MDMG.L Regulatory News (MDMG)

MD MEDICAL GROUP OPENS NEW HOSPITAL IN UFA

31 October 2014, Moscow - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE: MDMG), Russia's leading provider of private women's and children's healthcare, announces the opening and launch of operations of its Mother & Child Ufa hospital, the Company's fourth hospital and the largest private multi-disciplinary in-patient facility in Russia outside of the Moscow region.

Mother & Child Ufa is the first multi-disciplinary in -patient facility of such scale in Russia's regions: the hospital, with total area of 32,000 m2, is designed for 192 beds. MDMG expects to achieve 3,000 deliveries and 1,100 IVF cycles, as well as approximately 240,000 out-patient treatments and 31, 000 bed-days per year. The new hospital will provide employment opportunities for c.800 people, including those trained in Europe and existing MDMG facilities, and will be equipped with the latest-technology in terms of medical equipment.

Mother & Child Ufa will provide people in Bashkortostan and nearby regions with a wide range of high-quality services, including both in-patient and out-patient treatments in specialisms such as gynaecology and obstetrics, neonatology, reproductive technologies, paediatrics, surgery, urology, restorative medicine and others.

The hospital will include the first private maternity ward in Bashkortostan. Furthermore, patients will be offered a number of other services for the first time in Bashkortstan. The hospital will include a stem and mesenchymal cell bank, which is unique to the region, magnetic resonance therapy, angiograph and integrated operating room, as well as the first Centre of children's health with in-patient and out-patient departments, where children will be offered diagnostics and treatment in the same medical facility. Development of foetal surgery and genetic services is expected.

The new hospital, which meets the advanced standards of MD Medical Group, will offer high-technology medical services to its patients. High level of medical treatment will be delivered leveraging the hospital's unique mix of innovative technologies, qualification and expertise of doctors and medical staff, rigorous medical safety standards and world-class comfort for patients.

Total investment into the project amounted to approximately 4.3 billion rubles. The hospital has already received all required approvals for medical services provisions and the first patients are expected to be treated on 1 November 2014.

Citizens of Ufa and the region are already familiar with the high standards of medical services provided by MD Medical Group, due to the operations of the Group's out-patient clinic in the Republic's capital since 2009. The opening of Mother & Child Ufa Hospital enables MDMG to provide local patients with access to a broader range of its highly-regarded medical services close to home.

Commenting on the opening, Dr Mark Kurtser, Chairman of the Board of Directors of MDMG, said:

"I am very pleased with the completion of Mother & Child UfaHospital, our largest project launched since the time of our IPO. I am particularly grateful to our team whose hard work has enabled us not only to deliver on our IPO objective of constructing this important hospital as part of our regional expansion strategy, but also to open the hospital ahead of schedule.

"I am proud that MDMG is the first provider to open a multi-disciplinary out-patient facility of such scale in Russia's regions. We remain wholly committed to providing high-technology medical treatment in close proximity to people in different parts of Russia, thus allowing them access to high-quality medical care and sometimes unique services without numerous trips to other cities.

"Thanks to the successful operations of our clinic in Ufa we are very familiar with this promising region, where the birth rate is higher than average in Russia. We believe that the performance of our new hospital will contribute positively to the development of the regional healthcare sector development and the Group's business, thus enhancing value for our shareholders."

Kirill Dmitriev, CEO of Russian Direct Investment Fund, member of Board of Directors of MDMG, said:

"Opening of a hospital in Ufa is an important milestone for MD Medical Group's implementation of its regional development strategy. The Russian private healthcare market looks very promising: it is expected to grow by more than 60% in 2013-2017 according to forecasts and this growth will be largely supported by the regional development. We believe that thanks to the high-calibre expertise of its staff and modern equipment, MD Medical Group will manage to consolidate its success in Moscow and the Moscow region, on a federal level."

About Bashkortostan

The Republic of Bashkortostan is a federal subject of Russia with a population of 4.1 mln, 1.1 mln of who live in its capital - Ufa. Bashkortostan is one of Russia's top ten federal subjects in terms of gross regional product. The birth rate in the region is 14.6 per thousand, higher than average in Russia, resulting in approximately 60 thousand deliveries per annum.

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About MD Medical Group

MD Medical Group operates in the highly attractive Russian private healthcare service market and has a leading position in high-quality women's health and paediatrics. The company manages 22 modern healthcare facilities, including 4 hospitals in Moscow (Perinatal Medical Center (PMC) and Lapino hospital) and Novosibirsk, and 18 outpatient clinics in Moscow, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk, Yaroslavl and Novosibirsk. In addition, the company operates 3 franchised outpatient clinics operate in Kyiv, Ukraine. A new outpatient clinic, in Ryazan, is expected to open in Q1 2015.

In 9M 2014, there were 3,287 deliveries in PMC and Lapino. The number of outpatient treatments for 9M 2014 in the Company's clinics totalled 573,872.

The Company's shares have been listed on the London Stock Exchange (LSE ticker "MDMG") in the form of Global Depositary Receipts (GDRs) since 12 October 2012.

Forward-Looking Statements:

This press release contains forward looking statements, which are based on the Company's current expectations and assumptions and may involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The forward looking statements contained in this press release are based on past trends or activities and should not be taken that such trends or activities will continue in the future. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially, including, but not limited to: conditions in the market, market position of the Company, earnings, financial position, cash flows, return on capital and operating margins, anticipated investments and economic conditions; the Company's ability to obtain capital/additional finance; a reduction in demand by customers; an increase in competition; an unexpected decline in revenue or profitability; legislative, fiscal and regulatory developments, including, but not limited to, changes in environmental and health and safety regulations; exchange rate fluctuations; retention of senior management; the maintenance of labour relations; fluctuations in the cost of input costs; and operating and financial restrictions as a result of financing arrangements.

No statement in this press release is intended to constitute a profit forecast, nor should any statements be interpreted to mean that earnings or earnings per share will necessarily be greater or lesser than those for the relevant preceding financial periods for the Company. Each forward looking statement relates only as of the date of the particular statement.