EXHIBIT 99
FOR IMMEDIATE RELEASE Media Contacts: Lorie Fiber/Joni Morford
Fischer & Partners, Inc.
310/577-7870, ext. 109/153
lfiber@fischerpr.com
jmorford@fischerpr.com
Investor Contact: 877/FOR-SMPX
SYMPHONIX DEVICES, INC. ANNOUNCES EQUITY INVESTMENT BY
SIEMENS AUDIOLOGISCHE TECHNIK GmbH
COUPLED WITH GLOBAL MARKETING ALLIANCE
Siemens invests $5 million, gains distribution rights in Europe,
and earns a seat on Symphonix's board of directors
SAN JOSE, Calif. -- December 2, 1999 -- Symphonix Devices, Inc. (NASDAQ: SMPX),
a San Jose, Calif.-based hearing management company, has entered into a long-
term, strategic partnership with Siemens Audiologische Technik GmbH, a leading
hearing instrument manufacturer, announced Kirk Davis, President and Chief
Executive Officer of Symphonix. The Marketing and Distribution Agreement and the
separate Stock Purchase Agreement represent a significant marketing and
financial commitment to Symphonix and supplement the OEM and Supply Agreement
announced by the companies October 12.
"This strategic partnership brings together Siemens, a worldwide leader in
hearing instrument technology, with Symphonix, an emerging leader in implantable
hearing devices," Davis said. "Together, we will market our products as
representing a continuum of care for the millions of people worldwide who suffer
from mild to severe hearing impairment."
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The Vibrant soundbridge is an investigational device and is limited by Federal
law to investigational use.
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more...
Initial Equity Investment of $5 Million
Under the agreement, Siemens has purchased 1,000,000 shares of Symphonix
Common Stock at $5 per share. Siemens has also committed to making an
additional $5 million equity investment after Symphonix receives FDA approval
for the Vibrant/[R]/ P and Vibrant D
Symphonix Devices, Inc. Announces Equity Investment by Siemens Audiologische
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Technik GmbH Coupled with Global Marketing Alliance...Page 3 of 4
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soundbridges, subject to certain conditions. Siemens also has the right to
increase its ownership of Symphonix to a maximum of 20 percent, subject to
certain conditions.
As a result of its significant financial commitment to Symphonix, Hans
Mehl, Co-Managing Director for Siemens Audiologische Technik GmbH, will join the
Symphonix board of directors.
"This investment underscores our belief that Symphonix has developed a
viable treatment option for people who do not benefit from traditional hearing
instrument technology," Mehl noted. "Based on the clinical results to date with
the Vibrant soundbridge, we are pleased to be associated with this innovative
technology. In fact, we believe it will enable us to reach even more of our
target patient population since many people who do not benefit from traditional
hearing instruments have been waiting for a new treatment option."
Marketing Agreement Creates Continuum of Care for the Hearing Impaired
As part of the agreement, Symphonix will retain U.S. distribution rights
and plans to market its products domestically, after receipt of FDA approval,
through its own U.S. organization. In Europe, Siemens has been granted
distribution rights for an initial period of five years, with Symphonix
retaining its own European marketing organization to provide extensive sales and
marketing support to Siemens. Siemens' distribution rights may be extended to
other regions of the world in the future.
Additionally, Siemens and Symphonix plan to conduct joint marketing
promotions of their respective products in Europe and other countries, with the
goal of identifying patients who may be candidates for the Vibrant soundbridge.
"Siemens is well-respected by the audiology community and has established
relationships with audiologists worldwide," Davis commented. "Our joint
marketing initiatives will be designed to help extend these relationships to
include Symphonix and the Vibrant soundbridge, potentially giving us improved
access to patients who may be good candidates for the device."
more...
Symphonix Devices, Inc. Announces Equity Investment by Siemens Audiologische
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Technik GmbH Coupled with Global Marketing Alliance...Page 4 of 4
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About Siemens
Siemens is one of the world's largest manufacturers of hearing instruments
and related fitting software. For nearly 100 years the company has been
researching hearing impairment and has been developing products that have set
industry standards for the support and care of hearing impaired persons. More
information about Siemens can be found at http://www.hearing.siemens.de.
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About Symphonix
Founded in 1994, Symphonix Devices, Inc. is a hearing management company
dedicated to developing a family of products to improve communication ability
and quality of life for the millions of hearing-impaired individuals who cannot
benefit from current hearing technology. Symphonix's Vibrant soundbridge is a
surgical implant designed to work with the natural structures of the middle ear,
to enhance hearing and communication ability for people with hearing impairment.
The device can be implanted in a short, outpatient surgical procedure.
Worldwide, more than 250 patients have been implanted with Vibrant soundbridges.
More information about Symphonix can be found at http://www.symphonix.com.
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Except for historical information, statements made in this press release
are "forward looking statements" and are subject to a number of uncertainties
that could cause actual results to differ materially from the statements made.
Such risks and uncertainties include, but are not limited to, the risks that
regulatory approvals will not be obtained in a timely manner, or at all, and
that the Company's products will not achieve widespread market acceptance. For
further information, refer to the risk factors described in the Company's Form
10Q for the quarter ended September 30, 1999.
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Symphonix and Vibrant are registered trademarks of Symphonix Devices, Inc.