HearUSA Reports Second Quarter Results

HearUSA Reports Second Quarter Results 


WEST PALM BEACH, Aug. 10  /PRNewswire-FirstCall/ -- HearUSA, Inc. (AMEX: EAR)
announced today revenues of $18,149,883 for the second quarter of 2004. This
compares with revenues of $16,934,600 for the first quarter of 2004, an
increase of approximately $1.2 million or 7%, and with revenues of $18,976,378
for the second quarter of 2003, a decrease of approximately $826,000 or 4%. The
loss for the second quarter was $948,000 or $.03 per share compared to a loss
of $1,615,869 or $.05 per share for the first quarter of 2004 and a profit of
$490,165 or $0.02 per share for the second quarter of 2003.

Stephen J. Hansbrough, Chief Executive Officer, stated "Based on the sequential
improvement in revenues from the 2004 first quarter, the loss for the second
quarter is consistent with a profit margin of 50% on incremental revenues and,
therefore, within our expectations. The loss for the second quarter included
$532,000 of non-cash debt discount amortization and another $577,000 of
depreciation and amortization compared to $0 and $725,000 in the comparable
period of the prior year. Revenues early in the third quarter are already up
significantly over early third quarter results from the year ago period."

For the six-month period ended June 27, 2004, revenues were $35,084,483
compared to revenues of $36,388,106 for the comparable period in the prior
year. The loss for the six months was $2,563,879 or $.08 per share compared to
the prior year six-month profit of $691,000 or $.02 per share.

Paul A. Brown, M.D., Chairman stated, "Revenues began to rebound late in the
second quarter as a result of increased marketing to our retail self-pay and
contracted managed care patients. Based on our expectation of continuing
growth, the company expects third quarter revenues to exceed $18.5 million. The
company has implemented a cost reduction program which on completion will
reduce the breakeven to less than $19 million per quarter. Discussions are
continuing with a number of healthcare providers to either increase or add a
hearing aid benefit, which should also improve revenues and profitability later
in this fiscal year and for 2005."

About HearUSA

HearUSA provides hearing care to patients whose health insurance and managed
care organizations have contracted with the company for such care and to retail
"self-pay" patients. The 156 company owned centers are located in California,
Florida, New York, New Jersey, Massachusetts, Ohio, Michigan, Wisconsin,
Minnesota, Missouri and Washington and the province of Ontario Canada. In
addition, the company has a network of 1,400 affiliated audiologists in 49
states. For further information, click on "investor information" at HearUSA's
website http://www.hearusa.com/ .

  This press release contains forward-looking statements within the meaning
  of the Securities Litigation Reform Act of 1995, including those
  concerning the Company's expectation of continuing growth in revenues in
  the 2004 third quarter, of revenues exceeding $18.5 million for the third
  quarter of 2004, that the breakeven point for the Company will be reduced
  to less than $19 million in the third quarter of 2004, and that revenues
  and profitability should improve later in this fiscal year and for 2005
  as a result of possible increases by healthcare providers in hearing aid
  benefits now under discussion. Such statements involve certain risks and
  uncertainties that could cause actual results to differ materially from
  those in the forward-looking statements. Potential risks and
  uncertainties include such factors as market demand for the Company's
  goods and services; changes in the pricing environment; general economic
  conditions in those geographic regions where the Company's centers are
  located; the impact of competitive products; and other risks and
  uncertainties described in the Company's filings with the Securities and
  Exchange Commission, including the Company's annual report on Form 10-K
  for the 2003 fiscal year.

  >


DATASOURCE: HEARUSA, INC.



CONTACT: HearUSA: Paul A. Brown, M.D., Chairman,

[phone]; The Investor Relations Company: Karl Plath or Brien Gately,

[phone]; Renmark Financial Communications: Edith English:

, Franca Filippone:

, Media, Cynthia Lane:

, [phone], http://www.renmarkfinancial.com/

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