Genolier Swiss Medical Network SA: turnover increase of 12% at the end of September 2008

Genolier, 4 November 2008

During the first 9 months of 2008, GSMN has realised a consolidated turnover of CHF 92 million, representing an increase of 12% compared to 2007, which is in line with the company’s forecasts. All entities show progression, from 6% for Clinique de Genolier to 29% for Clinique de Montchoisi in Lausanne. The current financial crisis has until now a low impact on the private hospital Group active in the French speaking part of Switzerland (Romandie). The outcome for its subsidiary AGEFI, active in the publishing sector, will be decided by the end of the year.

GSMN, Genolier Swiss Medical Network SA, listed on the Swiss stock exchange SWX (GSMN.SW), has revealed today its turnover as at 30 September 2008. It amounts to CHF 92 million for the first 9 months of the year, representing an increase of 12% compared to the same period last year (CHF 82m). Clinique de Genolier, the flagship of the Group, has realised a turnover of more than CHF 50 million, which is 6% superior compared to 2007 (CHF 47.5m). Clinique de Montchoisi and Clinique Valmont-Genolier show a growth of respectively 29% and 8%, while the turnover of Clinique Générale in Fribourg, the main source of the Group’s losses in 2006 and 2007, increases by 24% to almost CHF 18 million (CHF 14.3m in 2007).

The financial crisis should only have a low impact on the healthcare activities, but GSMN has implemented an important cost cutting optimisation program. The management offices, previously based in Signy (Nyon) have been transferred to Genolier as of September 2008. The overheads have been drastically reduced, confirming the end of the company’s realignment on the healthcare division. Those measures will fully bear fruit in 2009, with a reduction of the overhead costs (wages) by more than CHF 2 million. The recently decentralised administrative organisation will allow integrating new entities without increasing the Group’s workforce. Consolidation in the healthcare sector is still in a very early phase in Switzerland and Europe and GSMN, only slightly indebted, should therefore benefit from interesting acquisition and partnership opportunities.

15 new physicians joined GSMN in 2008, reinforcing the Group’s competencies in areas such as Oncology, Orthopaedics, Cardiology and General Surgery. The GSMN hospitals will pursue their policy of medical innovation with the development of less invasive technologies. The radiotherapy equipment in the Clinique de Genolier has been entirely renewed and an Intra Operative RadioTherapy (IORT) unit is now operational.

IORT is a radiotherapy technology applicable to certain types of cancer, amongst which breast cancer, allowing treatment through a single radiation session during a surgical intervention, instead of a postoperative treatment lasting several weeks. This technique is applied successfully since many years in other European centers and is now introduced for the first time in Switzerland at Clinique de Genolier.

The outcome for GSMN’s subsidiary L’AGEFI, the company publishing the Swiss economic newspaper L’AGEFI, will be decided by the end of the year, as well as the integration of CMEV, Centre Médico-Chirurgical des Eaux-Vives SA, as foreseen in the memorandum announced at the end of 2007. GSMN confirms its turnover objective of almost CHF 130 million for 2008, publishing division excluded. The company will publish its 2008 turnover in February 2009 and its Annual Report 2008 in April 2009.

GSMN (Genolier Swiss Medical Network) AG - formerly called AGEN Holding AG - is the leading hospital network in the French speaking region of Switzerland (Romandie), specialized in operating private clinics. Its growth strategy is focused on building a national network by acquiring clinics and restructuring their operations. GSMN’s main goal is on providing premium hospital care to Swiss and foreign patients. GSMN distinguishes itself over other healthcare providers on the basis of its quality of services, high brand value, congenial working environment and an experienced and entrepreneurial management team. Presently, GSMN has 4 fully owned private hospitals in its portfolio with 277 operating beds and more than 200 additional licensed beds for organic growth. Additionally, GSMN has a management contract with Centre Médico-Chirurgical des Eaux-Vives (CMEV), an out-patient consult and oncology centre in Geneva. In 2007, GSMN achieved a turnover of CHF 116.7 million and an EBITDA of CHF 5.5 million. The Group is listed on the Main Segment of the SWX Swiss Exchange (GSMN.SW).

Séverine Van der Schueren
Communications Director GSMN
Tel. +41 22 366 99 87