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Capio acquires Deutsche Klinik in Germany


Capio has signed an agreement to acquire the German healthcare group Deutsche Klinik GmbH. With this transaction, Capio enters the single biggest healthcare market in Europe, strengthening its position as a leading pan-European healthcare provider. Deutsche Klinik is a private healthcare group owning five hospitals and operating an additional seven facilities under management contracts throughout Germany.
Conference call today at 14:00CET, see information below.

Capio has signed an agreement to purchase 100 per cent of the shares in Deutsche Klinik GmbH, headquartered in Bad Brückenau, Federal State of Bavaria, for a total of EUR 34 M. The enterprise value amounts to EUR 41,2 M. The acquisition will be paid in cash. Since 2004, Deutsche Klinik has acquired and is turning around three formerly public hospitals. With annual sales of EUR 44.4 M, the group generated a EBITDA* of EUR 1.5 M in 2005. In accordance with the German business model implying continuous improvements and development the EBITDA, 2006 is estimated to be significantly higher compared to 2005 and the transaction is expected to have a neutral effect on Capio’s 2006 earnings per share (EPS). Capio expect Deutsche Klinik’s present operation to perform according to German industry standard by 2009.

Capio’s objective is to become a leading player in the German health care market. As one of Germany’s top ten private hospital operators, Deutsche Klinik is a solid platform to facilitate an active role in the accelerating consolidation process in the German market. The outstanding expertise of Deutsche Klinik’s management in acquisitions, reorganisations and integrations of formerly public hospitals will be fully made available to Capio. Capio’s German operations will be branded as Capio Deutsche Klinik.

“With the acquisition of Deutsche Klinik, Capio has successfully entered Europe’s single biggest health care market. This is an important milestone in our strategy. Via this solid platform, Capio will be able to rapidly expand its German operations. We strongly believe that value creation for our shareholders will be achieved by future growth of Deutsche Klinik through privatisations of further public hospitals”, says Ulf Mattsson, Capio’s President and Chief Executive Officer.

“We appreciate that Mr. Gawinski, Managing Director of Deutsche Klinik with 20 years experience in the German health care sector; will remain with the company as the head of Capio’s German operations. He will be supported by Mr. Albrecht, one of the founders of Deutsche Klinik, who will act as an advisor for a three years period”, says Paul Hökfelt incoming Chairman of the German Board and EVP in Capio Group.

“As a strong pan-European partner, Capio is a great opportunity for Deutsche Klinik. We will benefit significantly from economies of scale, competence synergies and the transfer of medical knowledge. Capio’s knowledge in management of daycare will be of value in the development of the German market. Capio Deutsche Klinik is committed to become one of the leading players in Germany in the coming years,” says Deutsche Klinik’s Managing Director Sigurd Gawinski.

The transaction is subject to the approval of the Bundeskartellamtes (the German Competition Authorities). A decision is expected within two weeks. Completion will occur immediately thereafter.

Göteborg, August 21, 2006
Capio AB (publ)

*) Normalised EBITDA on IFRS basis

Capio Group is one of Europe’s leading healthcare providers, with operations in Sweden, Norway, Denmark, Finland, the United Kingdom, France, Spain and Portugal. The Capio Group has annual net revenues of approximately SEK 12,500 M (EUR 1,350 M), with some 14,500 employees.

See enclosed fact sheets for companies and healthcare markets information.

Conference call
A telephone conference will be arranged at 2.00 p.m. CET today, Monday, August 21, 2006, in regard to Capio’s acquisition in Germany. Group CEO Ulf Mattsson and SVP Paul Hökfelt will take part in the conference. The conference will be held in English.

An overhead-slide presentation will be available via Capio’s website
To link up to the conference, dial +44 (0) 207 162 0125 immediately before the start of the conference.

A recording of the conference will be available to listen to after the meeting concludes, until August 25. To access the recording, dial +44 (0) 207 031 4064 and give reference 716951.


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