FOR IMMEDIATE RELEASE

CONTACTS:

Paul A. Brown, M.D., Chairman                                      Alisa Steinberg (Media)

Stephen J. Hansbrough, CEO                                         Stephen D. Axelrod, CFA

HearUSA, Inc.                                         Wolfe Axelrod Weinberger Assoc. LLC

Tel. (561) 478-8770                                  Tel. (212) 370-4500  Fax (212) 370-4505

HEARUSA REPORTS RECORD SECOND QUARTER 2006

REVENUE AND PROFIT

• Second Quarter Revenue Increases 17% to $22.3 Million
• Q2 Income From Operations Rose 36% to $1.6 Million
• Strong Results Due Primarily to Organic Growth

West Palm Beach, Florida, August 8, 2006 -- HearUSA, Inc. (AMEX: EAR) today reported that revenue for the second fiscal quarter was the highest in the Company’s history reaching $22.3 million, an increase of 17% compared with $19.1 million in the second quarter of 2005.  Income from operations in the second quarter increased 36% to $1.6 million from $1.2 million in the comparable period last year. Net income applicable to common stockholders reached $186,000 in the second quarter of 2006, compared to $154,000, in the same period last year.

Included in the second quarter results is a $241,000 non-cash charge related to the expensing of previously issued and unvested stock options under the Company’s employee stock option plan as is now required under SFAS 123(R).  The current year’s quarter also has net non-cash charges of $510,000 associated with previous financings.  In the comparable period last year, non-cash charges of a similar nature amounted to $528,000. 

Revenue for the six month period ended July 1, 2006, also a new record, was $43.9 million, an increase of 15% compared with $38.1 million in the same period of 2005. The Company noted that results for the prior year period included $1.4 million of revenue resulting from an additional fiscal week of operations. Income from operations in the six month period increased 49% to $3.3 million from $2.2 million in the comparable period last year. Net income applicable to common stockholders reached $454,000 in the first six months of 2006, compared to a loss of $291,000 in the same period last year.

Included in the six month results is a $474,000 non-cash charge related to the expensing of previously issued and unvested stock options under the Company’s employee stock option plan as is now required under SFAS 123(R).  The current year’s first six month period also has net non-cash charges of $1,063,000 associated with previous financings.  In the comparable period last year, net non-cash charges of a similar nature amounted to $1,096,000. 

“We are pleased to see that the momentum garnered in our first quarter carried over into the second,” stated Stephen J. Hansbrough, President and Chief Executive Officer of HearUSA. “Our revenue improvement was primarily due to both an increase in the number of hearing aids sold as well as an increase in the average selling price attributable to patients opting for more advanced technology products. Our plan to grow the Company both organically as well as through acquisitions is proceeding as planned. Our team was successful in closing on five acquisitions representing eight hearing aid centers at the end of the second quarter and has signed eleven non-binding letters of intent for additional acquisitions which, if completed, would bring the total trailing twelve months’ revenues acquired during the year to more than $15.1 million (unaudited).”

Kenneth J. Schofield, Chief Operating Officer, added, “Our revenues also continue to increase due to improved operational efficiency as well as our ability to successfully integrate the newly acquired centers.”

Gino Chouinard, Executive Vice President & Chief Financial Officer, noted, “The Company’s operating margin continues to improve, with the first six months of fiscal 2006 at 7.5%. This is a solid improvement from 5.8% during the same period last year. We remain comfortable with our long term goal of 10-12%.”

Hansbrough concluded, “We are well on our way to meeting our fiscal 2006 goals of 15-20% annual growth and $90 million in sales. Organic growth continues to play a major role in our quarterly results. In addition, the Company’s acquisition program has begun to show excellent results and, as the result of the strong first half of fiscal 2006, we remain confident that the Company will attain its strategic goals.”

HearUSA will hold a webcast Wednesday, August 9, 2006 at 4:30 P.M. EDT to allow securities analysts and shareholders the opportunity to hear management discuss the Company’s Second Quarter 2006 Results.  The call is being webcast by Vcall and can be accessed on HearUSA’s website at http://www.hearusa.com/ or investors can access the webcast at  www.investorcalendar.com.  The conference can also be listened to by telephone by dialing (toll free) 1-877-407-9210.  The webcast and teleconference will be available for replay through September 10, 2006.

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About HearUSA

HearUSA, Inc. provides hearing care to patients primarily through its company-owned hearing care centers, which offer a complete range of quality hearing aids, with an emphasis on the latest digital technology.  HearUSA Centers are located in California, Florida, New York, New Jersey, Massachusetts, Ohio, Michigan, and Missouri and the province of Ontario, Canada. The company also derives revenues from its HearUSA Hearing Care Network, comprised of 1,400 affiliated audiologists in 49 states, as well as its website that enables online purchases of hearing related products, such as batteries, hearing aid accessories and assistive listening devices.  For further information, click on "investor information" at HearUSA's website www.hearusa.com.

This press release contains forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995, including those concerning the Company’s goal of 10-12% operating margins, targets of 15-20% annual revenue growth and  $90 million in sales for 2006; and the expectation that additional acquisitions if completed would close during the third quarter of 2006 and bring the total trailing twelve months’ revenues acquired during 2006 to more than $15.1 million.  These statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.  Potential risks and uncertainties include such factors as market demand for the Company’s goods and services; successful implementation of the Company’s acquisition program; successful negotiation and documentation of the acquisitions which are the subject of non-binding letters of intent; changes in the pricing environment; general economic conditions in those geographic regions where the Company’s centers are located; the impact of competitive products; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10K/A for the 2005 fiscal year. 

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