Joint Venture

FOR IMMEDIATE RELEASE 23 DECEMBER 2016

Circle Holdings plc

(the "Company" or "Circle")

Circle enters joint venture to deliver new model of medical rehabilitation in the UK

Circle Holdings plc (LSE: CIRC) today announces that Circle Health Limited and VAMED Management und Service GmbH ("VAMED") have entered into a joint venture agreement to provide a new model of specialised, in-patient and out-patient rehabilitation services in the UK.

Founded in 1982, VAMED group is the leading global provider of services for hospitals and other healthcare facilities. With a business volume of €1.6 billion (2015), it is responsible for 17,200 employees in 78 countries, where it has delivered 760 healthcare-related projects. It has over 30 years' experience delivering the proven continental European method of rehabilitation over a broad range of indications, acuity levels and care settings.

This method of care is popular in continental Europe, and we believe will become so in Britain, where the limited existing provision of medical rehabilitation typically involves small in-patient units without scale and the latest technology.

The initial project for the joint venture is to be co-located at CircleReading hospital in Berkshire, with plans to begin offering services in Q1 2017.

Circle and VAMED plan to roll out a number of facilities in the UK. Some of these are likely to be partnered with the NHS with the aim to reduce shortages in acute hospital beds as rehabilitation patients can then be accommodated in separate facilities. We will also be looking to expand Circle's Birmingham hospital development to incorporate a significant rehabilitation offering.

Circle and VAMED have committed to the initial funding requirements of the joint venture company and shall commit additional capital as opportunities mature. The joint venture company, Circle Rehabilitation Services Limited, will be 80.1% owned by Circle and 19.9% by VAMED, with an option for VAMED to increase its stake to 49.9% in the near term and to acquire a 50.1% controlling stake after 5 years.

For further information, please contact:

Circle Holdings plc +44 (0)20 7034 5258

Michael Kirkwood, ChairmanPaolo Pieri, Chief Executive Officer

Alex Singleton, Head of Communications and Marketing

VAMED AG +43 (1) 60127 610

Ludwig Bichler

Vice President & Corporate Spokesman

Numis Securities Limited +44 (0)20 7260 1000

Michael Meade, Nominated Adviser

Alex Ham, Ben Stoop Corporate Broking

About Circle

Established in 2004, Circle Holdings plc is an employee co-owned group dedicating to empowering clinicians and healthcare professionals to redefine the delivery of healthcare in the UK. Circle's NHS and independent healthcare operations include two independent hospitals, CircleBath and CircleReading, the Nottingham NHS Treatment Centre, and the management of Bedfordshire's integrated musculoskeletal (MSK) service on behalf of local commissioners. Circle is also appointed as the preferred bidder to manage Greenwich's MSK service and plans to construct and operate a new independent hospital in Birmingham.

For more information please visit www.circleholdingsplc.com and www.circlehealth.co.uk

About VAMED

Founded in 1982, VAMED group has become the leading global provider of a full line of services for hospitals and other health care facilities. The group has implemented 760 projects in 78 countries on four continents. VAMED's portfolio ranges from project development, planning and turnkey implementation via maintenance, technical, commercial and infrastructure services to the total operational management of health care facilities. With its portfolio of services, VAMED covers the entire range of health care, from wellness and preventive medicine via medical care and nursing to aftercare and rehabilitation. VAMED is Austria's leading private provider of rehabilitation services. In the year 2015 the VAMED group was responsible for some 17,200 staff worldwide, generating a volume of business of € 1.6 bn.

For more information please visit www.vamed.com