Pihlajalinna Oyj - Company Announcement

Pihlajalinna Plc:Mänttä-Vilppula city board made a decision about the procurement of social and healthcare services - Pihlajalinna chosen as the service provider

Pihlajalinna Plc Stock Exchange Release 9 February 2016 at 19.30 EET

Mänttä-Vilppula city board made a decision about the procurement of social and
healthcare services - Pihlajalinna chosen as the service provider

Mänttä-Vilppula city board chose Pihlajalinna as the service provider of city's
social and healthcare services in a meeting held tonight 9 February 2016.
Mänttä-Vilppula tender included the social and healthcare services for up to
60 000 inhabitants for 10 year contract period initially during the time period
between 1 July 2016 to 30 June 2026. The contract has also a five year
additional option.

Mänttä-Vilppula has approximately 11 000 population and estimated social and
healthcare net cost of EUR 40 million.  Included in the contract is also
Juupajoki service production from 1 January 2018 for 2000 population and
estimated social and healthcare net cost of EUR 7 million. Mänttä-Vilppula and
Juupajoki have established a social and healthcare joint-authority region from
the beginning of 2015. Pihlajalinna has produced the social and healthcare
services for Mänttä-Vilppula from 1 January 2013 and for Juupajoki 1 January
2014. The current Juupajoki contract is in force by 31 December 2017.

According to the tender the service provider can be required to produce
corresponding services up to maximum of 60 000 inhabitants if the population
base expands via municipal joint authorities, other municipal cooperation
methods or government social and healthcare reform. Should the whole 60 000
inhabitants population option realize fully the value of the contract is
according to the tender approximately EUR 220 million per annum. Thus the full
potential of the contract including the five year additional option is about EUR
3.3 billion. Mänttä-Vilppula and Juupajoki share of the full potential is about
EUR 700 million.

Negotiation method and reverse tender where service quality was the only
comparable criteria was used in the tendering process. Participation application
was submitted by Terveystalo, Attendo group and Pihlajalinna group of which
Attendo group and Pihlajalinna group met the tender participant requirements.
 Both submitted an offer before the deadline.

Procurement contract is concluded only after written contract has been signed at
the earliest 21 days from the date when the service provider received or has
deemed to have received the information of the decision.

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


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