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Zounds Names John Costello, CEO & President

Thursday, August 23, 2007 General News
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MESA, Ariz., Aug. 22 Zounds, Inc., a designer,manufacturer, and retailer of high performance hearing aids, today announcedit has named John Costello as Chief Executive Officer, President, andDirector. Costello is a world class retailer, marketer, and leader with over25 years of general management, consumer products, retailing, and technologyleadership experience, helping companies manage through high changeenvironments from start-ups to $80 billion companies. Costello succeedscompany founder and current CEO, Sam Thomasson, who will now serve as ViceChairman and remain as a Director.
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Widely recognized as one of the country's foremost brand builders andinvolved in some of the most visible turnarounds and successful marketingcampaigns, Costello most recently served as Vice Chairman of Pay By Touch, aleading technology company in biometric authentication and marketing solutionsfor retail and financial transactions. Prior to that, he served as ExecutiveVice President of Merchandising and Marketing for The Home Depot, the nation'stop home improvement chain, where he was the key architect in itstransformation, business performance and consumer marketing under the "You cando it. We can help." campaign.
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Costello was also the Senior Executive Vice President of Sears, where hewas a key member of the team that revitalized Sears with its "Softer Side ofSears" marketing campaign. Costello began his career at The Procter & GambleCo. where he held numerous senior marketing and brand management positionsincluding the development of the "Fighting Cavities Is The Whole Idea BehindCrest" campaign. In addition, Costello played instrumental management andmarketing roles at Pepsi-Cola USA, Yahoo!, Mvp.com, and Nielsen MarketingResearch. Zounds used Heidrick & Struggles executive search firm forCostello's placement.

"We are extremely pleased to bring John aboard as a leader of the Zoundsteam," said Sam Thomasson, Founder and Vice Chairman of Zounds. "He bringswith him a wealth of experience and formidable business instincts that willhelp further position our brand and retail stores as we continue to grownationally."

Among his many accolades, Costello has been named one of the 30 MostInfluential People in Marketing by Advertising Age, one of the Top 10Merchants by DSN Retailing Today and was elected to the Retail Marketing Hallof Fame in 1997.

About Zounds

Zounds designs, manufactures, and retails high performance hearing aidsfor use with mild, moderate, and severe hearing impairments. Zounds hearingaids use highly advanced noise cancellation, directional microphones and 16frequency bands to eliminate up to 90 percent of unwanted noise, whileindividual voices are able to come through in high-fidelity. This feedbackcancellation technology virtually eliminates the painfully common problems ofsquealing and whistling that occur with other hearing aids. Headquartered inMesa, Arizona, the company's technology enables break-throughs in productperformance, price, and purchase process. Zounds utilizes a combination ofinternally developed research and exclusive, licensed technology developed byAcoustic Technologies. For more information, please visitwww.ZoundsHearing.com.

SOURCE Zounds, Inc.
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