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Neuromod Devices - Your Partner for Tinnitus - September 2021

HEARx to Reduce Annual Cost Structure by $6 Million

-Company Responds To Sales Slowdown

- Cost Controls To Reduce Annual Breakeven By $10 Million

- First Quarter Revenues To Be Down About 4.4%

WEST PALM BEACH, Fla-- HEARx Ltd. (Amex: EAR), responding to a first-quarter slowdown in hearing aid sales, today announced that it has begun to reduce annual expenses by about $6 million through reductions in payroll, marketing and discretionary expenses. The cost-control measures are expected to reduce annual revenues needed to break even to about $60 million from about $70 million.

'Although our first quarter revenues are approximately four percent lower than the $13.1 million of the first quarter last year, sales have been rebounding from January lows,' said Paul A. Brown, M.D., Chairman of the Board. In fact, Dr. Brown stated, 'Overall sales in April were up slightly, the result of increases ranging from 16 percent to 30 percent in all regions except Florida, where sales continued to be significantly below last year's levels. To respond to this slowdown, we have reduced our staff by approximately eight percent and have initiated the rollbacks in marketing and discretionary expenses.' Dr. Brown noted that overall industry results indicate that HEARx outperformed the market slightly in the regions it serves.

HEARx expects to formally report first-quarter results early next week.

HEARx Ltd. provides hearing care to patients whose health insurance and managed care organizations have contracted with HEARx for such care and to retail 'self-pay' patients. Approximately 80 HEARx centers are currently located in California, Florida, New York and New Jersey. HEARx is the largest hearing care organization accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) in the $2.5 billion field of hearing services.
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