Sonic Innovations Announces Results for Fourth Quarter and Full...(urrency. Selling general and administ...),Health

Selling, general and administrative expense increased from $53.1 million in the year ended 2006 to $67.7 million in the year ended 2007 and from $14.9 million in the fourth quarter 2006 to $18.5 million in the fourth quarter 2007 due to the costs of integrating and expanding distribution channels, increased spending on marketing and selling initiatives, and foreign currency.

Research and development expense in the year ended 2007 of $8.5 million increased $0.8 million, or 10.2%, from $7.8 million in the prior year, primarily due to increased expenses relating to the development of our new product lines. Research and development expense in the fourth quarter 2007 of $2.0 million slightly increased by 1.5%, from $1.9 million in the prior year.

Net income for 2007 was $0.7 million, an increase of $2.3 million from a loss of $1.6 million in 2006. Earnings per share for 2007 was three cents, an improvement of ten cents from the loss of seven cents in 2006. Net income for the fourth quarter of 2007 was $0.1 million, a decrease of $0.3 million from net income of $0.4 million in 2006. Earnings per share for the fourth quarter of 2007 were zero, a decrease of two cents from 2006.

Sam Westover, President and CEO, stated, "Our sales and earnings are clearly heading in the right direction, having established record numbers for the company this year. Once again, we generated double digit sales growth for the year and approximately a two-fold increase in earnings from our previous record year. I am pleased that our company continues to show such improvement."

As of December 31, 2007, Sonic Innovations had cash and marketable securities of $20.7 million and a line of credit of $6.0 million.

Sonic Innovations designs, develops, manufactures and markets advanced digital hearing aids designed to provide the highest levels of satisfaction for hearing impaired consumers.

This press release may contain "forward-looking statements
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