GN Store Nord — M&A Activity 2016

May 15, 2016

Today, GN ReSound has signed a long-term supply agreement with Audigy Group
(hereafter “Audigy”). GN ReSound has also entered into a contingent agreement
to acquire the company.

The supply agreement comes into effect as of today. The agreement to acquire
Audigy is contingent on approval from the US competition authorities and
certain other closing conditions.

The total purchase consideration is made up of two components: an up-front
payment of USD 91 million and earn-out payments of up to USD 60 million, which
depends on the company´s financial success going forward.

Audigy is a preeminent US based provider of business and performance management
solutions to independent hearing care, otolaryngology, otology and neurotology
practices and leading University programs in North America. Audigy’s management
and solutions are considered best-in-class as evidenced by consistent
double-digit growth.

The company is headquartered in Vancouver, Washington, USA, and was founded in
2004 by current CEO Brandon Dawson. Audigy is a leading channel to independent
hearing care professionals in North America with more than 250 network members.
In 2015, members of the Audigy network sold more than 80,000 units through 600
points of sales across North America.

The potential acquisition of Audigy will further GN ReSound’s commitment to
independent hearing health care professionals, including audiology and
otolaryngology practices, as well as universities, medical centers and others.

“Combining GN ReSound’s superior technology and Audigy’s unique business model,
with best-in-class business and performance management solutions, will provide
an exceptional value proposition to independent hearing care and medical
professionals. It is our plan to preserve Audigy’s unique business model and
strong management team by keeping Audigy as a separate company and subsidiary
of GN ReSound’s US business entity,” said Anders Hedegaard, CEO of GN ReSound.

“Partnering with GN ReSound, a leading, innovative hearing technologies
company, willing to invest in and support the independent channel in North
America, is a significant compliment for our members and the professionals we
serve, and will help us to continue to achieve our mission of impacting
independent business owners’ ability to thrive in a consolidating industry,”
said Brandon Dawson, CEO Audigy Group.

The potential acquisition will not affect GN’s financial guidance for 2016.

For further information, please contact:

Peter Justesen
VP – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16