HEARING COOPERATIVE creating sound valueTM RESEARCH CENTRE

Annual Report 2008/09

Established and supported THE ING under the Australian Government's Cooperative Research Centres Program CRC 2 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 for hearinghealthcare. together withimproved clinical tools andprocedures to meetprojected increases indemand The consortium willalsocreate opportunitiesfor industry growth inhearinghealthcare ≥ ≥ The Objectives ofTheHEARingCooperative Research Centre are: Objectives dedicated to thecommon purpose of‘ of research, clinical andindustry organisations together aninternationally uniqueconsortium The HearingCooperative Research Centre brings from hearingloss in children andadults. and better remediate thelost productivity resulting value’ through research andeducation –to prevent creating Mission 1 FRONT COVER: Imagescourtesy ofNationalAcoustic Laboratories; GettyImages;Murdoch Childrens Research Institute.

disorders are treated through improved technology, processes orclinical services. of hearingloss andincrease theeffectiveness withwhichhearingloss andhearing Through education andcommercialisation ofresearch findings, to reduce theincidence mitigation; and of sustained, user-driven cooperative research into hearingloss prevention and To enhance Australia’s industrial, commercial andeconomic growth through aprogram MISSION ANDOBJECTIVES soundvalue creating sound sound ><

CONTENTS

1: MISSION AND OBJECTIVES IFC

2: EXECUTIVE SUMMARY 4 ≥ Chairman’s Report 4

ANNUAL REPORT ≥ CEO Summary 5 ≥ Aims in perspective 7 ≥ Highlights of the year 7

3: GOVERNANCE AND MANAGEMENT 8 ≥ Corporate entities 8 ≥ Governance structure 9 ≥ Board of Directors 10 ≥ Executive Management Team & Project Leaders 12

4: RESEARCH ACTIVITIES AND ACHIEVEMENTS 14 ≥ Research collaboration 14 ≥ Research programs R1-R4 15-19

5: COMMERCIALISATION 20 ≥ Commercialisation program C1 20 ≥ IP Management and commercialisation 21

6: EDUCATION AND TRAINING 23 ≥ Postgraduate education 23 ≥ Professional education 25

7: COMMUNICATION 28 ≥ Communicating our research 28 ≥ HEARnet 28 ≥ 2008/09 activities of note 29

8: GLOSSARY 31

9: PUBLICATIONS 32

10: FINANCIAL REPORT 37

creating sound valueTM 3 4 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 2 communication. of thosewhouse telephone and computers asameans of cochlear implants andhearingaids,to hearingprotection strategies that willbevaluable bothto thenext generation of have successfully patented anumberofsound processing technologies we have beendeveloping them;inparticularwe valuable research tool inAustralia. As well as utilisingnew auditory stimulation equipment,facilitating access to this imaging facility atMacquarieUniversity withcustom designed the establishment ofanew magnetoencephalographic (MEG) quality for hearingaidusers. We have beeninvolved alsowith patent for technology thatwillimprove own-voice sound forward looking geneticresearch Program andaprovisional hearing-loss associated genes have been identifiedwithinour during thissecond year ofactivity. To cite two instances: novel Our research Programs have achieved significant advances able to joinusto celebrate thisimportant occasion. Board. ManyofourMembers andresearchers were also University ofMelbourneaswell asby theHEARingCRC cochlear implant),andbydistinguished guests from The Prof Graeme ClarkAC (pioneeroftheNucleus multichannel The launchevent, heldinthenew building,wasattended by engineering research. the Executive Managementteam andalsooursoundcoding / the HEARingCRCcan grow anddevelop; currently ithouses building provides anexcellent work-environment inwhich audio-visual equipmentfor teaching andresearch. The specification engineering facilities and state-of-the-art that contains thelargest soundboothinAustralia, high is anew $3.5millioncustom-designed refurbishment shared withtheUniversity’s DepartmentofOtolaryngology, Audiology, HearingandSpeechSciences building.Thefacility, headquarters, situated inTheUniversity ofMelbourne’s event whichalsomarked theformal openingofournew Science andResearch. Itwasapleasure to speak atthis the Honourable KimCarr,Minister for Innovation, Industry, The HEARingCRCwasofficially launchedinMaybySenator ongoing interest andsupport. time, aswell asourcore andsupportMembers for their fellow Board members for theirdiligentwork duringthis consolidate duringitssecond year ofoperation. Ithankmy It hasbeengratifying to see theorganisation grow and Centre (CRC)duringtheperiodJuly 2008to June2009. the progress oftheHEARingCooperative Research On behalfoftheBoard, Iampleased to report on EXECUTIVE SUMMARY REPORT CHAIRMAN’S

Chairman Chairman Mr Richard SearbyAO QC for whathasbeenastimulating andproductive year. Executive Managementteam, researchers, staff andstudents gratitude andcongratulations to theHEARingCRCMembers, I commend thisreport to you andextend theBoard’s establishment ofavery capable Executive Managementteam. his exceptional commitment to theHEARingCRC andfor his pleasure to record ourgratitude to A/Prof RobertCowan for Lightowlers, MrLorensz SennandMrs LisaNorden. Itisa position ofCompanySecretary duringthisperiod,MsJenni myself, Ithankthethree persons whosuccessively heldthe and valuable advice. OnbehalfoftheBoard aswell asfor Kathryn Greiner): they have provided guidance, oversight Appointments (chaired byMsAntheaGreen andthenMs Audit (chaired byMrBarryRoberts)andNominations and I particularly thankthetwo Board Committees, Finance and November 2008. 2008. AndIwelcome MsKathrynGreiner whojoinedusin Ms AntheaGreen, whoresigned from theBoard inSeptember acknowledge thehard work andvaluable contribution of With regard to theBoard, Iwould like specially to appointments inthenearfuture. of theScience AdvisoryGroup andagainhopeto make independent candidates for theChairandmembership In addition,we have worked hard to identifysuitable, Directors andhopeto make two appointmentsshortly. a numberofcandidates to jointheBoard asIndependent HEARing CRCisnow almost complete. We have identified I note, withpleasure, thatthegovernance structure ofthe committed researchers currently withus. of researchers willreceive highqualitytraining from the internationally. Itisadvantageous thatthenext generation positions Australia attheforefront ofhearingresearch teams underpinsthesuccess oftheHEARingCRCand innovative andpainstaking work carried outbyourproject of PhDstudents involved inourResearch Programs. The During thisperiodwe have seenanincrease inthenumber

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CEO SUMMARY

The HEARing CRC has grown and consolidated over In May 2009, Project Leaders gathered for an inaugural its second year of operations, leading to a number of Research Review, presenting recent achievements and significant developments in the organisation. ambitious plans for the future. The Review provided an ideal forum for researchers working across the HEARing CRC A major undertaking of the second year was the relocation of portfolio to develop and strengthen collaborative relationships. our headquarters and sound coding / engineering research This inspiring showcase also provided the opportunity for our facilities to new premises that we share with The University of Board to view the scope of research activity, to discuss progress Melbourne’s Department of Otolaryngology. These excellent and challenges and to fine-tune Program areas. In addition, our facilities support our research, professional education and Science Advisory Group will be set in motion early next year and management activities, and will significantly contribute to will to contribute to next year’s Review as well as our external increased productivity in the coming year. Third Year Review. This move also allowed us to relocate and refurbish laboratory space at the Royal Victorian Eye and Ear Hospital in East Considerable progress has been made in research projects Melbourne and I am extremely grateful for the strong during this year, resulting in a range of clinical applications of continuing support of this organisation. I would also like to new technology and identification of novel intellectual property extend my thanks to the University and once again to the Bionic (IP). For example, biomedical studies have contributed to the Ear Institute for our previous, long-standing, accommodation. development of a new cochlear implant electrode array for use by patients with significant levels of residual hearing; clinical Additional facilities have also been developed at Macquarie trials in the CRC have provided data for regulatory approval University, with the commissioning of the paediatric MEG in Australia and Europe. Speech coding studies aimed at imaging facility. This laboratory is already providing insights enhancing binaural listening (for hearing aids and cochlear into the neural processing involved in Central Auditory implants) have resulted in filing of two new international Processing Disorders in children. Construction of Cochlear patents. By extending an existing screening project, we have Ltd’s new headquarters building has also commenced at already identified and validated a number of new models of Macquarie University, and we were delighted to be advised of presbycusic and acquired hearing loss. Studies using these the successful funding application for the Macquarie University models (as well as existing models) have recently revealed Hearing Hub. These important developments underline the increasing awareness of the significance of hearing loss and novel genes involved in hearing loss. hearing research to the Australian community.

“Considerable progress has been made in research projects during this year, resulting in a range of clinical applications of new technology and identification of novel intellectual property”

continued on page 6.

creating sound valueTM 5 6 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 2 charity status to theHEARingCRC. by theAustralian Taxation Office to grant health-related A majordevelopment duringthisperiodwasthedecision HEAR, to increase ourresearch effort over coming years. earnings from theIPgenerated through predecessor CRC has enabled usto bringforward paymentofcommercial IP developed bytheprevious CRCHEAR).Inaddition,it in regards to themanagementandcommercialisation of of boththeHEARingCRCandHEARworks (inparticular enabled usto simplifythecorporate structure andactivities the Trustee for IPcreated bytheHEARingCRC.Thishas From acorporate perspective, we have created HEARipas our recently-updated website. we planto fully implement later next year onthebackof Work continues onthedevelopment ofthisresource which the translation ofresearch outcomes into clinical practice. Education andResearch Network (HEARnet)to enhance hearing loss andlast year announced thelaunchofHearing The HEARingCRCisdedicated to reducing theimpactof researchers. contribute to thetraining ofthenext generation ofclinical Master ofClinical Audiology students, enablingusto opportunities, aswell asshorter duration projects for the coming year, we planto offer additionalPhDresearch a numberofPhDstudents into ourresearch projects. In this reporting period.Over thepast year, we have recruited with theUniversity ofMelbourne hasalsoflourishedduring certificate course developed bytheHEARingCRC together In addition,theBiomedical Research Managers specialist world, aswell ashosting arange ofvisitingspecialists. Workshops for healthcare professionals from around the successfully deliver highqualityCochlear ImplantTraining Our Professional Education Program continues to EXECUTIVE SUMMARY

(cont)

Chief Executive Officer Associate Professor RobertCowan we would beunable to achieve ourgoals. participate inourresearch studies. Withouttheirhelp, gratitude to theadults,children andtheirfamilies who hearing loss. Inparticular,we owe specialthanksand more effective prevention andimproved remediation of significant progress inaddressing ourtwinchallenges of ongoing supportthroughout thisyear andlook forward to We would like to thankallofthosewhohave offered their of Melbourne). Coordinator, MrBrendan Murray (basedatTheUniversity the appointmentofourthird part-timeResearch Project In addition,research managementhasbenefitted from Trifon Chryssafis asourCommercial Operations Manager. as ourCommunications andEducation ManagerandMr Secretary. We are pleased to alsowelcome DrJaneSewell Lisa Norden asourChiefFinancialOfficer andCompany of MrLorensz Senn,theHEARingCRChasappointed Mrs the activityofHEARingCRC.Following theresignation Executive Managementteam to work withmeindriving expanded ahighly skilled, capable andenthusiastic During theyear, Iamdelighted to have successfully

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Aims in perspective

Hearing loss affects one in six Australians, with a total financial cost estimated to be around $23 billion per annum1. Through research and its utilisation, the HEARing CRC aims to reduce the impact of hearing loss by:

≥ maximising lifelong hearing retention; ≥ reducing loss of productivity due to hearing loss; ≥ increasing uptake and use of hearing technology; and ≥ providing postgraduate and professional education and training.

The activity of the HEARing CRC contributes to Australia’s National Research Priorities of Promoting and Maintaining Good Health.

Highlights of the year

During 2008/09, the HEARing CRC has worked ≥ development of a functional model of the cochlear towards reducing the impact of hearing implant environment to test totally implantable loss and promoting hearing health through devices; integrated Research, Commercialisation and ≥ commissioning of the adult and paediatric Education Programs. Highlights of this activity magnetoencephalographic imaging laboratory at have included: Macquarie University; and

≥ Australian TGA approval and commercial release by ≥ delivery of an increased number of Cochlear Implant Cochlear Ltd of Hybrid-L electrode array for adult Training Workshops to meet demand. patients with significant residual hearing;

≥ finalising negotiations regarding license of the In addition, corporate and business highlights trainable hearing aid technology to Siemens Hearing during this period have included: Instruments Pty Ltd; ≥ official launch by Senator the Hon. Kim Carr; ≥ patenting of a new binaural signal processing scheme ≥ relocation to new headquarters; for cochlear implants and hearing aids; ≥ finalisation of Board, Committee and corporate ≥ production of prototype Mark I Muffler hearing structure; protection device for field testing; ≥ recruitment of additional members to the Executive ≥ establishment and validation of models of presbycusic Management team; and acquired hearing loss; ≥ granting of health-related charity status by the ≥ identification of novel hearing loss associated genes; Australian Tax Office; and ≥ preliminary testing of active occlusion reduction in ≥ accelerated availability of revenue from intellectual hearing aids to improve own-voice sound quality; property to fund HEARing CRC research activity.

1 Listen Hear! The Economic Impact and Cost of Hearing Loss in Australia, Access Economics, 2006.

creating sound valueTM 7 8 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09

3 Company detail and licensing /commercial agent. HEARip isanew entitycreated to actasTrustee for theHEARingCRCIP(Trust 2),enablingadivisionofroles ofIPTrustee CRC HEARIPTrust (Trust 1). predecessor CRCHEARfor thesepurposesandcontinues to actasTrustee andasthelicensing /commercial agentofthe HEARworks managestheintellectual property (IP)andcommercial activityoftheHEARingCRC.Itwasestablished bythe specific expertise andinfrastructure to ourResearch, Commercialisation andEducation Programs. The HEARingCRCisamultidisciplinarycollaboration offive core and21supportingMembers, eachofwhich contributes Corporate entities

HEARWORKS. PTY. LTD. Support Members Core Members Acoustics PtyLtd GOVERNANCE ANDMANAGEMENT HEARING CRCLTD HEAR IPPTYLTD Neur T innitus ACN 123522725 ACN 134 173 854 ACN 089900676 o Tr monics eatment

acting asTrustee for IPcreated bytheHEARingCRCin future incorporated inNovember 2008asatrustee company, wascreated for thepurposesof HEARing CRCLtdanditsMembers research outcomes; HEARworks operates underaManagementDeedand Trust Deedwiththe Members, for thepurposesofactingasTrustee for IPandundertaking commercialisation of incorporated inOctober 1999 asaproprietary company limited byshares, created bythe activities oftheHEARingCRCaccording to the Members Agreement incorporated inJanuary2009asacompany limited byguarantee, established to manage the d i r b y h c i n o r t c e l e s

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Governance structure

The HEARing CRC Board of Directors is accountable to the Commonwealth, Australian Securities and Investments Commission and the Members for all governance, oversight of management and corporate activities. It meets quarterly and is responsible for setting strategic goals and objectives, and overseeing performance (including the commercialisation activities managed through HEARworks).

The Board of Directors comprises of: 2: Nominations and Appointments (N&A) Committee – makes recommendations on the ≥ an independent Chairman; appointment and remuneration of directors to ≥ two independent Directors the Boards of the HEARing CRC and HEARworks; (to be appointed in 2009/10); assists in the appointment of a Chairman, or CEO, and in making recommendations on remuneration. ≥ a nominated Director from each of the five core Meetings during reporting period: two. members; and 3: Science Advisory Group – will be established in ≥ the Chief Executive Officer. 2009/10 to include key scientists from across the Members, together with independent scientists with Details of Board Members are provided over the page. expertise in the relevant disciplines of biomedicine, bioengineering and clinical practice. This group will Four committees support the Board: assist with the annual Research Review, special reviews to be conducted under the CRC Program, 1: Finance and Audit (F&A) Committee - provides as well as being available to advise the Board. oversight of the financial operations and affairs of 4: Support members Group - will be established in the Company, oversees the relationship with the 2009/10 to provide a forum and opportunity for the external auditor, and the process of identification and Support Members to meet with and discuss progress management of business, commercial and financial directly with the Board and Executive Management risks. Meetings during reporting period: three. team. It is intended that the Support Members’ Group will meet at least once per year.

