Correction Announcement from Middle East Healthcare Company (Saudi German Health) Regarding the Digital Transformation Contract with Afkar Al-Holoul Consulting Company (Megamind)

2020-12-30 Corresponding to 1442-05-15

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Expected Date for Signing the Contract: 03-01-2021 Corresponding to 19-05-1442

Contract signing date: 26/05/1442, corresponding to 10/01/2021.

With reference to the announcement published by Middle East Healthcare Company (Saudi German Health) on the Saudi Exchange (Tadawul) website dated 30 December 2020, regarding the awarding of the digital transformation project to Afkar Al-Holoul Consulting Company in the field of communications and information technology (MegaMind), the company would like to clarify the following:
The contract was signed on 10 January 2021, with a total value of SAR 382,940,562, and includes the following components:

• Software implementation services for 3 years: SAR 264,683,026

• Annual maintenance contract for 5 years: SAR 43,128,180

• Software license costs for 7 years: SAR 75,129,356

According to the contractual structure, SAR 264,683,026 is to be paid directly to Afkar Al-Holoul Consulting Company (MegaMind) for executing the software implementation services, while the remaining amounts (SAR 118,257,536) are to be paid by Middle East Healthcare Company through MegaMind to external service and license providers as per the contractual distribution.

Part of the work related to software, maintenance, services, and licenses has been carried out during the past period, and the remaining value that has not yet been executed under the contract as of today amounts to 134,452,899 Saudi Riyals.

Following a review by the Board of Directors in its meeting held on 2 June 2025, the Board resolved to extend the execution period of the contract for an additional five (5) years, covering all original terms and conditions of the contract, with the continued provision of IT management and operational services in line with current market prices and the company’s operational needs, and without any preferential terms or conditions.

It is worth noting that the following Board members have an indirect interest in MegaMind:

• Eng. Sobhi Abduljaleel Batterjee (Chairman of the Board)

• Dr. Makarem Sobhi Batterjee (Vice Chairman)

• Dr. Khalid Abduljaleel Batterjee (Board Member)

• Mr. Sultan Sobhi Abduljaleel Batterjee (Board Member)

The extension of the contract execution period will be presented to the Ordinary General Assembly of the company’s shareholders for regulatory approval. Any material developments will be disclosed in due course.