Pihlajalinna Plc:Pihlajalinna Plc specifies the information in the Stock Exchange Release on Friday 5 February

Pihlajalinna Plc Stock Exchange Release 8 February 2016 at 14.45 EET

Pihlajalinna Plc specifies the information in the Stock Exchange Release on Friday 5 February

The Ministry of Social and Healthcare and the Ministry of Finance told in a release on Friday the 5 February about the preparation of temporary legislation to limit municipalities and joint authorities' large investments such as hospitals buildings or complete outsourcing contracts. Pihlajalinna Plc announced this with a Stock Exchange release on Friday 5 February at 13.45 EET. Pihlajalinna has tried to clarify the expected main points of the prepared legislation during the weekend and Monday.

Based on the information published by the ministries Pihlajalinna does not expect the law to have an effect to company's complete outsourcing contracts that are in force nor to the optional enlargements of these contracts. In the ministry's release on Friday 5 February is stated that that the investments that improve productivity and are otherwise appropriate will be secured. For example according to the Sykki- study by the National Institute of Health and Wellbeing Pihlajalinna has been able to create significant savings to the municipalities when these have outsourced the social and healthcare services to Pihlajalinna.

Pihlajalinna has discussed with the Ministry of Social and Healthcare about the legislation preparation and the preparation process and follows closely its progress. In addition Pihlajalinna's Vice President of the Dental Care services, Pekka Utriainen will participate in the specialist working group of the social and healthcare reform. The chairman of the group is Under-Secretary of State Tuomas Pöysti who is the project lead of the whole social and healthcare reform.

The temporary legislation can have a possible effect to the complete outsourcing contracts signed during the temporary legislation and valid after the actual social and healthcare reform comes to force. The exact nature of the effects cannot be evaluated before more information about the contents of the proposed law. Pihlajalinna will continue to monitor the proposed legislations content and possible effects.

Further information

Mikko Wirén, toimitusjohtaja, Pihlajalinna Oyj, 050 322 0927

Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj, +358 40 848 4001, terhi.kivinen@pihlajalinna.fi

Distribution

Nasdaq OMX Helsinki

Key media

investors.pihlajalinna-konserni.fi