Board and committee membership

HEARING CRC HEARWORKS F&A COMMITTEE N&A COMMITTEE BOARD OF DIRECTORS BOARD OF DIRECTORS

Richard Searby Chair Ex officio Ex officio Chair AO, QC, MA (Oxon), Hon LLD (Deakin)

Robert Cowan CEO In attendance In attendance Member BSc (Hons), MBA, PhD(Melb), FAudSA (CCP)

Robin Evans Nominee Director: Member BE, PhD (Newcastle) The University of Melbourne

Kathryn Greiner* Nominee Director: Chair Member AO, B Soc Work Australian Hearing Services

Neville Mitchell Nominee Director: Member BComm, CA(SA), CA Cochlear Ltd

Jim Piper Nominee Director: BSc (Hons), PhD (Otago) Macquarie University

Barry Roberts Nominee Director: Chair Member Member FCPA, FCIS Siemens Hearing Alternate: Mr Dominic Jenkins Instruments Pty Ltd

* Appointed November 2008; Replacement for nominee Director, Ms Anthea Green, resigned September 2008. creating sound valueTM 9 10 10 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 ≥ the law. the programs ofmajorcultural institutions, business and in 2006for hisservices to education, asacontributor to from 1977-1997.Hewasawarded theOrder ofAustralia Chairman from 1981-1991,andaDirector ofRioTinto Ltd a Director ofNews Corporation from 1979-1992and 2005. Amongst along list ofcorporate activities, hewas He wasChancellor ofDeakinUniversity from 1997through drafted amendmentsto Australian andVictorian legislation. the Australian Government onvarious occasions and has Australian andinternational corporations. Hehasadvised profession, andhasheldawiderange ofdirectorships of Ltd inApril2007.Heisaleading memberofAustralia’s legal Mr Searbywasappointed asChairmanoftheHEARingCRC Independent Chairperson AO, QC,MA(Oxon), HonLLD(Deakin) Richard Searby 3 and international technology patents andtrademarks. biomedical management,andholdsanumberof Australian fields ofaudiology, cochlear implants,sensorydevice and University ofMelbourne,haspublishedextensively inthe HEAR. A/Prof Cowan isaPrincipal Research Fellow inThe of HEARworks in2001.HewasCEOoftheprevious CRC HEARing CRCLtdinJanuary2007andManagingDirector A/Prof Cowan wasappointed astheinaugural CEOofthe Director andChiefExecutive Officer BSc (Hons),MBA,PhD(Melb),FAudSA (CCP) Robert Cowan

Committee. Audit Committee andNominationsAppointments Mr Searbyisanex officiomemberoftheFinance and GOVERNANCE ANDMANAGEMENT

≥ Institution ofEngineers Australia. of Electrical andElectronic Engineers USA,andthe of Technological Sciences andEngineering,theInstitution Australian Academy ofScience, theAustralian Academy 450 peer-reviewed publications and isaFellow ofthe extensively withindustry throughout hiscareer, hasover Processing atTheUniversity ofMelbourne.Hehasworked Research Centre for SensorSignalandInformation Engineering andResearch Leaderfor theCooperative University ofNewcastle before becoming HeadofElectrical Rob wasaProfessor ofComputer EngineeringatThe Electrical EngineeringatTheUniversity ofMelbourne. Laboratory, NationalICT Australia, andaProfessor of Prof Evans istheDirector oftheVictoria Research Nominee Director: TheUniversity ofMelbourne BE, PhD(Newcastle) Robin Evans Oration (2007). Lecture award (2006)andtheLibbyHarrick’s Memorial Service Award (2003)andtheDenisByrneMemorial award ofAudiology Australia’s President’s Distinguished contributions to audiology have beenrecognised through Professional oftheYear byProfessions Australia, andhis a Federal Councillor. In2004hewasselected asAustralian Australia from 1992-1996andfrom 1997-2000,andremains from 2002-2005.A/Prof Cowan wasPresident ofAudiology Chair oftheCooperative Research Centres Association and commercialisation ofresearch andserved asDeputy A/Prof Cowan hasextensive experience inthemanagement

Committee. Prof Evans isamemberoftheFinance andAudit

(cont) (during reporting period) Board ofDirectors

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From left: Richard Searby, Robert Cowan, Robin Evans, Kathryn Greiner, Neville Mitchell, Jim Piper, Barry Roberts

Kathryn Greiner Jim Piper

AO, B Soc Work BSc (Hons), PhD (Otago) Nominee Director: Australian Hearing Services Nominee Director: Macquarie University

Ms Kathryn Greiner was appointed as a Director of the Prof Jim Piper was appointed as a Director of the Hearing HEARing CRC Ltd in November 2008 as a replacement CRC Ltd in April 2007. He is currently Deputy Vice Chancellor for nominee Director, Ms Anthea Green, who resigned (Research) and Professor of Physics at Macquarie University. September 2008. Prof Piper has extensive expertise and experience gained over 30 years of research in lasers, optics and photonics, Kathryn has been Chair and Non-Executive Director and applications in micro fabrication. He has received an of Australian Hearing Services since October 2006. Honorary Doctorate from Heriot-Watt University in 2006, a Her professional career has involved administering Centenary Professorship from Carnegie Trust Universities of early childhood services and mental health programs, Scotland (2004), the Australian Optical Society Medal (1997), both in Australia and the United States. She has extensive The Walter Boas Medal of the Australian Institute of Physics experience in the development of communities and (1984) and the Pawsley Medal of the Australian Academy of their services. Ms Greiner has held many corporate Science (1982). Prof Piper has published widely in the field of and not-for-profit directorships, including the Salvation dye laser design. Army Sydney Shield Appeal, Save the Children Fund, LEK Consulting, International Council of the Asia Society and the Sydney Peace Prize Foundation. Barry Roberts

≥ Ms Greiner was appointed to the Nominations and FCPA, FCIS Appointments Committee in November 2008. Nominee Director: Siemens Hearing Instruments Pty Ltd

Mr Barry Roberts was appointed as a Director of the HEARing Neville Mitchell CRC Ltd in April 2007. Mr Roberts has been Chairman of BComm, CA(SA), CA Siemens Hearing Instruments Pty Ltd since 1994, having first joined the Board in 1988. He joined Siemens Australia Nominee Director: Cochlear Ltd in 1960, and was Finance Director, CFO and Deputy CEO of the Australian and New Zealand Group between 1985 and Mr Neville Mitchell was appointed as a Director of the 2002. Mr Roberts has over 40 years experience in budgeting, HEARing CRC Ltd in April 2007. He has been Chief Financial financial management and control, corporate governance, Officer and Company Secretary of Cochlear Ltd since its project management and administration. Mr Roberts is former listing in 1995 and was Cochlear Ltd’s Financial Controller Chairman of JAS-ANZ and Vice President of the Australian since joining the company in 1990. Mr Mitchell was formerly Electrical and Electronics Manufacturers Association. a Senior Manager with KPMG in Johannesburg, South Africa. ≥ Mr Roberts is Chair of the Finance and Audit Committee, ≥ Mr Mitchell was appointed to the Finance and Audit and a member of the Nominations and Appointments Committee in November 2008. Committee.

Alternate Director for Siemens Hearing Instruments Pty Ltd: Mr Dominic Jenkins.

creating sound valueTM 11 12 12 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09

≥ ≥ ≥ A/Prof RobertCowan and Director: Chief Executive Officer (CEO) 3 ≥ Mrs LisaNorden and CompanySecretary: Chief FinancialOfficer ≥ Ms AmandaCampbell Executive Assistant:

Project Coordinators. as required bytheCommonwealth, Board, CEO and and operational activities.Preparation ofallreports Responsibilities: Coordinating financial, statutory Management team. and broad supportto theactivitiesofExecutive Responsibilities: Direct supportto theCEOandBoard, and managementPrograms. ofCentre Research, Education, Commercialisation Board ofDirectors for theimplementation andconduct leadership to theHEARingCRC;responsible to the Responsibilities: Institute ofCompanyDirectors Course Diploma. Corporate Governance Graduate Diploma andAustralian Practicing Accountant, Chartered Secretaries Australia working withCRCs.Herqualifications includeCertified profit organisations. Shehasspentthe last seven years years offinancial experience inindustry andnot-for- Background: assistant roles. years, Amandahasfocused onPersonal /Executive years ofexperience inadministration. Over thelast five Psychology andMarket Research andhasover eight Background: GOVERNANCE ANDMANAGEMENT Appointed during2008/09,Lisahas20 Amanda holdsatertiary qualification in Providing scientificandacademic

≥ ≥ Mr Trifon Chryssafis Commercial Operations Manager: ≥ ≥ Dr JaneSewell and Education Manager: Communication

administration ofIPandcommercial registers. Responsibilities: IPmanagementstrategy and the CRCinrealising itscommercialisation objectives. Australia, Trifon hasawealth ofknowledge to assist numerous projects inEurope, South-East Asiaand telecommunications industry. Havingworked on experience from theinformation technology and over 17years ofcommercial andriskmanagement Background: and Professional Education Program. strategies; managingtheHEARingCRCPostgraduate Responsibilities: External andinternal communication translation ofclinical cancer research into practice. for theVictorian State Government, focused onthe resources andmore recently as theProgram Manager on thedevelopment ofscientificandclinical multimedia Communicator andover thelast five years has worked She switched careers to become aScience post-doctoral role inthefieldofMolecular Oncology. out asaresearch scientist, completing aPhDand Background: Executive ManagementTeam

(cont) Appointed during2008/09,Trifon brings Appointed during2008/09,Janestarted (during reporting period)

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From left: Robert Cowan, Amanda Campbell, Lisa Norden, Trifon Chryssafis, Jane Sewell, Pam Jackson, Dominic Lou, Brendan Murray

Research Project Project Leaders Coordinators: Project Leaders are responsible for the achievement of the aims and milestones of Responsible for coordinating their HEARing CRC Project. activities and reporting of projects, the research coordinators help PROJECT LEADER MEMBER PROJECT NUMBER to ensure effective working A/Prof Rob Briggs The University of Melbourne R3.2.2 relationships across projects, Dr Rachel Burt Walter and Eliza Hall Institute of R1.2.2 within Programs, and between Medical Research research and education activities. Dr Sharon Cameron Australian Hearing Services R1.1.2 A/Prof Teresa Ching Australian Hearing Services R4.6.2, R4.6.5, R4.6.6 Dr Dominic Lou Dr Silvana Corkovic The University of Melbourne R3.2.1 (Sydney): A/Prof Henrik Dahl Murdoch Childrens Research Institute R1.2.1 Dominic is an educator, an Dr Shani Dettman The University of Melbourne R4.2.2 experienced e-learning instructional A/Prof Harvey Dillon Australian Hearing Services R4.6.3, C3.1.1 designer, developer and project Ms Dimity Dornan Hear and Say Centre R4.2.2 manager - having worked with a Prof Richard Dowell The University of Melbourne R4.6.1 range of educational organisations. Dr Michael Fisher Australian Hearing Services R3.6.1, R3.6.2, R3.6.4, R3.6.5 His research interest is in utilising Mr Mark Harrison The University of Melbourne R3.6.3 technology to augment teaching, Prof Louise Hickson The University of Queensland R4.1.1, R4.5.3 research and learning. Dominic Prof Doug Hilton Walter and Eliza Hall Institute of R1.2.2 is based at Macquarie University. Medical Research Dr Gitte Keidser Australian Hearing Services R4.3.1, R4.3.4, R4.6.7 Ms Pam Jackson A/Prof Greg Leigh Royal Institute for Deaf and Blind Children R4.5.2 (Sydney): Mr Teck Loi Cochlear Ltd C3.1.1, C3.1.3 Dr Robert Mannell Macquarie University R2.3.3 Pam has tertiary qualifications in Business and Book Editing Dr Catherine McMahon Macquarie University R1.3, R4.5.1, R4.6.4, R4.7.2 and Publishing, with many years Dr Jorge Meija Australian Hearing Services R2.2.1, C2.1 administrative experience across a Dr Pauline Nott Advisory Council for Children with R4.2.3 range of industries. Pam is based Impaired Hearing at Australian Hearing Services, Prof Stephen O’Leary The University of Melbourne R2.5,R4.4.2 National Acoustic Laboratories. A/Prof Jim Patrick Cochlear Ltd R3.5 Ms Kerrie Plant Cochlear Ltd C1.1 Mr Brendan Murray Ms Emma Rushbrooke Hear and Say Centre R4.5.3 (Melbourne): A/Prof Peter Seligman Cochlear Ltd R2.0, R3.3.1 Dr Mridula Sharma Macquarie University R1.1.3 Appointed during 2008/09, Brendan Dr Michael Tykocinski The University of Melbourne R3.1 is an Audiologist with nearly 15 Dr Andrew Vandali The University of Melbourne R2.3.1 years experience in the cochlear implant field. He has worked Dr Richard vanHoesel The University of Melbourne R2.2.2 both in a clinical and business Dr Warwick Williams Australian Hearing Services R4.1.3 management capacity and recently Dr Andy Zhang The University of Melbourne R3.3.2 joined The University of Melbourne. Mr Dan Zhou Australian Hearing Services R4.3.3

creatingcreating soundsound valuevalueTMTM 1313 14 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 4 and publication. communicated to thefieldthrough conference presentation has eitherbeenusedto file new patents orbeenwidely applications andidentification ofnew IP. Details ofthis work numerous projects have resulted intechnology for clinical projects are still intheearly data gatheringphase,however been successful inachieving key milestones. Manyofthe has beenmadeduringyear two andtheHEARingCRChas Despite delaysexperienced inyear one,significant progress Project Leaders. research activityandto discuss progress andchallenges with opportunity for theBoard ofDirectors to view thescope of collaborative relationships. Thismeeting alsoprovided the understanding ofactivity,aswell asto developing closer working across theHEARingCRCportfolio to gainabroader The Review provided anidealforum for researchers findings andfuture plansattheannualResearch Review. In May2009,Project Leaders presented theirlatest research remediation ofhearingloss. in eithertechnological orclinical benefitsinprevention or new knowledge andensuringthatthisknowledge results www.hearingcrc.org. Ouractivityisfocused ondeveloping Projects, fulldetails ofthesecan befound our website at Each Program ismadeupofbetween three andseven Commercialisation Program. the Clinical Trials andProduct Development into four Programs, theseare supported by The HEARingCRC’s research activityisarranged RESEARCH ACTIVITIES ANDACHIEVEMENTS ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ ≥ research collaborations, theseinclude: The HEARingCRCmaintains anumberofinternational capacity, capability andinfrastructure. this collaborative approach maximises projects usually involve multiple Members, Commercialisation Program, individual Within thefour Research andone Research collaboration International research collaboration members can offer intellectual inputinto ongoingactivity. projects ontrack andto ensure thatalloftheproject team regular research meetings.Meetingsare usedto keep CRC usesitsResearch Project Coordinators to facilitate maintain inthissegregated environment andtheHEARing separated groups. Collaboration can bechallenging to R1.1.2 andR1.1.3)others includegeographically subprojects (for example R1.1iscomposed ofR1.1.1, A numberofHEARingCRCprojects are madeupof

United States ofAmerica Washington University SchoolofMedicine(StLouis): of America The University ofWisconsin (Madison):United States The University ofWestern Ontario: Canada Canada The University ofToronto, SickChildren’s Hospital: The University ofManchester: United Kingdom of America The University ofCalifornia (Irvine):United States The University ofAuckland:New Zealand The ChineseUniversity ofHongKong:Kong of America New York University Medical Centre: United States Medizinische Hochschule Hannover: Germany The inaugral HEARing CRC CRC HEARing inaugral The Research Review, May 2009 May Review, Research

