LifeWatch AG

EANS-Adhoc: LifeWatch receives notification from Highmark Medicare Services on lower reimbursement rates for services covered under CPT Code 93229

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13.07.2009

. IDTF industry to start discussions with Highmark to reverse
unjustified      decision  . Despite new reimbursement recommendation,
LifeWatch confirms outlook for 2009  . Two thirds of LifeStar ACT
Wireless Cardiac Monitoring services covered by      separate
commercial contracts

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss Exchange: LIFE) confirms today that its subsidiary LifeWatch Services Inc. has received a letter issued by Highmark Medicare Services announcing lower reimbursement rates of USD 754 (currently USD 1123) for LifeWatch's LifeStart ACT wireless cardiac monitoring service effective as from September 1, 2009. Highmark is the carrier for CMS/Medicare services in Pennsylvania.

LifeWatch is very surprised about Highmark's intention to reduce reimbursement for the wireless LifeStart ACT services and strongly believes that the planned reduction affecting all providers covered under the U.S. nationwide CPT Code 93229 is totally unjustified. In the next two months, the coalition of Independent Diagnostic Test Facilities (IDTFs) will try to convince Highmark to reverse its decision. LifeWatch believes that they have a very strong argument against this decision.

Highmark's proposed rates would only be directly applicable to roughly a third of LifeWatch's LifeStar ACT services as the majority of its wireless cardiac arrhythmia monitoring business is covered by over 460 independent commercial contracts.

Even if Highmark's proposed rates will be applicable as from September 1, 2009, LifeWatch confirms its guidance for the full year of 2009, expecting a sales increase over 50% to USD 127 million - USD 130 million, an EBITDA-Margin of over 20% and an EBIT-Margin of over 16%.

LifeWatch will announce strong results for the second quarter of 2009 on July 28, 2009 in a press release issued internationally at 0700 a.m. CEST, an analyst and media conference at the Marriott Hotel Zurich at 10:00 a.m. CEST and an international conference call / webcast at 2:00 p.m. CEST.

end of ad-hoc-announcement ========================================== ====================================== 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 cardiac monitoring services. LifeWatch services treat high-risk and chronically ill patients, health conscious consumers and wellness programs. LifeWatch has subsidiaries in the United States, the Netherlands, Japan, the United Kingdom, Switzerland and Israel. LifeWatch AG is the parent company of LifeWatch Services Inc., a leading US-based cardiac monitoring service provider, and LifeWatch Technologies Inc., a US-based manufacturer of telecardiology products. www.lifewatch.com

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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.

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ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.ch

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@cardguard.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



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