MEDICA: Business Review for the Year Ended 31 December 2011

Regulatory News:

2011: Robust 17.3% growth in business during the year

• €632.1 million in revenue
• 7.2% organic growth

MEDICA (Paris:MDCA), a leading provider of long and short-term dependency care in France, has released its business review for the fourth quarter and full-year 2011.

Unaudited figures

"We assertively grew our business in 2011, with revenue increasing by more than 17% over the year”, said Jacques Bailet, Chairman and Chief Executive Officer. "This excellent performance, which was impelled by the commitment and professionalism of our teams, reflected both solid organic growth and the deployment of our targeted acquisitions strategy. Backed by our expertise and financial resources and supported by our pipeline of beds being built or restructured, we are confident in our ability to maintain a sustained pace of organic growth in 2012, while pursuing our disciplined and accretive acquisitions strategy.”

REVENUE

Consolidated revenue rose by 17.3% year-on-year to €632.1 million in 2011, with organic growth accounting for 7.2% of the gain. In the fourth quarter alone, revenue was up 18.5%, to €169.9 million from €143.4 million a year earlier, with organic growth of 8.1%.

This solid improvement was led by a good performance in every business segment.

• Revenue from long-term care facilities in France rose by 17.2% to €391.7 million, driven by robust 7.2% organic growth and the acquisition of new facilities during the year. MEDICA is also pursuing its strategy of creating new facilities, with a total of nearly 780 beds delivered in 2011.
• Revenue from post-acute and psychiatric care facilities in France climbed a sharp 12.5% year-on-year to €162.6 million, lifted by the delivery of 230 restructured beds during the year.
• Revenue from operations in Italy rose by more than 29% year-on-year to €77.8 million, thanks to the successful integration of Laetitia after its acquisition in late 2010.

Occupancy rates* remained at a high 96.9% at 31 December 2011.

* Occupancy rate: number of days billed divided by the number of billable days for facilities that have been open for more than 12 months.

OPERATED PORTFOLIO AT 31 DECEMBER 2011

As of 31 December 2011, MEDICA operated a portfolio of 15,395 beds in 201 facilities:

• Long-term care – France: 10,767 beds and 137 facilities.
• Post-acute and psychiatric care – France: 2,523 beds and 37 facilities.
• Italy: 2,105 beds and 27 facilities.

PIPELINE AT 31 DECEMBER 2011

To support its future expansion plan, MEDICA has a growth pipeline representing 3,122 identified beds, as follows:

• 1,346 beds being restructured.
• 1,776 beds being built.

OUTLOOK

Based on its operated portfolio at 31 December 2011, its growth pipeline and its secured acquisition projects, MEDICA believes that it has an embedded revenue growth of around 13% in 2012.

A conference call for analysts and investors will be held this morning at 9:30 am CEST.

INVESTOR CALENDAR

2011 Annual Results: Tuesday, 27 March 2012 before start of trading.

First-quarter 2012 revenue: Thursday, 10 May 2012 before start of trading.

Second-quarter 2012 revenue: Tuesday, 17 July 2012 before start of trading.

First-half 2012 results: Tuesday, 11 September 2012 before start of trading

Third-quarter 2012 revenue: Tuesday, 16 October 2012 before start of trading

ABOUT MEDICA

Created in 1968, MEDICA is a leading provider of long and short-term dependency care in France. It operates in both the long-term care sector, with nursing homes in France and Italy, and in the post-acute and psychiatric care sector. In these two sectors, the Group operated a total of around 15,400 beds and employed more than 8,500 people as of 31 December 2011.
MEDICA has been listed on the NYSE Euronext Paris stock exchange since February 2010 – Compartment B – Eligible for the Deferred Settlement Service.
MEDICA is included in the SBF 250, Euronext CAC Healthcare, MSCI France Small Cap and Gaia indices.
MDCA – ISIN: FR0010372581 – Reuters: MDCA PA – Bloomberg: MDCA FP
Website: www.groupmedica.com

APPENDIX – QUARTERLY REVENUE BY SECTOR

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