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November 6, 2003

HearUSA initiated with "strong buy"

From: New Ratings - Nov 6, 2003

Roth Capital

NEW YORK, November 6 (New Ratings) – Analyst Russel E Hoss of Roth Capital initiates coverage of HearUSA Inc (EAR) with a "strong buy" rating. The target price is set to $3.

Shares of HearUSA, a US-based hearing care group composed of 157 companies in the USA, are currently trading at $1.45.

According to Roth Capital's research note published this morning, HearUSA has recovered from its decade long losses. The analyst expects strong revenue growth from the company in the years to come. HearUSA is likely to perform well in the fragmented hearing aid sector in the US, the analyst adds.

The company’s acquisition of Helix Hearing Care in 2002 would aid in expanding the business rapidly in the near term, the analyst says. HearUSA's acquisition plans in the near future and brand building initiatives are expected to drive the company's revenue growth in the long term, according to Roth Capital.

The EPS estimates for 2004 and 2005 are $0.01 and $0.15, respectively. The P/E estimates for 2004 and 2005 are 145.0x and 9.7x, respectively.

Roth Capital initiates coverage of HearUSA with a "strong buy" rating.

© 2003 New Ratings