Symphonix Devices, Inc. Closes $26 Million in Private Equity Financing

SAN JOSE, Calif. - Symphonix Devices, Inc. (NASDAQ: SMPX) has closed $26 million in private equity financing, announced Kirk Davis, president and chief executive officer of the San Jose, Calif.-based medical device manufacturer. Symphonix develops and manufactures the Vibrant® Soundbridge™, an implantable hearing device recently approved by the Food and Drug Administration to treat moderate to severe sensorineural hearing loss, the most common form of hearing impairment.

The financing, which was approved by the company's shareholders last week, was led by Patricof & Co. Ventures, Inc. and J. P. Morgan Capital Corporation. Special Situations Funds and other private investors also participated in the round.

'The proceeds from this financing will help fund the domestic product launch of the Vibrant Soundbridge,' said Davis. 'The funding will also support Symphonix' ongoing investment in research and development for next generations of the device, including a totally-implantable model.'

Adele Oliva, partner at Patricof & Co. Ventures commented, 'Symphonix is an attractive investment opportunity based on the significant market for their breakthrough Vibrant Soundbridge technology, which is estimated at 14 million people -- half of the 28 million people in the U.S. who suffer from hearing-loss. The company's strong clinical trial results demonstrate that users of the Vibrant Soundbridge experience improved sound clarity and quality, better overall fit and comfort, and perceived benefit in many listening situations, as compared to hearing aids. We believe that hearing-impaired people will be glad to know that they finally have another option for treating their hearing loss.'

Martin Friedman, vice president at J. P. Morgan Capital Corporation added, 'Symphonix possesses qualities we look for when deciding to invest in a company: a talented management team dedicated to the company's success, a unique technology and a strong market position that provides significant barriers to entry for any would-be competitors.'

As part of the financing agreement, Oliva and Friedman will join Symphonix' board of directors.