Corporate News

RHÖN-KLINIKUM AG, UKGM, Federal State of Hesse and Universities of Giessen and Marburg Achieve Ground-Breaking Agreement in Separate Accounting

- Decisive turning point: structural agreement has potential to be model for indefinite   regulation beyond its term of five years

- UKGM receives additional annual amount of approx. EUR 15 million from 2017 onwards up   to EUR 72.9 million per annum in the future plus a single payment of EUR 13 million for   investments

- Agreement takes into account both higher costs since 2008/2009 and in the future, and for  the first time offsets continuous increases in material and personnel costs at UKGM

- Both facilities profit from agreement on new projects which will not only benefit patients but  also constitute economically sound investments

- Jobs are secure at UKGM: no terminations for operational reasons for the next five years  and new prospects for trainees

Bad Neustadt / Saale, 19th May 2017

RHÖN-KLINIKUM AG, the university hospitals in Giessen and Marburg (Universitätsklinikum Gießen und Marburg GmbH (UKGM)), the Federal State of Hesse and both universities have achieved a ground-breaking agreement. "It is a very good day both for the many thousands of employees at the university hospitals in Giessen and Marburg but also for the almost 500,000 patients (both in-patients and out-patients) from the region of central Hesse and beyond," CEO Stephan Holzinger stated.

"We have reached a decisive turning point with this agreement - a new start in constructive cooperation, both in view of content and personal interaction. It is time to let go of mistakes which were made by all sides in the past and to stop looking in the rearview mirror. I call on all participants to walk along this new path together with me in a sensible and constructive manner," continued Holzinger who had personally pushed for this agreement just a few days after taking office.

The successful result of the negotiations foresees, among other things, that UKGM will receive an additional annual amount of approx. EUR 15 million from 2017 onwards in order to finance the services it renders in the area of research and teaching. The basic amount which the federal state pays to both universities will therefore be raised accordingly. For the first time there will also be new regulations on appropriate remuneration for future increases in material and personnel costs for research and teaching, thereby solving an endless bone of contention from the past. "The agreement can only be terminated in 2022. However, the annual payments which would then apply again would amount to at least EUR 72.9 million and would therefore be EUR 14.7 million higher than today. That is an important aspect of this agreement. Furthermore UKGM will receive a single payment of EUR 13.0 million for investments and provisions which will not burden its depreciation," Holzinger continued.

An extensive investment package has additionally been set in motion for both university hospitals. UKGM will invest approx. EUR 100 million in the next five years. In Marburg the psychiatric clinic will be modernised, the central operating theatre A and the intensive care units will be renovated and the paediatric and youth psychiatric clinic will be rebuilt. In Giessen the paediatric cardiological centre will be enlarged and an extension added to the hospital building. Moreover UKGM has entered into the following obligations: there will be no terminations for operational reasons for the duration of five years and trainees with appropriate qualifications will be employed on a long-term basis.

The cornerstone agreement is subject to the consent of the supervisory board of RHÖN-KLINIKUM AG.

Background of the Matter

In 2006 RHÖN-KLINIKUM AG bought 95 percent of the shares in the university hospitals in Giessen and Marburg which had merged as UKGM GmbH and has since performed extensive tasks in the sovereign area of research and teaching. In return UKGM receives payments from both universities, the amount of which and whose framework conditions have now been agreed in a new contract.

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RHÖN‐KLINIKUM AG is one of the largest healthcare providers in Germany. At five medical sites with a total of 5,400 beds we offer cutting-edge medical care with a direct link to universities and research institutes. Our top five key areas of treatment are cardiological and coronary disease, neurological disorders, oncology, lung diseases as well as orthopaedic and accident surgery. A total of approx. 16,500 employees work for RHÖN-KLINIKUM AG. Our facilities are located in Bad Berka, Bad Neustadt/Saale, Frankfurt (Oder) and Giessen and Marburg.

Further information is available at: www.rhoen-klinikum-ag.com.

Your Contact Persons:

RHÖN-KLINIKUM AG

Achim StruchholzGroup Division Head of Corporate CommunicationSchlossplatz 197616 Bad Neustadt / SaaleTelephone: + 49 - 9771 65-1327Facsimile: +49 - 9771 65-1820E-Mail: kommunikation(at)rhoen-klinikum-ag.comDr. Kai G. KlingerGroup Division Head of Investor Relations & Corporate FinanceSchlossplatz 197616 Bad Neustadt / SaaleTelephone: + 49 - 9771 65-1318Facsimile: + 49 - 9771 99-1736E-Mail: kai.klinger(at)rhoen-klinikum-ag.com