GHG.L Regulatory News (GHG)

London, 16 May 2016

Georgia Healthcare Group launches a new ambulatory cluster in Tbilisi

Georgia Healthcare Group PLC (the "Group" or "GHG") announces that it has today launched a new ambulatory clinic in Tbilisi. This ambulatory clinic is the beginning of a new cluster; is located in the Mtatsminda neighborhood, and covers a population of c.105,000. It caters to all age groups and provides a wide range of outpatient services, including general practitioner and specialist physician consultations, imaging and functional diagnostics, as well as clinical, biochemical and serological laboratory tests.

The launch of the ambulatory clinics is consistent with the Group's announced strategy to grow its healthcare services business through rolling-out a network of new ambulatory clinics across Tbilisi and in other major cities in Georgia. GHG now operates a total of five ambulatory clusters, of which four are located in Tbilisi, the capital city, and one in Kutaisi, the second largest city in Georgia. The Group plans to launch a further five ambulatory clusters in 2016.

 "I am delighted to announce the launch of another ambulatory clinic, in line with our declared strategy to significantly expand our ambulatory clinic network. Our goal is to launch total of 10-12 ambulatory clusters over the next 2-3 years. Overall, outpatient spending represents c.40% of national spending on healthcare services, but is less than 5% of GHG revenues. We are targeting to increase this to 15% of healthcare services revenues in 2018," commented Nikoloz Gamkrelidze, CEO of Georgia Healthcare Group.

About Georgia Healthcare Group PLC

Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 35 hospitals and ten ambulatory clinics, as at 31 December 2015. GHG is the single largest market participant, accounting for 26.6% of total hospital bed capacity in the country as of 31 December 2015. GHG is also the largest provider of medical insurance in Georgia with a 38.4% market share based on net insurance premiums earned and approximately 234,000 insurance customers as at 31 December 2015. GHG employed a total of c.9,700 people as at 31 December 2015, including 2,705 physicians

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