Intricon (IIN) 8-K Intricon Reports Fourth-quarter and Full-year Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

INTRICON REPORTS FOURTH-QUARTER AND FULL-YEAR RESULTS

Quarterly Revenue Rises 25 Percent
with Earnings of $0.16 per Diluted Share

Company Reports 26 Percent Annual Revenue Growth

ST. PAUL, Minn. — February 22, 2006 —IntriCon Corporation (AMEX: IIN) a designer, developer and manufacturer of miniature and microminiature medical and electronic products, today reported higher sales and earnings for the fourth quarter and full year ended December 31, 2005.

        For the fourth quarter, the company reported sales of $11.2 million, up from $9.0 million for the 2004 fourth quarter. The 25 percent year-over-year growth was driven by increases in IntriCon’s medical, hearing health, professional audio, and electronics product groups. On a year-over-year basis, medical was especially strong, growing at 69 percent for the quarter. Hearing health sales rose 13 percent, with professional audio ahead by 5 percent and electronics up a strong 42 percent.

        Income from continuing operations for the 2005 fourth quarter was $167,450, or $0.03 per share, a sharp increase from a loss of $1.6 million, or $0.31 per share in the year-ago period. Total company net income for the fourth quarter of 2005 increased to $876,071, or $0.16 per share, up from a loss of $1.0 million, or $0.20 per share, for the 2004 fourth quarter. The 2005 fourth quarter included a $0.13 per share amount from discontinued operations, primarily resulting from a favorable adjustment to the company’s remaining liability for the post retirement medical plan of a divested business.

        For the year, IntriCon reported net sales of $44.5 million, a 26 percent increase from $35.2 million in 2004. All markets contributed to the gains, with medical leading at 71 percent growth; hearing health rose 27 percent, professional audio was up 10 percent, and electronics increased by 11 percent.

        Income from continuing operations for 2005 was $761,457, or $0.14 per diluted share, a significant improvement from a loss of $1.9 million, or $0.37 per diluted share, for the prior year, which included a $3.1 million gain on the sale of the company’s building located in Dresher, Pa. Total company net income for 2005 increased to $1.5 million, or $0.29 per diluted share, up from $147,826, or $0.03 per diluted share, in 2004. The 2005 results included a $0.15 per share amount from discontinued operations primarily resulting from the favorable adjustment noted above in the fourth-quarter discussion.

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 2

        Mark S. Gorder, president and chief executive officer of IntriCon, stated: “We are pleased with the strength our business units demonstrated in 2005. The market segments that we have selected to focus on continue to grow, and we believe, with ongoing investment, will provide even greater financial opportunities in the future.”

Business Update
        On October 6, 2005, IntriCon closed on the acquisition of the Amecon Corporation, a small manufacturer of magnetic components including chokes and coils, inductors, cores, filters, relays, transformers and ballasts, current sensors and instrumentation products, based in Anaheim, Calif. The new business has been successfully integrated into the company’s existing electronic components facility in Anaheim, Calif. Management believes the acquisition will provide support to the growing competencies of IntriCon’s electronic components business.

        Added Gorder, “As we grow, we identify opportunities to leverage our products and services among various core competencies. We are developing solid relationships with top-tier medical device companies, while building on relationships in our other markets with a broad range of customers, from high-growth startup firms to large multi-national corporations. In 2006, we expect to grow by maintaining focus on our core business segments and emphasizing production efficiency. We will continue to drive sales both through new product development and expanding relationships with new and existing customers. Combined with tight expense management, we believe our model has the scale and flexibility to be successful in 2006 and beyond,” concluded Gorder.

About IntriCon Corporation
Headquartered in Arden Hills, Minn., the IntriCon Corporation designs, develops and manufactures miniature and microminiature medical and electronic products.

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 3

The company is focused on four key markets: medical, hearing health, professional audio and communications, and electronics. IntriCon has facilities in the United States, Asia and Europe. The company’s common stock trades under the symbol “IIN” on the American Stock Exchange. For more information about IntriCon, visitwww.intricon.com.

Forward-Looking Statements
Statements made in this release and in IntriCon’s other public filings and releases that are not historical facts or that include forward-looking terminology such as “may”, “will”, “believe”, “expect”, “optimistic” or “continue” or the negative thereof or other variations thereon are “forward-looking statements” within the meaning of the Securities Exchange Act of 1934 as amended. These forward-looking statements include, without limitation, statements concerning future growth, future financial condition and performance, prospects and the positioning of the company to compete in chosen markets. These forward-looking statements are affected by known and unknown risks, uncertainties and other factors that are beyond the Company’s control, and may cause the Company’s actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and factors include, without limitation, the risk that the Company may not be able to achieve its long-term strategy, weakening demand for products of the Company due to general economic conditions, possible non-performance of developing technological products, the volume and timing of orders received by the Company, changes in the mix of products sold, competitive pricing pressures, availability of electronic components for the Company’s products, ability to create and market products in a timely manner, competition by competitors with more resources than the Company, foreign currency risks arising from the Company’s foreign operations, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2004. The Company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise.

