Sonomax sells SonoPass rights for $2-million (U.S.)

2009-01-27 16:01 ET - News Release

Mr. Dan Casey reports

SONOMAX SIGNS SOFTWARE RIGHTS DEAL - NON CORE ASSET NETS SONOMAX ADDITIONAL FUNDS

Sonomax Hearing Healthcare Inc. has sold the rights and associated assets for its proof-of-performance software system, for use in testing hearing protection devices, for the sum of $2-million (U.S.), to 3M. The software is currently sold under the brand name SonoPass by Sonomax and under the brand name E-A-Rfit by Aearo Technologies, a wholly owned subsidiary of 3M.

3M has also committed to purchasing an additional $350,000 (U.S.) of Sonomax products.

A perpetual royalty-free licence from 3M allows Sonomax to continue to use the software to support all of its core technologies; these include: SonoCustom hearing protectors for a range of industrial applications and other uses; Soundcage, the custom-fit earphones for use with MP3 players; and SonoComm, the custom-fit earpiece used for two-way radios and other custom-fit, in-ear devices. Sonomax will continue to focus on its core competency of leveraging the expansion technology custom earpiece for various applications.

Dan Casey, chief executive officer of Sonomax, said, "The injection of new non-dilutive cash will go a long way towards firmly establishing the new Sonomax."

We seek Safe Harbor.