Advanced Bionics To Be Acquired By Sonova

Nov. 9, 2009 - PRLog -- VALENCIA, Calif. – Advanced Bionics (AB), the only U.S.-based manufacturer of cochlear implants (or “bionic ears”), announced today that it has entered into a definitive merger agreement with Sonova Holding AG, the world’s leading provider of hearing systems. Pending regulatory and shareholder approval, the transaction is expected to close within the next three months. The acquisition represents a strategic expansion into the area of cochlear implants for the Sonova Group, enabling the group to offer a comprehensive range of solutions for hearing loss.

“Sonova was attracted to our company for our advanced technology, commitment to our patients and our potential for expansion,” said Jeffrey Greiner, CEO of Advanced Bionics. “Not only will we continue to grow under the leadership of Sonova, but we have taken an enormous step toward ensuring that AB remains the industry’s performance leader, now and in the future. We are truly excited by the technological possibilities that this acquisition will offer our candidates and our recipients.”

The Sonova Group brings together Advanced Bionics, a global leader in cochlear implant manufacturing, and Phonak, a global provider of micro hearing systems. Both pioneers in their field, Advanced Bionics and Phonak have 75 years of combined experience in engineering innovative hearing solutions.

Like Phonak, AB will remain an independent division within the Sonova Group, but will share the elements that have been driving the success of AB’s new parent company over the last decade: global sales coverage, outstanding customer service, a global supply chain, and a dedication to innovation. The partnership will also provide:

•   Versatile, attractive, easy-to-use products
•   High-performance hearing devices
•   State-of-the-art acoustics and engineering
•   Industry-leading technology and performance innovations
•   Expanded international distribution
•   Lifelong commitment to patients’ needs
•   Attentive, caring customer service
•   Improved quality of life for patients

In addition, Phonak’s proven capabilities in the field of micro auditory devices will set the stage for AB to develop smaller, higher performing sound processors for patients across the globe. Combined, Sonova, Phonak and Advanced Bionics will provide the most comprehensive product line in the hearing healthcare industry, offering a full range of hearing options for those with mild-to-profound hearing loss.

For the acquisition, UBS Investment Bank acted as exclusive financial advisor and O'Melveny & Myers LLP acted as exclusive legal advisor to Advanced Bionics.

About Advanced Bionics

Advanced Bionics is a global leader in developing the most advanced cochlear implant systems in the world. Founded in 1993 and headquartered in Valencia, Calif., AB is the only American company developing cutting-edge cochlear implant technology that restores hearing to the deaf and allows recipients to hear their best today, tomorrow, and always.

AB has the most sophisticated cochlear implant system on the market, the Harmony® HiResolution® Bionic Ear System, with five times more sound resolution than its competitors, designed to allow recipients to go beyond deciphering simple speech to hearing music.

With sales in over 30 countries and a proven track record for developing high-performing, state-of-the-art products, AB’s talented group of 660 technologists and professionals from all over the world are driven to succeed, work with integrity and stay firmly committed to quality.

To learn more about AB and its revolutionary cochlear implant technology, please visit http://www.advancedbionics.com.

About Sonova

Sonova is the leading provider of innovative hearing healthcare solutions. This globally active group of companies is one of the world's top three manufacturers of hearing systems, the market leader in wireless communication systems for audiology applications and a provider of professional solutions for hearing protection. Sonova is pursuing a clear growth strategy and is intent on building its market share. To this end it is constantly expanding its existing business segments and branching out into other areas of the hearing healthcare industry.

Present in over 90 countries, and with a workforce of over 5,300 employees, Sonova generated sales of CHF 1.249 billion in the financial year 2008/09 and a net profit of CHF 284 million. This financially strong group of companies bases its success on innovation, customer focus and proactive cost management.

The company has been successfully promoting understanding and communication for over 60 years, and is ideally positioned to benefit from the trends in this growth industry.

Sonova shares (ticker symbol: SOON) have been listed on the SIX Swiss Exchange since 1994. For more information please visit http://www.sonova.com.

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