Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

April 04, 2006 18:40 ET

Sonomax Hearing Healthcare Announces Repurchase of Notes for Shares

MONTREAL, QUEBEC--(CCNMatthews - April 4, 2006) - Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) announces that it has entered into agreements with ten noteholders to repurchase for cancellation their unsecured convertible notes of Sonomax in the aggregate principal amount of $2,315,000. The notes, which were issued by Sonomax in March 2004, bear interest at an annual rate of 10%. The purchase price of $2,430,750 for the ten notes, including interest accrued to April 1, 2006, will be paid by Sonomax through the issuance of 8,102,500 common shares at a price of $0.30 per share.

Sonomax has also entered into agreements with three other noteholders to repurchase for cancellation their Sonomax notes in the aggregate principal amount of $3,500,000, subject to certain conditions. Among the conditions is the completion of new equity financing by Sonomax of at least $2 million. If the conditions are satisfied, Sonomax will issue up to 12,250,000 additional common shares at a price of $0.30 per share in payment of principal and accrued interest. In compliance with the requirements of the TSX Venture Exchange, in order to issue the shares at this price, the issuance must be completed within 45 days of the date of this release. If the shares are issued after such time and the shares are trading at a price per share greater than $0.40, the price per share will be calculated based on the market value of the common shares of Sonomax at the time of the issuance.

The shares to be issued by Sonomax in payment for the notes 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. The issuance of the shares is subject to regulatory approval, including that of the TSX Venture Exchange. There are currently 58,163,748 common shares of Sonomax issued and outstanding.

About Sonomax Hearing Healthcare Inc:

Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH), is a leader in the development and deployment of intra-ear technology for hearing protection, hearing enhancement, and other auditory applications. Sonomax has invented a unique expansion earpiece, the SonoCustom®, which is a highly efficient gatekeeper between sounds and eardrums. With its multi-purpose capabilities, it can shut the gate on harmful sounds like workplace noise, and can also welcome sounds like music and voices with perfect fidelity, while eliminating the associated risk of noise-induced hearing loss. Technological advances in the hearing protection, hearing aid, and personal electronics fields presently lack the last piece of the puzzle -- an interface that can deliver sounds the way these products are capable of shaping them. Sonomax's scientifically proven proprietary expansion technology is that last piece of the puzzle - a comfortable, instant-fit, custom-made earpiece that delivers a perfect acoustic seal every time, along with Sonomax's proprietary SonoPass® computer-generated proof of performance. Sonomax's SonoPlatform™ is the foundation for state-of-the-art hearing aids and digital wireless applications, which the Company plans to introduce in 2006 via a new paradigm of quality, affordability, and consumer access.

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

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