Management Board of Mediclin presents Annual Report 2007

The Management Board of MEDICLIN Aktiengesellschaft is satisfied with the results of the financial year 2007.

Frankfurt am Main, March 17, 2008 – The Management Board of MEDICLIN Aktiengesellschaft (MediClin) is satisfied with the results of the financial year 2007, he explained at this year’s balance sheet press conference. „We have increased our revenues and we could increase our operating result by nearly 13% to 18.9 million Euro despite higher costs”, said Dr. Ulrich Wandschneider, CEO of MediClin. Regarding business development in 2008 the Management Board anticipates revenues in the range of 445 million Euro, but he expects higher strains on the result. In 2008 operational he will first and foremost push further the networking of the clinics in the regions through co-operations with registered physicians and hospitals, just as the integration of the Kraichgau-Klinik Group acquired in January 2008. Extensions are to be made beside in the acute sector in the nursing care sector in Bad Münder und in Tabarz to treat dementia nursing cases.

Business development in 2007

In the financial year MediClin could increase its revenues and its operative result significantly. Group revenues increased by 14.2 million Euro or 3.8 per cent to 392.0 million Euro (previous year: 377.8 million Euro). The post-acute segment has made the highes contribution with 11 million Euro. Despite increased costs in nearly all areas and budget cuts in the acute sector an operative result of the Group of 18.9 million Euro (previous: 16.7 million Euro) could be achieved.

The result attributable to shareholders accounts for 5.7 million EUR and is below the previous year’s figure of 9.5 million EUR due to the reduction of the corporate tax rate, causing a one-off non-cash effective tax burden of 4.1 million EUR.

Number of nursing days and number of cases increased

The number of nursing days increased in 2007 Group-wide by 4.5% to 2.268.797 nursing days (2006: 2,172,126 nursing days). The number of rose by 3.7% up to 108.994 cases (2006: 105,058 cases). In the nursing care segment no case numbers are defined.

Considerably increased number of cases in the post-acute segment led to an increase in revenues and earnings so that the segment result could improve from -1.7 million Euro to +3,2 million Euro. The occupancy rate in this segment was 84.8% in 2007 (previous year: 77.9%). In den acute and nursing care segment revenues increased also, but in the acute segment the segment result of 16.1 million Euro could not match the previous year’s good value (previous year: 18.6 million Euro) due to higher expenses. In the nursing care segment an occupancy rate of 88.5% (previous year: 82.8%) was achieved.

Despite increased costs definite more investments

Material expenses increased 5.1% to 84.4 million EUR (2006: 80.3 million EUR in 2007. Personnel expenses increased also to 217.6 million EUR (2006: 212.5 million EUR). The number of staff accounted in full-time employees was 5,277 (2006: 5.252 full-time employees) on average in 2007. Other operating expenses were reduced to 68.6 million EUR (2006: 69.4 million EUR). The cash flow from operating activities was 11.3 million EUR (2006: 7.8 million EUR).

Investments (gross additions to property, plant and equipment) increased definitely in 2007 compared to the previous year. It accounted for 27.6 million EUR (2006: 17.6 million EUR).

Investments were made in the acute segment for new buildings or enlarged capacity like in a new functional wing at the MediClin Krankenhauses am Crivitzer See and a new wing of beds with accompanying therapy areas at the MediClin Hedon Klinik, Lingen. The MediClin Robert Janker Klinik in Bonn was developed into an innovative stereotaxis centre. Especially the ambulant offers were expanded in the post-acute and acute segment, so a psychiatric day clinic in Neubrandenburg and an ambulance for children and teenagers was established at the Psychiatry in Offenburg.

The annual report 2007 is available under www.mediclin.de in German and English.