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HearUSA Responds to Siemens Filing

^{Published on 2011-03-17 13:05:58 - Market Wire}
 

WEST PALM BEACH, FL--(Marketwire - March 17, 2011) - HearUSA, Inc. (NYSE Amex: [ 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."

Given the pendency of these matters, the company has determined that it will not host an earnings call when it releases its fourth quarter and year-end earnings at the end of next week.

About HearUSA
HearUSA, Inc. (NYSE Amex: [ EAR ]) is the recognized leader in hearing care for the nation's top managed care organizations through its network of more than 2,000 hearing care providers and 176 company-owned centers. HearUSA is the nation's only hearing care network accredited by URAC, an independent, nonprofit health care accrediting organization dedicated to promoting health care quality through accreditation, certification and commendation. HearUSA is also the administrator of the AARP Hearing Care Program, designed to help millions of Americans aged 50+ who have untreated hearing loss. For more information about HearUSA visit [ www.hearusa.com ].