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RESEARCH PROGRAM R1: Biomolecular, Genetic and Physiological Solutions

Collaborating Members:

≥ Australian Hearing Services ≥ Murdoch Childrens Research Institute ≥ The University of Melbourne ≥ Bionic Ear Institute ≥ MuriGen Pty Ltd ≥ The University of Queensland ≥ Macquarie University ≥ Neuromonics Inc. ≥ Walter and Eliza Hall Institute of Medical Research

Objectives: Progress:

The Biomolecular, Genetic and Physiological Solutions During 2008/09, work in this first area continued to focus Program combines two core elements: on the establishment of models of presbycusic and acquired hearing loss. A number of novel models have been identified 1: design and development of genetic and biomolecular through a large scale ENU screening process and literature diagnostics, and pharmacological solutions, that address searches – screening and validation will continue for a age related (presbycusic) and acquired hearing loss; and significant period yet. 2: investigation of central auditory processing disorders (CAPD) and tinnitus using magnetoencephalographic The new models have already revealed mutations in both (MEG) imaging. novel and known deafness genes. The genes identified through this process will be the focus of future research The first area is designed to lead to better understanding in these projects, to better understand the inheritance of presbycusic and acquired hearing loss. Initial activity is patterns and risk factors associated with hearing loss. focused on identification of susceptible individuals or those In addition, physiological investigations are also being most ‘at risk’ of developing these types of hearing loss. This undertaken to better understand the in vivo processes and work will potentially lead to a later phase that will design pathways involved. These projects are progressing well, a commercial diagnostic tool to identify individuals most at although there have been some delays with the recruitment risk. Related research in this area is aimed at identifying of individuals with hearing loss that will be used to confirm molecules that may be targeted pharmacologically for the the relevance of genetic changes identified in model prevention or treatment of hearing loss. systems, within a relevant human cohort. The second area of Program R1 primarily focuses on using The adult MEG lab was fully established during 2008/09 MEG imaging to record nervous activity in the brain resulting at Macquarie University, and the world’s only paediatric from acoustic stimulus. The MEG will be used to compare MEG was commissioned. In addition, through HEARing CRC transmission and processing of acoustic information in work at the National Acoustic Laboratories, an auditory the central auditory processing pathways of individuals with normal hearing and those with different types of testing setup was developed for use in this MEG facility. hearing loss. This information will be used to identify new All necessary ethics approvals were granted for the approaches to prevention, diagnosis and management of research work involving this facility. Projects are broadly CAPD and tinnitus in children and adults. It may also provide on track, however the period for subject recruitment for new understanding of how to best code temporal aspects the tinnitus project has been extended to enable of speech. Associated projects use different approaches to appropriate numbers to be enrolled. also consider improved means of diagnosing and managing CAPD to reduce its lifelong effects.

creating sound valueTM 15 16 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 4 Collaborating Members: Intelligent SoundProcessing RESEARCH PROGRAM ≥ ≥ ≥ ≥ RESEARCH ACTIVITIES ANDACHIEVEMENTS Macquarie University Cochlear Ltd Bionic EarInstitute Australian HearingServices productivity losses associated withhearingloss. implants andhearingprotectors to helpreduce the communication for users ofhearingaids,cochlear provide improved hearingprotection andenhanced both. Successful realisation ofthisProgram will improve performance for individualswhoreceive sound (for example from cochlear implants)to acoustic sound(‘normalhearing’)andelectrical This Program alsoaddresses thedualinputof of tonal languagesfor users. ears (binaural hearing)andto enhance perception background noise,thecapacity to hearwithboth in thisarea aimto increase soundintelligibility in intelligent hearingprotection. Theresearch projects performance ofhearingaids,cochlear implantsand and communication engineeringto improve the sound processing andsignalcoding withelectronics The Intelligent SoundProcessing Program unites Objectives:

R2 :

≥ ≥ ≥ ≥ improving future market share ofhearingdevices. software beingusedandhave implications for The outcomes ofthiswork have validated thenew novel speechprocessing simulator software. different pitch processing strategies andtrialling hearing andimpaired individualsusing comparing perception ofMandarintone innormal Early experiments have alsobeencompleted both hearingaidandcochlear implantsystems. This processing schemeisbeing investigated for hearing inbackground noiseorlocating sounds. maintaining localisation cuesthatare important for intelligibility inreal acoustic environments while also This schemeimproves speechperception and processing schemesubmitted for patenting. binaural sound processing withanovel signal Notable progress hasbeenmadeinthearea of Progress: The University ofMelbourne Sydney Cochlear ImplantClinic Siemens HearingInstruments PtyLtd Royal Victorian Eye andEarHospital (cont)

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RESEARCH PROGRAM R3: Integrated Bioengineering

Collaborating Members:

≥ Acoustics Pty Ltd ≥ Hybrid Electronics Pty Ltd ≥ Sydney Cochlear Implant Clinic ≥ Australian Hearing Services ≥ Royal Victorian Eye and Ear Hospital ≥ The University of Melbourne ≥ Bionic Ear Institute ≥ Siemens Hearing Instruments ≥ The University of Sydney ≥ Cochlear Ltd Pty Ltd ≥ University of Wollongong

Objectives: Research into fully implantable hearing enhancement has led to the development of a functional model of the The Integrated Bioengineering Program investigates novel implant environment, including internal microphone surgical techniques, bioengineering and biomaterials that parameters. This innovation will facilitate future research offer opportunities to develop new technologies that will in this developing field. Further work has modelled enhance function of cochlear implants, hearing aids and existing hearing aid microphones, providing data that hearing protection. will enable noise performance to be predicted for any proposed microphone in the implantable (or indeed any This Program is also focused on new approaches and other) environment. capabilities for improved Bone Anchored Hearing Aids and middle ear implants. The overarching aim of the The design concept for an inner ear sensor has recently Program is to enhance function and communication, as been completed and a number of sensor models have well as enable active hearing protection. been constructed for surgical insertion studies with temporal bones. This has necessitated development of Progress: novel fabrication methods. Implantation of miniature acoustic sensors in the middle or inner ear have the A main focus of activity has been aimed at new cochlear benefit of picking up vibrations of the ossicular chain or implant electrode designs. Studies have progressed the pressure waves in the cochlea, utilising the natural well with a number of new designs passing through filtering function of the outer ear and the acoustic temporal bone and insertion biosafety studies, moving amplification of the middle ear, which are normal in a on to first-time in human, and subsequent clinical trials majority of the cochlear implant users, but are bypassed through the HEARing CRC. This has resulted in Australian in current cochlear implant systems. TGA and European regulatory approval and commercial Improvements in comfort, safety and intelligibility of release of the Hybrid-L electrode array by Cochlear Ltd hearing devices and protection have been addressed for use in patients with more residual hearing. In addition, through the Speech Referenced Limiting (SRL) scheme the HEARing CRC is collaborating internationally on the which is now patented internationally. This scheme has development of a new implant electrode array designed been implemented in a Windows Vista version within the to maximise hearing preservation. In association with personal computer environment to protect listeners of this are novel approaches to surgical insertion, and new computer delivered speech from uncontrolled speech designs of receiver-stimulator packages that will reduce sounds. In addition, the Mark I Muffler active noise control surgical drilling. earmuff design has moved into the prototyping stage and initial field testing will be undertaken early in 2009/10.

creating sound valueTM 17 18 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 4 ≥ ≥ ≥ ≥ ≥ Collaborating Members: Clinical Tools, Services andTechniques RESEARCH PROGRAM RESEARCH ACTIVITIES ANDACHIEVEMENTS Australian HearingServices Audiology Australia Attune HearingPtyLtd with impaired Hearing Advisory Councilfor Children Acoustics PtyLtd device fitting, for example through: significant advances towards new approaches to A group ofprojects withinthisProgram are making research identifyingbarriers to device uptake anduse. expansion ofmarkets, particularly whencoupled with development for industry partners, to enable rapid Improved hearing aid fittingwillbeanimportant Progress: uptake andusage. cochlear implants)withtheaimofmaximising hearing protection, hearingaids,orreferral/use of understand thebarriers to device use(asappliedto surgeons andotherprofessionals, andto better more efficientprofessional training ofaudiologists, work willbeundertaken to address theneedfor and novel approaches to device-training. Inaddition, processes tools for implantingorfittingnew devices of new clinical applications, improved surgical Research isfocused onthedesignanddevelopment clinical efficiencies. people withhearingloss, as well asproviding greater lifecycle managementto advance outcomes for is aimedatimproving andindividualisinghearing The Clinical Tools, Services andTechniques Program Objectives:

≥ ≥ ≥ ≥ ≥ Hospital Royal Victorian Eye andEar Blind Children Royal Institute for Deafand Macquarie University Hear andSayCentre Cochlear Ltd R4

:

Commonwealth Office ofHearingServices; have beenextended withadditionalfundingfrom the noise exposure andattitudestowards noiseexposure uptake ofhearingdevices. Investigations into levels of hearing loss can alsobeusedto improve access to and Better understanding ofbehaviours associated with this medium. trend towards purchase ofhearingdevices through increased internet activity,for example thegrowing placed to benefitfrom the worldwide trend towards the internet willensure thattheHEARingCRCiswell rural areas. Projects focusing onsuchexploitation of and willultimately beimplemented inregional and larger distances withwideragegroups during2009/10 The University ofQueensland.Thiswillbetested over has recently beenachieved through aproject basedat hearing device. Remote mappingofcochlear implants and someofthistechnology isrelevant to bothtypesof Similar challenges exist for cochlear implantusers ≥ ≥ ≥ to adjust according to personal preferences. trainable hearingaidsthatare ‘taught’ bytheuser applications; and remote fitting,potentially through internet-based assessment (as well as for research device testing); world, acoustic environments for audiological realistic reproduction ofthree-dimensional, real

≥ ≥ ≥ ≥ ≥ ≥ Victorian DeafSociety The University ofSydney The University ofMelbourne The Shepherd Centre Sydney Cochlear ImplantClinic Pty Ltd Siemens HearingInstruments (cont) continued on page 19 page on continued

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early findings from this Project will be reported early Clinically focused research has shown that directional in 2009/10. In a differently focused, longitudinal study microphone use is valuable for children with hearing based in the Blue Mountains, hearing, vision and general loss from six months onwards. Australian Hearing health information has been recorded since 1992/3 for Services have already amended their practice guidelines more than 3,500 individuals over the age of 50. The 15 in light of this evidence, where previously they were only year hearing data set has recently been completed for available for children from the age of five upwards. As analysis and will provide further insight into risk factors part of a large, longitudinal study of children with hearing associated with hearing loss. Finally, Telescreen is a impairments (the LOCHI study, involving 475 individuals, freely available hearing test service that is available over currently between the ages of three and seven) – early a telephone line, this has been developed by the National results in speech, language, psychosocial and educational Acoustic Laboratories in conjunction with Australian outcomes all indicate the importance of cochlear Hearing Services. Although Telescreen is being well used implantation for children less than 12 months of age. by the community, one of the HEARing CRC Projects has This supports existing data and has clear implications identified that only a limited number of individuals follow for guidelines in the future. up with a healthcare professional when a hearing loss is identified; this has implications for screening processes that are now being investigated.

creating sound valueTM 19 20 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 5 ≥ ≥ ≥ ≥ Collaborating Members: Clinical trialsandproduct development COMMERCIALISATION PROGRAM COMMERCIALISATION Royal Victorian Eye andEarHospital Cochlear Ltd Australian HearingServices Attune HearingLtdPty ≥ ≥ subjects during2008/09,theseinclude: procedures have beentested onsmallgroups of sound coding strategies, electrode arrays andsurgical A numberofnew cochlear implantsoundprocessors, Progress: first step inthe commercialisation process. or multi-centre feasibility andclinical trialsasthe approaches andproducts to betested through single Program enables theefficacy ofnovel HEARingCRC The Clinical Trials andProduct Development Objectives: future implantcandidature; in patientswithmore residual hearing, widening release ofCochlear Ltd’s Hybrid-L electrode array European regulatory approval for commercial Outcomes have resulted inAustralian TGA and in noise,andmusical andsoundqualityratings. improved localisation ability,speechperception levels ofresidual hearingthathave demonstrated studies ofcochlear implantpatientswithsignificant implants; latest generation CI500SeriesNucleus cochlear technique for implantation ofCochlear Ltd’s surgical studies to establish themost appropriate

(cont)

approval to market intheUSA. Electronics Inc.andisinreview atthe FDA for evaluation, itisunderdevelopment withFrye aided cortical assessments andcortical threshold software. Thisinstrument can beusedto perform commercialisation ofHEARLabhardware and A related setofprojects addressed the hearing devices. quality, anapproach aimedatimproving wearability of active occlusion reduction to improve own-voice sound Hearing aidstudies were commenced to investigate ≥ ≥ ≥ ≥ ≥ ≥ reduces surgical drilling. development ofreceiver-stimulator packagethat cochlear to improve implantperformance; and improved electrode array positioninginthe subjects. Thisarray hasbeendesignedto facilitate Research Array hasbeenimplanted inseven research groups, anew cochlear implantModiolar in collaboration withanumberofinternational The University ofSydney The University ofMelbourne Sydney Cochlear ImplantClinic Siemens HearingInstruments PtyLtd C1 :

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implant technology and Siemens Hearing Instruments Pty IP management and Ltd for technological innovations in the field of hearing aids. commercialisation This mechanism ensures that clear lines of commercial interest are acknowledged as soon as novel IP is identified. All HEARing CRC research projects include an It also facilitates the development of commercial products identified commercialisation / utilisation strategy with enhanced performance, new function, or improved process for manufacture for our industry Members. that is updated annually. HEARing CRC innovations are also distributed through direct This anticipates commercialisation through industry Members sales and licensing by HEARworks, this may be in partnership directly involved as project participants, or through uptake and with Members or through the involvement of third parties. use championed by clinical and professional Members. Revenue from commercialisation is distributed to Members Non-commercial IP with project beneficial interests and a proportion is reinvested directly in HEARing CRC research activities. During 2008/09, Some of the HEARing CRC IP is optimally managed through $3.5 million net revenue from predecessor CRC HEAR IP was transfer of knowledge and implementation of findings rather distributed in this way. than via commercial routes, for example:

≥ promoting practical improvements to clinical procedures Commercial IP that provide savings in terms of clinical time and cost efficiencies, via: HEARworks manages the IP and commercial activity of the HEARing CRC. To ensure appropriate protection and to > national and international conferences maximise commercialisation of research outcomes, HEARworks works closely with its industry Members. Wherever possible, > peer-reviewed publications licensing involves Australian companies or small to medium > internet based communications sized enterprises, however, this is balanced with the need for worldwide marketing of technology. > Australian Hearing’s clinical services

The commercialisation process begins with Project Leaders who > Audiology Australia’s Continuing Professional prepare and submit invention disclosure information quarterly. Development Program The commercial potential of each new invention is assessed and an appropriate strategy devised, often with input from patent ≥ providing professional training to surgeons and clinicians firms and legal counsel. through our Cochlear Implant Training Workshop and Visiting Implant Specialist to Australia Program (this Under the terms of the HEARing CRC Member’s Agreement, a has the additional benefit of facilitating the development number of Members have been assigned first rights in specific and expansion of markets for hearing technology and fields of interest, for example Cochlear Ltd for new cochlear clinical practice).

creating sound valueTM 21 22 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 Existing licensing activitiesofHEARworks during2008/09 expected to finaliseandbesignedinthe coming months. Whilst nonew license arrangements were concluded inthe2008/09year, HEARworks isnegotiatingseveral licenses whichare Licenses Patents taken outbyHEARworks andHEARipduring2008/09 Two new patents were addedto theportfolio duringthereporting period,taking thetotal to sixinAustralia and23overseas. Patents 5 has beenassigned to HEARworks. of Microphones. Microphones PtyLtdhasnotactively traded since 2007/08anditisnow intheprocess ofbeingwound up;IP Established in2001,Microphones PtyLtdholdsIPdeveloped bytheprevious CRCHEAR.HEARworks holds100%oftheequity Spin-off companies 2009903730 Sound Protection TECHNOLOGY 2009900365 APPLICATION NUMBER COMMERCIALISATION System andmethodfor aspatially tuneable direction ofarrival estimator Advanced envelope encoded tone soundprocessor andsystem TITLE Polaris LICENSEE (cont) $246,000 VALUE APPLICANT HEARip HEARworks 6 EDUCATION AND TRAINING ><

The HEARing CRC’s Postgraduate and Professional This approach endeavours to improve our graduate Education Programs aim to deliver industry-ready researchers’ awareness of the needs of industry in applied graduates and increased clinical capacity for research, thereby enhancing employment opportunities. In addition, the HEARing CRC is involved in various industry Australia’s hearing healthcare industry. based activities that promote the benefits of graduate intake. The HEARing CRC is also involved in some public education activities, with a strong presence at the Australian Science Collaborating Members: Festival’s Amazing World of Science in May 2009 and also an involvement in National Science Week and National ≥ Australian Hearing Services Hearing Week. ≥ Macquarie University ≥ The University of Melbourne ≥ The University of Queensland Postgraduate education ≥ The University of Sydney The Postgraduate Education Program aims to ≥ University of Wollongong enhance the postgraduate learning experience in order to deliver industry-ready graduates through: During the 2008/09 reporting period there were 12 PhD students and two MPhil/MClinAud students in total. Of these, ≥ active involvement of supervisors and lecturers from non- three PhD students and one MClinAud student was newly university CRC partners; and recruited. ≥ introducing students to non-traditional subject areas such During 2008/09, two PhD students graduated. All HEARing CRC as IP and project management. students and their status are detailed in the table on page 24.

