Product RoadmapProduct Roadmap

Product RoadmapJes Olsen

VP, Research and Development

23 September 200823 September 2008

Product Roadmap

AgendaWireless hearing aids N i iWireless hearing aids –

status and future

Otic

onDu

al

Oticon product launches

xw

Price/performance

8000

6000

4000

w

V

Otic

onDu

al

Oticon product launches

xwxw

Price/performance

800080008000

600060006000

400040004000

ww

VV

New innovations

Bernafon product launchesPrice/performance

503

502

120

Bernafon product launchesPrice/performance

503503

502502

120120

Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

4000

Jan 2007

Jan 2008

Jan 2009

Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

400040004000

Jan 2007

Jan 2008

Jan 2009

The importance of a

Jan 2007

Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

121

Jan 2008

Jan 2009

Jan 2007

Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

121121

Jan 2008

Jan 2009

full range of products

[ PERFORMANCE + ] [ DESIGN + ][ PERFORMANCE + ] [ DESIGN + ]

2[ VALUE + ][ VALUE + ]

Product Roadmap

Wireless Hearing Aids– status and future of connectivityy

Why do we do wireless hearing aids?Th d lThe needs are real1.Phones are difficult2.Mobile phones are more difficult3.Televisions are turned up too loud4.Music players are not an option

Wireless has the potential toimprove the performance ofhearing aids very significantlyhearing aids very significantly

The world is going wireless

3

– everybody expects hearingaids to be part of that

Product Roadmap

1 31 3

Main connectivity needs

42 42

4

Product Roadmap

Wireless Connectivity Today…

It’s a “1st generation…”It’s newIt’s not just plug & playFew applications that actually deliver:

1. TV No/?2. Landline Phone No3. Mobile Phone Yes4. Music players ?

Current standard Bluetooth technology Current standard Bluetooth technology cannot meet many of the technical requirements

Th i d li h i b The entire delivery chain must be matured

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Product Roadmap

How To Become Successful

Increase relevance

User friendliness

f dDispenser confidence

Sound qualitySound quality1. Bandwidth in system2. Bluetooth limitations3. Poor bass in open fitting

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Product Roadmap

1st Generation Bluetooth Dilemmain relation to direct/indirect sound co-existence

Latency Bandwidth

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Product Roadmap

Sound Directly From Speaker

Speaker to ear 10 ms (1 m/3 ms)

8

Product Roadmap

Bluetooth Transmitter (A2DP)A2DP: Advanced Audio A2DP: Advanced Audio

Distribution Protocol

Wireless to hearing instrument

Television to ear 150-250 ms

A2DP: Advanced Audio Distribution Protocol

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StandardBluetooth A2DP transmitter

Bluetooth receiverstreamer

Product Roadmap

Co-existence of Transmitted and Acoustic SoundAcoustic Sound

Speaker to ear 10 ms (1 m/3 ms)EchoEcho

Wireless to Hearing instrumentWireless to hearing instrument

Television to ear 150-250 ms

A2DP: Advanced Audio Distribution Protocol

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Bluetooth receiverstreamer

StandardBluetooth A2DP transmitter

Product Roadmap

1st Generation ChallengesBandwidthBandwidth

20 kHz

10 kHz

3 kHz

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MillisecondsLatency300 Ms10 Ms

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2nd Generation RequirementsBandwidthBandwidth

20 kHz

10 kHz

3 kHz

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MillisecondsLatency300 Ms10 Ms 50 Ms

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User Friendliness!

Keep it simple!

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Product Roadmap

Looks Easy But…Automatic reconnection of Bluetooth is neededSeamless co-existence with other Bluetooth devices

•E.g. receive incoming calls from landline or mobile during TV hiwatching

Streaming device must be able to handle multiple simultaneousBluetooth connections

TV solutions require a proprietary Bluetooth protocol with high audio TV solutions require a proprietary Bluetooth protocol with high audio bandwidth (+7 kHz) and a latency lower than 30- 40 msec. Bulletproof plug and play installationLandline phone solution is more important than cell/mobile Landline phone solution is more important than cell/mobile

phone - but much less standardisedYo can easily create new problems that may be worse than the ones

you solve:you solve:•Other persons in the household should also be able to use the landline phone•Other persons in the household should also be able to hear the sound f

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from the TV •When watching TV the hearing aid user should still be able to hear the family

Product Roadmap

Wireless Hearing Aids- beyond connectivityy y

A better hearing aid ConnectivityA better hearing aidSpatial soundBinaural DFCBetter automatics

ConnectivityTV/radioMobile/cell phoneLandline phoneBetter automatics Landline phone

