Report no. 1/2015

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finances of 19 February 2009 on current and periodical information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. announces that on 12 January 2015 the Company received contracts with the National Health Fund - the Zachodniopomorskie Voivodeship Branch in Szczecin (the Fund Branch) in which the terms and conditions of providing healthcare services such as outpatient care, outpatient specialist care— cost-consuming outpatient diagnostic services, inpatient treatment and primary healthcare have been defined for the period from 1 January to 31 December 2015. Healthcare services referred to hereinabove are provided by the hospital owned by EMC Instytut Medyczny S.A. - St. George's Hospital in Kamień Pomorski. The Issuer informed about the contracts concluded by St. George's Hospital in Kamień Pomorski with the Fund Branch concerning rendering services in the previous year (2014) in its current reports nos. 6/2014 of 10.01.2014; 27/2014 of 13.02.2014; 69/2014 of 10.06.2014; 74/2014 of 31.07.2014 and 90/2014 of 13.10.2014.The Parties to the contract are the Issuer and the National Health Fund- the Zachodniopomorskie Voivodeship Branch in Szczecin (the Fund Branch).
The contract for the provision of healthcare services such as inpatient treatment, marked as 16-00-02979-15-10/03-01-11-14 concluded on 24 December 2014, is the contract with the highest value.The subject of the contract is the provision of healthcare services such as inpatient treatment by the Issuer.
The maximum amount of Fund Branch liability towards the Issuer has been established for the period from 1 January to 31 December 2015 totaling PLN 8,638,661.00 (this refers to the healthcare services rendered by the following departments: Internal Medicine, General Surgery, Obstetrics and Gynaecology, Paediatrics and Neonatology in the period of 12 months of 2014 as well as the Emergency Department in the period of 6 months of 2015).The Issuer undertakes, within the duration of the contract, to conclude a civil liability insurance contract against damages caused in relation to the provision of services.In the case of non-performance or improper performance of the contract, caused by the Company, the Director of the Fund Branch may impose a contractual penalty. In the case of writing out prescriptions to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified refund of the costs of medication made on the basis of prescriptions together with statutory interest calculated from the day of making the refund. In the case of issuing orders for delivery of medical products which are orthopaedic goods and auxiliary goods fully or partially financed by the Funds to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified financing together with statutory interest calculated from the day of making the refund. Contractual penalties specified above shall be imposed pursuant to provisions stipulated in General Terms and Conditions of the contracts.
The Fund Branch is entitled to claim damages exceeding the value of the contractual penalties. The contract has been concluded for the period from 1 January 2011 to 31 June 2016 with a possibility of its termination by each party upon a 3-month termination notice.
The total maximum Fund Branch liability towards the Company with regard to healthcare services rendered by St. George's Hospital in Kamień Pomorski under the said contracts currently amounts to PLN 10,851,520.17 for the period from 1 January to 31 December 2015.
A criterion for a contract to be considered significant: The value of contracts exceeds 10% of the Issuer’s equity capital.