Portland, OR - 2001 - Sonus Corp. (AMEX: SSN), the largest audiology-based retailer of hearing instruments in North America with 790 company-owned and franchised hearing centers, today announced that it had obtained a $20 million line of credit from an affiliate of GN ReSound Corporation, one of the Company's major hearing instrument suppliers, for the purpose of making strategic acquisitions of hearing care centers. In connection with the line of credit, the Company also modified its existing non-exclusive hearing instrument supply agreement with GN ReSound. The line of credit and the supply agreement each have seven-year terms.
Brandon M. Dawson, Chairman of the Board of Sonus, commented, 'We are extremely pleased with the confidence that GN ReSound has shown in our Company, its operational strategies and management team. This line of credit will allow us to further strengthen and increase our network of Company-owned hearing care centers in key markets. We believe that a robust network of Company-owned hearing centers is very complimentary to The Sonus Network, our growing franchise system, which has increased from 33 centers to 687 centers in just over two years. This line of credit will provide us with capital to acquire members of The Sonus Network and others in the hearing community.'
Mr. Dawson continued, 'We are also pleased to have extended our existing supply relationship with GN ReSound, which has been extremely supportive of our efforts. We believe that this cooperative arrangement will be a 'win-win' situation for the Company, our franchisees, GN ReSound, and the hearing care industry.'
Sonus Corp. is the largest audiology-based retailer of hearing instruments in North America. Sonus' 790 company-owned and franchised hearing centers provide a full range of products and services to hearing impaired patients. The Company's vision is to become the premier network of hearing centers in North America. Sonus' strategy involves the consolidation of the industry through acquisition and franchising of quality hearing centers. To learn more about the Company, visit the Sonus website at www.sonus.com.
This news release contains forward looking statements which may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Sonus Corp. to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors with respect to Sonus Corp. include economic trends in Sonus Corp.'s market areas, the ability of Sonus Corp. to manage its growth and integrate new acquisitions into its network of hearing care clinics, the development of new or improved medical or surgical treatments for hearing loss or of technological advancements in hearing instruments, changes in the application or interpretation of applicable governmental laws and regulations, the ability of Sonus Corp. to complete additional acquisitions of hearing care clinics on terms favorable to Sonus Corp., the degree of consolidation in the hearing care industry, Sonus Corp.'s success in attracting and retaining qualified audiologists and staff to operate its hearing clinics, the ability of Sonus Corp. to attract audiology clinics as franchisees under the Sonus Network, product and professional liability claims brought against Sonus Corp. that exceed its insurance coverage, Sonus Corp.'s ability to collect accounts receivable in a timely manner, and the availability of and costs associated with potential sources of financing. Sonus Corp. disclaims any obligation to update any such factors or to publicly announce the results of any revision to the forward looking statements contained herein to reflect future events or developments.
