EANS-Adhoc: LifeWatch reports on results for Full Fiscal Year 2009 and the Fourth Quarter 2009 - Cost saving program drives strong margin growth, operational cash flow and profitability - Bren

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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24.02.2010

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless cardiac monitoring
services in the U.S., today announces strong results for Full Fiscal
Year 2009 and the Fourth Quarter 2009.

The following link will take you to the complete press release and to
the Letter to Shareholders Full Fiscal Year 2009 and Q4 2009:

http://production.investis.com/lifewatch/financial-publications

Full Fiscal Year 2009 highlights are as follows:.

• 2009 revenues reached USD 123.05 million (USD 128.1 million before
repayment provision), up 46% in comparison with 2008

• ACT cardiac monitoring service revenues accounted for almost 75% of the
total at USD 87.45 million (after repayment provision) compared with USD
35.81 million in 2008

• Gross profit reached USD 75.21 million, up 55% compared with USD 48.49
million in 2008

• EBITDA totalled USD 32.91 million (26.7% margin), compared with USD 15.29
million (18.1% margin) in 2008

• EBIT was USD 26.58 million, compared with USD 10.97 million in 2008

• Cash from operating activities in 2009 reached USD 31.84 million up from
USD 9.89 million in 2008

Fourth Quarter 2009 highlights are as follows:

• Revenues in Q4 reached USD 27.03 million (USD 32.09 million before
repayment provision) up 8.9% in comparison with Q4 2008

• ACT cardiac monitoring service revenues accounted for almost 75% of the
total at USD 19.58 million (after repayment provision) compared with USD
14.01 million in Q4 2008

• Gross profit reached USD 15.67 million, compared with USD 14.41 million
from Q4 2008

• EBITDA of USD 6.72 million with a 24.9% margin, versus USD 5.26 million
and 21.2% margin in Q4 2008

• EBIT of USD 4.99 million versus Q4 2008 EBIT of USD 4.02 million

• Positive operational cash flow of USD 9.98 million, up 124% from Q4 2008

• 472 managed care contracts for LifeWatch Cardiac Monitoring Services, and
189 managed care contracts for Home Sleep testing services

• Successful completion of beta testing for NiteWatch Home Sleep Test
services in December 2009

Further growth to be expected

We are confident of continued growth in the remote patient monitoring
field. Patient enrollments are rising, due to the increasing
prevalence of medical conditions such as Arrhythmia disorders, Atrial
Fibrillation, Cryptogenic Stroke, and Syncope. Additionally, our
entry into the Home Sleep Testing market with the NiteWatch service
for testing for suspected Obstructive Sleep Apnea will provide
additional revenues in 2010. Together with an aging population, the
rising prevalence of chronic disease conditions and the tightened
cost controls of many hospitals and healthcare providers in the U.S.,
the company has excellent growth opportunities in the future.

Provision for repayments

As a result of a change in the reimbursement environment, a potential
liability has arisen due to certain insurance companies questioning
reimbursement levels. These companies may make repayment claims
against us in a limited number of cases. In order to remove the risk
of negative surprises in the future we have taken a significant
provision to cover this eventuality. This provision amounts to USD
5.06 million and has been deducted from revenues. The revenue figures
for full year 2009 and Q4 2009 shown below have been reduced by this
amount.

Monitoring Services

LifeWatch wireless cardiac monitoring services grew rapidly in 2009.
Consolidated revenues for the company from its markets are reported
below:

• U.S. - USD 120.74 million compared with USD 81.76 million in 2008
• Other markets - USD 2.31 million compared with USD 2.57 million in
2008

Revenues from LifeWatch Wireless Cardiac Monitoring Services reached
USD 19.58 million in Q4 2009, compared with USD 14.01 million in Q4
2008, reflecting a strong increase of almost 40%. The rising demand
of the LifeStar ACT wireless monitoring service drove revenue in the
fourth quarter, and demonstrates its superior benefits of higher
diagnostic yield and faster time to treatment.

Both the LifeStar ACT Ex and LifeStar ACT III Platinum monitoring
services, launched in 2009, are well received in the U.S. medical
community. The ACT III Platinum 3-lead EKG was adopted for use in
many specialized patient care programs due to its increased
sensitivity and ability to detect many arrhythmia that other systems
lack, as well as the exceptional patient care programs, which have
proven invaluable to physicians in both the cardiology and neurology
fields. The ACT Ex monitor, which blends a digital Holter and a
3-lead EKG cardiac event monitor, was also embraced by many of the
leading U.S. heart institutions. Its unique ability to convert to a
full EKG monitoring service when the Holter portion returns a
negative test has demonstrated improved patient convenience and
compliance, and has opened new niche patient monitoring markets.

