SHL Telemedicine reports continued good financial results for third-quarter

Tel Aviv/Zurich, 10 November 2010 – SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN),
a leading provider and developer of advanced personal telemedicine solutions, today
announced results for the third quarter and the nine months of 2010.

Financial Highlights

• Revenues for the nine months reached USD 36.7 million, a growth of 5.8% year over
year (4.9% in constant currency terms) with revenues for the period from the German
operation reaching USD 15.9 million, a growth of 4.6 % year over year (8.3% in constant
currency terms).

• Revenues for the quarter amounted to USD 12.4 million, down 2.4% quarter over quarter
due to negative exchange rate impacts but reflecting a growth of 0.7% in constant
currency terms.

• EBITDA for the nine months amounted to USD 8.6 million (23.4% of revenues) and for
the quarter to USD 2.7 million (21.8% of revenues) giving an operating profit for the nine
months of USD 4.5 million (12.3% of revenues) and for the quarter of USD 1.3 million
(10.5% of revenues).

• Net financial income for the nine months amounted to USD 0.3 million after absorbing
the effect of the devaluation of the USD against the NIS by 5.4% this quarter.

• Net income for the nine months of USD 3.9 million giving an EPS of USD 0.37 and for
the quarter of USD 0.8 million giving an EPS of USD 0.08.

• Positive cash flow generated from operations for the nine months reached USD 4.0
million and USD 0.5 million for the quarter. Investment of USD 3 million in the first nine
months of 2010 in the new consumer service initiatives.

• Cash, cash equivalents and marketable securities of USD 19.9 million as of September
30, 2010.

“We are on track to meet our business and financial targets for the year. We see a strong
demand from health insurers in Germany for our telemedicine solutions as cost containment
becomes a more pressing issue for them” said Erez Alroy, Co-CEO of SHL Telemedicine.

Germany – increasing cost pressures for health insurers, a positive sign
It is expected that a large number of health insurers will finish 2010 with a significant deficit
which in total is estimated at EUR 6 billion. This deficit is expected to grow in 2011 and many
of the health insurers are initiating cost cutting measures. SHL is evidencing increased
demand for its telemedicine solutions and is progressing in securing larger scale contracts
with health insurers for its various telemedicine offerings (CHF, COPD and Diabetes).

Consumer markets – continued investment
During the quarter SHL has continued implementing the first steps in its strategy of offering the
personal cardiac service in Germany, mainly through web based marketing. Already hundreds
of patients have joined the service. In addition SHL is preparing for the launch of the service in
the UK at the end of the year. SHL expects to continue investing in sales and marketing at the
same pace until the end of the year.

Israel – steady progress
In Israel the sick funds are facing much of the same problems of those in Germany as cost
containment becomes a significant issue for the years to come. This is leading to increased
awareness for SHL’s telemedicine solutions for the chronically ill. SHL expects this trend to
have a positive effect on the growth prospects in Israel in the coming future.

Financials
Although revenues for the nine months increased over the same period of 2009, operating and
net profit for the nine months remained on par with 2009 results. This is primarily due to the
effect of the significant investments in the German consumer market amounting during the
period to USD 3 million.

Revenues for the third quarter amounted to USD 12.4 million down 2.4% compared to USD
12.7 million in Q3 2009. Lower revenues in the quarter were due to the devaluation of the Euro
and the USD against the NIS in Q3 2010 compared to Q3 2009. At constant exchange rates*
revenues for the quarter reflect a growth of 0.7% (USD 13.7 million compared to USD 13.6
million in Q3 2009).

Revenues for the nine months of 2010 grew by 5.8% and reached USD 36.7 million compared
to USD 34.7 million in the comparable period of 2009. Revenues on the basis of constant
exchange rates* amounted to USD 40.4 million compared to USD 38.5 million in the nine
months of 2009, which reflect a growth of 4.9%. Growth is mainly due to the growth in SHL’s
German operations which at constant currency terms grew by 8.3%.

Gross profit for the quarter reached USD 8.2 million (66.1% of revenues) compared to USD
8.4 million (66.1% of revenues) in Q3 2009. In the nine months of 2010 gross profit amounted
to USD 24.4 million (66.5% of revenues) compared to USD 23.0 million (66.3% of revenues) in
the comparable period of 2009.

EBITDA for the quarter amounted to USD 2.7 million (21.8% of revenues) compared to an
EBITDA of USD 3.3 million (26.0% of revenues) in Q3 2009. EBITDA for the nine months of
2010 amounted to USD 8.6 million (23.4% of revenues) compared to an EBITDA of USD 8.8
million (25.4% of revenues) in the comparable period of 2009.

Operating Profit for the quarter amounted to USD 1.3 million (10.5% of revenues) compared
to USD 1.9 million (15.0% of revenues) in Q3 2009. Operating profit for the nine months of
2010 amounted to USD 4.5 million (12.3% of revenues) compared to USD 5.1 million (14.7%
of revenues) in the comparable period of 2009.

SHL’s net income for the quarter totaled USD 0.8 million compared to USD 1.2 million in the
third quarter of 2009. For the nine months of 2010 SHL reports a net income of USD 3.9
million compared with USD 4.0 million in the comparable period of 2009.

SHL continued to generate positive cash flow with cash provided by operations for the
third quarter and the nine months of 2010 reaching USD 0.5 million and USD 4.0 million,
respectively. Cash, cash equivalents and marketable securities at September 30, 2010
amounted to USD 19.9 million.

Balance sheet. Total assets at 30 September 2010 grew to USD 94.2 million compared to
USD 93.2 million at September 30, 2009. A further reduction in liabilities to USD 22.8 million at
September 30, 2010 as against USD 29.0 million at September 30, 2009 has seen equity grow
to USD 71.4 million (76% of balance sheet) from equity of USD 64.2 million at 30 September
2009.

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