Q1 Report 2001

Dear Shareholders,
I am pleased to be reporting on a successful first quarter 2001 for SHL Telemedicine, one during which the company has continued to advance both internationally and at home in Israel. UK sales through Nestor Healthcare remain on track, while Philips HeartCare Telemedicine Services Europe B.V., SHL’s joint venture with Philips
Medical Systems International B.V., is poised to begin operation later this year in Germany, Switzerland and Italy.

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