LifeWatch Specialized Programs developed very successfully in Full
Fiscal Year 2009:

• Atrial Fibrillation (AF) and stroke patient care program enrolments rose
by 86% in 2009 compared with 2008. Both patient care programs are above
the planned enrolment expectations.

• Revenues from LifeWatch´s Federal division grew by 223% in 2009,
contributing USD 5.92 million in revenues. LifeWatch is the only
Independent Diagnostic Testing Facility (IDTF) with a GSA (General Service
Administration) Schedule Contract for procurement of ACT wireless
monitoring services in U.S. government agencies.

• The NiteWatch Home Sleep Test (HST) service beta site testing was
successfully completed, and is now supported with 189 contracts. LifeWatch
is in the process of ramping up the service.

Sales of Systems

Revenue from the Sales of Systems in Q4 2009 reached USD 1.2 million,
compared with USD 1.6 million in the corresponding period of 2008. In
Q1 2009, LifeWatch realigned its strategy in sales and marketing
initiatives from 'sales of systems' to 'sales of services' to reflect
this growing market trend.

Board of Directors appoints new Chief Executive Officer

The Board of Directors accepted and supports Dr. Yacov Geva´s
proposal to appoint current President and COO Brent Cohen as the new
CEO of LifeWatch AG. With this nomination, Dr. Yacov Geva
successfully concludes a carefully conducted succession process
initiated several months ago, when Brent Cohen was first hired as
external advisor and then appointed as President and COO. The Board
promotes Brent Cohen to his new position on the grounds of his
outstanding performance track record, his broad international
business experience and his ability to provide vision and guidance as
well as align and direct people. Brent Cohen will take over as CEO
effective as of April 1, 2010.

The Board of Directors would like to thank Yacov Geva for his
immeasurable work, effort and commitment he has put and will continue
to put into LifeWatch: Having initially served as CEO for three
years, and then as Chairman of the Board and CEO during the following
21 years, Dr. Geva has built LifeWatch as we know the company today.
He will continue to serve LifeWatch as Chairman of the Board focusing
on the strategic priorities that will continue to bring our company
forward.

LifeWatch in 2010 and beyond

In 2010, under the leadership of Brent Cohen our new Chief Executive
Officer, we intend to accelerate our efforts to exploit the domestic
and global remote patient monitoring markets and to strengthen our
foundation with profitable, long-term growth initiatives. We believe
that LifeWatch is well-equipped - with the best people, products and
services - to build on the opportunities that lie ahead, both in the
near term and for the long-term. In 2010 our NiteWatch Home Sleep
Test and LifeStar ACT wireless monitoring services will continue to
drive growth of LifeWatch revenues. Although, as a result of the
current uncertain pricing environment, we have decided to hold over
full financial guidance until the release of our Q1 numbers in May
2010, we are confident that our service revenues for the full year
will reach at least the same level as in 2009, with solid double
digit EBIT margins. We will give more detail in May 2010 along with a
fully updated strategic statement.

end of ad-hoc-announcement ==========================================
====================================== This press release includes
forward-looking statements. All statements other than statements of
historical facts contained in this press release, including
statements regarding future results of operations and financial
position, business strategy and plans and objectives for future
operations, are forward- looking statements. The words “believe,”
“may,” “will,” “estimate,” “continue,” “anticipate,” “intend,”
“expect” and similar expressions are intended to identify
forward-looking statements. LifeWatch AG has based these forward-
looking statements largely on current expectations and projections
about future events and financial trends that it believes may affect
the financial condition, results of operations, business strategy,
short term and long term business operations and objectives, and
financial needs. These forward-looking statements are subject to a
number of risks, uncertainties and assumptions. In light of these
risks, uncertainties and assumptions, the forward-looking events and
circumstances described may not occur and actual results could differ
materially and adversely from those anticipated or implied in the
forward- looking statements. All forward-looking statements are based
only on data available to LifeWatch AG at the time of the issue of
this press release. LifeWatch AG does not undertake any obligation to
update any forward-looking statements contained in this press release
as a result of new information, future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF
AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH
AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN
INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH
OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE SECURITIES
OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR
DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY PUBLIC
OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE
BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG OR
ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL
STATEMENTS OF THE ISSUER.

end of announcement euro adhoc
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ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Kobi Ben Efraim, Chief Financial Officer, LifeWatch AG

Tel +41 52 632 00 50 | Fax +41 52 632 00 51 | Email kobibe@lifewatch.com

Sensus Investor and Public Relations GmbH, Zürich:

Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

Branche: Healthcare Providers
ISIN: CH0012815459
WKN: 1281545
Index: SPI, SPIEX
Börsen: Frankfurt / Open Market / XETRA
SIX Swiss Exchange / Hauptsegment
Berlin / free trade