HearUSA Responds to Siemens Filing

HearUSA, Inc. EAR announced that it has filed today in New York State Supreme Court to obtain a temporary restraining order against Siemens Hearing Instruments Inc. The purpose of the restraining order is to allow the court to address the merits of the dispute between HearUSA and Siemens concerning the alleged $2.3 million pre-payment. HearUSA said it will vigorously resist the efforts by Siemens to engage in self-help measures and to take possession of the Company's assets.

"We have a legitimate dispute with Siemens concerning this alleged shortfall in our payment to them on the sale of our Canadian assets," said Stephen J. Hansbrough, chairman and chief executive officer. "We believe efforts by Siemens to take this dispute out of the court and unilaterally declare us in default is overbearing and inappropriate. We have tried to work with Siemens and have otherwise been in compliance with all of our agreements with them. Their recent unwillingness to consent to a proposed subordinated financing by the Company has delayed achievement of our short-term objectives. We will vigorously defend our rights in the New York courts under the credit agreement, and take all legal measures to prevent Siemens from unilaterally foreclosing on company assets."