ReSound Corporation Announces Introduction of The Resound Digital 5000 Series.

Industry's First Software-Based Digital Hearing

Device Offers `Next Level' of Premiere Sound

Processing Quality

REDWOOD CITY, Calif.--(BW HealthWire)--Oct. 7, 1998--ReSound Corporation (Nasdaq:RSND) today announced the introduction of a completely new generation of digital hearing devices -- the ReSound Digital 5000(TM) Series, the industry's first fully software-based digital signal processing (DSP) product line. The Digital 5000 Series combines powerful software-based DSP technology with a wide range of features for both hearing professionals and consumers: The result is an extraordinary level of sound processing performance with extensive customization to address individual patient needs. The Digital 5000 Series will be launched at the Union der Horgerate-Akustiker (UHA) Congress in Cologne, Germany and the Academy of Dispensing Audiologists (ADA) Conference in Monterey, California. The product line will be available in the United States and Germany in the fourth quarter of 1998, and introduced worldwide in the first quarter of 1999.

"The introduction of the Digital 5000 Series represents a significant milestone for ReSound and a major breakthrough in the hearing health care market," said ReSound President and CEO Russell D. Hays. "Through extensive research efforts, we have created a superior product that succeeds in elevating digital performance to the `next level.' We are confident that the Digital 5000 Series will provide an unprecedented hearing experience to many of the 58 million people in the United States and Europe with sensorineural hearing loss.

"The Digital 5000 Series contains an extremely powerful and flexible architecture which includes proprietary algorithms for eliminating feedback and enhancing listening performance even in noisy conditions. It also permits future advancements to be implemented in the devices more rapidly."

Technological Advancements

The ReSound Digital 5000 Series product line incorporates many unique and proprietary features:

-- Advanced DSP Technology - ReSound's software-based DSP technology provides significantly more computational power than competitive "hard-wired" digital hearing devices. This technology allows the devices to be easily customized for each patient and permits advancements derived from future research to be implemented more rapidly in software.

-- Digital Cochlea Dynamics - ReSound's proprietary sound processing technology more closely mimics the function of the human ear by dividing the hearing spectrum into 14 independent frequency bands. Then, in each band, it provides the processing necessary to adjust loundness and compensate for hearing impairment. The result is a natural sound response that amplifies soft sounds while maintaining louder sounds at comfortable levels.

-- Adaptive True Feedback Cancellation - In order to eliminate feedback without adversely affecting gain and frequency response, ReSound developed Adaptive True Feedback Cancellation. This technology virtually eliminates feedback and provides the user with a more comfortable listening experience.

-- Digitally Matched Dual Microphone Technology - This exclusive technology allows the user to direct their hearing toward desired sounds in many difficult listening environments.

-- Multiband Noise Reduction - To further enhance the clarity of speech and the overall sound quality in both quiet and noisy situations, ReSound's Multiband Noise Reduction technology measures fluctations in each of 14 bands, then automatically suppresses steady-state noise while preserving speech signals. Most other noise cancellation systems simply reduce gain and can adversely affect the clarity of speech.

-- Proprietary Gold-Plated Interior - To address interference resulting from the use of digital cellular phones, ReSound is incorporating the first, proprietary gold-plating technique inside the cases of digital behind-the-ear (BTE) devices. This feature eliminates electro-magnetic interference noise and allows for problem-free cellular phone usage.

The Digital 5000 Series includes five fully digital models. Three BTE devices are offered with either a dual microphone or a standard microphone, and in the case of the power BTE, a digital volume control. Two in-the-ear (ITE) devices include either a dual microphone or standard microphone.

ReSound is a hearing health care company that designs, develops, manufactures and markets technologically advanced hearing devices throughout the world.

This news release contains forward looking statements, based on current expectations, that involve risks and uncertainties that could cause actual results to differ materially. These statements are identified by the use of words such as "anticipate" and "believe." These risks and uncertainties include the technological risks and uncertainties inherent in the development process, which could cause the termination of the development effort, delay of the product's introduction, or significantly decrease the product's originally anticipated level of customer acceptance. Also, it cannot be assumed in any event that a new product will attain the anticipated level of customer acceptance anticipated, or that competitors will not introduce their own new products that will be better received in the marketplace than the company's new product.