EANS-Adhoc: LifeWatch receives notification from Highmark Medicare Services on lower reimbursement rates for services covered under CPT Code 93229

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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13.07.2009

. IDTF industry to start discussions with Highmark to reverse
unjustified decision . Despite new reimbursement recommendation,
LifeWatch confirms outlook for 2009 . Two thirds of LifeStar ACT
Wireless Cardiac Monitoring services covered by separate
commercial contracts

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE) confirms today that its subsidiary LifeWatch Services
Inc. has received a letter issued by Highmark Medicare Services
announcing lower reimbursement rates of USD 754 (currently USD 1123)
for LifeWatch's LifeStart ACT wireless cardiac monitoring service
effective as from September 1, 2009. Highmark is the carrier for
CMS/Medicare services in Pennsylvania.

LifeWatch is very surprised about Highmark's intention to reduce
reimbursement for the wireless LifeStart ACT services and strongly
believes that the planned reduction affecting all providers covered
under the U.S. nationwide CPT Code 93229 is totally unjustified. In
the next two months, the coalition of Independent Diagnostic Test
Facilities (IDTFs) will try to convince Highmark to reverse its
decision. LifeWatch believes that they have a very strong argument
against this decision.

Highmark's proposed rates would only be directly applicable to
roughly a third of LifeWatch's LifeStar ACT services as the majority
of its wireless cardiac arrhythmia monitoring business is covered by
over 460 independent commercial contracts.

Even if Highmark's proposed rates will be applicable as from
September 1, 2009, LifeWatch confirms its guidance for the full year
of 2009, expecting a sales increase over 50% to USD 127 million - USD
130 million, an EBITDA-Margin of over 20% and an EBIT-Margin of over
16%.

LifeWatch will announce strong results for the second quarter of 2009
on July 28, 2009 in a press release issued internationally at 0700
a.m. CEST, an analyst and media conference at the Marriott Hotel
Zurich at 10:00 a.m. CEST and an international conference call /
webcast at 2:00 p.m. CEST.

end of ad-hoc-announcement ==========================================
====================================== About LifeWatch AG LifeWatch
AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss
Exchange (LIFE), Switzerland, is the leading healthcare technology
and solution company, specializing in advanced telehealth systems and
wireless cardiac monitoring services. LifeWatch services treat
high-risk and chronically ill patients, health conscious consumers
and wellness programs. LifeWatch has subsidiaries in the United
States, the Netherlands, Japan, the United Kingdom, Switzerland and
Israel. LifeWatch AG is the parent company of LifeWatch Services
Inc., a leading US-based cardiac monitoring service provider, and
LifeWatch Technologies Inc., a US-based manufacturer of
telecardiology products. www.lifewatch.com

Sign-up for customized E-mail alerts and documentation requests is
available at http://production.investis.com/lifewatch/alert-service/

This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding future results of
operations and financial position, business strategy and plans and
objectives for future operations, are forward-looking statements. The
words "believe," "may," "will," "estimate," "continue," "anticipate,"
"intend," "expect" and similar expressions are intended to identify
forward- looking statements. LifeWatch AG has based these forward
looking statements largely on current expectations and projections
about future events and financial trends that it believes may affect
the financial condition, results of operations, business strategy,
short term and long term business operations and objectives, and
financial needs. These forward-looking statements are subject to a
number of risks, uncertainties and assumptions. In light of these
risks, uncertainties and assumptions, the forward-looking events and
circumstances described may not occur and actual results could differ
materially and adversely from those anticipated or implied in the
forward- looking statements. All forward-looking statements are based
only on data available to LifeWatch AG at the time of the issue of
this press release. LifeWatch AG does not undertake any obligation to
update any forward-looking statements contained in this press release
as a result of new information, future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF
AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH
AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN
INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH
AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE
SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE
OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S.
PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY
PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE
MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG
OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL
STATEMENTS OF THE ISSUER.

end of announcement euro adhoc
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ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Kobi Ben Efraim, Chief Financial Officer, LifeWatch AG

Tel +41 52 632 00 50 | Fax +41 52 632 00 51 | Email kobibe@cardguard.com

Sensus Investor and Public Relations GmbH, Zürich:

Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

Branche: Healthcare Providers
ISIN: CH0012815459
WKN: 1281545
Index: SPI, SPIEX
Börsen: Frankfurt / Open Market / XETRA
SIX Swiss Exchange / Hauptsegment
Berlin / free trade