Pihlajalinna Oyj - Company Announcement

Pihlajalinna Plc:Pihlajalinna Plc specifies the information in the Stock Exchange Release on Friday 5 February

Pihlajalinna Plc Stock Exchange Release 8 February 2016 at 14.45 EET

Pihlajalinna Plc specifies the information in the Stock Exchange Release on
Friday 5 February

The Ministry of Social and Healthcare and the Ministry of Finance told in a
release on Friday the 5 February about the preparation of temporary legislation
to limit municipalities and joint authorities' large investments such as
hospitals buildings or complete outsourcing contracts. Pihlajalinna Plc
announced this with a Stock Exchange release on Friday 5 February at 13.45 EET.
Pihlajalinna has tried to clarify the expected main points of the prepared
legislation during the weekend and Monday.

Based on the information published by the ministries Pihlajalinna does not
expect the law to have an effect to company's complete outsourcing contracts
that are in force nor to the optional enlargements of these contracts. In the
ministry's release on Friday 5 February is stated that that the investments that
improve productivity and are otherwise appropriate will be secured. For example
according to the Sykki- study by the National Institute of Health and
Wellbeing Pihlajalinna has been able to create significant savings to the
municipalities when these have outsourced the social and healthcare services to
Pihlajalinna.

Pihlajalinna has discussed with the Ministry of Social and Healthcare about the
legislation preparation and the preparation process and follows closely its
progress. In addition Pihlajalinna's Vice President of the Dental Care services,
Pekka Utriainen will participate in the specialist working group of the social
and healthcare reform. The chairman of the group is Under-Secretary of State
Tuomas Pöysti who is the project lead of the whole social and healthcare reform.

The temporary legislation can have a possible effect to the complete outsourcing
contracts signed during the temporary legislation and valid after the actual
social and healthcare reform comes to force. The exact nature of the effects
cannot be evaluated before more information about the contents of the proposed
law. Pihlajalinna will continue to monitor the proposed legislations content and
possible effects.

Further information

Mikko Wirén, toimitusjohtaja, Pihlajalinna Oyj, 050 322 0927

Terhi Kivinen, SVP, Communications, Marketing and IR, Pihlajalinna Oyj,
+358 40 848 4001, terhi.kivinen@pihlajalinna.fi

Distribution

Nasdaq OMX Helsinki

Key media

investors.pihlajalinna-konserni.fi


[HUG#1984394]