SHL Telemedicine Full-Year Conference

SHL TelemedicineFull-Year ConferenceZurich, 19 March 2009

Forward looking statements This presentation contains forward-looking statements. These statements relate to future events or ourfuture financial performance and involve known and unknown risks, uncertainties and other factors thatmay cause our actual results, levels of activity, performance or achievements expressed or implied bythese forward-looking statements. Although we believe that the expectations reflected in the forwardlooking statements are reasonable, we cannot guarantee future results, levels of activity, performance orachievements. We caution you not to place undue reliance on forward-looking statements, which reflectour analysis only and speak only as of the date of this presentation. We undertake no obligation to publiclyupdate the forward-looking statements to reflect subsequent events or circumstances. This presentation contains trade names, trademarks and service marks of other companies. We do notintend our use or display of other parties’ trade names, trademarks and service marks to imply arelationship with, or endorsement or sponsorship of, these other parties.2

Agenda SHL at a glance 2008 key figures and highlights The SHL telemedicine platform and CHF studyfindings in Germany Territory insight Financial information & outlook Appendix3

SHL at a glanceFacts Leading provider of technologicallyadvanced telemedicine services andsolutionsolutions The services and solutions improve qualityof life for our subscribers and enable costsavings for the health services community Focus on cardiovascular and relateddiseases Technological innovation; on goingdevelopment of IT based services andsolutions Active in Israel, Germany and USA Incorporated in 1987, listed on the SwissStock Exchange (Zurich) Major shareholders: Philips Electronics( 18%) and the Alroy family with about18%FiguresFigures 2121 yearsyears ofof experienceexperience GlobalGlobal long-termlong-term subscribersubscriber basebase OverOver 76,00075,000 subscriberssubscribers AverageAverage ageage ofof 6666 AverageAverage timetime onon serviceservice 8(*)8(*) yearsyears 250,000250,000 callscalls conductedconducted inin 20072007 inin Israel andand GermanyGermanyIsraelLong termdistribution of SHLproductsRAYTELNorth AmericaGermanyIsrael* excluding German subscribers4

2008 HighlightsBusiness Strong year driven by growth in Germany : Additional contracts with health insurers leading to increased subscriber base Reached profitability Strong operating cash flow Israeli operations continuing to perform well Currently no impact of global financial and economic crisis on SHL activities Strong cash position at these tough economic times enabling growth New study findings support benefit of SHL’s services for patients and insurersFinancial Inline with guidance (which was raised mid year) Revenues for the year up 62% to USD 44.6 M EBITDA for the year – USD 9.1 M (20.5% of revenues) Net income of USD 2.2 M Cash reserves USD 23.5 M, shareholders equity USD 59 M (72%), all outstanding debt of USD 52.3 M repaidin 2008 Positive outlook for 2009, no signs of slowing growth in GermanyAll figures excluding the results of operations of Raytel sold late 2007 to Philips5

2008 key figuresRevenuesEBITDA20072007200844.527.5USD MUSD M20089.1-3.5EBIT2007NET20074.22008USD MUSD M200827.62007 including capital gainfrom sale of Raytel2.2-9.32007 Revenues, EBIT and EBITDA exclude the operations of Raytel soldlate 2007 to Philips6

The SHL telemedicine platform and CHFstudy findings in Germany

The need for telemedicineand market driversEconomic pressure Increasing cost pressure in the health careindustry in all developed economiesDemographic trends Aging society Increased prevalence of chronic conditions Cardiovascular diseases: the most frequentcause of death Congestive heart failure (CHF): the mostcostly disease in the worldPatient‘s needsTechnology progress Increasing personal responsibility for medicalissues and treatments Need for flexibility for use of medical services New technologies enable new products andservices Changing technology allows for simplifyingproduct use8

The SHL service outlineMedical Monitor Center365 days / 24 hoursPatientPatient dataPatient dataRe-assuranceDiagnosticTherapy ControlMonitoring12-lead ECGMonitoring –Sen’CElectronic MedicalRecordOnline access to ElectronicMedical Record9Physician

Integrated medical call centerCall center operates 24/7 with trained medical staff providing counseling,guidance and diagnosis of the customers medical conditionWhen a call isreceived, thesubscriber’scomputerizedpersonal medicalrecords areimmediatelydisplayed on-screenMedical call center staff followpropriety communicationprotocols with the subscriberand evaluate the situationbased on subscriber’ssymptoms, real-time medicaldata transmission, andindividual medical history10Based on theiranalysis the medicalstaff will advise thesubscriber on anappropriate courseof action, or simplyprovide re-assurance

Advanced telemedicine devices andIT solutionsCardioSen’C The CardioSen’C is a personal cellular-digital 12 lead ECGtransmitter which transmits to SHL’s medical call centre a patient’s12 lead ECG for the purpose of remote real time diagnosis ofarrhythmia, ischemia, and myocardial infarction Simultaneous real time 12 lead ECG sampling (only 3 seconds) forimproved quality and faster rate of transmission. CE approved and FDA approvedMC Interactives MC Interactives is the monitor center coresoftware package A sophisticated medical record databasemanagement application Contains important medical records and datalinked directly to the medical call centermanagement software11

Response Timeon SHL’S ServiceNormal Response TimeValue for patientsIrreversible damage tomyocardial tissueoccurs at about 240minutes1801530150 min.80320 min.People who seek medical help soonerwhen having an MI can reduce theseverity of cardiac tissue damage440 minReactiondelay153015Service reduces response time by more than 2 hours105 min.AmbulanceresponseAt-hometreatmentSource: European Heart Journal, Independent Study on the Impact of SHL, 1995.12Home tohospitalDoor tomedical care

