NEW YORK, Feb. 1, 2011 (GLOBE NEWSWIRE) -- Arcadia Capital Advisors, LLC ("Arcadia"), a top ten shareholder of HearUSA Inc. ("HearUSA", or the "Company") (AMEX:EAR), and its managing director, Richard S. Rofe ("Rofe") have released an open letter to other shareholders, Company management ("Management") and Board of Directors (the "Board"), in order to highlight certain important aspects of the current situation with Siemens Hearing Instruments, Inc. ("Siemens").
"We want to bring to the shareholders' attention three key points," stated Rofe in explaining the purpose of the letter. "First, Siemens' partnership with HearUSA is very lucrative to Siemens, yet they are not acting like a good partner in this relationship. We believe HearUSA is contributing $11 million in EBITDA, maybe even more, to Siemens, yet Siemens is choosing to play the role of a bully. Shareholders should not stand for this."
"Second, the recent SEC filing by Siemens smells strongly of market manipulation, and we believe it is a ruse so that they can steal the company at depressed valuations. We believe their actions are a self-serving scare tactic, so don't be surprised if Siemens comes out with a lowball offer for the Company," Rofe continued. "Finally, we would like to remind shareholders of the tremendous value and growth potential of HearUSA. We believe a sale of the Company will make sense at $2.00 to $3.00 per share."
"We believe the business is very healthy, and their financial picture is stable. We deserve the full value of the Company, given the prospects available from the return to profitable operations, new managed care provider relationships, and the AARP marketing program, which was just fully launched. The Management team should go seek capital to buffer against Siemens hostile actions. We believe that we as shareholders will be richly rewarded and our shares will receive the value they deserve in a future, full value sale transaction," Rofe concluded.
Click the attached link for the letter: https://irm.ipreo.com/OpenFileLink.aspx?ID1=1a113b302135418ba1b5dc6bf6ff67a5&ID2=73271972
About Arcadia Capital Advisors, LLC
Arcadia Capital Advisors is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofe and is sponsored by M.D. Sass-Macquarie Financial Strategies.