MDMG.L Regulatory News (MDMG)

MD Medical Group starts Lapino 2 construction

31 May 2018, 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 the groundbreaking ceremony for construction of the second stage of Lapino hospital. The opening of the new building (named Lapino 2) is planned for Q2 2020. It is expected that the Group's total investment in the project will amount to approximately 4.5 billion roubles.

The new 7-storey surgery building with an area of 18,500 sq. m has an annual capacity of 15,000 surgeries, more than 27,000 in-patient treatments, and more than 200,000 out-patient visits. Lapino 2 will offer the following services which are new for the Group - neurosurgery, cardiovascular surgery, chemotherapy, stomatology and oral and maxillofacial surgery. It will also include a state-of-the-art microbiological laboratory offering the full range of diagnostic testing, including time-of-flight mass-spectrometry, flow cytometry to analyse a patient's immune status, as well as an infectious serology department. The opening of the new building will create new opportunities for the further development of Lapino hospital's core services including obstetrics, women's and children's healthcare.

Lapino 2 will comprise the following facilities:

• 75-bed surgical in-patient unit;

• out-patient surgery and endoscopy unit;

• two surgical units comprising four and two operating theatres, respectively;

• 13-bed intensive care unit;

• in-patient admission and diagnostics unit with trauma centre;

• in-patient and out-patient diagnostics unit;

• out-patient unit;

• laboratory unit;

• stomatology unit.

For the patients' and guests' convenience, a separate multi-level parking facility for 277 cars will be opened together with the building. The opening of the new building is expected to create 380 new jobs.

Mark Kurtser, CEO of MD Medical Group, said:

"Our largest hospital - Lapino - has, over more than five years of operation, demonstrated very strong operational results. Based on this successful performance and the growing demand for the hospital's services, we decided to expand and diversify its offering in the following new areas - neurosurgery, cardiovascular surgery, chemotherapy, and urology, as well as significantly expand laboratory testing range.

"We are bringing our Lapino hospital to an entirely new level by expanding its capabilities to offer high-tech medical services in different healthcare areas. We expect that the expanded healthcare facility created in line with the latest technologies and our track-record of launching new hospitals from scratch will significantly contribute to the Group's performance."

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) and MD Medical Group Board member:

"MD Medical Group, Russia's leading private medical provider, not only provides patients with access to the most advanced medical technologies, but also creates opportunities to further expand its business and to improve living standards in the regions where it operates. The start of construction on the second stage of the Group's hospital confirms its focus on continuous improvement and the expansion of its range of available services - developments that are highly appreciated by both patients and investors."

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About MD Medical Group

MD Medical Group is a leading provider in the highly attractive Russian private healthcare service market. The company manages 36 modern healthcare facilities, including 5 hospitals and 31 outpatient clinics in Moscow and the Moscow Region, St. Petersburg, Ufa, Perm, Samara and the Samara Region, Irkutsk, Novosibirsk, Irkutsk, Yaroslavl, Ryazan, Kostroma, Novokuznetsk, Krasnoyarsk, Omsk, Barnaul, Vladimir, Tyumen, Voronezh, and Nizhny Novgorod.

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.

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