Value for patientsA clinical study* conducted in Israel over a number of years and published in2007 showed that the probability of surviving in the first year after a heart attackis more than double for a SHL subscriber than for the average Israeli personEpidemiological Data80%Mortality Rates76%71%69%70%60%67%54%8.0%50%% of %4.0%20%7%10%10%7%2.0%0%MalePost MIPost CVA1ACSISCHFDiabetes2ShahalHigh BP0.0%HyperlipidemiaGeneral population (ACSIS)Source: The Israeli Heart Society (ACSIS), April 2007; accepted for publication to the European Heart Journal.1 ACSIS population 3,899 – age 63 /- 13.2 Shahal population 699 – age 69 /- 11.13SHLsubscribers

CHF MonitoringCHF Monitoring Service OverviewThe CHF Monitoring System collectsautomatically and non-invasivelyrelevant personal data such as weight,blood pressure and pulse rate andstores them in the subscribers' personalmedical recordThe monitor center regularly contacts thesubscriber for purposes of reassurance,symptom surveillance, promotingcompliance, suggestions regarding dietand evaluation concerning CHF conditionsWhen data deviates from the regularvalues, the system prompts the monitorcenter staff to immediately contact thesubscriber.14

Charité – study overviewObjectiveStudy design andpopulationKey criteriaTelemedical supervision and monitoring improves the clinical processfor patients with low to mid grade CHFRertrospective controlled open128 patientsMono centric (Charité, Berlin)Patients randomised as follows96 patients standard therapy32 patients hometelemonitoringFollop-up of 306 daysHF etiologyNYHA class II and IIILV-EF 60%Similar therapyMorguet et al., Cardiology 2008; 111: 13415

Charité – Results- 54% - 51%All other cause hospitalizationMorguet et al., Cardiology 2008; 111: 13416Cardiac hospitalization

Telemedicine vs. CHF standardtherapy – research parametersControl group(n 90)Telemedicine group(n 90)Male (percentage)69 (77%)69 (77%)Average SDConfidence interval66,94 10,2264,8-69,166,24 8,8964,4-68,1I / II83%78%III17%22%54 10,2252 10,22351,86 56,29351,49 54,16365365VariablesSexAgeNYHA classEjection fractionAverage in percent SDObservation period in days SDMedianGörnig, M. et al., Phys Med, Rehabilitationsmedizin 200817

Telemedicine vs. CHF standardtherapy – research 148400Total no. of hospitaladmissionsTotal days in hospitalGörnig, M. et al., Phys Med, Rehabilitationsmedizin 200818StandardTelemedicine

Telemedicine vs. CHF standardtherapy – research 4.002.001.640.690.00Average no. of hospitaladmissionsAverage no. of days inhospitalGörnig, M. et al., Phys Med, Rehabilitationsmedizin 200819StandardTelemedicine

Telemedicine vs. CHF standard therapy –research results-cash savings15,238 16,000 -77%14,000 12,000 10,000 StandardTelemedicine8,000 6,000 3,523 4,000 2,000 0 Average cost per patientGörnig, M. et al., Phys Med, Rehabilitationsmedizin 200820

Telemedicine vs. CHF standard therapy –expected cost savings p/yearAssuming 50,000 patients receive SHL’s CHF telemedicine serviceSaving per patient11,715 Cost of SHL service 2,000 Saving p/year, net9,715 Expected saving p/year for50,000 patients485M 21

Additional benefits conclusionsTelemedicine treatment as part of routine therapy for patients with midto severe CHF Significant reduction of hospital stay Reduction of morbidity Significant reduction in costs Improvements of symptoms and quality of life These advantages come in addition to the pharmacological therapy22

Value chainValue forpatients/subs. Lesshospitalizations Improved clinicaloutcomes 24/7 continuousmonitoring Peace of mindand improvedquality of life Access toleadingtechnologiesValue forphysicians Cost effectiveway to monitorand managepatients andimprove qualityof care Better data onhealth statusand history ofpatientsValue for hospitals Improvedefficiency: costsavings andrevenuesoptimization Minimizeunnecessaryhospitalizationsand reduce costlyemergency roomadmissionsValue for healthinsurers Significant costsavings due to: Less costlyemergencyroomadmissions Lessunnecessaryhospitalizations More efficienttime utilization Shortenhospitalizationdays Remainsresponsible fortreatment Improved serviceand medicaltreatment23

Territory Insight

Israel: market leaderProfile Service range Cardiac monitoring CHF monitoring PERSMarket leader – 92% brand awareness220 employeesCooperation with leading medical institutionsServicing 10% of all people diagnosed with CVDHigh subscriber loyaltyMarketing approach Direct to consumer approach Payor: consumerMonitor center andsubscriber datadata Achievements2008 Steady subscriber growth – over 10% revenue growth Highly profitable – 15% EBIT and 25% EBITDA Positive net cash flowGoals Continued increase in no. of subscribers – even at these tough economic times Increase market share Continued profitability with strong marginsSubscribersAverage ageAverage time on serviceNo. of medical staff 70,000 66over 8 years 8525

Germany: established pioneerProfile PHTS is a leader in the provision of cardiovascular telemedicine services in Germany 90 employeesService range Congestive Heart Failure Cardiac monitoringMarketing approach Monitor center Average monthly revenue per subscriber of over 150 No. of medical staff 30Achievements 2008 Over 50% increase in no. of subscribers leading to 77% increase in revenues Reached profitability for the first time, generating cash Signed contracts with new health insurersGoals Continuing rapid growth rateProve cost savings to health insurersBuild credibility in medical communityWin and endorse health insurersPayor: health insurer Optimize recruitement of patients from existing contracts Additional agreements with health insurers26

Financial information