Brett Swanson graduating from the University of Melbourne

creating sound valueTM 23 24 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 Postgraduate StudentsStatus 6

E13

E11

E9 E6

4.6.4 4.6.4

4.4.2

4.2.2 4.2.2

4.2.2 2.3.3 NUMBER 1.1.3 NUMBER PROJECT 4.5.3 PROJECT NUMBER PROJECT 2.3.1

EDUCATION ANDTRAINING

Andy Zhang

Brett Swans

George Raicevich Jorge Meija Gardiner-Berry Kirsty Karen Bate

Christopher Wong

Coleen Holt Jamie Leigh

Rebecca Summons Wang Shuo NAME NAME Isabelle Boisvert NAME PiaGyldenkaerne EmmaRushbrooke

ton

Melbourne

Melbourne

Swinburne Sydney

Sydney Macquarie

Sydney

Melbourne Melbourne

Macquarie Macquarie

Macquarie Queensland UNIVERSITY

UNIVERSITY UNIVERSITY

Macquarie

Part

Part

Part Part

Full Part

Full

Full Part

Full Full

F/P TIME Full Part Full F/P TIME F/P TIME

(cont) FUNDING FUNDING MCLINAUD Macquarie University HearandSayCentre

support CRC HEARstaff (Cochlear Ltd) support Acoustic Laboratories) CRC HEARstaff support (National CRC HEARstaff Acoustic Laboratories) support (National CRC HEARstaff Laboratories National Acoustic Macquarie University and HEARingCRC Memorial Foundations Rodney Williams Garnett Passe and Melbourne The University of Melbourne The University of

Macquarie University Macquarie University and HEARingCRC FUNDING Excellence Scheme Macquarie Research MPHIL PHD

M Sharma LHickson,BHenry SUPERVISOR(S) SUPERVISOR(S)

A Klein, RCowan P Seligman, J Patrick H McDermott, P Blamey, R Cowan

P Seligman,AKlein, S Carlile, HDillon

S Carlile H Dillon, SPurdy, C McMahon I Curthoys, AJones S O’Leary, J Fletcher, RDowell S Dettman, S Dettman R Dowell, J McGregor C McMahon, RMannell SUPERVISOR(S) B Lyxell

C McMahon, 07/08 07/08 Completed 08/09

Completed 08/09 Completed In progress

In progress In progress (new 08/09) In progress (new 08/09) In progress In progress In progress

In progress (new 08/09) STATUS In progress STATUS STATUS In progress In progress (new 08/09)

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Professional education

The HEARing CRC Professional Education Program delivers innovative professional programs and courses for hearing healthcare professionals from Australia, Asia Pacific and world-wide.

These activities help to ensure uptake of new, more efficient technology and clinical practices in the fields of cochlear implants and hearing aids.

Collaborating Members:

≥ Audiology Australia ≥ Bionic Ear Institute ≥ Cochlear Ltd ≥ The Royal Victoria Eye and Ear Hospital ≥ The University of Melbourne

Professional Education activities include:

International Cochlear Implant Training Workshops:

The HEARing CRC continues to conduct four-day Cochlear Implant Training Workshops for surgeons and clinicians from Australia and Asia Pacific regions. The Program is an effective means of helping to develop the necessary infrastructure in Asia Pacific for better uptake of cochlear implant and hearing aid technology.

Four Workshops were held during the reporting period:

AUGUST 2008 OCTOBER 2008 NOVEMBER 2008 APRIL 2009

Paediatric Workshop: General Workshop: General Workshop: General Workshop: (Surgeons only) ≥ 31 attendees ≥ 38 attendees ≥ 28 attendees ≥ 8 countries ≥ 6 countries ≥ 12 attendees ≥ 5 countries ≥ 3 countries

Workshop descriptions are detailed on page 26.

A/Prof Rob Briggs supervising Surgical sessions during a Cochlear Implant Training Workshop

creating sound valueTM 25 26 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 6 EDUCATION ANDTRAINING and medical managementissues withexperienced surgeons. three. ThisProgram includesatemporal boneworkshop, plustutorial-format discussion ofsurgical technique The optionaltemporal bone/surgical Workshop for surgeons runsinconcurrent sessions over daystwo and cochlear implantsurgery) andanextensive reference manual are provided. implant users. Aseriesofcomprehensive audiovisual presentations (includinginteractive videolinkto alive and new directions inresearch. TheWorkshop includesprogramming tutorials providing direct experience with system hardware andfunction,programming, medical/surgical considerations, habilitation, outcomes evaluation Individual sessions cover history ofthedevelopment andunderpinningresearch, candidature, cochlear implant The Workshop isconducted through amixofformats includinglectures, smallgroup discussions andtutorials. ≥ ≥ ≥ with adults,attendees include: Cochlear ImplantTraining Workshops are for surgeons, cliniciansandotherhealthcare professionals working General Cochlear ImplantTraining Workshop: and smallworkgroup tutorials. Sessions provide opportunitiesfor direct observation ofclinical practice, comprehensive audio-visualinstruction, for different agegroups ofchildren. range ofdevelopmental agesandlinguistic skill.Inaddition,specialsessions address educational management evaluation techniques for assessing speechperception, speechproduction andlanguageinchildren withawide units, paediatricmappingtechniques, medical/surgical issues inchildren, techniques inpaediatrichabilitation, paediatric candidature, preoperative hearingaidoptimisation,device issues inchildren includinguseofRF The Workshop covers allspecialisedissues relevant to cochlear implantmanagementinchildren including: with children. involved inthemanagementofimplanted children, orthosewishingto embarkoncochlear implantprograms Paediatric Cochlear ImplantTraining Workshops are for experienced cliniciansandeducators actively Paediatric Cochlear ImplantTraining Workshop:

of hardware andspeechprocessing. experienced clinicianswishingto review procedures andmanagementtechniques /update theirknowledge surgeons orcliniciansembarkingonnew cochlear implantprograms withadultpatients;and management; researchers andprofessionals seekingto gainageneralised knowledge ofcochlear implanttechnology and “The presenters were all very experienced and hadgood knowledge of “Surgical option was very good…live surgery was wonderful. “Excellent presentations and invaluable information” Feedback from attendees oftheApril2009 Cochlear ImplantTraining Workshop the subject, all gave goodpresentations” (cont)

I’ve learnt so much!”

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Specialist Certificate in Clinical Research: be an effective biomedical research manager – covering areas that research managers must be conversant with, and make With A/Prof Robert Cowan as the coordinator, the HEARing decisions about, in order to develop sound biomedical research CRC has continued to support The University of Melbourne’s project plans and budgets. The course also tackles proactive Specialist Certificate in Clinical Research (Biomedical Research management and communication of projects where uncertainty Management), offered through Melbourne Consulting and is ‘the norm’. Course assessment is built around demonstrating Custom Programs. the ability to apply skills learned to a real work based project.

The course is run once a year, in two four-day blocks, open to In late 2008, 12 people attended this course and feedback was all attendees. It is aimed at developing the skills required to very positive.

“I wish I had done this earlier in my career! It has given me the theory to support my research management experience and a greater appreciation of research management as a profession that is critical to the research value chain. This course will give immediate return on investment as the learnings can be applied directly in the workplace. Every research manager should do this course.”

Anne O’Neill Associate Director, Medical Research NSW Office for Science and Medical Research

Audiology Australia – Continuing In addition, the HEARing CRC and The University of Melbourne Professional Development (CPD) are also involved in Cochlear based: ≥ presentation on surgical themes; and Various HEARing CRC Members and individual Project Leaders contribute to Audiology Australia’s CPD events and ≥ supervising cochlear implant surgeries in India and China. are involved in activities that are endorsed through their established CPD Program. These activities, in association with the Cochlear Implant Training Workshops, assist with the development of Cochlear Ltd’s market in both Australia and the Asia-Pacific region, Visiting Implant Specialists to Australia helping to maintain and expand their world position. (VISTA)

The VISTA Program is run in conjunction with Cochlear Ltd Sponsorship and provides the opportunity for Ear, Nose and Throat (ENT) surgeons from around the world to be presented with updated The HEARing CRC provided sponsorship for the: information regarding research and development in the field of ≥ Third International Electromaterials Science Symposium, cochlear implants. The Program also encourages the exchange titled “Advanced Materials for Energy Storage and of ideas and strategies during a week long tour in Sydney and Generation” in Wollongong, Australia; and Melbourne. ≥ Inaugural Conference on Medical Bionics in Lorne, Australia. In late 2008, 32 ENT surgeons attended this program and feedback was very positive. Investment in such events supports knowledge transfer in the field as well as providing valuable opportunity to networking, building collaborations and career development.

creating sound valueTM 27 28 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 and Membercommunications. conferences andninereleases to the publicthrough industry 51 papers andposters presented atacademic andindustry to 35ofthisreport. Itincludes23peer-reviewed articles, the reporting period,afulllisting isprovided onpages32 The HEARingCRChasbeenactive intheseareas during ≥ ≥ ≥ ≥ ≥ ≥ strategy, thisoccurs primarily through: element oftheHEARingCRCcommunication research findingsandotheractivitiesisavital Dissemination ofinformation relating to our 7 ≥ Communicating ourresearch industry, government, consumers andthepublic. of hearingprotection andisfostering appropriate linkswith The HEARingCRChasmore recently moved into thefield relationships ensures meaningfulexchange ofinformation. aids. Extending theselinksto ourcollaborative research professionals inthefieldsof cochlear implantsandhearing links withsurgeons, cliniciansandotherhealthcare activities, theHEARingCRChasdeveloped andnurtured Through bothourcommunication andoureducation the public. researchers, clinicians, consumers and through research istransferred to other It isessential thattheknowledge we generate achievement ofHEARingCRCoutcomes. Communication isfundamental to the

Week andScience Week. involvement inpublicactivities, suchas,NationalHearing application for prominent awards/prizes; and sponsorship of pertinentconferences; comment; local, nationalandinternational mediacoverage and publication inindustry newsletters andmagazines; conference proceedings; publication ofpeer-reviewed journalarticles and at Australian andinternational scientificmeetings; conference presentations andinvited keynote addresses COMMUNICATION

≥ ≥ ≥ HEARnet willaspire to: ensure theappropriate realisation ofthisresource. A smallworking group iscurrently beingassembled to resource to beestablished inthecoming year. website willprovide theplatform for this during the2007/08year. The new HEARingCRC Education andResearch Network (HEARnet) The HEARingCRClaunchedthe HEARnet Members during thisperiod. discussing HEARingCRCfindings were produced by 52 Technical Reports,research reports andspecialpapers ≥ ≥ relationships withMembers, for example: stakeholder groups ismadepossible viaourclose working Communication with, andknowledge transfer to, discrete

develop linkages. provide anew mechanismfor theHEARing CRCto their families managinghearing loss; and clinical practice for the benefitofadults,children and enhance thetranslation ofresearch outcomes into healthcare measure; concept of‘daily noisedose’asamajorpreventive of noiseinduced hearingloss andintroduce the improve theknowledge ofthecommunity to therisks rehabilitation technology andservices. reach cliniciansworking withend-users ofhearing association ofaudiologists). Thesecommunications services and through Audiology Australia (the professional disseminated through Australian Hearing’s clinical outcomes ofhearingaidandclinical activitiesare widely address product related issues; and Reports are produced for training purposesandto and marketing staff withinCochlear Ltd.TheseTechnical are distributed to clinical specialists, product managers results ofclinical studies inrelation to cochlear implants

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2008/09 activities of note

NOVEMBER 2008 FEBRUARY 2009 APRIL 2009

The HEARing CRC The University of Wollongong, Intelligent Polymer Research The HEARing CRC sponsored the Institute hosted the 3rd International Electromaterials Executive Management Sir Mark Oliphant Science Symposium, titled “Advanced Materials for Energy team and sound coding Inaugural Conference Storage and Generation”. The HEARing CRC contributed / engineering research of Medical Bionics to to the success of the symposium by sponsoring key note activity relocated support a specialist speaker, A/Prof Mario Romero-Ortega (The University of from East Melbourne conference in Texas at Arlington, USA) who described his most recent to The University of Australia and also work on the use of growth factors to guide sensory nerves. Melbourne’s new to raise awareness Audiology, Hearing of the HEARing CRC and Speech Sciences and its activity within building at 550 this community. Swanston Street, Carlton. Prof Gordon Wallace and A/Prof Mario Romero-Ortega

MAY 2009

The HEARing CRC was officially launched by Senator the Hon. Kim Carr, Minister for Innovation, Industry, Science and Research on 21st May. The launch was held in conjunction with the official opening of The University of Melbourne’s new Audiology, Hearing and Speech Sciences building, the new home of the Department of Otolaryngology.

The Senator was joined by HEARing CRC Chairman Mr Richard Searby, and Prof Sue Elliott, Pro Vice-Chancellor (Teaching, Learning and Equity) from The University of Melbourne. Prof Graeme Clark, pioneer of the cochlear implant, inaugural Chair of the Department of Otolaryngology and the Director of the original CRC for Cochlear Implant, Speech and Hearing Research was also invited to reflect on developments.

