Ann: Quarterly Activities Report and Appendix 4C, page-3

Strong growth numbers reported for H1 FY18.

Nuheara was pleased to report strong sales growth in its interim financial results for the half-year ended 31 December 2017 (H1 FY18) with unit sales up 49% on H2 FY17. Online unit sales were up 43% and brick and mortar retail sales were up 55%.

Within the six-month period, the Company successfully turned around a -26% Gross Profit (GP) margin in H2 FY17 to a +27% GP margin in H1 FY18. This is largely due to the increase in scale and performance of later stage production runs. Logistics efficiencies also played a significant role in the GP margin improvement with a 60% reduction in shipping costs per unit.