Financial year 2003/04: Record Level of Sales, EBITA and Net Income

The Management of the Phonak Group is pleased to report the results for the 2003/04 financial year, in which the Group achieved a record level of sales, operating profit (EBITA) and net income. Sales reached CHF 637.6 million, which represents an increase of 15.8% in reported currency. In local currency, the growth over last year was 18.8%. Operating profit (EBITA) amounted to CHF 103.3 million, which is more than double the prior year! Net profit was CHF 68.9 million, which yields an earnings per share of CHF 1.06.

These results stem primarily from internal improvements that have led to a significant number of successful product launches. The Group now benefits from having a complete digital product portfolio – from the high-end to the low-end – under both the Phonak and the Unitron Hearing brands. The Group also continues to benefit from its innovative wireless communication products.

During 2004/05, management believes that the Group will benefit from the sales of products launched in 2003/04 as well as the new sales opportunities that will arise from products launched in 2004/05 as well as expansions in the distribution network.

At the General Meeting, shareholders will be asked to approve a dividend payment of CHF 0.20 per share.