Trading Update

Circle Holdings plc

(the "Company" or "Group")

Trading Update

Circle Holdings plc (LSE: CIRC), the vehicle that enables financial institutions to invest in Circle, the healthcare enterprise co-owned by the largest partnership of doctors, nurses and healthcare professionals in the UK, issues the following trading update ahead of announcing its results for the year ended 31 December 2011.

The Company is pleased to announce that it expects Operating Results for the Group to be in line with market expectations. This reflects further development of both its NHS and independent platforms, with increasing volumes in Nottingham and Bath. CircleBath continues to grow revenues and produced record revenue of £1.3m in the month of November.

The Company remains confident about the current market outlook. In particular, it welcomed the recent decision by the OFT to refer the private market to the Competition Commission for a comprehensive investigation. It is also confident about Circle's ability to maintain first-mover advantage in independent NHS provision having recently assumed management of Hinchingbrooke Health Care NHS Trust. The Group has been heartened by significant staff, stakeholder and community support around the launch of the business plan at Hinchingbrooke, and the way the workforce has united around an ambition of becoming one of the top ten district general hospitals in the country.

In relation to the independent pipeline, Circle expects to complete construction of its facility in Reading in May 2012, in line with budget and timetable, with the facility opening in the second half of 2012. The Group continues to explore funding opportunities in challenging financial markets for the construction and commissioning of its Manchester and Birmingham facilities having already acquired land in both locations.

In terms of medium term outlook, Circle is aiming to have four NHS contracts and at least four operational independent hospitals by the end of 2014, and is targeting positive group EBITDAR for FY2014.

In accordance with its repayment terms with Vinci, the Group repaid the outstanding bridging loan of £5.3m (including accrued interest) in December 2011. In addition, the Group has locked up £2m in Hinchingbrooke to cover the termination fee should the Trust incur more than £5m in aggregate deficits and either party decides to terminate the contract.

Given the commitments above, the strength of the Group's performance and the growth plans post Hinchingbrooke, the Group expects to access the equity markets in 2012, potentially in the first half.

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About Circle

Circle is a social enterprise with a social mission to reengineer the delivery of health care, making it better, simpler and smarter value for the communities it serves, as well as providing examples of the type of innovation that can solve the growing social challenge of the provision of universal healthcare. Circle is co-owned by the largest partnership of doctors, nurses and healthcare professionals in the UK, 'Circle Partnership', and Circle Holdings Plc, and was co-founded by social entrepreneurs Ali Parsa, Chief Executive Officer, and Massoud Fouladi, Chief Medical Officer in 2004 with the aim of empowering doctors, nurses and healthcare professionals to redefine UK healthcare delivery for the benefit of their patients. Within the Circle Partnership, which holds 49.9% of Circle, more than 2,000 doctors, nurses and all staff who work in Circle's hospitals, treatment centres and clinics are empowered to achieve the greatest levels of patient care and efficiency through active participation in managing Circle's operations.

Circle's NHS and independent healthcare operations include a day surgery hospital in Nottingham treating NHS patients, an independent hospital, CircleBath, two independent clinics in Windsor and Stratford and, most recently, Circle took over the management of Hinchingbrooke Health Care NHS Trust (Hinchingbrooke) in Huntingdonshire. In November 2011 Circle was awarded the contract to run Hinchingbrooke involving the management of an estimated £1 billion of revenue over a 10 year contract period. The contract commenced on track in February 2012 and positions Circle as the first ever non-state provider to deliver a full range of NHS district general hospital services.

Construction is also underway on Circle's second new-build hospital, CircleReading, which will open to NHS and private patients in Autumn 2012. Circle also has a strong pipeline with plans to grow through a combination of new hospital builds and increasing delivery of NHS services. For more information please visit www.circleholdingsplc.com and www.circlepartnership.co.uk. References to Circle in this announcement are references to Circle Health Limited.