Financial Year 2004/05

50% Dividend Increase Proposed

The Management of the Phonak Group is pleased to report very positive results for the financial year 2004/05. Starting from a record level of sales in the previous year, sales in local currencies increased by another 9.5% and reached CHF 678.8 million. At the same time, the operating profit before amortization of goodwill (EBITA) went up by 23.3% to CHF 127.7 million. The operating profit margin of 18.8% considerably surpassed the comparable previous year figure of 16.2%. Consolidated income after taxes reached CHF 96.9 million, which yields diluted earnings per share of CHF 1.46.