Senator the Hon. Kim Carr, A/Prof Robert Cowan and Naomi Baulch with implant twins, Ben and Lochie Prof Richard Dowell meeting Prof Graeme Clark

continued on page 30

creating sound valueTM 29 30 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 7 2008/09 activitiesofnote COMMUNICATION and commercial breakthroughs. detailing theircontribution to academic, clinical about theirambitiousprograms, thenandnow, CRC were fundedin1991,andbothCEOswrote to thecurrent HEARingCRCandalsotheVision published to celebrate 18years. Predecessors legacy newsletter, “Success through Innovation”, to theCooperative Research Centre Program’s The HEARingCRCwasdelighted to contribute to Australian HearingService’s telephone basedhearingtest. animation ofhow acochlear implantworks aswell asaccess featured hearingprotectors for testing, areal time,interactive The stand wasvisited bysomeofthe12,000attendees and with bothschoolgroups andmembers ofthepublicalike. four-day The HEARingCRCstand attheAustralian Science Festival’s JUNE 2009 MAY 2009(cont) Dr Jane Sewell at the Australian Science Festival Science Australian the at Sewell Jane Dr Amazing World of Science Science of World Amazing (cont) proved very popular Success Success issue of of issue 18th Birthday Birthday 18th Innovation Through Through (cont)

appear onNetworks Ten’s 9amwithDavidandKim. announcement, A/Prof GaryRance wasinvited to from the1st January2011.Inresponse to this newborn screening for allAustralian babies commitment from States andTerritories to deliver the Commonwealth Government would seek a Prime Minister Kevin Ruddannounced that colleagues atTheUniversity ofMelbourne. new approach was being pioneered by Gary and time thesubjectwasjust sixweeks oldandthe Auditory Steady State Response testing. At that person to be diagnosed with a hearing loss using A/Prof Rance wasinterviewed withthefirst A/Prof Gary Rance on 9am with David and Kim and David with 9am on Rance Gary A/Prof

The HEARing CRC Research Review Research CRC HEARing The an informal conference dinner. future plans,they alsogathered for present recent achievements and CRC two-day Research Review to Project Leaders attended theHEARing

8 GLOSSARY OF TERMS ><

ACN Australian Company Number

AO Officer of the Order of Australia

ASX Australian Securities Exchange

CAPD Central Auditory Processing Disorders

CEO Chief Executive Officer

CFO Chief Financial Officer

CPD Continuing Professional Development

CRC Cooperative Research Centre

CT Computed Tomography

DEST Department of Education, Science and Training

Di-EL Diary of Early Learning

ENT Ear, Nose and Throat

ENU N-ethyl-N-nitrosourea

GDP Gross Domestic Product

F&A Committee Finance and Audit Committee

FAL Francis Abourizk Lightowlers

FDA Food and Drug Administration (USA)

HEARnet Hearing Education and Research Network

IP Intellectual Property

LOCHI Longitudinal Outcomes of Children with Hearing Impairment

MEG Magnetoencephalographic imager

MClinAud Masters of Clinical Audiology

MPhil Maters of Philosophy

MRA Modiolar Research Array

N&A Committee Nominations and Appointments Committee

PhD Doctor of Philosophy

QC Queens Counsel

SRL Speech Referenced Limiting

TGA Therapeutic Goods Administration

VISTA Visiting Implant Specialists to Australia

creating sound valueTM 31 32 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 2: 3: 5: 4: 9: 7: 8: 1: (published) Peer reviewed journalarticles 9 6: impairment. study on longitudinal outcomes of children with hearing hearing with children of outcomes longitudinal on study Ching TYC, Dillon H,DayJ,Crowe K(2009). New ZealandJournalofAudiology, 30(2):91-98. with cochlear implants: Interim findings of the NAL NAL the of findings Interim implants: cochlear with K, HopkinsT(2009). Ching TYC, Dillon H,DayJ,Crowe K,Close L,Chisholm l’Audition, 22:22-31. environmentally adaptive hearing aids. hearing adaptive environmentally at 6 months after hearing aid fitting. aid hearing after months 6 at hearing loss in Auditory-Verbal Therapy programs. programs. Therapy Auditory-Verbal in loss hearing E, Psarros C(2009). Ching TYC, Massie R,van Wanrooy, Rushbrooke Ching TYC, Hill M,Dillon H(2008). 1):28-32. A, Patrick J,Pesch J(2009). Lenarz T,Stover T,BuechhnerA,Lesinski-Schiedat 124(3):1668-1681. development of early and later-identified children children later-identified and early of development Keidser G(2009). with children for Communicative Disorders Review, 2(3&4),157-172. outcomes language and Speech loss. loss. 2009;14(suppl 1):22-31. aid gain. gain. aid Keidser G,Dillon H,Convery E(2008). 62(1): 26-32. determining probe tube insertion depth. insertion tube probe determining performance of children with severe or profound hearing hearing profound or severe with children of performance Ching TYC, Britton L(2008). implantation? the base line response on self-adjustments of hearing hearing of self-adjustments on response line base the Surgery Using the Hybrid-L Electrode. Hybrid-L the Using Surgery coupler differences measured by an acoustic method for for method acoustic an by measured differences coupler hearing-aid frequency response on real-life functional functional real-life on response frequency hearing-aid Dornan, D,Hickson,L,Murdoch, B,Houston, T(2008). 10 (Suppl1):23-27. PUBLICATIONS International JournalofAudiology, 47(8):461-475. Journal oftheAcoustical SocietyofAmerica Cochlear ImplantsInternational, 10(Suppl Cochlear ImplantsInternational, Many factors are involved in optimizing optimizing in involved are factors Many Bimodal fitting or bilateral bilateral or fitting Bimodal Early language outcomes of children children of outcomes language Early Repeatability of real-ear-to- of Repeatability Hearing Conservation Conservation Hearing Effect of variations in in variations of Effect LesCahiers de The effect of of effect The AudiolNeurotol Hearing Journal HearingJournal Australian and Language Language

11: 15: 17: 19: 14: 18: 12: 16: 13: 10: development. development. Purdy SC,Gardner-Berry K(2009). of America, 124(1): 235-240. and Place of Stimulation. Stimulation. of Place and to wear hearing protectors for extended periods? periods? extended for protectors hearing wear to van Hoesel,RJM (2008). 10(4)557-67. Microfocus fluoroscopy – a great tool for electrode electrode for tool great a – fluoroscopy Microfocus Zealand. industry? industry? Rate, Modulation Rate, Pulse of Effects Users: Implant Williams, W(2009). 10 Suppl1:115-9. R (2009). Xu J,BriggsR,Tykocinski M,Newcold C,RisiF,Cowan Vol 24(4):299-307. clinical applications in children. in applications clinical van Hoesel,RJM, Jones,GL,Litovsky, RY(2009). 33 -44. Epidemiology of Noise-induced Hearing Loss in New New in Loss Hearing Noise-induced of Epidemiology Occupational Noise Management – What’s happening in in happening What’s – Management Noise Occupational Williams, W,Kyaw-Mynt, SM,Crea, J,Hogan,A(2008). Ergonomics (JOSE),Vol 15(2):175-181. International JournalofOccupational Safety and Cochlear Bilateral in Sensitivity Time-Delay Interaural W, Purdy SC,DoddG,Wallaart J(2008). Thorne PR,Ameratunga SN,Stewart J,ReidN,Williams and HearingDisorders inChildhood,19(1):14-21. potentials and cochlear implants: research findings and and findings research implants: cochlear and potentials and normal hearing. normal and of noise-induced hearing loss in New Zealand. Zealand. New in loss hearing noise-induced of van Hoesel,RJM (2008). Soc.Am, 124(6),3861-3872. hearing protectors. hearing Williams, W,Purdy, SC,Dodd,G,Wallaart, J(2008). Thorne, PR,Ameratunga, SN,Stewart, J,Reid,N, Zealand Medical Journal, 121(1280):33-44. implants, improved interaural time-delay sensitivity, sensitivity, time-delay interaural improved implants, users. implant cochlear bilateral in cues timing Mejia J,Dillon H,FisherM(2008). of occlusion: an electronic vent for hearing aids and and aids hearing for vent electronic an occlusion: of New ZealandMedical Journal,Vol 121(1280): Seeing Electrode Movement in the Cochlear: Cochlear: the in Movement Electrode Seeing Journal ofOccupational Health,Australia –NZ, Cochlear ImplantsInternational 2009; Is it reasonable to expect individuals individuals expect to reasonable it Is JournaloftheAcoustical Society PNAS,105:E51. Binaural jitter with cochlear cochlear with jitter Binaural and level of weighting Observer J Assoc ResOtolaryngol, Perspectives onHearing Active cancellation cancellation Active Auditory evoked evoked Auditory Epidemiology Epidemiology New New J.Acoust.

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Conference proceedings 7: Ching TYC. Evaluation of amplification for young children; electrophysiological and functional methods. Symposium (published) for Educators of the deaf, Shanghai, February 2009.

1: Ching TYC, Dillon H, Day J, Crowe K (2008). The NAL study 8: Ching TYC. Factors affecting speech intelligibility of hearing on longitudinal outcomes of hearing-impaired children: impaired listeners: implications for amplification.Phonak interim findings on language of early and later-identified Virtual conference, On-line, May 2009. children at 6 months after hearing aid fitting. In: Seewald R & Bamford J ( eds). A Sound Foundation Through Early 9: Ching TYC. Fitting and evaluating a hearing aid with a Amplification 2007. Proceedings of the Fourth International cochlear implant for children. 4th NUH-NUS Otolaryngology Conference: Switzerland: Phonak AG pp 185-199. Head & Neck Surgery Conference, Singapore, October 2008.

2: Golding M, Dillon H, Seymour J, Carter L (2008). The 10: Ching TYC. Functional assessments for infants and children. application of cortical auditory evoked potential (CAEP) 4th NUH-NUS Otolaryngology Head & Neck Surgery recordings in infant hearing aid fitting.Proceedings of Conference, Singapore, October 2008. the 53rd EUHA International Congress of Hearing Aid Acousticians, Leipzig. 11: Ching TYC. Improving outcomes of children with hearing aids and cochlear impants. Clinico Seminar, Taiwan, 3: Keidser G, Dillon H, Katsch R, Ching T (2008). The July 2008. NAL-NL2 prescription procedure. Proceedings of the 53rd EUHA International Congress of Hearing Aid 12: Ching TYC. Improving outcomes of hearing prostheses: Acousticians, Leipzig. children and adults. WA Audiological Society of Australia State Conference, Perth, November 2008. 4: Mejia J (2008). Electronic venting for hearing aids. Proceedings of the 53rd EUHA International Congress of 13: Ching TYC. Monitoring outcomes of hearing impaired Hearing Aid Acousticians, 15-17 October 2008, Leipzig. children. Symposium for Educators of the deaf, Shanghai, February 2009.

14: Ching TYC. New technology options for paediatric Conference presentations amplification. 4th NUH-NUS Otolaryngology Head & Neck Surgery Conference, Singapore, October 2008. 1: Burt RA, et al. A genome-wide ENU mutagenesis screen for resistance to environmentally induced hearing loss 15: Ching TYC. Outcomes of children with hearing impairment: and presbycusis. 7th Gene Mappers Conference 2009, an update of the LOCHI study. Itinerant Teachers of the Katoomba, Australia, June 2009. Deaf Conference, RIDBC, Sydney, October 2008.

2: Ching TYC. Assessing hearing and prescribing amplification 16: Ching TYC. Outcomes of children with hearing impairment: for young children. Symposium for Educators of the deaf, a population based prospective study comparing early and Shanghai, February 2009. later-identified children. NHS Newborn Hearing Screening Annual Conference 2009: Achieving Better Outcomes, 3: Ching TYC. Binaural hearing and bimodal fitting. Symposium London, March 2009. for Educators of the deaf, Shanghai, February 2009. 17: Ching TYC. Research on developmental outcomes of 4: Ching TYC. Comparing NAL and DSL prescriptions for children with hearing loss. 4th NUH-NUS Otolaryngology children. Symposium for Educators of the deaf, Shanghai, Head & Neck Surgery Conference, Singapore, October 2008. February 2009. 18: Ching TYC, Crowe K, Day J, Mahler-Thompson N, Cornick 5: Ching TYC. Comparing NAL with DSL for children. 4th S. Children’s outcomes at 3 years and parental reflections NUH-NUS Otolaryngology Head & Neck Surgery on early intervention. 5th Australasian Newborn Hearing Conference, Singapore, October 2008. Screening Conference, Adelaide, May 2009. 6: Ching TYC. Electrophysiological evaluations of hearing 19: Ching TYC, Leigh G, Gardner-Berry K. UNHS in Australia: aids in infants. 4th NUH-NUS Otolaryngology Head & Neck loss to follow up. NHS Newborn Hearing Screening Annual Surgery Conference, Singapore, October 2008. Conference 2009: Achieving Better Outcomes, London, March 2009.

creating sound valueTM 33 34 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 28: 22: 27: 26: 21: 24: 25: 23: 20: 6 Trotter M,BriggsR. Dettman S,Sadeghi-BarzalighiA,AmbettR,Dowell R, USA, June2009. Cochlear ImplantsinChildren, Seattle, Washington, technologies to clinical applications. applications. clinical to technologies with hearing impairment. hearing with Cowan R,NottP,etal. Congress, Tenerife, Spain,June 2009. European Federation ofAudiological Societies (EFAS) loss: Interim results from the LOCHI study. study. LOCHI the from results Interim loss: Dettman S,FisherZ,Dowell R. Conference, Adelaide,May2009. A, &Woodhill I. K, HopkinsT,Rousseau I,NailandL,Zavos G,Jagger Street L,CornickS,CookC,Orsini J,Close L,Chisholm Day J,ChingT,Crowe K,MartinV,Mahler-Thompson N, Pathology Australia Conference, Adelaide,May2009. The language acquisition of children with hearing hearing with children of acquisition language The and normally hearing siblings. hearing normally and Cowan R,BriggsPlantK,etal. Tenerife, Spain,June2009. Federation ofAudiological Societies(EFAS) Congress, combination of electric and acoustic hearing. acoustic and electric of combination hearing. acoustic and electric of combination implantable cochlear implant research device. device. research implant cochlear implantable with cochlear and/or vestibular abnormality. abnormality. vestibular and/or cochlear with Cowan R,PlantK,Briggsetal. Congress, Tenerife, Spain,June2009. European Federation ofAudiological Societies(EFAS) Washington, USA,June2009. Symposium onCochlear ImplantsinChildren, Seattle, Crowe K,ChingT,MartinV,DayJ,Mahler N. Implantation, Warsaw, Poland, May2009. 9th European SymposiumonPaediatric Cochlear Cowan R,PlantK,Briggsetal. (EFAS) Congress, Tenerife, Spain,June2009. The 9thEuropean Federation ofAudiological Societies Cowan R. utterance to children with profound hearing loss loss hearing profound with children to utterance and music perception abilities in subjects using a a using subjects in abilities perception music and a using subjects in abilities perception music and and initial clinical experience with a prototype totally totally prototype a with experience clinical initial and language (Di-EL) in monitoring language development development language monitoring in (Di-EL) language in infants using cochlear implants and hearing aids. hearing and implants cochlear using infants in PUBLICATIONS Issues in translating new materials and and materials new translating in Issues Phonological analysis of children children of analysis Phonological Cochlear implants in 48 children children 48 in implants Cochlear Application of the diary of early early of diary the of Application Speech Pathology Australia 12th Symposium on 12thSymposiumon Maternal length of of length Maternal Spatial hearing hearing Spatial hearing Spatial Design considerations considerations Design (cont) The 9thEuropean Speech Speech 12th 12th The The

The 9th The 9th The 9th The 9th

38: 37: 30: 33: 39: 40: 31: 34: 36: 35: 32: 29: NAL-NL1. NAL-NL1. diminish speech understanding? speech diminish development. development. Keidser G,Dillon H. 32nd AnnualConference, Christchurch, July 2008. Keidser G. July 2008. 32nd AnnualConference, Christchurch, New Zealand, background, derivation, and how it differs from from differs it how and derivation, background, children. amplification. children’s evaluating responses. cortical evoked using loss hearing does How aids: hearing for procedure performance of advanced hearing devices. devices. hearing advanced of performance devices. hearing advanced of performance Dillon H. March 2009. Adult Aural Rehabilitation Conference, Tampa, Florida, Gardner-Berry K. Alexandria, Egypt,April2009. impairment: interim research findings on language language on findings research interim impairment: Societies Congress, Tenerife, June2009. Keidser G,Dillon H,KatschR,ChingT. Longitudinal outcomes of children with hearing hearing with children of outcomes Longitudinal symetrical between left and right ears. ears. right and left between symetrical Mahler-Thompson N,ChingTYC, Crowe K,DayJ. October 2008. of HearingAidAcousticians, Leipzig, Germany, Dillon H. International Congress, Alexandria, Egypt,April2009. Keidser G. Biennial Symposium,RiodeJanerio,Brazil, June2009. Keidser G. May 2009. Collegium ofRehabilitative Audiology, Stadland-Seefeld, Keidser G. Stadland-Seefeld, May2009. Collegium ofRehabilitative Audiology Conference, Dillon H. Solutions, Brighton, UK,November 2008. European Conference onPediatric Amplification auditory evoked potentials (CAEPs) and is the response response the is and (CAEPs) potentials evoked auditory prescription procedure. procedure. prescription Dillon H. measured in babies with normal hearing using cortical cortical using hearing normal with babies in measured The27thAlexandria International Congress, Prescription of hearing aids for adults and and adults for aids hearing of Prescription and prescribing in developments New infants in effectiveness aid hearing Evaluating prescription NAL-NL2 the of Derivation Audiology-Online Webinar, May2009. The evidence behind NAL-NL2. behind evidence The NAL-NL2. behind evidence The real-life the evaluate to procedures test New real-life the evaluate to procedures test New European Federation ofAudiological Can a gap detection response be be response detection gap a Can The NAL-NL2 prescription; prescription; NAL-NL2 The 53rd International Congress TheFifthInternational The 27thAlexandria The3rd Phonak The NAL-NL2 NAL-NL2 The The 21st IERASG the NZAS theNZAS NZAS International International

