Sonomax Hearing Healthcare Inc.
TSX VENTURE : SHH

Sonomax Hearing Healthcare Inc.

March 01, 2007 08:00 ET

Sonomax Closes Private Placement Led by Loewen, Ondaatje, McCutcheon Limited and Second Tranche of Previously Announced Unbrokered Private Placement/Total 2007 Gross Proceeds to-Date $5,250,000

MONTREAL, QUEBEC--(CCNMatthews - March. 1, 2007) - NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) announces that it has completed a previously-announced private placement by issuing a total of 9,411,766 units at a price of $0.255 per unit to "accredited investors" in Ontario, for gross proceeds to Sonomax of $2.4 million. Each unit consists of one common share of Sonomax and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.45 per share for two years.

The private placement was increased from $2.0 million to $2.4 million following the exercise in full by Loewen, Ondaatje, McCutcheon Limited of its overallotment option.

The proceeds from the private placement will be used by Sonomax for corporate development and general working capital purposes.

Loewen, Ondaatje, McCutcheon Limited acted as exclusive agent for the private placement. Sonomax paid Loewen, Ondaatje, McCutcheon Limited a cash commission equal to 8% of the gross proceeds from the private placement. As additional consideration, Sonomax issued 752,941 compensation options to Loewen, Ondaatje, McCutcheon Limited. Each compensation option entitles the holder to acquire one unit, consisting of one common share of Sonomax and one warrant, at a price of $0.255 per unit for two years. Each warrant will entitle the holder to purchase one common share Sonomax at a price of $0.45 per share until February 2009.

Sonomax also closed a second tranche of its previously-announced private placement by issuing 1,555,567 units at a price of $0.225 per unit, for gross proceeds to Sonomax of $350,002.57. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share of Sonomax at a price of $0.35 per share for two years. The first tranche of this previously-announced private placement closed on February 7, 2007, for a total gross proceeds of $2.5 million.

The foregoing private placements raised an aggregate of $5,250,000 and broadened Sonomax's institutional shareholder base. The common shares and warrants issued by Sonomax are subject to a four-month hold period expiring on June 29, 2007, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

As a result of the closing of these private placements, there are 133,633,442 outstanding common shares of Sonomax.

About Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc. (TSX Venture Exchange: SHH) is a leader in the development and manufacturing of intra-ear technology for hearing protection, hearing enhancement and other auditory applications.

Sonomax created SonoCustom™, a unique expansion earpiece and a highly efficient gatekeeper between sounds and eardrums, and SonoPass™ fit validation software, whose capability has been expanded so that it can now test hearing protectors other than SonoCustom™, with the objective of establishing individual fit-testing of hearing protectors as the universal standard.

The Company's SonoPlatform™ is the foundation for state-of-the-art hearing aids, active and passive earpieces for military use, and cellular telephone and entertainment digital wireless applications.

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.

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