HEARx Commits to Distributor Relationship and Obtains Line of Credit

Apr 27, 2001, 01:00 ET from HEARx Ltd.

    WEST PALM BEACH, Fla., April 27 /PRNewswire/ -- HEARx Ltd., (Amex:   EAR)
 Paul A. Brown, M.D., Chairman of the Board of HEARx Ltd., announced today that
 HEARx has committed to purchase from one major hearing aid manufacturer up to
 90% of the hearing aids required by the HEARx network.  As a result of the
 commitment, this major hearing aid manufacturer has extended a $7.5 million
 five-year line of credit to HEARx.  In each year, as long as the 90%
 commitment is achieved, twenty percent of the indebtedness (principal and
 accrued interest) under the line of credit will be forgiven, without cash
 payment by HEARx to the manufacturer.  The agreement includes provisions that
 in the event of a change of control of HEARx, all indebtedness incurred under
 the line of credit will become immediately due and payable and the purchasing
 contract may be terminated upon the payment to the manufacturer of a
 significant breakup fee.
     Dr. Brown noted that this type of relationship with a manufacturer was not
 feasible for HEARx in the past because no single manufacturer had the range of
 technology and models, including analog, programmable and digital hearing
 aids, nor the manufacturing capacity to meet HEARx volume requirements.  The
 manufacturer with whom HEARx has contracted for this relationship has the
 range of technology and models to meet the needs of the HEARx network and has
 been a principal hearing aid supplier to HEARx for several years.
     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 eighty 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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SOURCE HEARx Ltd.
    WEST PALM BEACH, Fla., April 27 /PRNewswire/ -- HEARx Ltd., (Amex:   EAR)
 Paul A. Brown, M.D., Chairman of the Board of HEARx Ltd., announced today that
 HEARx has committed to purchase from one major hearing aid manufacturer up to
 90% of the hearing aids required by the HEARx network.  As a result of the
 commitment, this major hearing aid manufacturer has extended a $7.5 million
 five-year line of credit to HEARx.  In each year, as long as the 90%
 commitment is achieved, twenty percent of the indebtedness (principal and
 accrued interest) under the line of credit will be forgiven, without cash
 payment by HEARx to the manufacturer.  The agreement includes provisions that
 in the event of a change of control of HEARx, all indebtedness incurred under
 the line of credit will become immediately due and payable and the purchasing
 contract may be terminated upon the payment to the manufacturer of a
 significant breakup fee.
     Dr. Brown noted that this type of relationship with a manufacturer was not
 feasible for HEARx in the past because no single manufacturer had the range of
 technology and models, including analog, programmable and digital hearing
 aids, nor the manufacturing capacity to meet HEARx volume requirements.  The
 manufacturer with whom HEARx has contracted for this relationship has the
 range of technology and models to meet the needs of the HEARx network and has
 been a principal hearing aid supplier to HEARx for several years.
     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 eighty 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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X11964211
 
 SOURCE  HEARx Ltd.