Supply Chain Initiative in GN ReSound Delivering up to DKK 200 million in Cost Reductions by 2011

The ongoing transformation of GN ReSound's manufacturing and supply chain
backbone is progressing better than planned and we are now pleased to announce
our target numbers. By the end of 2011, the transformation is expected to
reduce costs by up to DKK 200 million as an annual run rate compared to 2009
actual costs. In connection with the Annual Report 2009, GN communicated that
the supply chain initiative was expected to “provide a significant financial
benefit”. 

The expected cost reductions are equivalent to a further improvement of GN
ReSound's EBITA margin by 6-7 %-points at unchanged revenue level. GN ReSound
is thereby taking a significant step in the strategy intended to move earnings
to a competitive level. 

As previously guided, it is expected that implementation costs incurred in 2010
will be off-set by savings generated by the initiative. 

In addition to improve earnings significantly in GN ReSound, the supply chain
transformation will at the same time deliver higher flexibility and product
quality to the benefit of our customers. 

For further information, please contact:

Mikkel Danvold
Director, IR & Communications
GN Store Nord A/S
Tel: +45 45 75 02 71