Exhibit 99.1


FOR IMMEDIATE RELEASE      Media Contact:  Jeanne Berkowitz/Krista Lambly
                                           Fischer & Partners, Inc.
                                           310/577-7870, ext. 164/125
                                           jberkowitz@fischerhealth.com
                                           klambly@fischerhealth.com

                        Investor Contact:  Terence Griffin
                                           Chief Financial Officer
                                           (408) 232-0710

                 SYMPHONIX DEVICES PRIVATE PLACEMENT INVESTORS
                          EXERCISE RE-PRICING OPTION

SAN JOSE, Calif. (July 2, 2001) -- Symphonix Devices, Inc. (NASDAQ:SMPX)
announced today that investors from the November 10, 2000 private placement
financing have exercised their right to a one-time adjustment to the purchase
price under the terms of the agreement. The terms of the agreement allowed the
investors a one-time price adjustment during the two-year period following the
date of the financing. The effect of this price adjustment is to increase the
number of shares of common stock issued to the investors in the private
placement financing from 6.4 million to 20.7 million, at no additional cost to
the investors. As a result, the shares of common stock outstanding will increase
from approximately 21.0 million shares to approximately 35.4 million shares, and
the investors will own approximately 58% of the outstanding shares of the
Company's common stock.

     "We are pleased that all the investors, led by Patricof & Co. and J.P.
Morgan Partners have made this election," said Kirk Davis, president and chief
executive officer of Symphonix. "We believe that, with the reset provision
exercised, our stock will be free of any perceived encumbrances."

About Symphonix

     Founded in 1994, Symphonix Devices, Inc. is a hearing technology company
dedicated to developing a family of products to improve communication ability
and quality of life for the millions of hearing-impaired people limited by
current hearing solutions.

                                   more.....


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     Symphonix' 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 during a
short, outpatient surgical procedure. More information about Symphonix can be
found at http://www.symphonix.com or by calling (800) 833-7733.

     Statements made in the press release regarding the future performance of
our common stock 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 Company's products failing to achieve widespread market acceptance. Further
information on potential factors that could affect the Company's financial
results is included in the Company's Form 10-K for the 2000 fiscal year filed
with the Securities and Exchange Commission.


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Symphonix and Vibrant are registered trademarks of Symphonix Devices, Inc.
Soundbridge is a trademark of Symphonix Devices, Inc.