EANS-Adhoc: LifeWatch receives notification from Highmark Medicare Services on lower reimbursement rates for services covered under CPT Code 93229

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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13.07.2009

. IDTF industry to start discussions with Highmark to reverse unjustified
decision
. Despite new reimbursement recommendation, LifeWatch confirms outlook for 2009
. Two thirds of LifeStar ACT Wireless Cardiac Monitoring services covered by
separate commercial contracts

Neuhausen am Rheinfall / Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE) confirms today that its subsidiary LifeWatch Services Inc. has
received a letter issued by Highmark Medicare Services announcing lower
reimbursement rates of USD 754 (currently USD 1123) for LifeWatch's LifeStart
ACT wireless cardiac monitoring service effective as from September 1, 2009.
Highmark is the carrier for CMS/Medicare services in Pennsylvania.

LifeWatch is very surprised about Highmark's intention to reduce reimbursement
for the wireless LifeStart ACT services and strongly believes that the planned
reduction affecting all providers covered under the U.S. nationwide CPT Code
93229 is totally unjustified. In the next two months, the coalition of
Independent Diagnostic Test Facilities (IDTFs) will try to convince Highmark to
reverse its decision. LifeWatch believes that they have a very strong argument
against this decision.

Highmark's proposed rates would only be directly applicable to roughly a third
of LifeWatch's LifeStar ACT services as the majority of its wireless cardiac
arrhythmia monitoring business is covered by over 460 independent commercial
contracts.

Even if Highmark's proposed rates will be applicable as from September 1, 2009,
LifeWatch confirms its guidance for the full year of 2009, expecting a sales
increase over 50% to USD 127 million - USD 130 million, an EBITDA-Margin of
over 20% and an EBIT-Margin of over 16%.

LifeWatch will announce strong results for the second quarter of 2009 on July
28, 2009 in a press release issued internationally at 0700 a.m. CEST, an
analyst and media conference at the Marriott Hotel Zurich at 10:00 a.m. CEST
and an international conference call / webcast at 2:00 p.m. CEST.

end of ad-hoc-announcement
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About LifeWatch AG
LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss
Exchange (LIFE), Switzerland, is the leading healthcare technology and solution
company, specializing in advanced telehealth systems and wireless cardiac
monitoring services. LifeWatch services treat high-risk and chronically ill
patients, health conscious consumers and wellness programs. LifeWatch has
subsidiaries in the United States, the Netherlands, Japan, the United Kingdom,
Switzerland and Israel. LifeWatch AG is the parent company of LifeWatch
Services Inc., a leading US-based cardiac monitoring service provider, and
LifeWatch Technologies Inc., a US-based manufacturer of telecardiology
products. www.lifewatch.com

Sign-up for customized E-mail alerts and documentation requests is available at
http://production.investis.com/lifewatch/alert-service/

This press release includes forward-looking statements. All statements other
than statements of historical
facts contained in this press release, including statements regarding future
results of operations and financial
position, business strategy and plans and objectives for future operations, are
forward-looking statements.
The words "believe," "may," "will," "estimate," "continue," "anticipate,"
"intend," "expect" and similar expressions are intended to identify forward-
looking statements. LifeWatch AG has based these forward looking statements
largely on current expectations and projections about future events and
financial trends that it believes may affect the financial condition, results
of operations, business strategy, short term and long term business operations
and objectives, and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions. In light of these
risks, uncertainties and assumptions, the forward-looking events and
circumstances described may not occur and actual results could differ
materially and adversely from those anticipated or implied in the forward-
looking statements. All forward-looking statements are based only on data
available to LifeWatch AG at the time of the issue of this press release.
LifeWatch AG does not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new information,
future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND
SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A
GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT
CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH AG OR ANY OF ITS SUBSIDIARIES
FOR SALE IN THE UNITED STATES OR AN INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY
SECURITIES OF LIFEWATCH AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN
ADDITION, THE SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD
OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION
UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
UNITED STATES SECURITIES LAWS. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN
THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED
FROM LIFEWATCH AG OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL STATEMENTS
OF THE ISSUER.

Further inquiry note:
Kobi Ben Efraim, Chief Financial Officer, LifeWatch AG
Tel +41 52 632 00 50 | Fax +41 52 632 00 51 | Email [email protected]

Sensus Investor and Public Relations GmbH, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email [email protected]

end of announcement euro adhoc
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emitter: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: [email protected]
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: Open Market / XETRA: Frankfurt, Hauptsegment: SIX Swiss Exchange,
free trade: Berlin
language: English

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