Zounds Restructuring to New Business Model

Zounds Hearing Increasing Its Customer Service to Capture Market Share and
Continue Its Mission of Helping the World Hear Better
PHOENIX--(Business Wire)--
Zounds Hearing, a unique manufacturing and retail company focused on providing
hearing aids with state-of-the-art fidelity, price point and professional
service, is restructuring its business model to increase the number of retail
locations and grow its market share during these difficult economic times.

Zounds Founder, Sam Thomasson, has recently returned as Zounds CEO, spearheading
the restructuring efforts.

Thomasson started the company as a promise to his hearing-impaired daughter. He
vowed to create a new hearing aid to overcome her frustration with her
traditional hearing aids due to excessive feedback, poor sound quality and
discomfort in the ear. After 10 years in development and 58 exclusive patents,
the breakthrough technology behind Zounds has revolutionized the hearing aid
experience.

As a start-up company, Zounds grew very quickly, opening Hearing Centers within
regional malls throughout the country. Thomasson states: "We grew dramatically,
but as the economy weakened and the mall foot traffic declined, the newer stores
were underperforming. As we surveyed our customers we also learned that they
were driving less than previously seen. This created both a challenge and an
opportunity for us. We decided to move our locations away from regional malls to
a smaller format enabling us to be closer to our customers while avoiding the
premium cost of the mall locations. We are excited by the fact that we will
eventually be able to have 3 or 4 times the locations within each market by
adopting this strategy, allowing us to provide even better service for our
customers." Zounds initiated a controlled Chapter 11 reorganization proceeding
in the U.S. Bankruptcy Court in Phoenix on March 30, 2009 to facilitate its
restructuring and implement its new business strategy.

In preparation of this restructuring, Zounds is actively pursuing new hearing
center locations in Philadelphia, Boston, St. Petersburg, Port Richey, St.
Louis, Portland, Seattle, Orlando, West Palm Beach, The Villages, Dallas,
Houston, and Phoenix. The thousands of customers within these cities will be
able to obtain the same excellent service they have had previously at the mall
locations at Zounds` new neighborhood hearing centers.

Zounds would like to thank its customers for their support and patience through
this transition process and is committed to its mission of helping the world to
hear better.

About Zounds

Zounds Hearing designs, manufactures, and markets high performance hearing aids
for use with mild, moderate, and moderate/severe hearing impairments.
Headquartered in Phoenix, Arizona, the company's technology enables superior
product performance, lower price, and a faster purchase process through its
branded hearing centers. Zounds utilizes a combination of internally developed
research and exclusive, licensed technology developed by Acoustic Technologies.
Zounds aids are available through a network of Zounds Hearing Centers. For more
information, please visit www.ZoundsHearing.com or call 1-888-5ZOUNDS.

Zounds Hearing
Jody Nelson, 480-813-8400 ext. 232
Jody.Nelson@ZoundsHearing.com

Copyright Business Wire 2009