Sonomax Hearing Healthcare Inc.
TSX VENTURE : SHH

Sonomax Hearing Healthcare Inc.

September 08, 2005 17:06 ET

Sonomax Hearing Healthcare Announces Additional Private Placement to Satisfy Oversubscription

MONTREAL, QUEBEC--(CCNMatthews - Sept. 8, 2005) -

NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) previously announced the completion of a private placement of up to 10,000,000 units for gross proceeds of up to $3 million. (Press release - April 7, 2005, August 16, 2005 and August 31, 2005). The offering was originally scheduled as $2 million, then extended to $3 million to accommodate demand, and given continuing and additional demand resulting from the original offering, today Sonomax announces that, pursuant to an amended and restated agency agreement to be entered into with Lorian Group Inc., Sonomax will issue up to 540,000 units ("Units") at a price of $0.30 per Unit for gross proceeds of $162,000. Each unit consists of one common share of Sonomax and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of Sonomax at a price of $0.60 per share for a period of twelve months. The Units will be offered on a private placement basis in Canada.

Lorian Group will act as agent, on a best efforts basis, for the private placement. Sonomax will pay to Lorian Group a cash commission equal to 5% of the gross proceeds from the offering, other than proceeds from subscriptions, if any, by Sonomax insiders. Sonomax will grant to Lorian Group a compensation option entitling it to purchase a number of common shares of Sonomax equal to 10% of the total number of Units sold under the offering. The compensation option will be exercisable for a period of two years from the closing of the offering at the private placement issue price of $0.30 per share. Sonomax has also agreed and also agreed to pay to Lorian Group a cash commission equal to 5% of the gross proceeds from the exercise of the Warrants which are part of the above mentioned Units.

The proceeds from the private placement will be added to Sonomax's working capital.

The private placement is subject to a number of conditions, including approval by the TSX Venture Exchange and other regulatory approvals; approval by Sonomax board of directors; and the signing of the amended and restated agency agreement. The closing is expected to occur on or about September 15, 2005.

The common shares and Warrants issued by Sonomax under the private placement will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange. There are currently 57,623,748 outstanding common shares of Sonomax.

About Sonomax Hearing Healthcare Inc

Sonomax has invented a unique earpiece that is the gatekeeper between sounds and eardrums. With its multi-purpose capabilities, it can shut the gate on harmful sounds like workplace noise with unparalleled efficiency, and can also welcome sounds like music and voices with perfect fidelity. Technological advances in the hearing protection, hearing aid and personal electronics fields, presently lack the last piece of the puzzle -- an interface that will optimize their very exciting potentials. Sonomax's scientifically proven proprietary expansion technology is the last piece of the puzzle -- an instant-fit, custom-made earpiece that delivers a perfect acoustic seal every time, along with a computer-generated proof of performance.

There are currently 57,623,748 outstanding common shares of Sonomax.

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

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