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RHÖN-KLINIKUM AG, Bad Neustadt/Saale:Press Conference in Frankfurt/MainFirst quarter results 2002 -. Consolidated profit of EUR 14.8 million lower than expected but within target range for the year. Revenues increase to EUR 212.8 million. More privatisations - Rhön-Klinikum Group now with 28 hospitals, 7,587 beds and 12,211 employees.Outlook: Developments in 2002 ... and more. Revenue forecast at EUR 860 million. Earnings target exceeding EUR 70 million is achievableBad Neustadt a.d. Saale/Frankfurt am Main, 16 May 2002 ----- At today spressconference of Rhön-Klinikum AG in Frankfurt am Main, presented the firstquarter results 2002.Including the subsidiaries first consolidated with effect from 1 January2002these are the three hospitals of the District of Nienburg (Hoya, Nienburg,Stolzenau), Klinikum Frankfurt (Oder), Aukammklinik Wiesbaden, and theHildburghausen special hospital for psychiatry and neurology -, the Groupnowoperates 28 hospitals at 17 locations in 8 federal states. The combined bedcapacity increased from 5,867 to 7,587 beds. During the first three monthsof2002, the aggregate number of patients treated at Rhön-Klinikum hospitalsroseby 21,581 or 25 %, compared with the same period of the previous year,bringingthe total of in-patient, day-case and out-patient treatments to 107,632(previous year: 86,051). This is the first time that the Group reportsmore than 100,000 patient treatments in a quarter.Revenue development during the first three months of 2002 confirm theforecastsfor the current year. The hospitals of Rhön-Klinikum Group recorded 2002first-quarter revenues of EUR 212.8 million (previous year: EUR 174.7 million),anincrease of 21.8 %.2002 first-quarter net earnings are shown at EUR .8 million (previousyear: EUR 16.7 million), representing a decrease by EUR 1.9 million or 8.9 %,compared to the same period of the previous year. This result translates intoearnings pershare of EUR 0,57 (previous year: EUR 0.65). This development fallsbelow theexpectations of the Board of Management who had expected higherfirst-quarterearnings (target: EUR 16 million), even if considering the followingspecialeffects:- loan capital needs in the context of the take-over of Klinikum Frankfurt (Oder);- moderate start-up losses of the South African subsidiary;- negative effects on revenues of the relocation of Park-Krankenhaus Dösen, Leipzig;- a reduction in revenues of Psychosomatische Klinik, Bad Neustadt, due to renovation measures; and- cost increases as a result of executive staff numbers being built up to provide for future corporate growth.The Board pointed out the following factors as having had a stronger-than-expected influence on results (estimated effect: approx. EUR 1.2 million):- at DKD, a slow start of reorganisation measures following capacity bottlenecks;- at several other hospitals, unsatisfactory progress in cost cutting due to still lacking rationalisation support not only from employees but also from managerial staff;- in the above context, aggravating claims to vested rights put forward by sub-sections of ver.di., a labour union; and- bottlenecks in medical staff (physicians) due to general tightness inthis specific labour market segment.First-quarter operating expenses rose by 27,3 % to EUR 192.8 million(previousyear: EUR 151.4 million), an above-proportion increase in relation torevenuegrowth.During the first three months of 2002, the Group invested a total of EUR 98,4million, of which EUR 74,1 million in new acquisitions in Frankfurt(Oder),Nienburg/Hoya/Stolzenau, Wiesbaden and Hildburghausen. Current capitalspendingabsorbed EUR 24.3 million, the investment focus being on the Group sLeipzig(EUR 22.5 million), Uelzen, Wiesbaden, Freital, Attendorn and Bad Berkafacilities. Investments were financed from short-term loan capital (EUR 75.9million), availably liquid funds and the operating cash flow of EUR 26.5million (previous year: EUR 26.3 million).Outlook: Developments in 2002 ... and more All factors considered, we have reason to believe that it will bepossible,though not easy, to close business year 2002 with total revenues of EUR 860million and earnings of more than EUR million not taken into accountpossible further hospital take-overs said Manfred Wiehl, CFO of Rhön-Klinikum AG.CEO Münch, too, estimates that it is probable that the Group reaches its2002targets in EUR , however, he lays special emphasis on the path that thecompanychooses to reach its goals: We will apply our concepts even morestringently,and this stringency will have to go with intensified communication. Onlythisway will it be possible to cope with the internal and external resistanceagainst our privatisation approach and the change that it brings about forallparties employees, unions, and politicians. We want to transformresistanceinto acceptance without impairing the performance-driving effectiveness ofourapproach.Following the recent change in the share ownership, the Board and thechairman who is a principal shareholder of the Company intend to wininstitutionalinvestors with a long-term investment approach, since they believe thatinterested so-called strategic investors pose side-step hazards ratherthanadding to the Company s market strengths.Karl-Theoder Reichsfreiherr von und zu Guttenberg announced that,following hisfamily s decision to sell their holdings in Rhön-Klinikum shares, he willretire from the Supervisory Board of Rhön-Klinikum AG with date of theforthcominggeneral annual meeting on 17 July 2002. The Board of Management ofRhön-Klinikum AG will propose that Dr. Brigitte Mohn, Director Medicine of BertelmannStiftung and a member of the Board of Trustees of Stiftung DeutscheSchlaganfallhilfe, be appointed to the Supervisory Board.Though the Board has not definitely dismissed the subject of a possibleconversion of preference into ordinary shares aimed at increasing thefreefloat, it believes that that such conversion would be unfavourable for the timebeingas the available freefloat is judged to be sufficient, in particular, iftheformer Guttenberg holdings are placed to institutional investors.end of message, (c)DGAP 16.05.2002