Report no. 17/2012

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finances of 19 February 2009 on current and periodical information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. informs that on 30 January 2012 the Company received the contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch, regarding healthcare services in the scope of hospital treatment, hospital treatment – therapeutic health programmes outpatient specialist care, outpatient specialist care (cost-consuming outpatient services) for the period from 1 January to 31 December 2011.

Healthcare services specified hereinabove are provided by “EuroMediCare” Specialist Hospital and Outpatient Clinic in Wrocław owned by EMC Instytut Medyczny SA.

The Issuer informed about the contracts concluded with the Fund Branch concerning services rendered in 2011 in its current reports nos. 11/2011 of 18.01.2011, 21/2011 of 01.02.2011 and 37/2011 of 11.03.2011, 75/2011 of 01.07.2011, 80/2011 of 08.07.2011, 91/2011 of  04.08.2011 and 114/2011 of 29.11.2011.

The contract for the provision of healthcare services such as hospital treatment, marked as 03/1/3102769/01/2012/01  concluded on 26 January 2012, is the contract with the highest value.

The Parties to the contract are the Issuer and the National Health Fund- the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch).

The subject of the contract is the provision of healthcare services such as hospital treatment by the Issuer.

The maximum amount of Fund Branch liability towards the Issuer in the period from 1 January 2012 to 31 December 2012 totals maximally PLN 10,214,542.00
The Issuer undertook, within the duration of the contract, to conclude a civil liability insurance contract against damages caused in relation to the provision of services.

In the case of non-performance or improper performance of the contract, caused by the Company, the Director of the Fund Branch may impose a contractual penalty. In the case of writing out prescriptions to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified refund of the costs of medication made on the basis of prescriptions together with statutory interest calculated from the day of making the refund. In the case of issuing orders for delivery of medical products which are orthopaedic goods and auxiliary goods fully or partially financed by the Funds to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified financing together with statutory interest calculated from the day of making the refund. Contractual penalties specified above shall be imposed pursuant to provisions stipulated in General Terms and Conditions of the contracts. The Fund Branch is entitled to claim damages exceeding the value of the contractual penalties.

The contract has been concluded for the period from 1 January 2012 to 31 December 2014 with a possibility of its termination by each party upon a 3-month termination notice.

The total Fund Branch liability towards the Company specified in the contract refers to the period from 1 January to 31 December 2012.

As a result of signing the said contracts, the total maximum Fund Branch liability towards the Issuer  for the provision of healthcare services rendered by the “EuroMediCare” Specialist Hospital and Outpatient Clinic in Wrocław  currently amounts to PLN. 13,021,158.60 for the period from 1 January to 31 December 2012.

The other material terms of the contract with the highest value made public in the said current report remain unchanged.

A criterion for a contract to be considered significant:
The value of contracts exceeds 10% of the Issuer’s equity capital.