AEVIS VICTORIA SA

Earnings Release • Feb 17, 2009

News Details

Ad-hoc | 17 February 2009 07:01

Genolier Swiss Medical Network (GSMN): Turnover of CHF 127 million in 2008 up by 9.4%.

Turnover of CHF 127 million in 2008 up by 9.4%.

All entities improve by between 5% and 22%

In 2008, GSMN generated a consolidated turnover of CHF 127.6 million, an

increase of 9.4% compared with 2007 (CHF 117m). All entities show an

improvement, ranging from 5.4% for Clinique de Genolier to 22.2% for

Clinique de Montchoisi in Lausanne. The Group, comprising private hospitals

in French-speaking Switzerland, ceded control of its Publishing Division

AGEFI at the start of February and thus completed its refocusing on

healthcare activities, at the moment less affected by the current crisis.

The start of 2009 confirms the positive development achieved by the Group

since it was founded.

GSMN, Genolier Swiss Medical Network SA, a company listed on the Swiss

stock exchange SIX (GSMN:SW) today published its turnover to 31 December

2008. The figure comes to CHF 127.6 million, a year-on-year increase of

9.4% (CHF 117m). Clinique de Genolier, the flagship of the Group, generated

turnover of close to CHF 70 million, an increase of 5.4% (CHF 66.3m).

Clinique de Montchoisi and Clinique Valmont-Genolier increased their

turnover by 22.2% and 8%, respectively, while Clinique G¨¦n¨¦rale in

Fribourg, responsible for the Group¡¯s main loss in 2006 and 2007, increased

its turnover by 21% to close to CHF 25 million (CHF 20.5 m).

In 2008, the Genolier Swiss Medical Network Group expanded its recruitment

network abroad, allowing it to minimise the possible impact of the current

crisis on this patient category. More than 15 new physicians joined GSMN in

2008, consolidating the activities of the group in its key areas of

Oncology, Orthopaedics, Ophthalmology, Cardiology and General Surgery. The

hospitals of GSMN will pursue their policy of medical innovation in 2009

and new activities will be implemented in the various units to supplement

the current range of services. This development of activities will lead to

the creation of new jobs in 2009, in particular at Genolier.

Laurent Bertrand, Director of Clinique La Ligni¨¨re in Gland for almost 10

years, will join the Clinique de Genolier as Managing Director on the 1th

of March. His task will be to continue the development of the site in order

to consolidate its integration into the regional health network. In 2008,

the hospital replaced its radiotherapy equipment and in so doing

consolidated its position as a centre for oncology. 2009 will see the

opening of Les Hauts de Genolier, a secured and medical residence for the

elderly. This residence will accommodate about a hundred residents in 63

upmarket apartments which have been designed to propose the same comfort

and privacy as an own home while offering the security of a hospital.

Clinique de Montchoisi, acquired by the group in 2003, has developed an

important ophthalmology department treating more than 3,000 patients every

year. Surgical procedures are mainly associated with ocular pathologies, in

particular glaucoma, cataracts and macular degeneration. The hospital has

twenty or so renowned FMH specialists. This hospital, which recorded the

Group¡¯s greatest level of growth in 2008, has been a leading member of the

network of private hospitals in Lausanne since 1934, also offering

high-quality service to regional patients in the fields of Orthopaedics,

Gynaecology, General and Aesthetic surgery.

Clinique G¨¦n¨¦rale in Fribourg and Clinique Valmont-Genolier in Glion sur

Montreux have successfully realised their turnaround, with a significant

increase in both activity and turnover in 2007 and 2008. The private and

semi-private client groups have seen particular development thanks to

substantial investments in accommodation and hospitality. Each of them now

offers private and semi-private rooms with first-class comfort and a

gourmet restaurant also open to the public.

The majority of the capital in the Publishing Division having been disposed

of, GSMN is anticipating for 2009 a turnover in excess of CHF 145 million

in the area of healthcare alone, with the acquisition Centre

m¨¦dico-chirurgical des Eaux-Vives (CMEV) in Geneva. Reorganisation measures

allowing a reduction of overhead costs of more than CHF 2 million were

implemented in 2008 and the effects will be seen in 2009. The new

decentralised administrative structure, especially in the area of financial

management of the group¡¯s entities, will allow the integration of new

entities with no increase in the central workforce. The movement towards

consolidation of the industry is still in its embryonic stage in

Switzerland and Europe and the current period should offer GSMN, which has

little debt, interesting acquisition and partnership opportunities. GSMN

will publish its 2008 results and Annual Report on 28 April 2009.

GSMN (Genolier Swiss Medical Network) SA is the leading private hospital

network in the French speaking region of Switzerland (Romandie). Its growth

strategy is focused on building a national network by acquiring clinics and

restructuring their operations. GSMN¡¯s main goal is on providing premium

hospital care to Swiss and foreign patients. GSMN distinguishes itself over

other healthcare providers on the basis of its quality of services, high

brand value, congenial working environment and an experienced and

entrepreneurial management team. Presently, GSMN has 4 fully owned private

hospitals in its portfolio with 277 operating beds and more than 200

additional licensed beds for organic growth. Additionally, GSMN has a

management contract with Centre m¨¦dico-chirurgical des Eaux-Vives (CMEV),

an out-patient consult and oncology centre in Geneva. The Group is listed

on the Main Segment of the SIX Swiss Exchange (GSMN:SW).

For more information, please contact:

GSMN Press Service

Media Impact

G¨¦rard Sermier

Rue de Lausanne 42 © 1201 Gen¨¨ve

Tel +41 (0)22 732 59 97 © Fax +41 (0)22 738 62 01

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