Phonak and GN ReSound Partnership Announced

October 3, 2006

Dear GN ReSound Customer,

On October 2, 2006, Great Nordic informed the Copenhagen Stock Exchange, that an agreement to sell GN ReSound A/S to Phonak Holding AG had been reached. The agreement covers all hearing instrument and audiologic diagnostics equipment activities. This is an extremely positive move for the GN ReSound business in the United States.

While the deal is not expected to close until Q1 of 2007, we are very excited about being a part of the largest hearing healthcare company in the world. This will only enhance our ability to provide innovative solutions and make significant contributions to the industry and to your business. Our sole focus is to provide benefits for our customers through more comprehensive product and service offerings. We want to assure you that your relationship with GN ReSound will not change. We will be here today and tomorrow helping you meet your patient's needs under the ReSound brand.

At the ADA convention later this month, we will officially introduce Resound Pulse. With this launch, we will conclude this year's impressive product roll out plan which included; Pixel, Plus 5, Mini and Power BTE's in every price segment, and Pulse. We believe ReSound Pulse is the most innovative development to hit the market in years. In 2007, we plan to continue to launch an intensive number of new and innovative products providing you with additional solutions for every patient that walk through your door.

We will continue to work very hard to maintain the strong relationships we have established with you over the past several years. ReSound is not going away, we are gaining strength as part of the world's largest hearing aid company. If you have any questions please do not hesitate to contact us. We are proud to serve customers like you and look forward to continuing our relationship as we move forward through this exciting time.

Sincerely,

Richard Jackson
President, GN ReSound U.S.A.