Core earnings for the first half were $47.3 million, up 43 per cent.

Chief executive Chris Roberts described the first half performance as "exceptional", with growth of 35 per cent in Europe and 46 per cent in the Americas.

"Importantly, Cochlear capitalised on a number of opportunities in this half with world wide market share estimated to be in excess of 70 per cent," Dr Roberts said.

"Cochlear is ideally positioned to achieve our growth targets for the balance of 2005-06 and beyond."

In March last year, Cochlear made the $195 million purchase of Swedish-based Entific Medical Systems, which makes implantable hearing devices for people who are deaf in one ear, known as Baha hearing implants.

Dr Roberts said sales of the Baha implants rose 30 per cent during the first half, ahead of Cochlear's internal targets.

"Cochlear implant sales were stronger than initially anticipated, reflecting the quality of the new product range the Nucleus Freedom," Cochlear said.

"All regions provided higher than average Cochlear implant growth and one-off tender sales in the European region of approximately 200 units were also booked." European revenue for the half year was 51.6 million euros, up 45 per cent, with revenue in the Americas region up 51 per cent to $US71.8 million and Asia Pacific revenue up 15 per cent to $A32.2 million.

Cochlear declared an interim dividend of 45 cents per share, fully franked, up from 35 cents per share in the prior corresponding period.

By The Associated Press