Pihlajalinna Oyj - Company Announcement

Pihlajalinna Plc:The Pihlajalinna and Mänttä-Vilppula contract and its 5 year option period approved. Also Kuusiokunnat approved the service agreement option period.

Pihlajalinna Plc, Stock Exchange Release, 1 July 2016 at 9.00 (EEST)

The Pihlajalinna and Mänttä-Vilppula contract and its 5 year option period
approved

Also Kuusiokunnat approved the service agreement option period

The contract negotiations between Mänttä-Vilppula city and Pihlajalinna have
been concluded. Mänttä-Vilppula city board decided to approve the social and
healthcare service agreement and also the five year option period included in
the agreement. The agreement term is 1 August 2016 - 31 July 2026 after which
the option period between 1 August 2016 - 31 July 2031 will start. The agreement
period for Juupajoki municipality will begin 1 January 2018. The estimated
annual social and healthcare net cost of Mänttä-Vilppula is 40 million euros and
the estimated annual social and healthcare net cost of Juupajoki is 7 million
euros.

Kuusiokunnat joint municipal social and health authority's board has decided in
the evening of 30 June to approve the option included in the social and
healthcare service agreement between Pihlajalinna and Kuusiokunnat
municipalities (Alavus, Kuortane, Ähtäri and Soini). Decision comes to force
after an appeal period and is conditional. Kuusiokunnat joint municipal health
authority can terminate the implementation of the option period by the 30 June
2018.

Pihlajalinna and Kuusiokunnan municipalities' joint venture company Kuusiolinna
Terveys Oy has produced the Kuusiokunnat social and healthcare services from 1
January 2016. The term of the agreement is 10 years and it has a five year
option period.The estimated annual social and healthcare net cost of
Kuusiokunnat is 90 million euros.

Further information

Mikko Wirén, CEO, Pihlajalinna Plc, +358 50 322 0927

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

Distribution

Nasdaq Helsinki
Major Media
investors.pihlajalinna-konserni.fi


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