Wireless i

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programming

Product Roadmap

Epoq Learnings

Wireless technology in hearing aids is a complex and very resource-demanding taskresource demanding task

Everybody has to go through the learning curve(s)•Technology development•Integration•Customer support•Manufacturing

Has slowed down our ability to renew other parts of our dproduct program

We are over it – others still have it in front of themBut overall: wireless technology in hearing aids solves real

user needs, and we will launch significant 2nd generation applications in 2009

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Product Roadmap

Wireless Programming Coming Soon

Escape from the cable jungle

d f l f• And free your client from uncomfortable restraints

• Compatible with most of the new Oticon products

• Supported by a number of major manufacturers: Widex, S k O i d Starkey, Oticon and Bernafon, all the rest are still welcome

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welcome

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How Does nEARcom Work?

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Product Roadmap

nEARcom - a Platform for Standardization

Tech modules (up to 5) to support wireless technologies from the various manufacturersg

• Designed to handle future improvements and developments of the wireless interface

• Ensures that dispensers do not need wireless programming interfaces from each individual manufacturer

• Cost-effective solution - standardizing lowers the price - for dispensers and the industry

C l i i h US d G • Currently in test in the US and Germany, launch from January 2009

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Product Roadmap

New InnovationsInnovations

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Product Roadmap

Y d ’ h b bi b f l!You don’t have to be big to be powerful!

•Performance•Performance•Excellent sound quality•Excellent clinical fitting results•Fitting range up to 100 dB HLg g p

Cosmetics

Connectivity

Comes as XW, W and V models, launch 1 October

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Product Roadmap

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Product Roadmap

The Importance of Power ProductsS h i lSevere hearing lossOn average, the most quiet sounds heard by people with their better ear are between 70 and 95 dB. People who suffer from severe hearing loss will benefit from powerful hearing aids but often they rely heavily on lip

Split of world market on degree of hearing loss

powerful hearing aids, but often they rely heavily on lip-reading even when they are using hearing aids. Some also use sign language.

P f d h i l 3,54

4,5

Profound hearing loss On average, the most quiet sounds heard by people with their better ear are between 70 and 95 dB. People who suffer from severe hearing loss will benefit from powerful hearing aids but often they rely heavily on lip- 1 5

2

2,53

3,5

powerful hearing aids, but often they rely heavily on lipreading even when they are using hearing aids. Some also use sign language.

Ad t d f E G ti f h i 0

0,51

1,5

Mild Moderate Severe ProfoundAdapted from: European Group on genetics of hearing impairment. Martini A (Ed.), European Commission Directorate, Biomedical and Health Research Programme (HEAR) Infoletter 2, November 1996, 8.

Mild Moderate Severe Profound

Source: Oticon internal market survey, 2008

232009 to bring further important power product launches

Product RoadmapIntroducing Oticon DualIntroducing Oticon Dual

Because good looks and maximum performance h t t ll t

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are what customers really want

Product Roadmap

Oticon product launchesPrice/performance

xw

Price/performance

8000 w

ticon

Dua

l 8000

6000

V

Ot6000

4000

60006000

4000

I l 12 dIn total 12 new productsbefore the end of the year

25Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

Jan 2007

Jan 2008

Jan 2009

Product Roadmap

Our Ambition- a full range of modern products for all hearing a full range of modern products for all hearing losses in all styles at all prices

Dispensers should be able to Dispensers should be able to buy more from their preferred supplier

Dispensers should only get used to 2, maximum 3 different fitting systemsdifferent fitting systems

Users and dispensers differ –we need a full range of

[ PERFORMANCE + ] [ DESIGN + ][ PERFORMANCE + ] [ DESIGN + ]

gsolutions

For all audiological needs

At several prices

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At several prices

In several categories of design and general functionality

[ VALUE + ][ VALUE + ]

Product Roadmap

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Product Roadmap

Bernafon roadmap

VÉRITÉ – an outstanding combination of design, RITE-technology, second generation ChannelFree™ DSP and connectivity in one instrument.

Brite 50X – Instruments at more price points in the Design/RITE segment.

AVANTI brings adaptive features to the volume segment.

Hearing instrument fitting now even more easy and intuitive with the new OASIS

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easy and intuitive with the new OASIS fitting platform.

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Product Roadmap

Bernafon product launchesPrice/performancePrice/performance

É É503

50X

VÉRITÉ

502

120120

121

AVANTI

29

Jan 2007

Year of launch

Jan 2002

Jan 2003

Jan 2004

Jan 2005

Jan 2006

Jan 2008

Jan 2009

Product Roadmap

Q&AQ&A

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