EANS-Adhoc: LifeWatch reports strong results for 3rd quarter 2009 resulting in the 8th consecutive quarter of year-over-year revenue growth Rollout for Home Sleep Test Service "NiteWatch" is on tra

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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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3-month report/LifeWatch Financial Results Q3 2009

05.11.2009

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless cardiac monitoring
services in the U.S., today announces strong results for the third
quarter of 2009.

The following link will take you to the complete press release:
http://www.newsaktuell.ch/pdf/lifewatch_q3_2009_english_final.pdf

The following link will take you to the Letter to Shareholders Q3
2009: http://www.newsaktuell.ch/pdf/lts_q3_2009_final.pdf

Q3 2009 Highlights are as follows:

• Consolidated revenues reached USD 34.05 million, reflecting growth of over
47% compared with Q3 2008

• Gross profit margin of 65.2% representing USD 22.2 million in gross profit

• EBITDA of USD 10.41 million representing 30.6% of revenues, compared to
20.7% in Q3 2008

• EBIT of USD 8.79 million representing 25.8% of revenues, versus 16.3% in
Q3 2008

• Positive operational cash flow of USD 9.17 million, almost triple that of
the USD 3.28 million recorded in Q3 2008

• LifeWatch AG won Swiss Equity Award 2009 for its successful corporate
development in difficult economic times

• LifeWatch AG shares areas included in the SXI LifeSciences® and SXI
Bio+Medtech® indices since September 21, 2009

• 5 new managed care contracts at LifeWatch Services signed in Q3 2009,
totalling 469 contracts, and covering over 297 million lives

• LifeStar ACT wireless monitoring service achieved approximately 20,160
enrollments in Q3 2009

For Q3 2009, LifeWatch AG reports continued growth for the eighth consecutive

quarter. The Company´s consolidated revenues reached USD 34.05
million in Q3 2009 reflecting growth of over 47% compared with Q3
2008 revenues of USD 23.12 million. In addition, LifeWatch AG showed
significantly higher EBIT and EBITDA, and net income growth for the
quarter. LifeWatch AG recorded a net income of USD 7.31 million in Q3
2009, as compared to USD 1.61 million in Q3 2008. Earnings per share
for this quarter were USD 0.55 (fully diluted), a significant
increase from USD 0.12 (fully diluted) earnings per share reported in
Q3 2008. The Company´s cash position also increased to USD 36.77
million, as a result of USD 9.17 million in cash flow from operations
during Q3 2009. The balance of cash, cash equivalents, marketable
securities and structures in Q3 2009 reached USD 37.98 million, of
which cash and cash equivalents were USD 36.77 million. This compares
with USD 20.77 million in cash, cash equivalents, marketable
securities and structures reported in Q3 2008.

Monitoring Services

LifeWatch´s Monitoring Services achieved revenues of USD 32.48
million in Q3 2009, compared with USD 20.37 million in Q3 2008,
reflecting a 59.4% increase. ACT continues to drive our service
revenues with impressive results. During Q3 2009, LifeWatch added 9
sales representatives to its sales force and ended the quarter with a
total of 107 sales representatives.

Highmark Medicare Services lowered the reimbursement rate for
LifeStar ACT wireless cardiac monitoring services to USD 754
effective September 1, 2009. Highmark is the carrier for CMS/Medicare
services in Pennsylvania. Together with other wireless cardiac
providers, LifeWatch maintains an ongoing dialogue with Highmark, and
contributed to a case to demonstrate to Highmark the value of the ACT
and other similar wireless telemetry systems. Highmark´s new rates
are applicable to roughly a third of LifeWatch´s LifeStar ACT
services, as the majority of the ACT cardiac arrhythmia monitoring
business is covered by 469 independent commercial contracts.

In May of 2009, LifeWatch launched the first-to-market wireless
LifeStar ACT Ex which uses the ACT 3-channel ambulatory cardiac
telemetry platform. ACT Ex has the ability to remotely retrieve up to
48 hours of digital Holter data for near real-time analysis, and with
its 30 day storage capability, it can also provide a retrospective
Holter analysis upon device retrieval for as much as a 7-day period.
ACT Ex patients who did not experience an event in the preceding 48-
hour window of Holter monitoring were then enrolled on the full ACT
3-channel ECG monitoring functionality for up to 30 days.
Approximately 90% of ACT Ex patients progressed to the ACT service
following a negative Holter result. Patients and physicians were
pleased with the convenience of one single hook- up, and the faster
time to diagnosis.

LifeWatch recorded 20,164 enrollments for its ACT services in Q3
2009, an outstanding increase of 136% over the 8,545 enrollments
reported in Q3 2008. From this amount, over 8% of these enrollments
were generated by patients enrolled on the ACT Ex service. In Q3
2009, approximately 80% of LifeWatch Services revenues were derived
from the ACT services.

The Company continues to innovate its service offerings and in Q3
2009, LifeWatch launched a Patient Stroke Care Program following
extensive collaboration with renowned stroke specialists and
neurologists. The Patient Stroke Care Program was designed to monitor
patients who have experienced a Transient Ischemic Attack / Stroke of
unknown origin (cryptogenic). As the third leading cause of death in
the United States, stroke affects approximately 795,000 Americans
annually (www.strokeassociation.org).

Other service offerings, such as the AF Patient Care Program, which
was launched in May of 2008, accounted for 6% of enrollments in Q3
2009. The LifeWatch Federal business division signed 4 new contracts
with the Department of Veterans Affairs (VA) for facilities to start
utilizing LifeWatch monitoring services in Q4 2009, and is on track
to deliver further contracts during Q4 2009.

Sales of Systems

Sales of Systems in Q3 2009 amounted to USD 1.57 million compared
with USD 2.74 million in Q3 2008. These results were in line with
expectations as LifeWatch began to de-emphasize system sales in 4Q
2008. The system sales revenues are primarily attributed to sales of
cardiac event recorders in the U.S. market.

Home Sleep Testing Market

As announced last quarter, LifeWatch decided to enter the Home Sleep
Testing (HST) market. Obstructive Sleep Apnoea (OSA) affects
approximately 38 million individuals in the U.S., and is a risk
factor for Hypertension and Type II Diabetes. Untreated OSA patients
have double the healthcare costs of those not afflicted, yet less
than 1 in 7 OSA patients have been diagnosed, making a very
attractive opportunity. HST solutions are emerging as the appropriate
diagnostic solution for more than 95% of OSA cases and are widely
preferred by patients. The favourable new coverage issued by Medicare
in January 2009 spurred LifeWatch to enter into the HST market with
its "NiteWatch" monitoring service platform, which we launched in
October 2009 to specific strategic partners, with a planned expansion
to follow in 2010.

Reiterate 2009 Outlook

LifeWatch reiterates its 2009 guidance of at least 50% revenue growth
with ongoing strong profitability. We expect the EBITDA margin to
exceed 20%, with an EBIT margin above 16% for Fiscal Year 2009.

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
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@lifewatch.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