Mr. Osvaldo Iadarola reports

Audiotech Healthcare has launched HearingDepot.com, the hearing care industry's pre-eminent on-line supplier of assistive products for the hearing impaired.

The launch of HearingDepot.com marks the conclusion of the second phase of Audiotech's Internet development program. The first phase of the project included the development of HearingCenterOnline.com which has quickly emerged as the hearing care industry's most comprehensive on-line information resource. The initiative to create this valuable industry resource was driven by the need to provide a venue to bring hearing care professionals, manufacturers, educators and patients together in one place to share their experiences and knowledge. In early 2000, Audiotech commenced an aggressive on-line and off-line marketing program to attract users to HearingCentreOnline.com. The results of this initial marketing program have exceeded the company's expectations. It has received literally thousands of information requests and enquiries from the site. The primary goal of HearingDepot.com is to convert the considerable traffic generated by HearingCenterOnline.com and other partnered Web sites into meaningful new revenue streams for Audiotech.

HearingDepot.com is a natural extension to the company's existing business model. It allows the company to capitalize upon its extensive relationships with hearing care product manufacturers, practitioners and patients, as well as the substantial traffic being generated by the company's information portal site, HearingCenterOnline.com.

HearingDepot.com will initially cater primarily to the business-to-consumer market. Audiotech has secured key product supply and distribution agreements with leading manufacturers. The site currently features approximately 240 products in 18 categories including hearing aid accessories, answering machines and messaging systems, telephone amplifiers and headsets, specialized alarm and signalling devices, and much more. Many of these products have traditionally been difficult to find by hearing-impaired individuals due to their specialization and the present lack of effective distribution channels for niche manufacturers. HearingDepot.com brings these products together in one convenient location where consumers can compare brands and models, and with the help of live customer support representatives, select the most appropriate items to suite their individual needs. Over the next 12 months, the company expects to increase the number of products offered on the site to roughly 2,500. In addition to providing a venue for the direct secure sale of assistive products to hearing-impaired consumers, the site will ultimately serve as an efficient on-line business-to-business supply system. This will benefit Audiotech's clinic network as well as small independent clinics seeking increased efficiencies and economies of scale.

Over the next several months, Audiotech will embark on the next phase of its Internet development program which primarily involves the initiation of an affiliate/partner program and other marketing activities. Through this initiative, Audiotech will enable small clinic operators, non-profit organizations and other relevant parties to establish e-commerce sales by linking directly to the technology and product lines available through HearingDepot.com. These strategic partners will have the opportunity to earn commission income to finance their existing business or charitable activities, without incurring any costs. The company will also provide marketing and promotional training to its partners to help them increase their referral sales.

According to industry manufacturers, the annual market for hearing care products in North America (not counting hearing aids) topped $200-million in 1999. This figure includes state, provincial and federal support programs, but does not include non-subsidized consumer purchases. Therefore, the actual market is considerably larger. As the baby boomer generation enters the age group most commonly associated with hearing impairment over the next decade, the size of this market is expected to grow dramatically. To the company's knowledge, there are currently no significant competitors offering similar services via the Internet. As a result, Audiotech has the opportunity, through early entry and penetration of the market, to capture a leading position within this growing market.