EANS-Adhoc: LifeWatch AG / Fourth Quarter 2012 and Full Fiscal Year 2012 Results confirm successful turnaround (with document)

--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------

Annual Reports/annual report
26.02.2013

- EBIT of USD 0.65 million and EBITDA of USD 1.57 million in Q4 2012

- Net profit of USD 0.47 million in Q4 2012

- Reduction of total departmental expenses of USD 10.4 million in FFY
2012

- Additional 138 new or amended contracts for ACT and HST,
respectively

International analyst and media conference and audio web cast on
LifeWatch Q4 2012 and full fiscal year 2012 results

- Tuesday, February 26, 2013 at 10.00 a.m. CET

- Dial-in number: + 41 (0)91 610 56 00 (Europe), + 44 (0)203 059 58
62 (UK), +1 (1)866 291 41 66 (USA - Toll-free)

- Audio web cast
http://services.choruscall.eu/links/lifewatch130226.html

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless telemedicine, today
announces the results for the fourth quarter 2012 and full fiscal
year 2012. The Company continues in the fourth quarter 2012 to
present an operating profit on EBIT and EBITDA level and as well as a
net profit. Total department expenses for full fiscal year 2012 were
reduced by over USD 10 million. Furthermore LifeWatch succeeded in
2012 in closing 138 new or amended contracts for its ACT services and
Home Sleep Testing, respectively.

You will find a PDF-version of this press release and of the letter
to shareholders with the results of Q4 2012 and full fiscal year 2012
at the end of this message.

Fourth Quarter 2012 Financial Highlights:

- Revenues of USD 20.07 million compared with USD 22.24 million in Q4
2011

- Gross margin of 56.6% compared with 60.6% in Q4 2011

- Total departmental expenses were 53.4% of revenues compared with
60.2% in Q4 2011

- EBIT of USD 0.65 million compared with EBIT of USD 0.09 million in
Q4 2011

- EBITDA of USD 1.57 million compared with EBITDA of USD 1.08 million
in Q4 2011

- Net profit of USD 0.47 million compared with net loss of USD 0.55
million in Q4 2011

Full Fiscal Year 2012 Financial Highlights:

- Revenues of USD 80.11 million compared with USD 82.24 million in
FFY 2011

- Operating costs were USD 10.4 million less than in FFY 2011

- EBIT and EBITDA of USD 4.17 million and USD 8.15 million compared
with LBIT and LBITDA of USD 28.22 million and USD 22.92 million
respectively in FFY 2011

- Net loss of USD 0.37 million compared with a net loss of USD 31.97
million in FFY 2011

- Delayed Medicare payment of approximately USD 3.5 million impacted
cash, cash equivalents, marketable securities and structures, which
were USD 5.95 million on December 31, 2012

Revenues

During the course of FFY 2012 the Company saw a rise in patients who
declined their monitoring service prescribed by their physician. This
situation is impacting healthcare delivery across the USA, and we
discussed it in the Letter to Shareholders. These trends underscore
our strategy of diversifying into new territories and with new
monitoring platforms for other disease states.

Quarterly: Revenues for Q4 of 2012 reached USD 20.07 million, a
decline of almost 10% over Q4 2011 revenues of USD 22.24 million, yet
an increase of approx. 1% over Q3 2012 revenues.

Annually: Revenues for FFY 2012 reached USD 80.11 million, which
reflects a decrease of approximately 2.6% from FFY 2011 revenues of
USD 82.24 million.

Gross Profit, EBIT and EBITDA

Fourth Quarter 2012:

- Gross profit during this reporting quarter reached USD 11.36
million with a margin of 56.6% compared with a gross profit of USD
13.48 million and a margin of 60.6% in Q4 2011. Gross margin was
impacted by the decrease in Q4 2012 revenues.

- EBIT this quarter was USD 0.65 million with a margin of 3.2%
compared with Q4 2011 EBIT of USD 0.09 million and a margin of
0.4%.

