GN Resound Announces Worldwide Leadership Plans at ADA

Southampton, Bermuda - (November 10, 1999) - GN ReSound, the fourth largest hearing instrument manufacturer in the world after an unique merger, described the ability to lead the high technology revolution currently sweeping the hearing health industry during a news conference at the 1999 Academy of Dispensing Audiologists (ADA) convention in Southampton, Bermuda. Leaders of the newly merged company presented a detailed overview of the recent merger, and outlined the plans GN ReSound has made to capitalize on its current position as the only manufacturer of software-based digital hearing instrument technology in the world.

The merger last July involved GN Danavox, a well-known Denmark-based hearing aid manufacturer acquiring its much larger competitor, ReSound. The $200 million combined company is one of several communication business interests owned by GN Great Nordic, a large Danish conglomerate with annual revenues of $604 million (U.S.). ReSound is a U.S.-based hearing aid manufacturing and research and development company founded in 1983, which gained early acclaim with its introduction of a hearing aid developed from an innovative wide dynamic range compression sound processing technology originally designed at AT&T, Bell Laboratories.

Previously, the two companies partnered to fund the research and development of the AL 313 digital signal processor, a miniature computer chip that can run downloadable sound processing programs. At present, this is the only software based digital technology being used in the hearing instrument industry.

According to Jesper Mailind, president and chief executive officer of GN ReSound Worldwide, an acquisition of this nature was an essential step in preparing for future development and investment. 'Neither of the two former companies (ReSound and Danavox) individually had sufficient capital or critical mass to fund the expanded research and development and marketing efforts necessary to continue leading the high technology revolution currently sweeping the hearing health industry,' he said. 'Today, through combining two extensive research and development resources, GN ReSound is extremely well equipped to be the leading technological innovator in hearing health product development.' Mailind added the careful blending of executive resources from both prior companies has resulted in a strong new management team with the experience and credentials necessary to manage a formidable business entity.

Carsten Trads, president of GN ReSound North America, explained that GN ReSound's much more extensive North American presence and market share immediately makes the company a local industry leader. 'Manufacturing facilities located in both Redwood City, Calif., as well as Minneapolis, Minn., improve GN ReSound's product accessibility,' he said. 'The two prior U.S. sales forces have survived virtually intact, and have already been extensively cross-trained to support both existing ReSound and Danavox product lines. These two product lines will continue to be maintained by GN ReSound, as well as the future introduction of new products under the GN ReSound brand.'

GN ReSound focuses on developing, marketing and supporting hearing health solutions. The company's worldwide headquarters are in Redwood City, Calif. with national headquarters in Minneapolis.