New Contract Announcement

 16 December 2013

SYNERGY HEALTH PLC("Synergy" or "the Company") 

New contract announcement

Synergy (SYR.L), a leading provider of specialist outsourced support services to health related markets, is pleased to announce a number of contract wins in the Americas Region including: -

· two Hospital Sterilisation Service (HSS) contracts,

· two Reusable Surgical Solutions (RSS) contracts; and

· two Applied Sterilisation Technology (AST) contracts

In aggregate, these contracts are adding £230 million to our order book. The largest of these contracts is a 15-year HSS service contract pursuant to which Synergy will build a shared service centre with a large healthcare organisation consisting of more than 20 hospitals and ambulatory care centres. Interim management services will begin in January with the full service, operating out of a new central sterile facility starting towards the end of 2014. Synergy's forward order book for HSS, RSS and healthcare linen services now stands at circa £1.1 billion.

We are also pleased to announce a partnership with the Center for Advanced Medical Learning and Simulation (CAMLS) in Tampa, Florida to create a Learning Academy for Synergy Health. CAMLS is a 90,000 sq ft, unique, state-of-the-art medical and surgical training facility. Initially Synergy will be developing teaching and training programmes in order to certify HSS technicians to meet the compulsory standards being adopted in certain US states in 2015, but will expand its programme to include training and development for the full breadth of Synergy's services in 2014/5. Synergy will also be providing a full HSS service to CAMLS processing all surgical instruments used in the training programmes.

The partnership with CAMLS is an important facet in demonstrating our industry leadership in the United States, improving the standards of training and certification for hospital sterilisation technicians as well as for the 14,000 surgical staff that train at the centre each year.

Dr Richard Steeves, Group CEO, said

"We are delighted with the progress that has been made this autumn with the development of new contracts across all of our three services in the United States. We are looking forward to working in partnership with all of our new customers to deliver service excellence and operational efficiencies."

"We are particularly excited about our new HSS services, in which one of the world's largest, state-of-the-art shared service centres for surgical instrument processing will be constructed. The new HSS facility, when fully operational, will showcase new technology, the latest software systems and demonstrate market leadership in the United States."

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