Cochlear Announces Record Financial Results - 30 June 2006

· Total revenue of $452.3 million, up 30%

· NPAT of $80 million ($1.47 per share), up 34%

· Core earnings of $86.4 million ($1.58 per share), up 42%

Sydney: 15 August 2006 Cochlear Limited (COH.AX) announced record revenue, cochlear implant unit sales and profit for the year ended 30 June 2006.

Total revenue for the year was $452.3 million, a 30% increase over F05. Record cochlear implant (CI) unit sales for the year of 12,901 units represented an increase of 19% over F05. Sales revenue from the cochlear implant system product range increased 24% to $379.9 million.

Sales in the Bone Anchored Solutions division (acquired last year and includes the Baha implant product range) were $51.7 million – compared to $14.8 million in the four months the business was owned by Cochlear last year.

EBIT of $111.5 million, a 35% increase over F05, was 24.7% of revenues.

Core earnings of $86.4 million was ahead of February guidance of at least $80 million. This strong growth reflects Cochlear’s continued market leadership and quality of product offerings.