African Medical Investments Plc. : Update on Zimbabwean Operations

African Medical Investments plc / Index: AIM / Epic: AMEI / Sector: Healthcare
17 February 2012

African Medical Investments plc ('African Medical' or 'the Company') Update on Zimbabwean Operations

African Medical Investments plc, the AIM listed company operating in the African healthcare sector, announces that it has commenced legal proceedings in the High Court and Supreme Court of Zimbabwe to restore occupation and control of its Harare facility. This follows the forcible occupation of the facility by the former management company, led by Vivek Solanki. The Company is appealing a recent judgement, which purported to reinstate the rights of the former management company. The Company is confident in its legal position and that the legal proceedings will result in a positive ruling for African Medical which will see it reinstated to the facility.
African Medical has invested US$9.6 million in building and commissioning the AMI Hospital Harare to become a provider of world class healthcare. Services at the hospital include a 24-hour Accident and Emergency department; a 4-bed High Dependency unit; theatres for minor and major operating procedures; a 14 bed medical and surgical ward; GP services; an in-patient pharmacy; a fully equipped ambulance for patient transfers; and an emergency air ambulance evacuation facility.
The Company formulated a comprehensive investment strategy focussed on Zimbabwe and since opening to patients in March 2011, the AMI Hospital Harare has received strong patient demand, prompting the Board to evaluate the expansion of the current facility to include a 10-bed paediatric wing, bringing the total number of beds at the facility to 30. In addition, to ensure that the demand for longer stay patients can be satisfied, the Company has been in negotiations for an additional site in Harare. It is hoped that this would provide a further 30 beds to the city and double the number of group employees to in excess of 200.
In addition to the Company's investment, employment and roll out strategy, African Medical has also been a supporter of local community schemes providing education, free health check-ups at medical gatherings and medical cover for religious gatherings. African Medical has also been an advocate of Zimbabwe's youth, sponsoring the U19
Confederations of African Rugby and the U20 Zimbabwean rugby team.
African Medical Chief Executive Officer, Peter Botha said, "We are extremely disappointed with this situation and will take all steps necessary to protect our position. This situation seems totally ridiculous considering the circumstances.
"We have transformed this location, which previously housed the Trauma Centre Harare, a small medical outlet which dealt primarily with minor emergency procedures and travel vaccinations. Indeed before our US$9.6 million investment it had a net asset value of US$150,000.
"The board of African Medical is committed to following the due legal process in Zimbabwe and remain the rightful owner of the property and business. We will continue to assert our lawful claim over this facility and are confident that this will be proved in by a High Court and Supreme Court ruling."

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For further information please visit www.amiplc.com or contact:

Peter Botha	African Medical Investments Plc	Tel: [phone]
Jonathan Wright	Seymour Pierce Ltd	Tel: [phone]
David Foreman	Seymour Pierce Ltd	Tel: [phone]
David Hart	Daniel Stewart & Company Plc	Tel: [phone]
Martin Lampshire	Daniel Stewart & Company Plc	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher	St Brides Media & Finance Ltd	Tel: [phone]

Notes

African Medical Investments plc (AIM: AMEI) provides international standard healthcare through private hospitals across Africa, targeting the expanding African middle classes and the expatriate, non-governmental organisations, diplomatic and tourist markets. The Company owns and operates private hospitals in Dar es Salaam, Maputo and Harare. Its current focus is on improving occupancy rates and optimising the space of these facilities, however expansion remains a longer term focus either through the construction of new hospitals or investments in existing facilities.