Pihlajalinna Oyj - Inside information

Negotiations between Pihlajalinna and the municipality of Tervola concluded without success

Pihlajalinna Plc           Stock Exchange Release       27 June 2017 at 8:45

Negotiations between Pihlajalinna and the municipality of Tervola concluded
without success

The negotiations between Pihlajalinna and the municipality of Tervola on the
service production of social welfare and healthcare services have concluded with
no successful results. Tervola chose Pihlajalinna as its partner in November
2016. Contract negotiations have been ongoing since late 2016.

According to Pihlajalinna’s estimate, the costs of the operations envisaged by
the municipality and subject to transfer to the joint venture are larger than
the value of the tendered contract, around EUR 13 million annually. When setting
the price, the municipality had estimated cost development to be more positive
than how Pihlajalinna, based on its experience, views the municipalities’ cost
development. The contract price would have been fixed for two and a half years.

According to the tender, the duration of the agreement would have been 10 years
at a minimum and 15 years at a maximum. Provisionally, the service production
was to start on 1 July 2017. Tervola’s population is about 3,200 people.

Pihlajalinna Plc
Further information:
Joni Aaltonen, Business Director, +358 40 524 7270
Siri Markula, Head of Communications and IR, +358 40 743 2177,
siri.markula@pihlajalinna.fi

Distribution:
Nasdaq Helsinki
Major media
investors.pihlajalinna.fi
Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services
providers in Finland. The Company provides social and healthcare services for
households, companies, insurance companies and public sector entities in private
clinics, health centres, dental clinics and hospitals around Finland.
Pihlajalinna provides general practitioner and specialised care services,
including emergency and on-call services, a wide range of surgical services,
occupational healthcare and dental care services, in private clinics and
hospitals operating under the Dextra brand. Under the Pihlajalinna brand the
Company, in cooperation with the public sector, offers social and healthcare
service provision models to public sector entities with the aim of providing
high quality services for public pay healthcare customers.