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22 March 2021

MedApp recaps 2020. Record financial results and intensive portfolio commercialization

MedApp, a NewConnect-listed technology company whose innovative solutions for diagnostic imaging and digital medicine are revolutionizing the way people are treated, successfully closes out the past year. In 2020, the Company achieved record financial results, reporting an 87-percent increase in revenue and a 185-percent increase in net income over the previous year.

The excellent financial results achieved in 2020 are the effect of bothintensive commercialization of the offered solutions and the dynamically progressing digitalization of medical services. Sales revenue in 2020 amounted to PLN 6,025,000, net profit reached PLN 1,915,000 and EBITDA was at the level of PLN 2,934,000. The achieved success is the result of starting commercial sales of such products as: CarnaLife Holo, CarnaLife Systemand HoloComm.

“2020 was the best year in the company’s history to date. Not only did we achieve record results, but we also permanently exceeded the break-even point. The long-term customer relationships established during this time should also significantly impact results in the future. The outbreak of the Covid-19 pandemic rapidly changed the way healthcare services are delivered around the world. There has been a significant increase in demand for digital medicine services and solutions based on artificial intelligence or mixed reality systems, which we successfully apply in our products,” comments Krzysztof Mędrala, CEO of MedApp.

The crisis associated with the Covid-19 pandemic, causing digital transformation to accelerate in the entire medical sector, also influenced the development of new services, among them the debuting Digital Clinic-an application that is an extension of the CarnaLife System, enabling medical facilities to conduct remote care in the form of consultation, diagnosis and monitoring of patient health.

In 2020, the Company significantly increased its domestic sales. A success of MedApp in the reporting period was the signing of significant implementation and pilot contracts with entities such as a multi-specialty clinical hospital at the Medical University of Gdansk, NEO Hospital Group -the owner of the modern “Szpital na Klinach”, or companies: Semicon, WLOG Solutions and Pozitive.dev.

An important step on the road to overseas expansion was the conclusion of an agreement with Paraxel International to support the FDA certification process for CarnaLife Holo. Activities initiated last year also led to signing the first overseas distribution agreement with Insight Direct (UK) Ltd. It is part of Insight Enterprises, Inc. -a global leader in offering cutting-edge technology solutions for the medical sector. Insight Direct Ltd being a distributor of CarnaLife Holo and HoloComm3D holographic imaging technology is expected to provide MedApp with a wider reach among UK public bodies including medical universities and pharmaceutical centers. In 2021, as part of the entry into new markets, the launch of a company dedicated to the development of business in the region of German-speaking countries DACH -i.e. Germany, Austria and Switzerland -is also planned.

MedApp successively expands its cooperation with international leaders in the areas of new technologies and medicine such as Microsoft, GE Healthcare or Johnson & Johnson. Taking care of the security of storing sensitive medical data, the Company provides users with fully secure collection, analysis and visualization of large amounts of data through, among others, the use of Microsoft Azure cloud solutions. The company is also proud to hold the title of a Microsoft Mixed Reality Distributor -Managed Partner(DMP), thanks to which it has become an official distributor of a device for holographic visualization -HoloLens 2 together with the Company’s software. Another distinction was achieving Microsoft Silver Partner status in the Mixed RealityPartner Program(MRPP).

“Participation in another Microsoft partner program is a great honor for us. This proves that MedApp provides the highest quality of services. Expanding cooperation is important for us from the perspective of developing sales channels, and such programs as MRPP allow us to intensify marketing and sales activities. We are excited that Microsoft is opening up more opportunities for us. In 2021, we have been concurrently entering into discussions with distributors and new partners who are using our applications in an increasingly digitized healthcare environment,” says Krzysztof Mędrala, CEO of MedApp S.A.

The Company’s ambitious action plans for 2021 focus not only on further dynamic commercialization of existing solutions, but also on moving the listing to the regulated market of the Warsaw Stock Exchange. This process is currently a priority for all operational activities.

“We believe in the success of our offer, and we plan to use the proceeds from the new share issue when the company is moved to the regulated market to accelerate our growth and further increase the value for our shareholders,” adds CEO Krzysztof Mędrala.

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