Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

April 30, 2007 16:45 ET

Sonomax Reports Annual 2006 Results: First Investor Conference Call Scheduled for May 23, 2007 at 10am

MONTREAL, QUEBEC--(CCNMatthews - April 30, 2007) - Sonomax Hearing Healthcare, Inc. ("Sonomax" or the "Company") (TSX VENTURE:SHH) today disclosed its annual 2006 results.


(For context, see below - Extract from Management Discussion and Analysis - Highlights 2006)

- Revenue decreased in 2006 to $945,868 ($1,193,658 in 2005), and Net Revenue decreased in 2006 to $571,611 ($1,180,588 in 2005).

- Cost of Goods Sold, $1,254,414, exceeded Net Revenue, resulting in negative Gross Margin of $682,803 (positive $525,959 in 2005).

- Net Loss for 2006 increased to $7,121,713 ($6,174,125 in 2005) primarily by reason of reversals of sales, and the decrease in Gross Margin.

Full financial statements can be found at:

Extract from Management Discussion and Analysis - Highlights 2006:

In 2006 Sonomax:

- Entered into an exclusive licensing agreement with a distributor for SonoCustom® in North America, and SonoPass® proof-of-performance software worldwide.

- Launched its next-generation of hearing protector, the SonoCustom® V3

- Established a retail channel of distribution through HearAtlast, a division of the Atlast group of companies, which launched hearing stores in three Canadian Wal-Marts.

- Reduced debt by converting 10% convertible promissory notes to common shares having an aggregate face value amount of $5,915,000.

- Raised $6,350,000 of new equity financing.

While the above significantly improved the Company's outlook for 2007 and beyond, certain of these combined to materially hamper 2006 results:

- In order to assure the most positive start possible for the Aearo Technologies collaboration and the launch of the new SonoCustom® V3, as well as to satisfy its new and existing contractual obligations, Sonomax:

- Compensated existing distributors in the amount of $431,915 for foregoing their distribution rights,

- Undertook to replace obsolete SonoCustom® V1 and V2 products previously sold to European licensees. Revenues of $100,685 were reversed in year 2006 in consequence of this decision.

- Management, determined that the first SonoCustom® V3's off the production line did not meet required quality standards, and accordingly undertook to replace such product. Revenues of $251,585 were reversed in year 2006 in consequence of this decision.

Conference Call:

An investor conference call has been scheduled for Wednesday, May 23rd, 2007 at 10:00 AM to give Sonomax investors a comprehensive understanding of the Company and its prospects. Call-in instructions will be announced shortly.

In anticipation of the call, Barry Schwartz, Chairman and CEO of Sonomax noted, "The problems that interrupted Sonomax's momentum in the last part of 2006 are behind us now. The wrinkles have been ironed out of our distribution channel and we've established the capability of producing quality assured product in quantities that can comfortably meet sales expectations."

"We believe our investors will be encouraged by the Company's performance since the start of 2007, and will leave the conference call enthusiastic about its prospects for the remainder of the year and beyond."

About Sonomax:

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

Sonomax has expanded the capability of its SonoPass® software 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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