Press Release

January 22, 2014 Rundbuckstrasse 6

CH - 8212 Neuhausen am Rheinfall / Switzerland www.lifewatch.com

LifeWatch announces strategic partnership with China Tele- com for the sale of medical smartphones and relating services with a potential of more than USD 400 million sales over the next five years in China

Neuhausen am Rheinfall, 22 January 2013 - LifeWatch AG (SIX Swiss Exchange: LIFE), the leading wireless cardiac monitoring service provider in the U.S., makes a huge step forward in its strategy to complement its offering with products and ser- vices that are independent from third party payees. Today, Yacov Geva, CEO, signed a binding memorandum of understanding with China Telecom with a poten- tial of more than USD 400 million sales of medical smartphones LiveWatch V and subsequent generation and related services in China over five years.

At the end of October 2013, LifeWatch informed that the Company is in the course of setting up its partnering model for its medical smartphone. The first partner has now been found in China Tele- com, the largest telecommunication provider in China. Today, China Telecom and the Israeli sub- sidiary of LifeWatch, LifeWatch Technologies Ltd., entered into a binding memorandum of under- standing for a strategic partnership with respect to the health smartphone LifeWatch V and subse- quent generations thereof. The memorandum provides for a minimum purchase volume over the next five years. In return China Telecom is granted exclusivity for the territory of China.

This cooperation is fully in line with the strategy of China Telecom for its development in the Chi- nese market. Mr. Johnny Lee, AppStore Operation Director of China Telecom, commented: "We are very glad to start this promising long-term strategic relationship with the highly professional team of LifeWatch around their chairman and CEO. It fits perfectly into our strategy to provide value added services to our premium clients. This is really a win-win opportunity for both partners."

Together with accompanying services to be provided by LifeWatch, the Company expects that the minimum sale alone may lead to an increase of overall turnover of the group by one third and a multiplication of EBIT in 2014. In the following years, the agreed minimum sale volume will in- crease to reach a peak in the third year and then to reduce slightly for the fourth and the fifth year.

Ken Melani, chairman, commented: "This cooperation is a great achievement and the confirmation of the right product and marketing strategy developed by our CEO, Yacov Geva, and his team. Already the minimum figures may lead to doubling of our overall turnover and may multiply our EBIT midterm. We are very proud of our research and development team in Israel; their quality made sure that LifeWatch is one of the few companies that were selected by China Telecom to

provide value added technics and services to the Chinese market."

LifeWatch AG January 22, 2014

The memorandum of understanding contains the key terms and the partners will now finally nego- tiate and yet have to agree on the detailed final terms. Signing of the final cooperation agreement is scheduled for March after setting up of the required Chinese entity by LifeWatch. The Company expects the required regulatory approval to be obtained in April and sales of smartphones to begin in the second quarter of 2014. LiveWatch is looking forward to further roll out its partnering model for its health smartphone and to co-operations to be entered into in the coming months.

For further questions

Dr. Yacov Geva, CEO LifeWatch AG, Phone: +972 54-433-8822, E-mail: ygeva@lifewatch.com

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss Exchange (LIFE), Swit- zerland, is the leading healthcare technology and solution company, specializing in advanced telehealth systems and wireless remote patient monitoring services. LifeWatch services cater to individuals, ranging from high-risk and chronically ill patients, to consumers of health and wellness products. LifeWatch AG has operative subsidiaries in the United States, in Switzerland and in Israel and is the parent company of Life- Watch Services Inc., and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a leading US-based pro- vider of cardiac monitoring services and home sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch Technologies Ltd., based in Israel, is a leading developer and manufacturer of telemedicine products. The Company is planning to introduce the LifeWatch V, an Android-based smartphone with medical sensors and apps that uses a cloud-based service platform. For additional information, please visit 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, 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 expres- sions 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 state- ments are based only on data available to LifeWatch AG at the time of the issue of this press release. Life- Watch 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 CIRCU- LATION 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. PER- SONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY PUBLIC OFFERING OF SECU- RITIES 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 CON- TAIN DETAILED INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINAN- CIAL STATEMENTS OF THE ISSUER.
LifeWatch AG January 22, 2014 2

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