Medicalgorithmics S.A. — Management Reports 2022

Dec 6, 2022

Management Board ofMedicalgorithmics S.A. (the _quot;Company_quot;) informs about today's approval ofthe Company's strategy for the US market.

Management of theCompany approved the strategy to ensure and accelerate long-term growthin the USA and increase Company's share in this market.

_#160;The new strategy willinclude both providing full scope of the Company's services, that isaccess to the PocketECG software platform with the Company's advanced AIalgorithms and delivery of the devices (current model) as well asgranting licenses for the use of software, including algorithms,rendered on a non-exclusive basis.

Reaching new saleschannels will ultimately increase revenue by offering services to anincreased number of patients and provide additional opportunities forgrowth in case of launching new services, as well as enablingdiversification through cooperation with many distributors.

The company will focuson the following US market segments:

-_#160;_#160;_#160;_#160;-Companiesbeing Independent Diagnostic and Testing Facilities (hereinafterreferred to as IDTFs) to offer them the possibility of providing MCTservices (the Company primary service, utilizing the full advantage ofthe Company's advanced technology, with the highest reimbursement in theUSA), as well as other services like Event, Extended Holter usingdevices developed by the Company (Pocket IV, qPatch) with the Company'snew generation of the PocketECG system with the latest artificialintelligence software - Deep Rythm Artificial Intelligence - (DRAI).

-_#160;_#160;_#160;_#160;-_#160;IDTFs thatdo not have strong software and AI, but have their own hardware(devices) and would benefit from the Company's new generation of thePocketECG system with the latest AI (DRAI)

-_#160;_#160;_#160;_#160;-_#160;Strategictechnological companies, including device manufacturers, offeringlicensing elements of the PocketECG system with the latest AI (DRAI)

-_#160;_#160;_#160;_#160;-Pharmaceuticalcompanies or other research companies offering the Company's database.

Implementing thestrategy, will require among other, to renegotiate the existing contractwith the sole distributor in the US (Company informed about it in report52/2022, dated July 28, 2022. The Company will inform about thenegotiations result in a report.

_#160;The Company plans toimplement the strategy in the next 12 to 24 months.