia, and South America has expanded the places where Sonomax hearing protection is being actively marketed and sold to 29 countries around the world. An effective pricing paradigm for Sonomax's proprietary fit-validation system has been established and test marketing of the offering has been very encouraging. We expect to be able to announce marquee US corporations as fit-validation customers in the near term.

Not in the category of "press release news", but extremely meaningful in terms of the company's potential, are the technological breakthroughs it has achieved in the last 6 months - an instant fitting technique "so simple even a......", and a methodology for adapting Sonomax's expansion technology to a wide range of products. With these capabilities achieved, Sonomax has now begun the process of penetrating the high-growth music and entertainment and cellular Bluetooth™ markets.

In that regard, Sonomax today announced that it has developed a series of MP3 custom earphones for the multi-billion dollar MP3 player, gaming device, and multi-media markets. The company notes that unlike the industrial hearing protection and software testing markets which are constrained by the sales cycle, these offerings are entertainment and communications "instant gratification" products, immediately available to the public through retail distribution.

Sonomax believes that it is uniquely positioned to capture significant market share in this vertical. Earphones sales are growing at an astonishing rate and the convergence of technologies into a single handheld device is now a reality as evidenced by Apple's introduction of the iPhone™. While this phenomenon is very real, these products still fail the "last mile" test. Available generic earpieces are not comfortable and fail to deliver faithful audio quality - otherwise stated, they detract from the experience and compromise performance. Moreover, there is a growing awareness that because generic earpieces are not acoustically sealed, users must turn up the volume to levels which are damaging to hearing, in order to compete with ambient noise. Sonomax's unique expansion technology will allow the company to deliver earphones to the mass market that are guaranteed to be comfortable and deliver the purest of fidelity while making the listening experience safe.

Sonomax's objectives for the second half of 2007:

- Build upon the sales success of the company's hearing protection devices while adding its high-margin fit-validation product as a material component of the industrial division's worldwide sales.

- Complete development of a dynamic marketing campaign and introduce MP3 and cellular Bluetooth™ lines to the consumer market - soft launch in September, full steam ahead going into the Holiday season.

- Meet, and hopefully exceed, budgets for the rest of the year as was the case for the first two quarters of 2007.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Sonomax Hearing Healthcare Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information