Report no 38/2016

The Management Board of  EMC Instytut Medyczny SA - The Issuer announces the essential conditions for a potential acquisition by the Issuer of 100% of the shares in the following  companies :Aktywne Centrum Zdrowia [Active Health Centre] (ACZ): NZOZ Zawidawie spółka z ograniczoną odpowiedzialnością [the Non-Public Heathcare Centre a limited liability company] based in Wrocław (Zawidawie), Q-Med spółka z ograniczoną odpowiedzialnością [a limited liability company] with its registered office Olesnica (Q-Med), CM Medic spółka z ograniczoną odpowiedzialnością [imited liability company] based in Wrocław (CM Medic) The acquisition of the above companies being part of  industry, where the Issuer operates , according to the Issuer, shall have a significant impact on the Capital Group EMC Instytut Medyczny (EMC Hospitals).

ACZ provides outpatient care in the Lower Silesia (the main area of activity  of EMC Hospitals) in seven locations in Wrocław, Olesnica, Bierutów and Syców.

The contract for sale of shares in NZOZ Zawidawie a limited liability company based in Wrocław and a preliminary contract for sale of the shares of Q-Med a limited liability company based in Olesnica and  CM Medic limited liability company based in Wrocław are scheduled to be signed on July 25th , 2016.

The subject of the contract is the purchase of 100% of the shares of :

1. ZNOZ Zawidawie spółka z ograniczoną odpowiedzialnością - 2,128 (two thousand one hundred  and twenty-eight) shares in the share capital of the Company with a nominal value of PLN 645.00 (six hundred forty five thousand) each, with a total nominal value of PLN 1,372.560.00 (one million three hundred and seventy-two thousand five hundred and sixty), for a price of PLN 16,000,000.00 (sixteen million) adjusted for the value of the Company's net debt with Sunzi  Spółka z ograniczoną odpowiedzialnością based in Legnica.

2.Q-Med spółka z ograniczoną odpowiedzialnością based in Oleśnica – 10,050 (ten thousand and fifty) shares with a nominal value of PLN 100 (one hundred) each and the total nominal value of PLN 1,005,000.00 (one million five thousand) for a price of PLN 7,600,000.00 (seven million six hundred thousand) adjusted for the value of the Company's net debt with MED-ART Spółka z ograniczoną odpowiedzialnością based in Oleśnica.

3.CM Medic spółka z ograniczoną odpowiedzialnością with its registered office in Wrocław - 1,300 (one thousand three hundred) shares with a nominal value of PLN 500 (five hundred) each, with a total nominal value of PLN 650,000.00 (six hundred fifty thousand), for a price of PLN 1,400,000.00 (one million four hundred thousand) adjusted for the value of the Company's net debt with WG Corp. Spółka z ograniczona odpowiedzialnością with its registered office  in Oleśnica, where the net debt is the total interest-bearing liabilities arising from loans and liabilities from supplies and services less the sum of short-term receivables and the value of cash in hand and at bank as of 31 July 2016.

The preliminary contract of sale of the shares of Q-Med and CM Medic are conditional agreements, which means that the acquisition of the shares will take place only after the terms and conditions set out in the investment agreements have been met, which is an integral part of the contracts for the sale of shares.

There are no affiliations whatsoever between the Issuer and the abovementioned medical companies. Neither are there any affiliations whatsoever between  the Issuer’s managers or  supervisors and the medical companies’ managers or supervisors.

According to the Management Board of EMC Instytut Medyczny SA, this information is confidential within the meaning of art.7 of  Market Abuse Regulation concerning the Company, which if made public could have an impact on the price of its financial instruments.

Legal grounds: Article 17 (1) of the Regulation of the European Parliament and of the Council (EU) No 596/2014 of 16 April 2014 (Market Abuse Regulation).