• Medgate and RHÖN-KLINIKUM AG sign Memorandum of Understanding (MoU) on extensive collaboration in the growing telemedicine market

• Foundation of Medgate Germany, in which RHÖN-KLINIKUM AG will hold a majority of 51 percent; Medgate’s stake will be 49 percent

• Medgate Germany will offer digital medical consultations via video or phone with a smartphone app for easy, fast, personal and digital access to doctors

The transaction also complements RHÖN – KLINIKUM AG’s cross-sector campus concept, which combines outpatient and inpatient services such as preventive care, aftercare, treatment, rehabilitation and nursing, and now offers a pre-existing telemedicine treatment program

• Medgate and RHÖN – KLINIKUM AG are jointly examining interests in Medgate Holding AG(which represents Medgate’s international activities) and / or one of its subsidiaries, or the possible foundation of another joint company with RHÖNKLINIKUM AG

Under the agreement, Medgate plans to provide telemedicine and digital medical services in Germany. According to the memorandum of understanding, RHÖN – KLINIKUM AG intends to acquire a 51 percent stake in the new company(“Medgate Germany”) based in Germany.

In future, patients with urgent or general medical concerns will receive advice and treatment by phone, Internet or video link from Medgate Germany (powered by RHÖN – KLINIKUM) in the framework of the legal regulations in force in Germany. Among other things, Medgate Germany wants to help to close the increasing gaps in medical care, especially in rural areas, and to offer up – to – date medical services in line with modern consumer behavior.The technical requirements, such as a smartphone or a computer equipped with a camera, are already available in most households. These advanced services address the requirements of an increasingly digital society and its needs for efficient, convenient and above all, rapid health care wherever patients are located.

Medgate Germany aims for market leadership

With Medgate Germany, the two companies are aiming for market leadership in the area of telemedicine and digital medical services in the Federal Republic of Germany.Medgate is pleased to have found an established partner in RHÖN – KLINIKUM AG for its market entry in Germany.Dr.Andy Fischer, CEO of Medgate said: “We share the vision of developing efficient and high-quality healthcare concepts thanks to digital resources, and making them accessible for the long term to all persons with health insurance in Germany. The potential in Germany is huge. In Switzerland, almost every resident with health insurance has access to telemedicine services and these services are used frequently. The new legislative situation now makes a similar development possible in Germany as well. RHÖN-KLINIKUM AG is the ideal partner for such an innovation project”, according to Fischer.

Stephan Holzinger, CEO of RHÖN – KLINIKUM AG said: “Medgate Germany – powered by RHÖNKLINIKUM – has the potential to become a significant additional business for our company. As a leading innovator in healthcare, we already offer telemedicine services. With Medgate Germany, we will expand these services significantly and continue the digital transformation of RHÖNKLINIKUM AG that I initiated. We are taking advantage of the opportunities offered by digitization to provide patients with excellent medical services that will save them from long journeys and unnecessary waiting times, and make medical consultations, diagnoses and treatment faster, more convenient and better in quality. Of course, we will continue to be a broad-based, highquality hospital group – but with these telemedicine services, we are adding considerable value to our supply chain. With Medgate, we have found an experienced partner that shares our requirements for high quality and safety in telemedicine services.”

Relaxing the ban on remote treatment increases the demand for telemedicine

Medgate and RHÖN – KLINIKUM AG are convinced that with the gradual relaxation of the ban on remote treatment, the demand for such services will increase significantly in Germany in the years to come.In May 2018, the German Medical Assembly(annual meeting of the German Medical Association) approved an amendment to the(model) professional code for physicians working in Germany, and relaxed the previous legal prohibition of exclusive remote treatment. Many federal states have since followed.

In addition to the founding of Medgate Germany, RHÖN – KLINIKUM AG’s stake in Medgate Holding AG and / or one of its subsidiaries will be examined, or the founding of another joint company in which the intellectual property and know – how necessary for the services of Medgate Germany will be bundled and developed further; the necessary IT solutions will also be realized.

Media contact

Cédric Berset, Director Marketing, Communications & Sales

Medgate, Postfach, 4020 Basel

Phone + 41 61 377 88 10, Mobile + 41 79 455 20 41, Fax + 41 61 377 88 20

media@medgate.ch, www.medgate.ch

About Medgate

Medgate uses digital healthcare solutions to bring the doctor to where he or she is needed.The focus is on the well – being of the patient and the benefits for society.Medgate was founded in 1999 and currently has more than 330 employees in Switzerland, including more than 100 physicians.Medgate has operated its Tele Clinic since 2000.This is now the largest telemedicine center in Europe, and has considerable experience and expertise in the field of telemedicine.For local consultations, Medgate’s patients can attend the Medgate Mini Clinics, as well as the doctors and clinics in Medgate’s partner network.In addition, Medgate successfully exports its concept to other countries, and has a presence in diverse locations such as the United Arab Emirates, the Philippines, India and Slovakia.

About RHÖN – KLINIKUM AG

RHÖN – KLINIKUM AG is one of the largest healthcare providers in Germany.The clinic group provides excellent medical care with direct links to universities and research institutes.More than 830, 000 patients are treated annually by about 16, 700 employees at five locations: Zentralklinik Bad Berka, Campus Bad Neustadt, Klinikum Frankfurt(Oder), Universitätsklinikum Giessen and Universitätsklinikum Marburg.With its RHÖN Campus plan, the company is currently implementing a novel and pioneering project that raises cross – sector medical care in rural areas to a new level of excellence and is geared to the growing needs of patients.

www.rhoen-klinikum-ag.com