Press release

April 22, 2014 Rundbuckstrasse 6

CH-8212 Neuhausen am Rheinfall / Switzerland www.lifewatch.com

Partnership with China Telecom dissolved

Neuhausen am Rheinfall, April 22, 2014 - Since being elected to office on January 30, 2014, the new Board of Directors of LifeWatch has been conducting a thorough analysis of the company together with the management team. This analysis has been focusing on the potential and the intrinsic value of the company's existing business, its products under development, and all of its partnerships. The results show that there is potential for further development of the company's market position in its core business and that the growth opportunities offered by this market are still intact. The market opportunities of the new products currently under development are also very promising.

A number of questions quickly arose in connection with the planned partnership with China Telecom when it was announced on January 22, 2014. The Memorandum of Understanding (MOU) with a branch of China Telecom Corporation (China Telecom Enterprise APP Store) was apparently published without the branch's consent and in contravention to the terms of the MOU. This put a substantial strain on the relationship between the two parties. The subsequent talks about signing a definitive cooperation agreement became protracted and culminated yesterday in the dissolution of the existing agreement by both parties. The Board of Directors and the company's management are therefore now free to promote their partner model for LifeWatch's healthcare smartphone with other potential distribution partners in China. Several partners and distributors have signaled a high level of interest in the distribution of LifeWatch V in this key region.

As previously announced at the end of January, LifeWatch will give a detailed report of the company's prospects prior to its coming Ordinary Annual General Meeting. The company plans to announce details of LifeWatch's strategy and prospects at a press conference to be held on May

27, 2014, and at the same time it will report its results for the first quarter of 2014 (instead of on

May 15, 2014).

For further questions:

LifeWatch AG

c/o Dynamics Group, Philippe Blangey

Phone: +41 43 268 32 35

E-mail: investor-relations@lifewatch.com

LifeWatch AG April 22, 2014

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare technology and solution company, specializing in advanced telehealth systems and wireless remote patient monitoring services. LifeWatch services cater to individuals, ranging from high-risk and chronically ill patients to consumers of health and wellness products. LifeWatch AG has operative subsidiaries in the United States, in Switzerland and in Israel, and is the parent company of LifeWatch Services Inc., and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a leading U.S.-based provider of cardiac monitoring services and home sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch Technologies Ltd., based in Israel, is a leading developer and manufacturer of telemedicine products. The company is planning to introduce the LifeWatch V, an Android-based smartphone with medical sensors and apps that uses a cloud-based service platform. For additional information, please visit www.lifewatch.com.

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This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding future results of operations and financial position, the business strategy, and plans and objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking statements. LifeWatch AG has based these forward-looking statements largely on current expectations and projections about future events and financial trends that it believes may affect the financial condition, results of operations, business strategy, short -term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances described may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. All forward-looking statements are based only on data available to LifeWatch AG at the time of the issue of this press release. LifeWatch AG does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES, OR AN INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT FROM REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL STATEMENTS OF THE ISSUER.
LifeWatch AG April 22, 2014 2

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