EANS-Adhoc: LifeWatch and Blue Shield of California sign first ever comprehensive agreement for its monitoring services (with document)

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

Contracts/LifeWatch AG

10.01.2012

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 reports that
it has successfully negotiated its first ever contract for its
NiteWatch and core cardiac monitoring services with the insurance
company Blue Shield of California which covers 3.4 million lives.
This insurer is one of the independent licensees of the BlueCross
BlueShield Association whose licensees cover every state in America.

You will find a PDF-version of this press release at the end of this
message.

Acceptance of the NiteWatch Home Sleep Testing service for diagnosing
obstructive sleep apnea (OSA) is steadily on the rise in the U.S.
healthcare market, and in California particularly. LifeWatch has been
able to demonstrate to Blue Shield of California, an important
regional West Coast carrier, the advantages of the NiteWatch service.
Patients insured by Blue Shield of California will now receive
coverage for the NiteWatch service and our core cardiac monitoring
services, including ACT cardiac telemetry services for their Medicare
Advantage patients.

Blue Shield of California, located in San Francisco, California,
partners with around 65,000 physicians across the entire State and
covers approximately 3.4 million patients. The Californian
not-for-profit mutual benefit corporation is independently owned and
operates as a licensee of the BlueCross BlueShield Association
(www.bcbs.com). Blue Shield of California is widely recognized as an
innovative carrier and received 3 out of 4 stars in Meeting National
Care Standards, as published by the California Healthcare Quality
Report Card 2011 Edition.

In February 2011 LifeWatch opened its third call center in San
Francisco, California, in order to better penetrate the attractive
West Coast healthcare market. After convincing the Heritage Provider
Network in California (see press release from 05/10/2011) LifeWatch
gains another important West Coast carrier for its monitoring
services and further enforces the importance of the West Coast call
center. The agreement takes effect retroactively from November 15,
2011.

The NiteWatch service is designed to diagnose OSA, which is
characterized by the temporary suspension of breathing during sleep.
OSA is associated with an increased risk of cardiovascular disease,
stroke, high blood pressure, arrhythmia, diabetes, and many serious
accidents due to fatigue and sleepiness. An estimated 38 million
individuals in the U.S. suffer from OSA yet less than one out of
seven have been diagnosed correctly. Failure to diagnose is in part
due to the fact that patients are required to perform the test in a
sleep lab, which frequently have long wait times for lab rooms.
Patients are also discomforted by sleeping in a strange environment,
which can often adversely affect test results. Due to the growing
recognition of the need for home sleep testing as a bona fide
alternative to sleep labs, the NiteWatch Home Sleep Testing service
is becoming a diagnostic solution for many payors. Medicare already
decided in January 2009 to provide coverage for the Home Sleep
Testing Service.

"Once Medicare decided to provide coverage for Home Sleep Testing in
early 2009, private insurance companies began to follow suit. Now
Blue Shield of California, an important West Coast carrier, has
recognized the benefits of the NiteWatch service. The opening of our
third call center in San Francisco, California, was an important
strategic step in expanding our services to the West Coast." said Dr.
Yacov Geva, Chairman and CEO of LifeWatch AG. "Furthermore our
NiteWatch service will contribute to better quality of life for our
patients thanks to earlier and more accurate detection which enables
more appropriate treatment options." He also noted the inclusion of
the company´s core cardiac monitoring services, including the
industry leading ACT telemetry monitor, was yet another indication of
the importance of LifeWatch´s services to those populations serviced
by Blue Shield of CA.

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 Sleep
Testing of Obstructive Sleep Apnea (OSA) patients under the brand
name NiteWatch. For additional information, please visit
www.lifewatch.com.

Sign-up for customized email 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.

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/NLkgQKzC

Further inquiry note:
Sensus Investor and Public Relations GmbH, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

end of announcement euro adhoc
--------------------------------------------------------------------------------

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/NLkgQKzC

issuer: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: users@lifewatch.com
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: Open Market / XETRA: Frankfurt, free trade: Berlin, Main Standard:
SIX Swiss Exchange
language: English