Demant

Legal Proceedings Report • Oct 29, 2015

Company announcement no 2015-13 29 October 2015

Patent dispute between GN ReSound and Oticon GmbH in Germany

In September and October, GN ReSound filed patent infringement cases against
several William Demant companies with the Landgericht Düsseldorf in Germany.
The merits of the cases concern a method by which a hearing care professional
can see how a hearing aid has performed in different environments – a method we
estimate is today of limited use by hearing care professionals.

We believe that none of our products infringe the patent in question and that
the patent is furthermore invalid due to prior art, including patents owned by
William Demant in this field.

Due to an unfortunate misunderstanding, our German attorneys failed on 22
October 2015 to make an appearance at the case management hearing regarding one
of these cases and as a result, the merits of the case have not been heard by
the court. Consequently, a default judgement was rendered against Oticon GmbH
earlier today. The default judgement only relates to Oticon GmbH and not to
other William Demant companies in and outside Germany.

The default judgement contains an injunction, prohibiting Oticon GmbH from
selling, in Germany, products utilising the above-mentioned method – however
subject to GN ReSound’s decision as to whether they will enforce the injunction
or not. If they choose to enforce it, they will be liable for any of our
losses, if the injunction is later overturned.

As this was strictly a procedural mistake due to our German attorneys’ failure
to respond to the merits of the case, Oticon GmbH has today filed an opposition
to resume the case after the default judgement was rendered. Under German law,
default cases are resumed after an admissible opposition, and we are therefore
certain that the merits of the case will be heard by the court in due course.

The method in question is a dispenser tool and therefore does not as such
impact the use of the hearing aid by the end-user. Oticon GmbH can continue to
conduct business without using the above-mentioned method, if necessary.

We do not expect this default judgement to impact William Demant’s financial
results in 2015 and onwards.

Please be advised that William Demant will host a teleconference for analysts
and investors today, Thursday, 29 October 2015 at 4:00pm CET. The
teleconference will be conducted in English.

Dial-in: +45 70 223 500 or +44 20 75 72 11 87

Pin code: 25741379# (valid for both phone numbers)

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Further information: Other contacts:
Søren Nielsen, COO Niels Jacobsen, President & CEO
Phone +45 3917 7300 Søren B. Andersson, VP IR
www.demant.com