• Confirmation of growth course: Revenues raised by 4.3% to € 1.05 billion (first half of 2007: € 1.01 billion)
• Net consolidated profit: sharp rise by 17.7% to € 61.9 million (first half of 2007: € 52.6 million)
• Group wants to take new approaches to cross-sector co-operation

• Forecast confirmed for full-year 2008: revenues of € 2.1 billion and net consolidated profit of € 123 million

Note: The Company reports according to International Financial Reporting Standards (IFRS) in their version applicable for 2008.
For the first time, an auditor’s review of the Half-Year Financial Report was performed by the statutory auditor.

“The further increase in key performance ratios during the first six months of 2008 confirms our growth course which we will continue also in the second half despite challenging framework conditions”, stated Wolfgang Pföhler, chairman of the Board of Management of RHÖN-KLINIKUM AG. “RHÖN-KLINIKUM AG stands on a solid foundation. We combine good medicine with good business judgment and will therefore be successful in the future as well.”

Compared with the first half of 2007, revenues rose during the first six months of 2008 by € 43.2 million (+4.3%) to € 1,050.2 million (previous year: € 1,007.0 million). The first-time consolidation of Kreiskrankenhaus Köthen as at 1 April 2007 accounts for € 7.2 million of this rise in revenues, and organic growth for the lion's share of € 36.0 million.

Compared with the first half of 2007, RHÖN-KLINIKUM AG achieved a rise (+3.0%) in EBITDA by € 3.7 million to € 128.6 million (previous year: € 124.9 million) and an increase (+6.7%) inEBIT by € 5.4 million to € 86.2 million (previous year: € 80.8 million) as well as a rise in net consolidated profit by € 9.3 million or 17.7% to € 61.9 million (previous year: € 52.6 million), thus meeting the targets set by the Group’s Management. Net consolidated profit in the first half corresponds to earnings per ordinary share of € 0.57 (previous year: € 0.48).

€ 8.1 million of the € 9.3 million improvement in net consolidated profit is accounted for by the first-time application of the lowered corporation tax rate and the resulting lower earnings tax burden. Despite challenging framework conditions and sharp rises in personnel and material costs, RHÖN-KLINIKUM AG succeeded in once again raising operating consolidated profit by broadening its offering and exercising strict cost management. The remaining increase in earnings is € 1.2 million. Adjusted for one-off valuation effects in 2007 of € 0.4 million, the increase in operating earnings in the first half stood at € 1.6 million, which stemmed among other things from the further improvement, to € 0.5 million, at Universitätsklinikum Gießen und Marburg GmbH. After burdening the earnings result last year by € 0.5 million, Krankenhaus Köthen GmbH, consolidated on 1 April 2007, contributed € 0.2 million to consolidated earnings in the first half of 2008.

Driven by investments, the Company’s assets increased by € 3.6 million (+0.2%).

As at 30 June 2008, the Company reported equity capital of € 845.1 million (as at 30 June 2007: € 751.9 million, 31 December 2007: € 810.8 million), with distributions to shareholders and minority owners in the amount of € 32.3 million already included. The equity ratio saw a slight rise from 39.1% to 40.8%.

Overall, 100.4% of non-current assets is covered by equity and non-current liabilities. Net debt to banks rose since the last reporting date from € 496.2 million to € 555.2 million as at 30 June 2008.

Internal financing strength was raised. Compared with the same period last year, operating cash flow rose from € 96.8 million by 7.5% to reach € 104.1 million.

“The Group continues to enjoy stable and sound financial structures”, confirms Dietmar Pawlik, the Company’s CFO.

Of the investments made in the Group during the first six months of 2008, € 22.0 million was attributable to investments funded from grants under the Hospital Financing Act (KHG) (previous year: € 46.9 million) and deducted from total investments pursuant to the relevant provisions of IFRS. For the second half of financial year 2008, investments of roughly € 150 million have been planned.

As at 30 June 2008 we consolidate 46 hospitals with 14,584 beds/places at a total of 35 sites in nine federal states.

During the first six months a total of 833,375 patients (previous year: 782,718; a rise of 6.5% or 50,657 patients) were treated at our Group hospitals and medical care centres (MVZs). After deducting consolidation effects (Krankenhaus Köthen), this translates into organic growth of 44,756 patients or 5.7%. This growth is distributed nearly uniformly over the entire Group.

At 30 June 2008, the Group employed 32,385 persons (31 December 2007: 32,222). The number of employees will further increase with the first-time consolidation of St. Petri-Hospital in Warburg in the second half of 2008.

“With the takeover of St. Petri-Hospital in Warburg we will expand our hospital network to 47 facilities”, Wolfgang Pföhler said. By this acquisition RHÖN-KLINIKUM AG confirms its goal of continuing to achieve qualitative growth through the acquisition of hospitals at all levels of care. St. Petri-Hospital, a standard care facility, has 153 beds and an annual revenue volume of roughly € 15 million. “The facility’s first-time consolidation is slated for the second half of 2008. We are well prepared to take further hospitals into the Group.”

Besides the acquisition and restructuring of hospitals, the Company is taking new approaches to outpatient-inpatient co-operation. In this regard Wolfgang Pföhler adds that this ensures a stable cross-sector medical platform for better patient care. “We are seeking a partnership of equals between community-based and hospital doctors, and offer community-based doctors the opportunity to combine medical expertise with economic commitment under their own responsibility through their stake in our facilities. This co-operation holds considerable quality advantages for patients and also leads to lower costs”, states the chairman of the Board of Management.

In conclusion, Wolfgang Pföhler confirmed the earnings forecast of RHÖN-KLINIKUM AG: “Based on the current framework conditions and on the results of the first half of 2008, we confirm our revenue forecast for full-year 2008 of € 2.1 billion and our earnings forecast of € 123 million. We continue to pursue organic growth coupled with qualitative acquisitions-driven growth in inpatient care as well as outpatient-inpatient co-operation.”