Medicover acquires an interest of just below 40 percent in Warsaw private hospital operator

Medicover has acquired an interest of just below 40 percent in the leading private hospital operator in the Warsaw market, Centrum Medyczne Damiana (CMD) for a cash consideration of approximately € 2.2 million. CMD currently operates a combined hospital and outpatient facility in the Southern part of Warsaw and an outpatient facility in the city center. The company had revenue in 2005 of approximately € 10 million and is profitable. The CMD investment will be accounted for as an associated company, and consolidated on an equity share basis. Medicover is currently in discussion with the two other principal owners of CMD as to the strategy and future direction of the company and is seeking board representation. Fredrik R Rågmark, Medicover CEO comments: “We consider this an important strategic step in supporting our longer term stand- alone hospital plans, as previously announced. The investment into CMD will yield synergies for both parties, both through our ability to divert parts of our existing out-sourced hospital and diagnostic business to CMD, as well as the opportunity to use our current sales and distribution channel to more actively market CMD’s hospital and diagnostic services, both to our current and prospective customers. We believe the investment is also a strong strategic fit with our longer term green-field hospital plans in the Warsaw market”. For questions, please contact: Fredrik Rågmark, CEO, +32-475-75 19 64 Joe Ryan, CFO, +32-477 56 03 82