EANS-Adhoc: LifeWatch AG/ plans a par value reduction, returning the means thus made available to the shareholders in February 2011

--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------

18.10.2010

LifeWatch AG plans a par value reduction, returning the means thus
made available to the shareholders in February 2011

* Extraordinary General Shareholders´ Meeting on November 11, 2010 in
Zurich
* Planned par value reduction from CHF 2.00 to CHF 1.30 per registered
share
* Paying back a total of CHF 9.1 to CHF 10.2 million to shareholders

Neuhausen am Rheinfall / Switzerland - The Board of Directors of
LifeWatch AG (SIX Swiss Exchange: LIFE), the leading wireless
remote cardiac and medical patient monitoring service provider
in the U.S., will propose to the shareholders at an
Extraordinary Shareholders´ Meeting scheduled for November 11,
2010 in Zurich a par value reduction. The par value of each
registered share is to be reduced from CHF 2.00 to CHF 1.30 and the
proceeds are to be returned to the shareholders.

LifeWatch AG plans to reduce the par value of its registered shares,
from CHF 2.00 today to CHF 1.30, in the middle of February 2011. At
a date yet to be defined, each shareholder of LifeWatch AG
will receive CHF 0.70 for each registered share. In contrast to
dividend payments, a par value reduction is not subject to any
withholding tax.

After approval of the Board´s motion by the Extraordinary
Shareholders´ Meeting scheduled for November 11, 2010, a total
amount of CHF 9.1 to CHF 10.2 million can thus be returned to the
shareholders. Based on the current share price of CHF 10.50 this
equals a yield of approximately 6.67%.

The detailed invitation to the Extraordinary General Shareholders´
Meeting will be published in the Swiss Official Gazette of Commerce
(SOGC/SHAB) of October 21, 2010, on the company´s website
www.lifewatch.com, and will be sent by letter to the registered
shareholders.

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.

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
--------------------------------------------------------------------------------

ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Sensus Investor and Public Relations, Zürich:

Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | E-mail lifewatch@sensus.ch

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