ICIM Medics Future Perspectives & Economic outlook

The reflective turmoil in the international financial markets is increasingly limiting global economic development and anchoring substantial additional risks for the Irish economy.

We expect growth in the markets relevant to our Healthcare business sector to be relatively stable overall, with a slight loss of momentum more likely in the consumer market due mostly to slower growth in the economy. On the other hand, we predict uniform expansion in the health assessments sector and our point of care facilities.

We remain confident about the performance of our Healthcare business and expect all departments to grow with or above the market after adjusting to the B2B model.

We expect in general a positive market environment for our medical assessment sector to persist in the fourth quarter. Contrasting to this background, we continue to believe that we can increase sales by well over 15 percent before restructuring our services portfolio, adjusting the financial base and improving the services to a margin of about 38 percent.

This would mean that our goal of an approximately 15 percent margin before restructuring, originally targeted for 2009, would be achieved a year earlier than planned.

We believe the economic environment for our laboratory department will continue to weaken in the fourth quarter of 2008 and that this department’s sector earnings will decline again compared to the third quarter. We therefore expect expansion before restructuring for the full year 2008 to come in well below the 2007 figure. However, we anticipate that we will again achieve a good, financial sound earnings level.

In light of the services packages developed in recent years, we are confident about the Clinic’s future achievements. For 2009 we confirm our target of a re-development program for our point of care and health assessments sector in the region of 25 percent and 38 percent, respectively. We expect laboratory services to report lower margins before restructuring than in 2008.

For the ICIM Medics as a whole, we plan a further improvement in services before restructuring. We will narrow our 2009 projection when we publish our strategic plan development by the end of 2008.

Felipe Reitz

ICIM Managing Director