EANS-Adhoc: Constructive dialogue between the Board of LifeWatch AG and the recently formed shareholder group (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.
--------------------------------------------------------------------------------

Company Information/LifeWatch AG

03.09.2012

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless telemedicine, today
announces that the Board of Directors of LifeWatch AG and the
representatives of the shareholder group, Martin Eberhard and Patrick
Schildknecht had constructive talks. The common understanding is that
the Board will submit a proposal for a restructuring of the Board and
it will invite its shareholders to an extraordinary general meeting
in November 2012 for the election of new Board members and the
granting of full discharge for the current members of the Board and
Management.

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

From the current members of the Board Dr. Yacov Geva and Mr. Urs
Wettstein shall continue to serve on the Board. Mr. Gregory Volkart,
Dr. Abraham Sartani and Mr. Jürg Stahl have offered to resign from
the Board in order to facilitate the implementation of the new board
structure. In addition, the current Board will propose to the
shareholders the election of two new members of the shareholder
group, Dr. Thomas Rühle and Patrick Schildknecht and two additional
and fully independent Board members.

It is the clear understanding that Dr. Yacov Geva will remain an
active chairman of the Board. The new Board will review the current
corporate structure and strengthen the senior management team.

It is the clear objective of the Board and the shareholders group to
work together in a constructive manner and focus on the successful
launch of the new products mainly the LifeWatch V and the new
innovative product that will be unveiled in November 2012.

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
AG has operative subsidiaries in the United States, in Switzerland
and in Israel and is the parent company of LifeWatch Services Inc.,
and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a
leading US-based provider of cardiac monitoring services and home
sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch
Technologies Ltd., based in Israel, is a leading developer and
manufacturer of telemedicine products. The Company is planning to
introduce the LifeWatch V, an Android-based smartphone with medical
sensors and apps that uses a cloud-based service platform. 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.

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/PH6rShim

Further inquiry note:
Sensus Investor and Public Relations, 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/PH6rShim

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: free trade: Berlin, Open Market / XETRA: Frankfurt, Main Standard:
SIX Swiss Exchange
language: English