INTRICON TO DIVEST NON-CORE ELECTRONICS BUSINESS

ST. PAUL, Minn. — Jan. 5, 2010 — IntriCon Corporation (NASDAQ: IIN), a designer, developer, manufacturer and distributor of body-worn medical and electronics devices, today announced that it will divest its non-core electronics business, Anaheim, Calif.-based RTI Electronics, Inc. The plan, which includes an orderly liquidation of all RTI Electronics assets, was approved by the company’s board of directors on December 29, 2009, and will commence immediately; it is expected to be completed by mid-2010. Associated with the divestiture, IntriCon expects to record an estimated charge of $1.4 million to $1.8 million in discontinued operations, of which approximately $1.0 million to $1.4 million is non-cash. "RTI Electronics has been a part of IntriCon since 1997. We are grateful for the many contributions of our 60 electronics employees," said Mark S. Gorder, president and chief executive officer at IntriCon. "This divestiture clarifies IntriCon’s mission and sharpens our focus on the body-worn device market. It allows us to devote more resources and capital to our core body-worn device business, and improves our overall margins and profitability. When completed, we will be a 'pure play' in body-worn technology, which we believe will enhance our appeal to a wider range of investors."

IntriCon will work with customers impacted by the divestiture to ensure that their needs are met and any outstanding orders are fulfilled.

For the nine-month period ended September 30, 2009, net sales for RTI Electronics were $4.0 million, a 30.3 percent decline from the same prior-year period. RTI Electronics posted a 2008 net loss of $277,000 and a net loss of $382,000 for the nine-month period ended September 30, 2009.

Said Gorder, "The future is clear—the device marketplace, particularly in the medical arena, is moving toward smaller, body-worn devices that offer wireless capabilities and other critical monitoring capabilities. It is more important than ever that we focus our resources and capital on our core business. We intend to support medical OEMs, as well as our partners in hearing health and professional audio communications, with new devices, and continue to prudently invest in new initiatives that we believe will fuel long-term growth." "