Medicalgorithmics S.A. — Regulatory Filings 2023

Jan 19, 2023

Subject:Medicalgorithmics Group introduces its solutions to the UK market

Currentreport no.:3/2023

Dateof preparation:January 19, 2023

Legalbasis:Article 17 par. 1 of the MAR Regulation - confidential information.ManagementBoard of Medicalgorithmics S.A. with its registered office in Warsaw(_quot;Issuer_quot;, _quot;Company_quot;) informs that on January 19, 2023, the Companysigned a strategic distribution agreement ("Agreement") with ExpressDiagnostics Limited based in Plymouth, United Kingdom (_quot;Express_quot;).

Expressis the largest provider of heart monitoring and ECG analysis services inthe UK. The agreement covers distribution of PocketECG, and AI,including in the future Deep Rhythm AI, and analytics technologies(Products).Theagreement becomes effective at the moment the registration process ofthe PocketECG in the territory of the United Kingdom is completed alongwith fulfilment of other necessary requirements under the UK lawenabling release of the Products on the UK market and their distribution.

TheAgreement shall remain in force and effect until terminated with 12months' notice period or immediately in the event of a material breach.Additionally, Express has the right of first refusal to purchase ordistribute in the UK any new or previously undisclosed technologies ordevices developed by Company for the Cardiovascular Health Care Market.This right expires in 30 days after notification by the Company.

TheAgreement was concluded at market terms, and in accordance with thecommonly used standards. The Agreement is subject to and will beinterpreted in accordance with Polish law.Thecontract does not provide exclusivity for the UK market, as the strategyof Medicalgorithmics is to establish cooperation with the largestentities in the UK medical services market to provide UK patients withaccess to the leading-edge heart diagnostic technologies.TheAgreement does not establish revenue or sales target levels for 2023,and states that the sales targets for 2024 and the consecutive years ofthe Agreement will be agreed upon in 2023.

Accordingto the Company estimates, the UK cardiac monitoring market is large,with more than 3,000 cardiologists and 75,000 general practitioners.More than 1,700,000 people are affected by atrial fibrillation in theUK. The ambulatory ECG market in the UK grows dynamically, with CAGR(Compound Annual Growth Rate) of 6% over the last 5 years. This growthis driven by the aging population resulting in an increase in the numberof cardiac arrhythmia patients in the UK, which is projected to reachover 3 million by 2025.

Inthe opinion of the Company Management, the conclusion of the agreementwith Express Diagnostics and thus the entry into the British market isthe result of the new strategy of dynamic expansion in global marketsannounced last year at the point of merger with Biofund. This expansionwill be continued in 2023. The strengthening of the company by theBiofund investor and their innovative AI technologies, as well as theexpanded portfolio of cardiovascular solutions - thanks to thesubsidiary Kardiolytics and its VCAST technology - enables creation ofan attractive, and complementary offer of cardiovascular solutions, andopens up Medicalgorithmics Group to entirely new markets.

TheManagement Board decided to publish this information at the point ofsigning this Agreement as it signifies entry of the Company's Productsinto a new, significant market of the United Kingdom.Additionally,the Company informs that since publishing of its consolidated half yearfinancial report of 2022 on September 29, 2022 it entered into adistribution agreement covering the Israeli market with SysteMedic Ltd.