EANS-Adhoc: LifeWatch AG expects an operating loss for the first quarter of 2010 and provides revised guidance for 2010

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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3-month report/LifeWatch AG

03.05.2010

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading wireless remote cardiac and medical
patient monitoring service provider in the U.S., today pre-announced
earnings for the first quarter of 2010.

The challenging reimbursement environment negatively impacted
LifeWatch´s first quarter results with revenue of approximately USD
22 million and a negative EBIT (LBIT) of approximately (USD 4)
million for the first quarter of 2010. LifeWatch´s ACT service,
however, recorded significant gains with patient enrollments in Q1
2010 increasing 37% compared with Q1 2009. In addition, cash flow
from operations for the first quarter remained strong at
approximately USD 6 million, up from the USD 4.5 million generated in
Q1 2009. LifeWatch expects cash, cash equivalents and marketable
securities to total approximately USD 43 million at the end of Q1
2010 up from USD 39 million at the end of Q4 2009.

LifeWatch continues to secure contracts with commercial insurance
companies and has successfully signed contracts with nearly 500
commercial insurers that cover nearly 300 million lives. During the
first quarter of 2010, a few commercial carriers denied ACT
reimbursement under the new cardiac telemetry billing code. Due to
the high operational gearing of the Company, these events had a
significant negative impact on revenue and margins. LifeWatch is
currently working with these insurance companies to ensure patient
coverage in the future.

Commensurate with LifeWatch´s increasing focus on its services
business, the Company has taken a one-time inventory mark-down of
approximately USD 1.5 million in the first quarter of 2010. The
Company is confident that after this adjustment the inventory now
reflects its current value. In addition, LifeWatch is constantly
reviewing processes and embracing new methods with a view to
improving operating leverage, reducing costs and improving
profitability.

LifeWatch expects that the reimbursement environment will remain
challenging in the near term and has thus revised its outlook for the
full year 2010 with a USD 100-105 million revenue target and a USD
1-3 million EBIT target.

Management will provide detailed information on the first quarter
2010 results and the Company´s growth strategy at the upcoming
analyst and media conference on May 11, 2010. The details of the
conference are as follows:

Press Release at 7:00 a.m. CEST (1:00 a.m. EDT):

The results for the first quarter 2010 will be released
internationally at 7:00 a.m. CEST.

Analyst and Media conference at 09:30 a.m. CEST:

LifeWatch will report in detail on the first quarter 2010 results at
an English- speaking analyst and media conference which takes place
in Zurich on

Tuesday, May 11, 2010; 09:30 a.m. CEST, at the Zunfthaus zur
Saffran, Limmatquai 54, 8001 Zurich/Switzerland

International Live-Conference Call/Audio Webcast at 09:30 a.m. CEST:

For international participants, a combined conference call and audio
webcast, accompanied by presentation visuals, is broadcast online at
09:30 a.m. CEST (03:30 a.m. EDT) live from the conference in Zurich.
Further information regarding the audio webcast and respective
technical requirements can be found in the Investor Relations section
of the LifeWatch Website www.lifewatch.com in due time. An archived
version of the webcast will remain available for download.

The local dial-in numbers for the conference call are as follows:

+ 41 (0)91 610 56 00 (Europe)
+ 44 (0)207 107 06 11 (UK)
+ 1(1)866 291 41 66 (USA - Toll-free)

All participants are requested to dial in at least ten minutes prior
to the call. No PIN is required to access the call.

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 remote patient monitoring services. LifeWatch
services cater to individuals, ranging from high-risk and chronically
ill patients, to consumers of health and wellness products. 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 manufacturer of telecardiology
products. LifeWatch is also introducing a new program for Home
SleepTesting of Obstructive Sleep Apnea (OSA) patients under the
brand name NiteWatch. For additional information, please visit
www.lifewatch.com and www.nitewatchservices.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:

Woo Kim, Senior Vice President of Strategy and Business Development, LifeWatch

Tel +1 847 813 4299 | Fax +1 847 813 24 48 | Email wkim@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