LifeWatch Discloses Supplemental Information on Highmark Arbitration Case

PR63844

ZUG, Switzerland, Mar. 22, 2016 /PRNewswire=KYODO JBN/ --

    - Arbitrator found LifeWatch liable for damages in the amount of USD 18.7

million, plus interest

    - LifeWatch will vigorously pursue all post-arbitration options

    - LifeWatch's requested damages in related antitrust case against Highmark

and others exceeds damages awarded to Highmark in this arbitration

     LifeWatch AG (SIX Swiss Exchange: LIFE), a leading developer and provider

of medical solutions and remote diagnostic monitoring services in the digital

health market, provides this supplemental report in regard to the Wednesday,

March 16, 2016, decision issued by an arbitrator from the International Centre

for Dispute Resolution against its subsidiary, LifeWatch Services, Inc. The

dispute with Highmark Blue Cross Blue Shield, a private health insurer, arose

over payment for ACT telemetry monitoring services. The arbitrator found

LifeWatch liable for damages for the years 2009-2010 in the approximate amount

of $18,700,000.00 plus six percent per annum simple pre-judgment interest from

January 2013. This amount will be reduced by approximately $700,000 in offsets

which Highmark has taken each time LifeWatch provided its services to Highmark

insureds for the past several years.

    LifeWatch believes that, in reaching this decision, the arbitrator ignored

key facts and, that an injustice has occurred given that LifeWatch Services, at

all relevant times, has and continues to provide essential cardiac diagnostic

services to patients throughout the United States. As a result, LifeWatch will

take steps to vigorously pursue all post-arbitration options. These include,

but are not limited to, seeking to vacate the arbitration award and seeking

recourse through a related antitrust matter LifeWatch currently has pending

against Highmark, several other Blue Cross Blue Shield entities and the Blue

Cross Blue Shield National Association to recover damages for their collective

refusal to cover ACT telemetry services. The damages sought in the antitrust

case exceed those damages awarded to Highmark in this arbitration proceeding.

    Dr. Stephan Rietiker, CEO of LifeWatch, stated: "The arbitrator's verdict

is surprising, and extremely disappointing. That said, while our lawyers

vigorously pursue all our legal options, the Company itself remains fully

focused on its mission to provide high quality services to all patients, bring

to market our new technologies and strengthening its position as an

innovational leader in digital health. As reported on March 17, 2016, the

underlying operational health of the company is strong."

    LifeWatch continues to evaluate other potential ramifications of this

adverse arbitration decision and will, consistent with its obligations under

the Listing Rules of the SIX Swiss Exchange, provide additional information as

required.

    At this time, consistent with internal policy not to comment on ongoing

litigation, no further details can be provided.

    About LifeWatch AG:

    LifeWatch AG, headquartered in Zug and listed on SIX Swiss Exchange (LIFE),

Switzerland, is a leading healthcare technology and solution company,

specializing in advanced digital health systems and wireless remote diagnostic

patient monitoring services. LifeWatch's services provide physicians with

critical information to determine appropriate treatment and thereby improve

patient outcomes. 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

U.S.-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. For additional

information, please visit http://www.lifewatch.com.

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    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, the 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 FROM

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.

     For further questions:

     LifeWatch AG

     c/o Dynamics Group, Philippe Blangey / Doris Rudischhauser

     Phone: +41-43-268-32-35 / +41-79-410-81-88

     E-mail: investor-relations@lifewatch.com

SOURCE: LifeWatch AG