Dr. Sulaiman Al Habib Medical Services Group (The Group) announced the approval of its Board of Directors by its resolution issued on Saturday 19 Ramadhan 1442H corresponding to 01/05/2021G to establish a new hospital project in Al-Kharj Governorate (South of Riyadh) by Sehat Al-Kharj for Healthcare Company(The Company), which is a subsidiary owned 100% by the Group. The hospital will be built on a land owned by the Company, which is located at Jawharat Al-Kharj neighborhood opposite to Prince Sattam bin Abdul-Aziz University at the intersection of King Khaled Road with Abdullah bin Amer Street, with an area of (44,303.33) square meters and an estimated total built-up area of (73,870) square meters, with capacity of (141) beds, at an estimated cost of SAR 458 million. The expected project start date is Third Quarter 2021G, subject to approval obtained from the relevant authorities. The estimated total cost of the project is SAR 458 million. The project will be funded by the Groups internal resources and by long-term Shariah-compliant loans from local banks. The expected project completion date is Third Quarter 2024, subject to approval obtained from the relevant authorities. The project is expected to have an impact on the financial results of the Company, from commencement of operations, expected to commence in Fourth Quarter 2024G. Details of the financial impact and any other developments will be announced in due course.