Press Release

August 20, 2013 Rundbuckstrasse 6

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

LifeWatch with again clearly improved results for Q2 2013

· Improved revenues of USD 22.66 million in Q2 2013

· Increased EBIT and EBITDA of USD 1.54 million and USD 2.37 million, respec- tively

· Net profit of USD 8.74 million in Q2 2013

· Ordinary shareholders meeting 2013 to be held on January 30, 2014

International analyst and media conference and audio web cast on LifeWatch Q2 2013 results

· Tuesday, August 20, 2013 at 10:00 a.m. CEST

· Dial-in number: + 41 (0)58 310 50 00 (Europe), + 44 (0)203 059 58 62 (UK),

· +1 (1)631 570 56 13 (USA)

· Audio web cast http://services.choruscall.eu/links/lifewatch130820.html

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss Exchange: LIFE), the leading provider of wireless telemedicine, today announces the results for the second quarter 2013. The Company improves again significantly its operating profit on EBIT and EBITDA level and shows a net profit of USD 8.7 million. Additionally, the Board of Directors informs that the Company will hold its pending ordinary shareholders meeting 2013 on January 30, 2014, in Zurich.

Second Quarter 2013 Financial Highlights:

Revenues of USD 22.66 million compared with USD 21.02 million and USD 19.06 million in

Q1 2013 and Q2 2012, respectively

Gross margin improved again to 59.6% compared with 59.1% and 55.1% in Q1 2013 and

Q2 2012, respectively

EBIT improved to USD 1.54 million compared with USD 1.17 million and USD 0.04 million in Q1 2013 and Q2 2012, respectively

EBITDA increased to USD 2.37 million compared with USD 1.95 million and USD 1.04 mil- lion in Q1 2013 and Q2 2012, respectively

Net profit improved to USD 8.74 million compared with USD 0.14 million in Q1 2013 and a loss of USD 1.38 million in Q2 2012

Cash from operations was USD 1.43 million compared with USD 5.04 million in Q1 2013,

and negative cash from operations of USD 7.02 million in Q2 2012

LifeWatch AG August 20, 2013

On July 7, 2013, Board Member Dr. Kenneth Melani was elected as the new Chairman of the Board of Directors of LifeWatch AG. He replaces longtime Chairman and Chief Executive Officer, Dr. Yacov Geva, who will continue to act as a Board member and as Corporate Chief Executive Officer in order to grow the existing and future business of the Company.

On January 30, 2014, the Company will hold its still pending ordinary shareholder meeting 2013 in

Zurich. The invitations for this event will be sent to all shareholders of LifeWatch AG in due time.

This year, LifeWatch is also celebrating the Company's successful 20 year history in the United States as a leading national provider of remote patient monitoring services. The Company's ad- vanced technologies, clinical excellence, quality standards and IT innovations have contributed to our mission of improving the quality and efficiency of health care delivery.

Revenues

Revenues in Q2 of 2013 were USD 22.66 million compared with Q1 2013 revenues of USD 21.02 million. Total monitoring revenues from LifeWatch Services grew by 4.3% compared with Q1 2013 revenues, and 14.7% over Q2 2012 revenues. The Company recorded device sales of USD 0.84 million in Q2 2013, compared with USD 0.09 million in Q1 2013 and USD 0.03 million in Q2 2012. Monitoring sales revenues growth is being driven by more focused sales training; new tools to en- sure patient compliance; and stronger sales management in some weaker performing territories.

Gross Profit, EBIT and EBITDA

Gross profit improved this quarter and reached USD 13.50 million with a margin of 59.6%, compared with USD 12.42 million and a margin of 59.1% in Q1 2013 and, and with USD

10.49 million with a margin of 55.1% in Q2 2012.

EBIT this quarter improved to USD 1.54 million or 6.8% of revenues, compared with EBIT of USD 1.17 million with a margin of 5.6% in Q1 2013 and to USD 0.04 million or 0.2% of revenues in Q2 2012.

EBITDA also improved in Q2 2013, reaching USD 2.37 million and a margin of 10.5%, compared with EBITDA of USD 1.95 million and a margin of 9.3% in Q1 2013, and USD

1.04 million or 5.5% of revenues in Q2 2012.

Net Income

Net income also rose this reporting quarter, reaching USD 8.74 million with a margin of 38.6%, compared with USD 0.14 million and a margin of 0.6% in Q1 2013, and to a net loss of USD 1.38 million in Q2 2012. Net income for Q2 2013 was positively impacted by a one-time tax benefit of USD 7.31 million or USD 0.55 per share (fully diluted) which was mainly derived from the expected utilization of carry forward losses of LifeWatch Services, Inc. Fully diluted earnings per share were USD 0.66 in Q2 2013, compared with USD 0.01 in Q1 2013 and loss per share of USD 0.11 in Q2

2012.

Outlook 2013

We are confident of growing our revenue streams and maintaining profitability, as demonstrated with these strong Q2 2013 results after an already improved Q1 2013. The new product and ser- vice pipeline will further provide us with additional opportunities in diverse geographies and con- sumer markets.

LifeWatch AG August 20, 2013 2

For further information please contact:

Sensus Communication Consultants, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

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 LifeWatch Services Inc., and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a leading US-based provider 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 prod- ucts. 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.

Sign-up for customized E-mail alerts and documentation requests is available at http://www.irlifewatch.com/alert-service.aspx

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. 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 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 August 20, 2013 3

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