MedLife S.A. — Capital/Financing Update 2019

Jun 6, 2019

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MedLife intends to allocate 20 million euros to continue its procurement program in the country and abroad

Bucharest, June 6, 2019: MedLife Board of Directors aims to raise the credit limit by 15 million euros. According to the company's representatives, the company's other own funds will be added to this increase up to a total of 20 million euros, the main objective of which is the development of the acquisition program and the national and international expansion.

The syndicate of banks for accessing the credit consists of the Romanian Commercial Bank as coordinator, principal arranger, facilitation agent and guarantor and financier, BRD Groupe Société Générale, Raiffeisen Bank and Banca Transilvania, as arrangers and financiers.

"We have managed to improve our margins and this allows us to grow sustainably and, at the same time, ensure the optimum ratio between net debt and profit. Decrease in indebtedness encourages us to move to shareholders to demand increased funding lines to resume acquisitions in Romania, Hungary, but also in neighboring countries where we see a significant growth market. We are looking for and testing the permanent market and we have talks with 5-6 operators from Romania and with 2-3 from Hungary and we hope to make some transactions in the next period, "said Mihai Marcu, president and CEO of MedLife Group.

MedLife Group ended the first quarter of 2019 on an upward trend, announcing a pro forma consolidation of 224.9 million lei for this period, up 27.6% over the same period last year. The results of the first quarter come after a very good dynamics on all business lines, dynamic supported by the rising appetite of Romanians for medical services, but also by a favorable evolution in the whole market.

About MedLife:

MedLife is the largest private medical operator in Romania. The company operates the largest network of clinics, one of the major networks of medical laboratories, multi and monodisciplinary hospitals and it has the largest client base for Health Prevention Packages at national level. Also, sales-wise, it is one of the major private healthcare companies in Central and Eastern Europe.

The stock issued by MedLife SA is accepted for trading on the spot regulated market, managed by the Bucharest Stock Exchange, under the Premium Category, trading symbol "M".

The MedLife Group has a successful background regarding both organic and also acquisition growth. Since 2009 the company has opened or bought over 83 medical units. Its strong and experienced management team has been able to create and manage these growth opportunities, acquiring valuable experiences and knowledge, allowing it to find the best way for carrying on the expansion process successfully.