LOI Medical through difficult

times

Situation at the beginning of

2013o Stable business based on hospital

sales and sales of consumables for HOTMAN system

o Affected by crisis, but still in good financial situation

THE CHANGESDue to the crisis

o The total health budget decreased by 25% in Euro compared with

2008o The total hospital budget

decreased from 60% to 40% out of total health budget

o The salaries in the hospitals increased

THE CHANGESSeptember 2013

o Due to a scandal in the ministry of health, it is decided

that no powder hemostatic will be bought by the

emergency departments

THE CHANGESDecember 2013

o A change is made in the reimbursement of HOTMAN system

o The result is that HOTMAN can be reimbursed only for day

hospitalization

THE CHANGESJanuary 2014

o The new contracts between hospitals and health insurance system are postponed till Juneo It means less money for

hospitals

THE EFFECTSFirst quarter 2014

o Total sales of the company amounts:

2.000Euro !!!

MEASURESo With hospitals complete

blocked, we started to approach new markets for our

productso Restructured the company

according with the new market realities

DAMAGESo Lost of employees

o Lost the participation in Hemo Sapiens US

o Stopped all investments and future plans

o Sold one piece of land to cover the bank

ACTUAL SITUATION

o The turnover in 2015 is forecasted to reach 200k Euro

o We got partial reimbursement for SaltMed for children

o About half of the sales comes from outside the hospital sales

MY CONCLUSIONSo There is no safe side – always important

changes may appearo It is important to be focused on solutions

and to not die together with the dead business

o Be aware if there is a real problem or just the EGO which doesn`t want to die

MY CONCLUSIONS

There is death, but the rebirth is its next step!