Press Release

LifeWatch achieves turnaround in 2014: Turnover increased by 8.1% with positive Operating Results

Neuhausen am Rheinfall, Switzerland, March 18, 2015 - LifeWatch AG (SIX Swiss Exchange: LIFE), a market leader in the development and sale of digital health solutions primarily for remote cardiac monitoring and sleep apnea diagnostics, realized a turnover of USD 98.47 million for the business year 2014, 8.1% more than in the previous year (2013: USD 91.06 million). In particular, the second half year saw a significant reduction in costs, which offsets the operative losses from the first half year. The EBIT for the second semester amounted to USD 4.43 million following the negative result in the first six months of USD 4.13 million. In total the EBIT for the business year 2014 amounted to USD 0.30 million (2013: -2.089 million). The positive business development in the second half of the year resulted in an EBITDA of USD 7.47 million for this period which more than offset the negative first half year numbers. The net loss of USD 2.73 million (2013: net profit USD 2.92 million) resulted primarily from a tax charge of USD 2.54 million, in comparison to a tax credit of over USD 5 million which was recorded in the previous year. Please note that the above mentioned figures for 2014 are unaudited.

LifeWatch will publish the detailed audited annual results and the annual report 2014 on March 31, 2015.

For Questions:
LifeWatch AG
c/o Dynamics Group, Philippe Blangey / Doris Rudischhauser
Telephone: +41 43 268 32 35
E-Mail: investor-relations@lifewatch.com

About LifeWatch AG:
LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss Exchange (LIFE) in Switzerland, is a leading provider of digital health systems and wireless telemetry monitoring services. The LifeWatch services deliver important information to doctors for appropriate treatment of their patients and better treatment results. LifeWatch has operative subsidiaries in the USA, Switzerland, Macedonia and Israel and is the parent concern for LifeWatch Services, Inc. and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a leading US provider of cardiac monitoring services as well as sleep analysis for the diagnosis of obstructive sleep apnoea syndromes (OSAS). LifeWatch Technologies, Ltd. in Israel is a leading developer and producer of digital health products. For further information, see www.lifewatch.com.

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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, the 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 FROM 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.

In case of doubt, the English Press Release is the original.