CONTACT:

Intricon Corporation, St. Paul, MN
Bill Kullback
Chief Financial Officer
651-604-9638

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 4

IntriCon Corporation
Consolidated Condensed Statements of Operations(Unaudited)

	Three Months Ended
	December 31, 2005			December 31, 2004
Sales, net	$	11,171,241		$	8,965,900
Costs of sales		8,270,005			7,057,615
Gross profit		2,901,236			1,908,285
Operating expenses:
Selling expense		1,054,882			1,115,990
General and administrative expense		964,551			1,356,369
Research and development expense		572,081			316,219
Asset impairment		—			488,214
Total operating expenses		2,591,514			3,276,792
Operating income (loss)		309,722			(1,368,507	)
Interest expense		(123,855	)		(114,596	)
Interest income		17,590			1,715
Other expense, net		(11,998	)		(58,516	)
Income (loss) from continuing operations before income taxes		191,459			(1,539,904	)
Income taxes expense		24,009			35,853
Income (loss) from continuing operations		167,450			(1,575,757	)
Income from discontinued operations, net of income taxes		708,621			553,570
Net income (loss)	$	876,071		$	(1,022,187	)
Basic earnings (loss) per share:
Continuing operations	$	.03		$	( .31)
Discontinued operations		.14			.11
Net income (loss)	$	.17		$	( .20)
Diluted earnings (loss) per share:
Continuing operations	$	.03		$	( .31)
Discontinued operations		.13			.11
Net income	$	.16		$	( .20)
Average shares outstanding:
Basic		5,149,814			5,129,214
Diluted		5,403,464			5,129,214

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 5

Intricon
Consolidated Statements of Operations

	Twelve Months Ended
	December 31, 2005			December 31, 2004
Sales, net	$	44,455,251		$	35,182,612
Costs of sales		32,853,426			27,120,897
Gross profit		11,601,825			8,061,715
Operating expenses:
Selling expense		3,569,948			3,933,657
General and administrative expense		4,793,239			5,496,798
Research and development expense		1,817,384			1,616,085
Asset impairment		—			488,214
Total operating expenses		10,180,571			11,534,754
Gain on sale of asset		—			3,109,627
Operating income (loss)		1,421,254			(363,412	)
Interest expense		(409,199	)		(465,272	)
Interest income		52,482			1,626
Other income, net		106,343			61,618
Income (loss) from continuing operations before income taxes		1,170,880			(765,440	)
Income tax expense		409,423			1,139,797
Income (loss) from continuing operations		761,457			(1,905,237	)
Income from discontinued operations, net of income taxes		767,230			2,053,063
Net income	$	1,528,687		$	147,826
Basic earnings per share:
Continuing operations	$	.15		$	( .37)
Discontinued operations		.15			.40
Net income	$	.30		$	.03
Diluted earnings per share:
Continuing operations	$	.14		$	( .37)
Discontinued operations		.15			.40
Net income	$	.29		$	.03
Average shares outstanding:
Basic		5,135,348			5,129,214
Diluted		5,261,491			5,131,841

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 6

Intricon
Consolidated Balance Sheets

Assets	December 31, 2005		December 31, 2004
Current assets
Cash	$	1,109,402	$	246,430
Restricted cash		60,158		449,613
Accounts receivable, less allowance for doubtful accounts of
$370,000 in 2005 and $177,000 in 2004		6,925,357		4,996,705
Inventories		6,950,243		4,287,643
Refundable income taxes		77,143		46,163
Other current assets		454,053		379,318
Assets of discontinued operations		—		6,834,256
Total current assets		15,576,356		17,240,128
Property, plant and equipment
Land		170,500		170,500
Buildings		1,732,914		1,732,914
Machinery and equipment		26,423,956		25,635,452
		28,327,370		27,538,866
Less: accumulated depreciation		21,455,955		20,260,792
Net property, plant and equipment		6,871,415		7,278,074
Note receivable from sale of discontinued operations		503,923		—
Goodwill		5,754,219		5,264,585
Other assets, net		929,474		1,156,449
	$	29,635,387	$	30,939,236

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IntriCon Fourth-Quarter and 2005 Results
February 22, 2006
Page 7

Liabilities and Shareholders’ Equity	December 31, 2005			December 31, 2004
Current liabilities
Notes payable	$	—		$	3,740,393
Checks written in excess of cash		397,999			665,098
Current maturities of long-term debt		888,531			1,458,470
Accounts payable		3,136,555			2,211,909
Income taxes payable		298,914			—
Customers’ advance payments on contracts		59,210			75,000
Liabilities of discontinued operations		—			4,266,899
Other accrued liabilities		2,653,576			2,638,889
Total current liabilities		7,434,785			15,056,658
Long term debt, less current maturities		5,319,181			—
Other post-retirement benefit obligations		1,516,939			2,710,106
Acquisition accrual		603,428			—
Deferred income taxes		37,725			143,902
Accrued pension liability		633,818			900,713
Commitments and contingencies
Total liabilities		15,545,876			18,811,379
Shareholders’ equity
Common shares, $1 par; 10,000,000 shares authorized;
5,665,568 and 5,644,968 shares issued at December 31, 2005 and 2004		5,665,568			5,644,968
Additional paid-in capital		12,053,590			12,025,790
Accumulated deficit		(2,152,017	)		(3,680,704	)
Accumulated other comprehensive loss		(212,552	)		(597,119	)
Less: 515,754 common shares held in treasury, at cost		(1,265,078	)		(1,265,078	)
Total shareholders' equity		14,089,511			12,127,857
	$	29,635,387		$	30,939,236

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