EQS-Adhoc: LifeWatch AG: LifeWatch turns the page on key legal matters

EQS Group-Ad-hoc: LifeWatch AG / Key word(s): Letter of Intent LifeWatch AG: LifeWatch turns the page on key legal matters

2016-06-01 / 18:00 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement.

LifeWatch turns the page on key legal matters

Zug/Switzerland, June 1, 2016 - LifeWatch AG (SIX Swiss Exchange: LIFE), a leading developer and provider of medical solutions and remote diagnostic monitoring services in the digital health market, reports that its subsidiary, LifeWatch Services, Inc. and Highmark Blue Cross Blue Shield, a private health insurer, agreed to a compromise on the previously announced, International Arbitration award related to LifeWatch's practices billing in the years 2009-2010. Highmark agreed to reduce its entitlement from approximately $22,000,000 ($18,700,000 plus interest) to $13,000,000. In return, LifeWatch agreed to release Highmark Inc. and its affiliates from the antitrust case LifeWatch has pending against Highmark and the Blue Cross Blue Shield Association and other Blue Cross Blue Shield affiliates. The settlement agreement is conditional upon payment being made by August 15, 2016 at the latest, which is following LifeWatch AG's capital increase.

Today LifeWatch also announces a preliminary settlement in the case of United States, et. al., ex. rel. Cieszynski v. LifeWatch Services, Inc. (qui tam action). This case contained allegations related to billing processes for clinical services provided off shore and was filed against LifeWatch in May of 2013. The parties recently signed a Memorandum of Understanding agreeing to pay a total of $12,750.000 to the United States Government and the Relator and are awaiting approval from the Department of Justice. While LifeWatch vehemently denies any wrongdoing, the company nonetheless agreed to a settlement to eliminate any possible unknown exposure and to allow LifeWatch to focus on the future rather than the past. This payment will also be made after the capital increase is completed.

Dr. Stephan Rietiker, CEO of LifeWatch, stated: "The settlements announced today, while painful for the company, will allow LifeWatch to put the past behind and focus on growing the business and providing world-class diagnostic services for our patients. Collectively, these settlements amount to only slightly more than the reserves set forth in the 2015 Annual Report.

For further questions: Andrew Moore, CFO LifeWatch AG c/o Dynamics Group, Doris Rudischhauser Phone +41 43 268 32 32 / +41 79 410 81 88 investor-relations@lifewatch.com

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 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 forwardlooking 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.

End of ad hoc announcement Additional features:

Document: http://n.eqs.com/c/fncls.ssp?u=LIXQWJOPJV Document title: LifeWatch turns the page on key legal matters

2016-06-01 News transmitted by Tensid EQS AG. www.eqs.com

The issuer is responsible for the contents of the release. Language: English Company: LifeWatch AG Baarerstrasse 139 6300 Zug Switzerland Phone: +41 41 728 67 78 Internet: www.lifewatch.com ISIN: CH0012815459 Valor: 811189 Listed: Regulated Unofficial Market in Berlin, Stuttgart; Open Market in Frankfurt ; SIX

End of News EQS Group News Service 468329 2016-06-01

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   June 01, 2016 12:00 ET (16:00 GMT)- - 12 00 PM EDT 06-01-16