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Sonic Innovations Awarded Contract from U.S. Veterans Administration

Company to become a supplier of hearing aids to U.S. veterans

Salt Lake City - Sonic Innovations has been awarded a contract to supply hearing aids to the U.S. Veterans Administration (VA) beginning Nov. 1, 2009. According to industry data from the Hearing Industry Association, the VA represents approximately 18 percent of the market for hearing aids and experienced unit growth of more than 29 percent for the three months ended June 30, 2009 compared to the same period of 2008.

In response to the contract award, Sonic Innovations CEO Sam Westover said, "Winning the VA contract is a significant opportunity for Sonic. It allows us to provide hearing care to the single largest purchaser of hearing aids in North America." According to contract documents, the VA anticipates purchasing from the qualified suppliers approximately 430,000 hearing aids in first year of the contract, with steady growth in volume over the following four years.

Westover indicated this award was particularly gratifying because it provided Sonic another opportunity to support the men and women of the military. "As a U.S. company, we are excited to be able to provide our technologically advanced hearing aids to our U.S. veterans. Hearing damage is the leading disability being faced by our returning veterans, and we are looking forward to the opportunity to serve them," Westover said.

Sonic submitted its proposal to the VA in response to a request for proposal issued earlier this year. Sonic was successful in receiving an award in each of the categories in which it bid, allowing it to sell its custom, behind-the-ear and receiver-in-canal products through the VA. The contract award from the VA is a one-year contract with four one-year extension options. Sonic anticipates participating on the contract for the entire five years.

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