- EBITDA this quarter reached USD 1.57 million with a margin of 7.8%
compared with EBITDA of USD 1.08 million and a margin of 4.9% in Q4
2011.

Full Fiscal Year 2012:

- Gross profit in FFY 2012 reached USD 45.93 million with a margin of
57.3% compared with FFY 2011 gross profit of USD 43.44 million with
a margin of 52.8%. The cost cutting measures, including a reduction
of headcount and decrease in depreciation expenses were the main
reasons for the positive impact on 2012 FFY gross profit margin.

- EBIT in FFY 2012 was USD 4.17 million with a margin of 5.2%
compared with LBIT of USD 28.22 million for FFY 2011.

Net Income/Loss

Fourth Quarter 2012: Net income for this quarter was USD 0.47 million
with a margin of 2.3% compared with a net loss of USD 0.55 million in
Q4 2011. Fully- diluted earnings per share were USD 0.03 this quarter
compared with a fully- diluted loss per share of USD 0.04 in Q4 2011.

Full Fiscal Year 2012: Net loss for FFY 2012 was USD 0.37 million
compared with a net loss of USD 31.97 million in FFY 2011.
Fully-diluted loss per share was USD 0.03 in FFY 2012 compared with
fully-diluted loss per share of USD 2.56 in FFY 2011.

Outlook 2013

LifeWatch executed a successful turnaround and returned to
operational profitability in 2012. Nonetheless, reimbursement in the
U.S. remains a challenge. Despite the increased competition in
cardiac monitoring services, LifeWatch will focus on strengthening
its position through additional market share in the cardiac and home
sleep testing market, expansion of sales and marketing efforts in
large metropolitan areas, and the introduction of new programs for
monitoring other disease conditions. Our LifeWatch V business
development team is intensely focused on identifying growth
opportunities and strategic partnerships in new markets, and has
identified a number of strategic partnerships to pursue in 2013. Our
long-term growth strategy of product and geographical diversification
looks promising.

For further information please contact:

Sensus Communication Consultants, Zürich: Tel +41 43 366 55 11 | Fax
+41 43 366 55 12 | Email lifewatch@sensus.ch

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on
SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare
technology and solution company, specializing in advanced telehealth
systems and wireless remote patient monitoring services. LifeWatch
services cater to individuals, ranging from high-risk and chronically
ill patients, to consumers of health and wellness products. LifeWatch
AG has operative subsidiaries in the United States, in Switzerland
and in Israel and is the parent company of LifeWatch Services Inc.,
and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a
leading US-based provider of cardiac monitoring services and home
sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch
Technologies Ltd., based in Israel, is a leading developer and
manufacturer of telemedicine products. The Company is planning to
introduce the LifeWatch V, an Android-based smartphone with medical
sensors and apps that uses a cloud-based service platform. For
additional information, please visit www.lifewatch.com.

Sign-up for customized E-mail alerts and documentation requests is
available at

http://production.investis.com/lifewatch/alert-service/

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
AG 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.

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/E2sWCuEm
http://resources.euroadhoc.com/us/1Vsl1JqX
http://resources.euroadhoc.com/us/xjnZF0tD
http://resources.euroadhoc.com/us/pfwE96bs

Further inquiry note:
Sensus Communication Consultants, Zürich:
Tel +41 43 366 55 11
Fax +41 43 366 55 12
Email lifewatch@sensus.ch

end of announcement euro adhoc
--------------------------------------------------------------------------------

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/E2sWCuEm
http://resources.euroadhoc.com/us/1Vsl1JqX
http://resources.euroadhoc.com/us/xjnZF0tD
http://resources.euroadhoc.com/us/pfwE96bs

issuer: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: users@lifewatch.com
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: free trade: Berlin, Open Market / XETRA: Frankfurt, Main Standard:
SIX Swiss Exchange
language: English