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41: Mahler-Thompson N, Ching TYC, Dillon H, Crowe K, Other Day J. Longitudinal Outcomes of Children with Hearing Impairment: Interim research findings on speech and 1: Williams, W (2008). Hearing protector testing and individual language development. Northern Exposure: Healthy variability. Acoustics Australia, Vol 36(2): 60 - 62. Hearing Symposium, Townsville, August 2008. 2: Williams, W (2008). Life-time leisure noise exposure – 42: Martin V, Ching T, Crowe K, Mahler N. Relating speech Is it time to look at the bigger picture? Acoustics Australia, and language scores: Preliminary results from the Vol 36(2): 64 - 65. LOCHI study. Speech Pathology Australia Conference, Adelaide, May 2009. 3: Williams, W (2009). How significant is leisure noise exposure over the life-cycle? Audiology Now (Professional Issues), 43: Mejia J, Fisher M, Dillon H. Acoustically transparent Issue 35. hearing aids: an electronic vent for hearing aids. International Hearing Aid Research Conference, IHCON 4: Williams, W, Burgess, M (2009). The Combination of 2008, Lake Tahoe, USA, August 2008. Workplace and Leisure Noise Exposure. Acoustics Bulletin Vol 34(2) March/April (adapted from Acoustics Australia 44: Nott P, Cowan R, et al. Managament of infants receiving 2007 35(3)). cochlear implants through the Di-EL diary of early language. The 9th European Symposium on Paediatric Cochlear Implantation, Warsaw, Poland, May 2009. 5: Noisy Research. R&D Review, June 2009. 45: Nott P, Cowan R, Brown M, Wigglesworth G, Frank K. Monitoring Development of Language in Infants using 6: HEARing’s solutions for success. CRC Program newsletter, Cochlear Implants and Hearing Aids through use of a Autumn 2009. Di-EL® Diary of Early Language. 12th Symposium on Cochlear Implants in Children, Seattle, Washington, 7: HEARing CRC Launch. CRC Program newsletter, USA, June 2009. Winter 2009.

46: Raicevich G. MEG Piezo Acoustic System. ARC Human 8: The HEARing CRC. Australian Science Festival, Amazing Communication Sciences Network (HCSNet). HCSNet World of Science, Canberra, Australia, May 2009. Workshop on Neuroscience of Speech, Language, and Communication, Power House Museum, Sydney, 9: World leading facility opened for Australian hearing October 2008. research. HEARing CRC and The University of Melbourne joint media release, May 2009. 47: Stathopoulos D. Biocompatibility of Titanium and Platinum Stimulated in vivo. Medical Bionics: A New paradigm for Human health, Lorne, Australia, November 2009.

48: van Hoesel RJM. “Observer weighting of level and timing cues in bilateral ochlear implant users”, Conference on Implantable Auditory Prosthesis, Lake Tahoe, June 12-17, 2009 (invited presentation)

49: Jones G, Litovsky RY, van Hoesel RJM. “Relationship of Monaural and Binaural Channel Interaction Effects in Bilateral Cochlear Implant Users”, ARO mid winter meeting, Baltimore, Feb 14-19, 2009.

50: Williams W. Occupational noise exposure – making a difference, a workshop for practical thinkers. Annual Conference of the Australian Institute of Occupational Hygienists, Perth, November 29th to December 3rd, 2008.

51: Xu J, Stevenson, Cowan R. Comparrison of imaging plates and high resolution CCD for x-ray microfocus imaging of cochlear implants. The 9th European Federation of Audiological Societies (EFAS) Congress, Tenerife, Spain, June 2009.

creating sound valueTM 35 36 HEARING COOPERATIVE RESEARCH CENTRE Annual Report 2008/09 6 PUBLICATIONS (cont) ><

CONTENTS

DIRECTORS’ REPORT 38 ≥ 1: Directors 38 ≥ 2: Company secretary 39 ≥ 3: Directors’ meetings 39 ≥ 4: Corporate governance 40 ≥ 5: Principal activities 41 ≥ 6: Registered office 41

FINANCIAL REPORT ≥ 7: Operating and financial review 41 ≥ 8: Environmental regulations 41 ≥ 9: Dividends 41 ≥ 10: Events subsequent to reporting date 41 ≥ 11: Likely developments 42 ≥ 12: Indemnification and insurance of officers 42 ≥ 13: Auditor’s independence declaration 42 ≥ 14: Rounding off 42

INCOME STATEMENT 43

BALANCE SHEET 44

STATEMENT OF RECOGNISED INCOME AND EXPENSE 45

STATEMENT OF CASH FLOWS 46

NOTES TO THE FINANCIAL STATEMENTS 47 ≥ 1: Reporting entity 47 ≥ 2: Basis of preparation 47 ≥ 3: Significant accounting policies 47 ≥ 4: Determination of fair values 50 ≥ 5: Financial risk management 50 ≥ 6: Capital management 50 ≥ 7: Income and expenses 51 ≥ 8: Trade and other receivables 52 ≥ 9a: Cash and cash equivalents 52 ≥ 9b: Reconciliation of cash flows from operating activities 53 ≥ 10: Property, plant and equipment 53 ≥ 11: Capital and reserves 54 ≥ 12: Deferred income 54 ≥ 13: Trade and other payables 55 ≥ 14: Employee benefits 56 ≥ 15: Financial instruments 56 ≥ 16: Related parties 59 ≥ 17: Subsequent event 60 ≥ 18: Auditor’s remuneration 60 ≥ 19: Members Guarantee - Hearing CRC Limited 61 ≥ 20: Operating leases 61

DIRECTORS’ DECLARATION 62

INDEPENDENT AUDITOR’S REPORT 63

AUDITOR’S INDEPENDENCE DECLARATION 64

creating sound valueTM 37 38 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 pages 10-12 of this report. this of 10-12 pages The Program. Cooperative Research Centre, established andfundedundertheCommonwealth ofAustralia Cooperative Research Centres The 1: Directors the biographies of Directors, included in the Annual Report and forming part of this report, have been provided on on provided been have report, this of part forming and Report Annual the in included Directors, of biographies the Note: (Nominee Director –Australian HearingServices) Director BA Anthea Green (Nominee Director –University ofMelbourne) Director BE PhD(Newcastle) Robin Evans Director andChiefExecutive Officer Economics GrDipTechMgt FAudSA(CCP) MAICD BSc (Hons)MBAPhD(Melb)DipAudGrCertHealth Robert Cowan Independent Chairman AO QC MA(Oxon) HonLLD(Deakin) Richard Searby ended 30June2009andtheauditor’s report thereon. report oftheHearingCRCLimited (“theCompany”)for theyear The directors present theirreport together withthefinancial The directors oftheCompanyatanytimeduringorsince theendofreporting periodare: University ofMelbourne)have rightsto appointanomineedirector to theBoard. (namely Australian Hearing, Cochlear Limited, Macquarie University, Siemens Hearing Instruments Pty Ltd, and The HEARING CRCLIMITED DIRECTORS’ REPORT HEARing HEARing

CRC Ltd was established for the purposes of managing and conducting the activities of the Hearing CRC Ltdisestablished andoperates underaMember’s Agreement, whereby eachofthefive Core Members

FOR THEYEARENDED30JUNE2009 (Nominee Director –AHS) Director AO BSocWork Kathryn Greiner (Nominee Director –SiemensInstruments PtyLtd) Director FCPA FCIS Barry Roberts (Nominee Director –MacquarieUniversity) Director BSc(Hons) PhD(Otago) Jim Piper (Nominee Director ~Cochlear Ltd) Director BComm CA(SA) CA Neville Mitchell

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2: Company secretary

The Company Secretary as at 30 June 2009 was Mrs Lisa Norden who also acts as Chief Financial Officer (CFO) of the Company. Mrs Norden has 20 years of financial experience in industry and not-for-profit organisations. Her qualifications include Certified Practicing Accountant (CPA), Chartered Secretaries Australia Corporate Governance Graduate Diploma and Australian Institute of Company Directors Course Diploma. Mrs Norden was appointed Company Secretary on 10 April 2009.

During the year, the position of Company Secretary was held by Mr Lorensz Senn from 25 August 2008 – 7 April 2009 and by Ms Jennifer Lightowlers, a principal partner of Francis Abourizk Lightowlers (FAL) from 1 July 2008 – 25 August 2008.

3: Directors’ meetings

The number of directors’ meetings (including meetings of Board committees of directors) and number of meetings attended by each of the directors of the Company during the financial reporting period are as shown in the following table:

Table of Meetings

NOMINATIONS AND BOARD OF FINANCE AND AUDIT DIRECTOR APPOINTMENTS DIRECTORS COMMITTEE COMMITTEE

A B A B A B

Richard Searby – Chairman 3 4 3 3 2 2

Robert Cowan 4 4 n/a n/a n/a n/a

Robin Evans 4 4 2 3 n/a n/a

Anthea Green (resigned Sept 2008) 1 1 1 1 1 1

Kathryn Greiner (appointed Nov 2008) 3 3 n/a n/a 1 1

Neville Mitchell 4 4 1 2 n/a n/a

Jim Piper 3 4 n/a n/a n/a n/a

Barry Roberts 4 4 3 3 2 2

Dominic Jenkins 0 0 0 0 0 0 (alternate for Barry Roberts)

A: Number of meetings attended B: Number of meetings held during the time the director held office during the year

creating sound valueTM 39 40 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 the Commonwealth ofAustralia andthe as Trustee for the IP Pty Ltd has been incorporated for the purpose of acting the IP Trust and to appoint Hear IP Pty Ltd as Trustee. Hear the appointment of HearWorks Pty Ltd as the Trustees of this, with itscommercial armHearWorks PtyLtd.Inrespect of intellectual property trusts andmanagementarrangements and the Research Centre between each of the individual Members the establishment and operation of the Hearing Cooperative doctrines of: its Constitution, the Member’s Agreement for of thisCommittee. that theCEOandCFO are inattendance for allmeetings disclosed inthetable ofmeetings.ItisCompany practice met three timesand themembers’ attendance record is and financialrisks. For the reporting periodthis committee identification andmanagementofbusiness, commercial relationship withtheexternal auditor, andtheprocess of of theCompany. ThisCommittee alsooversees the providing oversight ofthefinancialoperations andaffairs The Finance andAudit Committee assists theBoard by 4.1: Finance andAuditCommittee nominees ofeachorthefive Core Members to the Currently the Board comprises an independent chair, and control of the business and affairs of the Company. and the Members for the governance, management The Board of Directors is accountable to the Commonwealth 4: Corporate governance independent directors. In2008,the The Board is actively seeking to recruit an additional two of Melbourne) and its Chief Executive Officer (CEO). Instruments, Macquarie University and The University CRC (Australian Hearing,Cochlear, SiemensHearing The Management Team. has beendelegated to theCEOandthrough him,the stated below. The day-to-day management of the Company and Appointments. Details of each of these committees are two committees: (1)Finance andAudit;(2) Nominations To assist theBoard infulfillingitduties,hasestablished governance practices. follows goodpractice asrecommended byASXcorporate The of theMember’s Agreement. for the five nominee directors consistent with the terms its Constitution to allow appointment of alternate directors under theTrust Deedsignedby the Members andtheTrustee (initially HearWorks). Ltd (Commonwealth Agreement). The FOR THEYEARENDED30JUNE2009(cont.) DIRECTORS’ REPORT HEARing HEARing HEARing HEARing CRC has also clarified the structure of its CRC operates under the terms and guiding CRChasproposed to theMembers to revoke CRC Ltd; and the agreement between HEARing CRCIPTrust andwilloperate HEARing HEARing HEARing HEARing CRC amended CRC, its

CRC

CRC HEARing

Committee duringtheyear were: The members of theNominationsandAppointments Committee asrequired. in thetable ofmeetings.TheCEOattends meetingsofthe met twice andthemembers’ attendance record isdisclosed of theseofficers. For the reporting periodthis committee CEO, andinmakingrecommendations ontheremuneration Committee alsoassists intheappointmentofaChairman, or the HEARingCRCandHearWorks PtyLtd.Ifrequired, this and remuneration ofdirectors andseniorexecutives of Board bymakingrecommendations ontheappointment The NominationsandAppointmentsCommittee assists the 4.2: effectively. Ariskreview willtake place inthecoming weeks. been assessed andfound to beoperating efficiently and management andassociated compliance andcontrols have have advisedtheBoard, thatthefinancial reporting risk The ChiefExecutive Officer andtheChiefFinancialOfficer coordinated through theFinance andAuditCommittee. annual review oftheCompany’s RiskManagementSystem, The Board oversees theestablishment, implementation and Oversight oftheriskmanagementsystem 4.3: RiskManagement period were: The members oftheFinance &AuditCommittee duringthe

Mr Barry Roberts Mr BarryRoberts Ms AntheaGreen (Chair)(resigned Sept2008) Mr Richard SearbyAO QC(ex officio) Ms KathrynGreiner (Chair)(appointed Nov 2008) Mr Neville Mitchell (appointed Nov 2008) Ms AntheaGreen (resigned Sept2008) Prof RobEvans Mr Richard SearbyAO QC(ex officio) Mr BarryRoberts(Chair) Nominations and Nominations and Appointments Committee

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4.4: Communication with members 6: Registered office

The Company’s members have met on one occasion 550 Swanston Street (AGM 2008) during the reporting period to review the Audiology, Hearing and Speech Sciences Company’s establishment and activities. The University of Melbourne Victoria 3010 Informal communication with Members occurs on a regular basis by means of an integrated email network, and by regular face-to-face meetings with the CEO and management team members. A travel budget for this 7: Operating and financial review activity has been provided. An internal newsletter publication is provided to the Members on a semi-regular basis, and a Total income for the year was $20,200,000 full annual report of activities is provided to the Members (2008: $17,322,000), which is matched by expenditure, once per annum. resulting in a zero result for the year. The income for the period includes all cash contributions of the Members to In addition the “Hearing Education and Research Network the HEARing CRC and we take this opportunity to thank of Australia” (HEARnet), has been established to increase these Members. communication amongst the Members, and with other research agencies and the public who have an interest in hearing research. This is a primary technology transfer activity which will assist in ensuring that the wider 8: Environmental regulations community is informed of developments of HEARing As a clinical research entity, the HEARing CRC is subject to CRC research, and increases the potential that clinical clinical regulatory requirements and legislation governing developments will achieve widespread uptake and use. such activity in Australia. As such, the Company is aware of and abides by National Health and Medical Research Council (NH&MRC) guidelines, Australian Research Council 5: Principal activities (ARC) guidelines and Australian Research Ethics Committee (AREC) guidelines. The Company’s operations are not The principal activities of the HEARing CRC are to undertake subject to any significant environmental regulation under collaborative research into hearing loss prevention and either Commonwealth or State legislation. However, the mitigation leading to innovative products, processes and Board believes that the Company has adequate systems in services that address the economic impact of hearing place for the management of its environmental obligations loss on the Australian economy. Through education and and requirements, and is not aware of any breach of those commercialisation of research findings, theHEARing CRC requirements as they apply to the Company. and its Members aim to reduce the incidence of hearing loss and increase the effectiveness of treatments for hearing loss and associated disorders. 9: Dividends Its research program comprises a range of collaborative research projects in the following areas: The HEARing CRC is limited by guarantee and has no share capital. The directors of the HEARing CRC are precluded by 1: Biomolecular/Genetic/Physiological solutions the Company’s Constitution from declaring a dividend. to hearing loss;

