Acquisition

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March 17th, 2015

Constellation Healthcare Technologies, Inc. ("Constellation", "CHT" or "the Group")

Acquisition of the business and assets of Physicians Practice Plus. Inc. ("PPP")

Constellation Healthcare Technologies, Inc., the US-based Healthcare Services Company, is pleased to announce the acquisition of the business and assets (on a debt free/cash free basis) of PPP for a maximum cash consideration of up to $20 million, subject to the fulfillment of certain Revenue and EBITDA targets being met over a 24 month period.

PPP is a New York-based collection of Revenue Cycle Management ("RCM") businesses for healthcare providers. This is the first acquisition by Constellation since its successful IPO on AIM in December 2014 and is expected to be immediately earnings enhancing.

The acquisition is consistent with Constellation's strategy and provides a valuable opportunity to further build on its growth platform and leverage its technology expertise. The acquisition also provides a foothold in the strategically important geographical locations of New York, New Jersey and Florida in which Constellation is currently unrepresented.

PPP is a holding company of three operating subsidiaries providing RCM services to a stable client base of healthcare providers under recurring revenue contracts and has approximately 100 retained clients (comprising c1,000 doctors) across its group. PPP is headquartered in Long Island, New York and also has its own Business Process Outsourcing ("BPO") facility based in New Delhi, India. Both locations will remain operational post acquisition. PPP employs approximately 650 people, of which 112 are based in the United States, with the remainder in New Delhi. CHT expects to generate cost savings of approximately $2 million during the current financial year through the synergies and optimisation of resources and infrastructure from the acquisition.

PPP has developed a sophisticated technology platform that is highly complementary with Pegasus, CHT's existing proprietary business intelligence platform. PPP's automation and workflow tools will provide a stronger management and control capability to existing CHT billing operations. The ability to closely monitor and manage the activities of off-shore resources will enhance coordination, communication and performance of the entire billing operation and are expected to lead to cost reductions due to increased productivity.

In the year to 31 December 2014, PPP generated revenues of $10.7 million, underlying EBITDA of $2.2 million, pre-tax profits of $1.3 million and had net assets of $2.8 million as at that date. PPP acquired the business and assets of P.C. Advantage ("PCA"), another RCM business, in November 2014; PPP's pro forma underlying EBITDA for the year to 31 December 2014 (incorporating a full year of PCA earnings) was $3.4m.

Arvind Walia, founder and Chief Executive Officer will join CHT as the Chief Technology Officer of the enlarged group. Arvind has more than 25 years' experience in information technology, consulting and professional services. Arvind has developed a strong IT team which will provide valuable in-house expertise to Constellation going forward. Arvind holds a B.S. and M.S. in Computer Science from Wayne State University, Michigan and has previously worked for Goldman Sachs and founded Visient Technology in 1995 before a successful sale to a large media services firm in 2000.

Paul Parmar Chief Executive Officer of Constellation said:

"The opportunity to combine the PPP platform with CHT has many advantages and is expected to be immediately earnings enhancing for the Group. This acquisition further cements our strong position in the US healthcare services sector and I am pleased that we are clearly delivering on our stated growth strategy for the business. 2015 is going to be an exciting and transformational year for Constellation."

Arvind Walia, Chief Technology Officer of Constellation said:

"I am pleased to be joining Constellation. The combination of the two businesses will really act as a spring board for the Group's exciting growth strategy going forward. There are many synergies that make sense in combining the businesses and I look forward to playing my part in helping the Group evolve into one of the largest healthcare, technology service providers in the US".

John Johnston, Chairman of Constellation said:

"I am impressed with the way the executive management team of Constellation identify value enhancing acquisitions, their ability to execute on purchasing them and using their significant expertise in driving growth and profitability. I welcome Arvind and his team to Constellation."

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