MDMG.L Regulatory News (MDMG)

MD MEDICAL GROUP POSTS STRONG GROWTH ACROSS ALL OPERATIONAL INDICATORS FOR 9M 2016

24 October 2016, Moscow - MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE: MDMG), a leading Russian private healthcare provider, today announces its operating results for the third quarter and nine months of 2016.

Key operational highlights for 9M 2016:

· Total deliveries increased 22% year-on-year (y-o-y) to 5,018

· Total IVF cycles increased 52% y-o-y to 10,011

· Total in-patient treatments increased 11% y-o-y to 41,582

· Total out-patient treatments increased 18% y-o-y to 1,018,117

Mark Kurtser, CEO of MD Medical Group, said:

"Nine months is an important period, especially in our business. And we are glad to announce that thanks to continued strong growth across all operational parameters in Q3 we have successfully completed the first nine months of 2016.

"During the period we had 22% more deliveries than in 9M 2015. The number of IVF cycles grew by more than 1.5x and has already exceeded the results of FY 2015. No other company in Russia ever completed more than 10,000 IVF cycles within a nine-month period. In-patient and out-patient treatments grew 11% and 18% year-on-year, respectively.

"Key drivers of this growth included continued ramp-up at our Lapino, Ufa and PMC hospitals. The remarkable growth in the IVF segment was largely driven by our new clinics in Siberia, which delivered approximately 2,000 cycles, as well as other clinics.

"We are satisfied with our dynamics this year to date and are committed to maintaining the positive trend going forward in 2016."

Deliveries

· In 9M 2016, total deliveries increased 22% y-o-y to 5,018.

· In Q3 2016, total deliveries increased 24% y-o-y to 1,815.

· In 9M 2016, there were 786 deliveries at Mother & Child Ufa hospital.

IVF

· In 9M 2016, total IVF cycles rose 52% y-o-y to 10,011.

· In Q3 2016, total IVF cycles rose 44% y-o-y to 3,443.

· In 9M 2016, LFL1 8,069 IVF cycles were performed, up 22% y-o-y.

In-patient treatments

· In 9M 2016, total in-patient treatments grew 11% y-o-y to 41,582, driven by:

o 4% increase in OBGYN in-patient treatments;

o 21% increase in paediatric in-patient treatments;

o 12% increase in in-patient days using other medical services.

· In Q3 2016, the total number of in-patient days increased 16% y-o-y to 13,432.

· In 9M 2016, LFL in-patient treatments increased 11% y-o-y to 41,540.

Out-patient treatments

· In 9M 2016, the total number of out-patient treatments increased 18% y-o-y to 1,018,117, driven by:

o 12% increase in OBGYN out-patient treatments;

o 15% rise in paediatric out-patient visits;

o 28% increase in other medical services.

· In Q3 2016, the total number of out-patient treatments increased 16% y-o-y to 338,499.

· In 9M 2016, LFL out-patient treatments increased 11% y-o-y to 954,642.

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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 31 modern healthcare facilities, including 4 hospitals and 27 outpatient clinics in Moscow and Moscow region, St. Petersburg, Ufa, Perm, Samara and Samara region, Irkutsk, Novosibirsk, Irkutsk, Yaroslavl, Ryazan, Kostroma, Novokuznetsk, Krasnoyarsk, Omsk, and Barnaul.

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.