2: Intelligent Sound Processing; 10: Events subsequent to 3: Integrated Bio-engineering; and reporting date 4: Clinical Tools, Services and Techniques. The directors are not aware of any matters or circumstance, The HEARing CRC was recognised as a health promotion subsequent to the reporting period that has significantly charity by the Australian Taxation Office in March 2009, affected the activities of the Company, its performance and effective from its registration date of 18 January 2007. state of affairs.

creating sound valueTM 41 42 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 under the Corporations Law. or officer is found to be in breach of his/her obligations behalf oftheCompanywithexception ifthedirector incurred during the course of executing their duties on indemnifies its directors and officers against any liability whilst legitimately performing theirduties.TheCompany and officers’ insurance in respect to thesepersons currently capped at$200,000peryear. investment is $600,000 and annual leasing costs are and research facilities to theCRC.Thevalue ofoneoff The University of Melbourne in July 2009 to provide office ended 30June2009. 64 and forms part of the directors’ report for reporting year The auditor’s independence declaration is set out on page 13: Auditor’s independence cannot bedisclosed withoutthepermission oftheinsurer. policy. Particulars ofthedirectors &officers insurance the liabilityarisesoutofawrongful actasdefined bythe against liabilities incurred in those capacities except where or present directors and certain officers of the company has paidapremium underacontract insuringthepast During and since the end of the financial year, the company Insurance premiums The 12: The 11: Likely Developments FOR THEYEARENDED30JUNE2009(cont.) DIRECTORS’ REPORT HEARing HEARing declaration insurance ofofficers Indemnification and CRC had and continues to hold directors’ CRC has signed a facilities agreement with

Dated at Melbourne this 14th day of October 2009. October of day 14th this Melbourne at Dated Chairman Richard SearbyAO QC the Company: This report is made with a resolution of the directors of unless otherwisestated. have been rounded off to the nearest thousand dollars, Order, amountsinthefinancial report anddirectors’ report 98/100 dated 10July 1998andinaccordance withthatClass The Companyisofakindreferred to inASICClass Order 14: Roundingoff

INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 ><

NOTE 2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Income 7a 20,200 17,322

Expenditure

≥ Contributions – In-kind by members (14,473) (13,684)

≥ Contributions to members for salaries (4,058) (2,462)

≥ Research consumables (826) (638)

≥ Consultants and seconded staff (54) (162)

≥ Rent (39) --

≥ Other 7c (903) (417)

Deficit from operating activities (153) (41)

≥ Finance income 7b 153 41

Net finance income 153 41

Surplus/(deficit) before income tax -- --

≥ Income tax expense -- --

Surplus/(deficit) for the period -- --

The notes on pages 47 to 61 are an integral part of these financial statements.

creating sound valueTM 43 44 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 The notes on pages 47 to 61 are an integral part of these financial statements. financial these of part integral an are 61 to 47 pages on notes The AS AT 30JUNE2009 BALANCE SHEET

≥ Trade andotherpayables Total equity Equity Net assets Total liabilities Total current liabilities Liabilities Total assets Total non-current assets Total current assets ≥ Cashandcash equivalents Assets ≥ Deferred income ≥ Trade andotherreceivables ≥ Property, plantandequipment ≥ Retained earnings ≥ Employee benefits

NOTE 9a 13 12 10 14 8

(‘000) 5,465 1,549 4,969 5,165 5,465 5,465 3,907 2009 300 196 300

------$ 9

TO 30JUN‘08 18 JAN ‘07 (‘000) 4,522 2,251 3,777 4,522 4,522 4,522 2,271 745 ------$

STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR ENDED 30 JUNE 2009 ><

2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Income and expense recognised directly in equity -- --

Surplus for the period -- --

Total recognised income and expense for the period -- --

The notes on pages 47 to 61 are an integral part of these financial statements.

creating sound valueTM 45 46 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 The notes on pages 47 to 61 are an integral part of these financial statements. financial these of part integral an are 61 to 47 pages on notes The FOR THEYEARENDED30JUNE2009 STATEMENT OFCASH FLOWS

≥ Repaymentofloans

Cash andcash equivalents at30June Net cash from/ (usedin)financingactivities Cash flows from financingactivities Net cash from/ (usedin)investing activities Cash flows from investing activities Net cash from/ (usedin)operating activities ≥ Cashreceipts from members andgovernment Cash flows from operating activities ≥ Acquisitionofproperty, plantandequipment ≥ Netincrease incash andcash equivalents ≥ Cashpaidto suppliers andemployees ≥ Cashandcash equivalents atthebeginningofperiod ≥ Interest received

NOTE 9b 9a

(7,291) (‘000) 1,192 8,330 4,969 1,192 3,777 2009 153

------$

TO 30JUN‘08 18 JAN ‘07 (1,424) (‘000) 3,777 5,160 3,777 3,777 41 ------$

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 ><

1: Reporting entity (e) Financial period The current financial period is the 12 months ended The financial report covers HEARing CRC Limited as an 30 June 2009. The prior financial period is from individual entity. The Company is limited by guarantee, 18th January 2007 to 30 June 2008. incorporated and domiciled in Australia. The HEARing CRC Limited is recognised by the ATO as a health promotion charity and is therefore income tax exempt.

The financial statements were approved by resolution of 3: Significant accounting policies the Board of Directors on 14th October 2009. The accounting policies set out below have been applied consistently to all periods presented in these financial statements. Certain comparative amounts have been 2: Basis of preparation reclassified to conform with the current year’s presentation.

(a) Statement of compliance (a) Income tax The Company has been approved for tax exemption status The financial report is a general purpose financial report under Division 50-B of the Income Tax Assessment Act which has been prepared in accordance with Australian 1997 as a not-for-profit entity. The Company has prepared Accounting Standards (AASBs) (including Australian these accounts based on this approval being granted, as Interpretations) adopted by the Australian Accounting its objectives are to maximise hearing health outcomes Standards Board (AASB) and the Corporations Act 2001. and to foster research collaboration. (b) Basis of measurement (b) Foreign currency transactions The financial statements have been prepared on the Transactions in foreign currencies are translated to historical cost basis except for the following: the respective functional currencies of the Company at ≥ financial instruments at fair value through profit or exchange rates at the dates of the transactions. Monetary loss are measured at fair value. assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional The methods used to measure fair values are discussed currency at the foreign exchange rate at that date. The further in note 4. foreign currency gain or loss on monetary items is the difference between amortised cost in the functional (c) Functional and presentation currency currency at the beginning of the period, adjusted for effective interest and payments during the period, and These financial statements are presented in Australian the amortised cost in foreign currency translated at the dollars, which is the Company’s functional currency. exchange rate at the end of the period. Foreign currency differences arising on retranslation are recognised in The Company is of a kind referred to in ASIC Class income statement. Order 98/100 dated 10 July 1998 and in accordance with that Class Order, all financial information presented in Australian dollars has been rounded to the nearest (c) Financial instruments thousand unless otherwise stated. Non-derivative financial instruments (d) Use of estimates and judgements Non-derivative financial instruments comprise trade and other receivables, cash and cash equivalents, deferred The preparation of financial statements requires income and trade and other payables. management to make judgements, estimates and assumptions that affect the application of accounting A financial instrument is recognised if the Company policies and the reported amounts of assets, liabilities, becomes a party to the contractual provisions of the income and expenses. Actual results may differ from instrument. Financial assets are derecognised if the these estimates. Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the Estimates and underlying assumptions are reviewed on financial asset to another party without retaining control an ongoing basis. Revisions to accounting estimates are or substantially all risks and rewards of the asset. recognised in the period in which the estimate is revised and in any future periods affected.

creating sound valueTM 47 48 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 (d)

FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS Property, plantand equipment (ii) Subsequentcosts (i) earnings. the revaluation reserve are transferred to retained revalued assets are sold,theamountsincludedin net within“otherincome” inprofit or loss. When of property, plantandequipmentare recognised the proceeds from disposalwiththecarrying amount plant andequipmentare determined bycomparing Gains andlosses ondisposalofanitem ofproperty, and equipment. separate items (majorcomponents) ofproperty, plant have different usefullives, they are accounted for as When partsofanitem ofproperty, plantandequipment assets are recognised inprofit or loss asincurred. the acquisition,construction orproduction ofqualifying the acquisitionofasset. Borrowing costs related to Cost includesexpenditure thatisdirectly attributable to impairment losses. at cost less accumulated depreciation andaccumulated Items ofproperty, plantandequipmentare measured interest method,less anyimpairmentlosses. measured atamortisedcost usingtheeffective Other non-derivative financial instruments are discussed innote 3(k). and call deposits. Accounting for finance income is Cash andcash equivalents comprise cash balances as describedbelow. recognition thesefinancialinstruments are measured rights orobligationsexist. Subsequentto initial transaction costs, whentherelated contractual measured atcost ontrade date, whichincludes Non-derivative financialinstruments are initially cancelled. specified inthe contract expire orare discharged or liabilities are derecognised iftheCompany’s obligations commits itselfto purchase orselltheasset. Financial for attrade date, i.e.,thedate thattheCompany Purchases andsales offinancial assets are accounted incurred. and equipment are recognised inprofit and loss as The costs oftheday-to-day servicingofproperty, plant carrying amountofthereplaced partisderecognised. Company anditscost can bemeasured reliably. The benefits embodiedwithinthe part willflow tothe of theitem ifitisprobable thatthefuture economic and equipmentisrecognised inthecarrying amount The costs ofreplacing partofanitem ofproperty, plant Recognition andmeasurement

(e) (f)

Impairment ofAssets Research anddevelopment is recognised directly inequity. financial assets thatare equitysecurities,the reversal is recognised inprofit or loss. For available-for-sale financial assets thatare debtsecurities,the reversal measured atamortisedcost andavailable-for-sale impairment loss wasrecognised. For financialassets be related objectively to anevent occurring after the An impairmentloss isreversed ifthereversal can is transferred to profit or loss. financial asset recognised previously inequity Any cumulative loss inrespect ofanavailable-for-sale All impairmentlosses are recognised inprofit or loss. that share similarcredit riskcharacteristics. financial assets are assessed collectively ingroups impairment onanindividualbasis.Theremaining Individually significant financial assets are tested for fair value. sale financialasset is calculated by reference to its An impairmentloss inrespect ofanavailable-for- discounted attheoriginaleffective interest rate. present value oftheestimated future cash flows difference between itscarrying amount,andthe measured atamortisedcost iscalculated asthe An impairmentloss inrespect ofafinancialasset estimated future cash flows ofthatasset. or more events have hadanegative effect onthe be impaired ifobjective evidence indicates thatone that itisimpaired. Afinancialasset is considered to to determine whetherthere isanyobjective evidence A financialasset isassessed ateach reporting date are reviewed ateachreporting date. Depreciation methods,usefullife andresidual values (a) comparative periodsisasfollows: The estimated usefullife for thecurrent and straight-line basisover thelife oftheCRC. Depreciation isrecognised inprofit or lossa on HEARing CRCdirectly employ research staff. recognised intheyear whenincurred. Members ofthe or technical knowledge andunderstanding, is undertaken withtheprospect ofgainingnew scientific Expenditure onresearch anddevelopment activities, (iii) Depreciation Fixtures andfittings–5 years

><

(g) Employee benefits (j) Goods and services tax Short-term benefits Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where Short-term employee benefit obligations are measured the amount of GST incurred is not recoverable from the on an undiscounted basis and are expensed as the related taxation authority. In these circumstances, the GST is service is provided. recognised as part of the cost of acquisition of the asset or as part of the expense. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Receivables and payables are stated with the amount of Company has a present legal or constructive obligation to GST included. The net amount of GST recoverable from, pay this amount as a result of past service provided by the or payable to, the ATO is included as a current asset or employee and the obligation can be estimated reliably. liability in the balance sheet.

(h) Revenue Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows Revenue from services rendered is recognised in arising from investing and financing activities which are proportion to the stage of completion of the transaction recoverable from, or payable to, the ATO are classified as at the reporting date. operating cash flows.

Interest income (k) Finance income and expenses Interest income and other sundry income are brought to Finance income comprises interest income on funds account when the Company controls a right relating to the invested. Interest income is recognised as it accrues in consideration payable. the income statement. Cash contributions received from the members Income arising from cash contributions received from the (l) New standards and interpretations members is recognised when the Company is in control of not yet adopted or has the right to receive the contributions. The following standards, amendments to standards and interpretations have been identified as those which may Government grants impact the entity in the period of initial application. They Government grants are recognised as revenue when the are available for early adoption at 30 June 2009, but have entity obtains control over the assets comprising the not been applied in preparing this financial report: contribution. Where the Company considers the funds to be reciprocal in nature, the grant is treated as deferred ≥ Revised AASB 101 Presentation of Financial Statements income. This income is tied to specific research and other (2007) introduces the term total comprehensive activities. All government grants are initially recorded as income, which represents changes in equity during deferred income until which time the Company complies a period other than those changes resulting from with the conditions associated with the grants. transactions with owners in their capacity as owners. Total comprehensive income may be presented in In-kind contributions either a single statement of comprehensive income (effectively combining both the income statement and In-kind contributions from Members are brought all non-owner changes in equity in a single statement) to account as revenue and expenditure incurred in or, in an income statement and a separate statement accordance with AASB 1004. These in-kind contributions of comprehensive income. Revised AASB 101, which are measured at fair value based on the dollar value becomes mandatory for the Company’s 30 June 2010 provided by each Member in their reporting to the financial statements, is expected to have a significant Company consistent with the valuation principles impact on the presentation of the financial statements. agreed under the terms of the HEARing CRC Member’s The Company plans to provide total comprehensive Agreement. income in a single statement of comprehensive income for its 2010 financial statements. (i) Lease payments

Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

creating sound valueTM 49 50 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 reports regularly to theBoard ofDirectors onitsactivities. and monitoring riskmanagement policies.TheCommittee Committee, whichisresponsible for developing framework. TheBoard hasestablished theFinance &Audit establishment andoversight oftherisk management The Board ofDirectors hasoverall responsibility for the are includedthroughout thisfinancial report. management ofcapital. Further quantitative disclosures and processes for measuringandmanagingrisk,the exposure to eachofthe above risks,theirobjectives, policies This note presents information abouttheCompany’s use offinancialinstruments: The Companyhasexposure to thefollowing risksfrom their Overview 5: Financialriskmanagement (c) (b) (a) in thenotes specific to thatasset orliability. assumptions madeindetermining fair values isdisclosed methods. Where applicable, furtherinformation aboutthe and /ordisclosure purposesbasedonthefollowing Fair values have beendetermined for measurement both financialandnon-financial assets andliabilities. disclosures require thedetermination offair value, for A numberoftheCompany’s accounting policiesand 4: Determination offair values FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS (c) market risk. (b) liquidityrisk (a) credit risk. In-kind contributions Trade andotherreceivables Property, plantandequipment terms oftheMember’s Agreement. The fair value ofin-kindcontributions isasperthe reporting date. discounted atthemarket rate ofinterest atthe estimated asthepresent value offuture cash flows, The fair value oftrade andotherreceivables is on thequoted market prices for similaritems. items ofplant,equipment,fixtures andfittingsisbased prudently andwithoutcompulsion. Themarket value of wherein thepartieshadeachacted knowledgeably, in anarm’s length transaction after proper marketing valuation between awillingbuyer andawillingseller for whichaproperty could beexchanged onthedate of The market value ofproperty istheestimated amount

management duringthe year. There were nochangesinthe Company’s approach to capital 6: Capital management (b) (a) employees understand theirroles andobligations. and constructive control environment inwhichall standards andprocedures aimto develop adisciplined The Companythrough itstraining andmanagement in market conditions andtheCompany’s activities. and systems are reviewed regularly to reflect changes risks andadherence to limits.Riskmanagementpolicies set appropriate risklimitsandcontrols, andto monitor identify andanalyse therisksfaced bytheCompany,to Risk managementpolicieshave beenestablished to (c) Liquidity risk Credit risk out atyear end. The Companyhasnooverdraft facilities orloans taken risking damageto theCompany’s reputation. conditions, withoutincurring unacceptable losses or liabilities whendue,underbothnormalandstressed that itwillalways have sufficientliquidity to meetits managing liquidityisto ensure, asfar aspossible, draw onwhen required. TheCompany’s approach to The Companyhasallcash investments whichitcan able to meetitsfinancialobligationsasthey fall due. Liquidity riskisthethatCompanywillnotbe throughout theyear beenheldwithanAustralian Bank. investing inliquidsecurities.Allitssecuritieshave The Companylimitsitsexposure to credit riskbyonly Trade andotherreceivables interest rate riskallrelates to variable rates. trade andholdsallinvestments incash. TheCompany’s Company haslimited market riskasitdoesnotdirectly or thevalue ofitsholdingsfinancialinstruments. The such asinterest rates, willaffect theCompany’s income Market riskisthethatchangesinmarket prices, Investments the credit exposure throughout theyear. Finance &AuditCommittee andmanagementmonitor of thecredit exposure islimited to Australia. The which ithasaclose working relationship. Themajority followed by someofitsresearch participants(24%)with was primarily (approximately 75%) to theGovernment The Company’s credit exposure throughout theyear customers andinvestment securities. arises principally from theCompany’s receivables from a customer fails to meet its contractual obligations, and Credit riskistheoffinancial loss to theCompanyif Market risk

><

7: Income and expenses 2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

7(a): Income

≥ Commonwealth government CRC program grants 4,176 1,955

≥ Contributions from members – cash contributions 1,395 1,408

≥ Contributions from members – in-kind contributions 14,473 13,684

≥ Other income 156 275

Total income 20,200 17,322

7(b): Finance income

≥ Interest 153 41

7(c): Other expenses

≥ Legal 78 134

≥ Patents & licensing 51 --

≥ Travel 86 75

≥ Audit 37 30

≥ Other 651 178

Total other expenses 903 417

7(d): Personnel expenses

Personnel costs associated with wages and salaries during the reporting period were disclosed as part of contributions to members for salaries in the Income Statement.

Contributions to members for salaries 4,058 2,462

creating sound valueTM 51 52 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 The Company’s exposure to interest rate risk and a sensitivity analysis for financial assets are disclosed in note 15. note in disclosed are assets financial for analysis sensitivity a and risk rate interest to exposure Company’s The The Company’s exposure to credit risk and impairment losses related to trade and other receivables are disclosed in note 15. note in disclosed are receivables other and trade to related losses impairment and risk credit to exposure Company’s The 9(a): Cashandcash equivalents 8: Trade andotherreceivables FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS

≥ Bankbalances ≥ Trade receivables Current ≥ Calldeposits ≥ Otherreceivables duefrom related parties Cash andcash equivalents inthestatement ofcash flows Total receivables

(‘000) (‘000) 2,041 2,928 4,969 2009 2009 196 196

-- $ $

TO 30JUN‘08 TO 30JUN‘08 18 JAN ‘07 18 JAN ‘07 3,119 (‘000) (‘000) 3,777 136 609 658 745 $ $

><

9(b): Reconciliation of cash flows from operating activities

2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Cash flows from operating activities

≥ Surplus for the period - -

Operating profit before changes in working capital and provisions

≥ Change in trade and other receivables 549 (745)

≥ Change in trade and other payables (1,002) 2,251

≥ Change in deferred income 1,636 2,271

≥ Change in employee benefits 9 -

Net cash from operating activities 1,192 3,777

10: Property, plant and equipment 2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Furniture and fittings

Cost

≥ Opening balance -- --

≥ Net additions/(disposals) 300 --

≥ Closing balance 300 --

Accumulated depreciation

≥ Opening balance -- --

≥ Depreciation for the year -- --

≥ Closing balance -- --

Net book value 300 --

Total property, plant and equipment

≥ Cost 300 --

≥ Accumulated depreciation -- --

≥ Total written down amount 300 --

creating sound valueTM 53 54 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 The Company’s exposure to liquidity risk is disclosed in note 15. note in disclosed is risk liquidity to exposure Company’s The 12: Deferred income 11: Capital andreserves FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS

represent activitiesnotyet undertaken. Hearworks PtyLtdpaiditsseven year commitment in2009.Unexpended funds unexpended government grants represent activitiesnotyet undertaken. Hearing CRCCommonwealth Agreement (anditsassociated Schedules), andthe CRC Program grants have beenappliedto theactivitiesasagreed underthe Hearing CRCMember’s Agreement andinitialOperational Plan.Commonwealth NSW OSMRgrant andfrom bankinterest to fundactivitiesasagreed underthe The Companyhasutilisedrevenue from theMembers’ cash contributions, the ≥ Unexpended Government Grants The Companyisapubliccompany limited byguarantee. ≥ Onissue at30June2008and2009 Share capital ≥ Funds inadvance

(‘000) (‘000) 2,234 1,673 3,907 2009 2009 --

$ $

TO 30JUN‘08 TO 30JUN‘08 18 JAN ‘07 18 JAN ‘07 (‘000) (‘000) 2,196 2,271 -- 75 $ $

><

13: Trade and other payables

2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

≥ Trade payables 148 844

≥ Other payables 400 1,378

≥ Other payables owed to related parties 1,000 29

Total 1,548 2,251

The Company’s exposure to liquidity risk related to trade and other payables is disclosed in note 15.

14: Employee benefits

2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Employee entitlements 9 --

creating sound valueTM 55 56 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 exposure to credit riskatthereporting date was: The carrying amount ofthecompany’s financialassets represents themaximumcredit exposure. The company’s maximum (a) Exposure to credit risk Credit risk period itdidnottrade inandasat30June2009hadnoexposure to derivative instruments. The Company’s financialinstruments consist of cash heldinbanks,accounts receivable andpayable. Duringthe reporting 15: Financialinstruments FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS

Total financialassets ≥ Receivables Financial assets ≥ Cashandcash equivalents ≥ Australia date bygeographic region was: The Company’s exposure to credit risk for trade receivables at the reporting were recognised at30June2009. None oftheCompany’s receivables are past dueandnoimpairmentlosses ≥ Cashandcash equivalents these financial statements. (2008: $189,750) as at 30 June 2009. This debt was settled prior to issue of The Company’s most significant customer outstanding amountis$189,750

(‘000) 5,165 4,969 2009 196 196 196

$

TO 30JUN‘08 18 JAN ‘07 (‘000) 4,522 3,777 745 745 745 $

><

Liquidity Risk

The Company’s exposure to liquidity risk is as follows:

CARRYING CONTRACTUAL 6 MONTHS AMOUNT CASH FLOWS OR LESS

$ $ $ (‘000) (‘000) (‘000)

30 JUNE 2009

Non-derivative financial liabilities

≥ Payables 1,549 1,549 1,549

≥ Deferred income 3,907 3,907 3,907

Non-derivative total financial liabilities 5,456 5,456 5,456

CARRYING CONTRACTUAL 6 MONTHS AMOUNT CASH FLOWS OR LESS

$ $ $ (‘000) (‘000) (‘000)

30 JUNE 2008

Non-derivative financial liabilities

≥ Payables 2,251 2,251 2,251

≥ Deferred income 2,271 2,271 2,271

Non-derivative total financial liabilities 4,522 4,522 4,522

The Company’s policy is that all contracted cash flows are paid within 6 months or less.

creating sound valueTM 57 58 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 As atreporting date, theinterest rate profile oftheCompany’s interest-bearing financialinstruments was: Investments inshort-term receivables andpayables are notexposed to interest rate risk. Activities only, andistherefore not“retained” bytheCompanyifunspent. The Companydoesnotholdanyfixed rate financial assets andliabilities.Allinterest isapplied tothefundingof Interest rate risk Market Risk as setoutinnotes 8,9,12 and 13. The fair values offinancial assets andliabilities are equivalent to the carrying amounts shown intheBalance Sheet Fair values versus carrying amounts Fair values Cash flow sensitivityanalysis for variable rate instruments surplus ordeficitbytheamountshown below. Theanalysis assumes thatallother variables remain constant. A changeof100basispointsininterest rates atthereporting date would have increased (decreased) equityandthe Cash andcash equivalents instruments rate Variable Cash andcash equivalents instruments rate Variable FINANCIAL ASSETS FINANCIAL ASSETS Total increase /(decrease) Total increase /(decrease) FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS CARRYING CARRYING AMOUNT AMOUNT ($‘000) ($‘000) 3,777 4,969

SURPLUS SURPLUS ($‘000) ($‘000) (38) (49) (38) (49)

-1% -1%

EQUITY EQUITY ($‘000) ($‘000) 2009 2008 (38) (49) (38) (49)

SURPLUS SURPLUS ($‘000) ($‘000) 38 49 38 49

+1% +1% EQUITY EQUITY ($‘000) ($‘000) 38 49 38 49

><

16: Related parties

(a) Individual directors and executives compensation disclosures

During the reporting period, the following were key governance and management personnel of the Company.

Non-Executive directors: Mr Richard Searby AO, QC Professor Rob Evans Ms Anthea Green Ms Kathryn Greiner Mr Neville Mitchell Professor Jim Piper Mr Barry Roberts Mr Dominic Jenkins

Executive directors: Associate Professor Robert Cowan

Compensation paid to individual directors and executives was as follows: 2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

Short term employee benefits 240 217

Total 240 217

Key management personnel costs are listed under “other expenses” and “contributions to members for salaries” in the Income Statement.

Apart from the details disclosed in this note, no director has entered into a material contract with the Company for this financial period and there were no material contracts involving directors’ interests existing at the end of the financial reporting period. Nominee directors and their alternates do not receive compensation.

creating sound valueTM 59 60 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 in future financial years. significantly affect theoperations ofthe company, the results ofthoseoperations, orthe state ofaffairs ofthe company No matters orcircumstances have arisensince theendoffinancialperiodwhichsignificantly affected ormay (b) 18: Auditor’s remuneration 17: Subsequentevent FOR THEYEARENDED30JUNE2009(cont.) NOTES TO THEFINANCIALSTATEMENTS

≥ Auditandreview offinancial reports Australia: KPMG Auditors oftheCompany Audit services ≥ Income –cash contribution to HearingCRC ≥ Trade receivables –owing ≥ Trade payables –owed ≥ Otherregulatory auditservices

Associates -HearWorks PtyLtd cash. Noguarantees were provided orreceived for anyrelated partyreceivable orpayable. commercial terms. Outstanding balances atyear-end were unsecured, interest free andsettlement occurs in During theyear ended30June2009,allrelated parties’ transactions were madeatmarket prices andin (Note 7 “cash from members – cash contributions”) cash – members from “cash 7 (Note

(refer Note 13) Note (refer (refer Note 8) Note (refer

28,215 36,575 (‘000) (‘000) 8,360 2009 2009 300

-- -- $ $

TO 30JUN‘08 TO 30JUN‘08 18 JAN ‘07 18 JAN ‘07 21,000 29,000 (‘000) (‘000) 8,000 136 300 29 $ $

><

19: Members guarantee

The company is a company limited by guarantee. If the company is wound up each Member may be required to contribute a maximum of $1.00 towards meeting any outstanding obligations of the company. There were 24 Members of the company as at 30 June 2009.

20: Operating leases

Non-cancellable operating lease rentals are payable as follows:

2009 18 JAN ‘07 TO 30 JUN ‘08

$ $ (‘000) (‘000)

≥ Less than one year 200 --

≥ Between one and five years 1,000 --

≥ More than five years -- --

1,200 --

creating sound valueTM 61 62 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 Chairman Richard SearbyAO QC Signed inaccordance witharesolution ofthedirectors: Dated at Melbourne this 14th day of October 2009. October of day 14th this Melbourne at Dated 1: FOR THEYEARENDED30JUNE2009 DIRECTORS’ DECLARATION

(a) In theopinionofdirectors ofHEARingCRCLtd(‘theCompany’):: (b)

the financial statements andnotes setoutonpages43 to 61,are inaccordance withthe and payable. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due (ii) (i) including: Corporations Regulations 2001; complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the the financial year endedonthatdate inaccordance with;and giving a true and fair view of the Company’s financial position as at 30 June 2009 and of its performance, for

Corporations Act 2001 Act Corporations , INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HEARING CRC LIMITED ><

Report on the financial report

We have audited the accompanying financial report of HEARing We performed the procedures to assess whether in all material CRC Limited (the company), which comprises the balance respects the financial report presents fairly, in accordance with sheet as at 30 June 2009, and the income statement, statement the Corporations Act 2001 and Australian Accounting Standards of recognised income and expense and cash flow statement (including the Australian Accounting Interpretations), a view for the year ended on that date, a summary of significant which is consistent with our understanding of the Company’s accounting policies and other explanatory notes 43 to 61 and financial position and of its performance. the directors’ declaration set out on page 62. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Directors’ responsibility for the financial report Independence The directors of the company are responsible for the In conducting our audit, we have complied with the preparation and fair presentation of the financial report in independence requirements of the Corporations Act 2001. accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and Auditor’s opinion maintaining internal control relevant to the preparation In our opinion the financial report of HEARing CRC Limited and fair presentation of the financial report that is free is in accordance with the Corporations Act 2001, including: from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and (a) giving a true and fair view of the Company’s financial making accounting estimates that are reasonable in the position as at 30 June 2009 and of its performance for circumstances. the year ended on that date; and

(b) complying with Australian Accounting Standards (including Auditor’s responsibility the Australian Accounting Interpretations) and the Our responsibility is to express an opinion on the financial Corporations Regulations 2001. report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material KPMG misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers Donald Abell internal control relevant to the entity’s preparation and fair Partner presentation of the financial report in order to design audit Melbourne 14th October 2009. procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

creating sound valueTM 63 64 HEARING COOPERATIVE RESEARCH CENTRE Financial Report 2008/09 Melbourne 14th October 2009. October 14th Melbourne Partner Donald Abell KPMG ≥ 2009 there have been: I declare that,to thebest ofmyknowledge andbelief,inrelation to theauditfor thefinancial year ended30June To: theDirectors ofHEARingCRCLtd ≥ SECTION 307COFTHECORPORATIONS ACT 2001 AUDITOR’S INDEPENDENCEDECLARATION UNDER

no contraventions oftheauditor independence requirements assetoutinthe to theaudit;and no contraventions ofanyapplicable code ofprofessional conduct inrelation to theaudit.

Corporations Act 2001 Act Corporations inrelation

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PAGE 15: Images courtesy of Walter and Eliza Hall Institute of Medical Research; Macquarie Centre for Cognitive Science; Macquarie University.

PAGE 16: All images courtesy of National Acoustic Laboratories.

PAGE 17: Images courtesy of National Acoustic Laboratories; The University of Melbourne; Cochlear Ltd.

PAGE 19: I mages courtesy of the Baulch family; National Acoustic Laboratories.

PAGE 20: Images courtesy of National Acoustic Laboratories; Cochlear Ltd; the Baulch family.

PAGE 23: Images courtesy of Cochlear Ltd; Dr Brett Swanson

PAGE 29: Images courtesy of The University of Wollongong, Intelligent Polymer Research Institute; Senator the Hon. Kim Carr; the Baulch family.

PAGE 30: Images courtesy of the Cooperative Research Centre Program.

PAGE 36: Images courtesy of the Baulch family.

PAGE 65: Images courtesy of National Acoustic Laboratories.

All other images are owned by the HEARing CRC.

creating sound valueTM 65 creating sound valueTM

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