Unitron joins the Phonak Group

WARRENVILLE, IL (November, 2000) - The Phonak Group signed an agreement to acquire the Canadian-based hearing instruments manufacturer Unitron Industries Ltd. with headquarters in Kitchener, Ontario. Its three brands - Unitron, Argosy and Lori - sold over 220,000 hearing instruments in 1999/00. Unitron is presently the world's seventh largest and Phonak the fifth largest hearing instrument manufacturer.

The New Phonak Group
The acquisition will turn Phonak into a major player in North America. The
four brands of the combined company will grow beyond a 15% share (300,000
units) of the US market and beyond 20% (40,000 units) in Canada. The Lori
and Argosy brands will strengthen the Group's position in the In-The-Ear
(ITE) segments, complimenting Unitron and Phonak brands that are strong in
the Behind-The-Ear (BTE) segments worldwide.

Integration process over the next 2 to 3 years The industry vision and business objectives, as well as management philosophies of Phonak and Unitron are very similar. Moreover, the cultures of the two companies are similar. Today's post-pioneer management of both Phonak and Unitron recognizes the high value of motivated people and practices a quality and customer-oriented company culture. This ensures a quick, uncomplicated and smooth integration process.

The complete senior management of Unitron, Argosy and Lori will remain with the Company and will continue to run their operations. Phonak's North
American President, Michael Jones, will act as head of a new combined North
American management team, which includes Unitron's Gary Ullman and Paul
Thompson, and Phonak's Director of R&D, Christian Berg.

Click here to visit the Phonak website.

Click here to visit the Unitron Hearing website.