O-STA

Phonak’s Premium Hearing System Savia Wins Prestigious Medical Design Excellence Award

Savia recognized as an innovative product that changes the face of hearing helthceare

Stäfa, Switzerland (April 6, 2005) �- Phonak, a leading player in the worldwide hearing healthcare market, announced today that its newly launched revolutionary premium hearing system, Savia, has won the 2005 Medical Design Excellence Award (MDEA). Representing the greatest revolution in hearing solutions since the introduction of digital technology, the Savia product family integrates no less than ten world firsts.

Savia with Digital Bionics is the first hearing system ever to implement the unique capabilities of biological systems using state of the art digital technology. A unique group of features based on this bionic principal join forces to bring the hearing impaired the most effective, all-around high performance hearing solutions ever. Thanks to Digital Bionics, Savia successfully addresses the remaining challenges of modern communication. Savia provides effortless hearing in all situations, excellent speech understanding, even in complex environments, and natural localization ability.

"With Savia, we are entering a new era in hearing instrument technology and design," said Valentin Chapero, CEO of the Phonak Group. "We are honored by the MDEA judges�' recognition of Savia. With Savia, based on Digital Bionics, we take another important step in our mission to substantially improve the quality of life of hearing impaired individuals. Winning the Medical Design Excellence Award further supports this cause."

The Medical Design Excellence Awards competition is organized and presented by Canon Communications LLC in Los Angeles, USA, and is the only awards program that exclusively recognizes contributions to, and advances in, the design of medical products. Entries are evaluated on the basis of their design and engineering features, including innovative use of materials, user-related functions that improve healthcare delivery and change traditional medical attitudes or practices, features that provide enhanced benefits to the patient, and the ability of the product development team to overcome design and engineering challenges so that the product meets its clinical objectives.

A comprehensive review of the entries was performed by an impartial, multidisciplinary panel of third-party jurors with expertise in biomedical engineering, human factors, industrial design, medicine, and diagnostics.

The 2005 Medical Design Excellence Award winners will be honored at a ceremony during the Medical Design & Manufacturing (MD&M) East Conference and Exposition, June 13-15, 2005, at New York City�'s Jacob K. Javits Convention Center. Gold and silver award recipients will be announced at this time.

Phonak - At the pulse of innovation

The Phonak Group (SWX: PHBN), headquartered in Stäfa, Switzerland, specializes in the design, development, production and global distribution of technologically advanced wireless and hearing systems. As one of the top technology companies in the industry worldwide and with a global staff of over 2,700 employees, Phonak is a major player in the hearing healthcare market. By combining its expertise in hearing technology with a strong distribution network in over 70 countries, Phonak, along with its customers and business partners, makes a substantial improvement in the quality of life of individuals with hearing impairment.

Phonak AG

Bernadette Kohler

Laubisrütistrasse 28

8712 Stäfa

Switzerland

Phone: +41 1 928 01 01

www.phonak.com