MDMG.L Regulatory News (MDMG)

MD Medical group STARTS CONSTRUCTION OF new HOSPITAL in SAMARA

23 June 2016, Moscow. MD Medical Group Investments Plc ("MD Medical Group", "MDMG" or the "Company" - LSE:MDMG), a leading Russian private healthcare provider, announces that it has held a ground breaking ceremony for a new hospital in Samara on a 31,000 sqm land plot. The hospital is scheduled to open in Q1 2018. It is expected that the total volume of investment in this project will amount to 3.5 billion roubles.

It is planned that the Mother and Child Samara hospital will have an area of 15,000 sqm and include 137 beds. The hospital will have annual capacity for up to 2,000 deliveries (which currently represents around 5% of total annual deliveries in the Samara region), 600 IVF cycles, and 150,000 out-patient visits.

The hospital will include:

· Obstetric department with a maternity unit: 49 beds, including for intensive care, 5 delivery rooms, 2 operating rooms, and a neonatal centre for 8 beds;

· Surgery department: 52 beds, as well as intensive care unit with 6 beds and 3 operating rooms;

· Paediatrics department: 10 beds, including individual enclosed areas;

· Polyclinic department for adults and children with day-patient facility for 6 beds;

· Diagnostics and treatment centre, which conducts CT, MRI, mammography, x-ray, gastroscopy and colonoscopy procedures;

· IVF department with day-patient facility for 6 beds and operating room;

· Laboratory, which carries out more than 1,000 types of tests.

Mark Kurtser, CEO of MD Medical Group, said:

"As we start construction of our new hospital in Samara, we once again demonstrate our commitment to realise the Group's ongoing regional development strategy, which continues to prove its efficiency and to deliver results.

"We are very familiar with the market in Samara, where five of our clinics already operate successfully, and we anticipate that there will be substantial further demand for the high-tech services to be offered by our new hospital. The hospital will be primarily focused on women's and children's healthcare, while the surgery and polyclinic departments, as well as the diagnostics and treatment centre, will offer world-class services for all the family.

"The significant expansion of our presence in Samara will help to strengthen our leadership both in one of Russia's largest regions, as well as in the country as a whole."

About the Samara region

The Samara region has the population of 3.2 million people, while the share of urban population exceeds 80%. Approximately 1.2 mln people live in Samara - the largest city in the region and the centre of the Volga economic region. The region benefits from high birth rates - more than 40,000 children are born in the region annually. In 2015 there were 12.8 births per thousand inhabitants, up from 12.6 in 2014.

For further information please contact:

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 30 modern healthcare facilities, including 4 hospitals and 26 outpatient clinics in Moscow, 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.