Middle East Healthcare Company (Saudi German Health) Announces an Update on the Award of the Contract Digital Transformation for the Company Hospitals to (Megamind) IT Solutions Company (A Related Party)

4 June 2025

Introduction	Introduction Middle East Healthcare Company (Saudi German Health) announces the latest developments regarding the contract signed with Afkar Al-Holoul Consulting Company in the field of communications and information technology (Megamind), which pertains to the comprehensive digital transformation project for the company’s hospitals.
Previous Announcement	The Award of the Contract Digital Transformation for the Company Hospitals to (Megamind) IT Solutions Company (A Related Party)
Date of Previous Announcement on Saudi Exchange’s Website	2020-12-30 Corresponding to 1442-05-15
Hyperlink to the Previous Announcement on the Saudi Exchange Website	Click Here
Latest Developments Of The Announced Event	The Board of Directors, in its meeting held on 2 June 2025, approved the extension of the implementation period of the contract signed with Afkar Al-Holoul Consulting Compay (Megamind), a company specialized in communications and information technology, for the comprehensive digital transformation project across the company’s hospitals, for an additional five (5) years. This extension includes the continued provision of IT management and operations services within the scope of the digital transformation project, in line with current market rates and the company’s technical and operational requirements, under the same terms and conditions of the original contract and without any preferential terms or benefits. It is worth noting that the contract was originally signed on 10 January 2021, with a total value of SAR 382,940,562, broken down as follows: • Software implementation for 3 years: SAR 264,683,026 • Annual maintenance contract for 5 years: SAR 43,128,180 • Software license fees for 7 years: SAR 75,129,356 The company also clarifies that the previously disclosed amount (SAR 264,683,026) was unintentionally incorrect referred to as the total contract value, while the correct total value is SAR 382,940,562, as stated above. As per the contractual arrangements, an amount of SAR 264,683,026 will be paid directly to for the execution of technical and operational works. The remaining amount of SAR 118,257,536 will be paid by Middle East Healthcare Company through Megamind to the third-parties providing licenses and services, according to the allocation of contractual items. A portion of the contract has already been executed, and the remaining value of the work as of this date amounts to SAR 134,452,899.
Reasons For The Delay on The Date of The Event Previously Announced	Not applicable – the disclosure relates to clarifying contract details and developments, not a delay.
The costs associated with the event, and if they have changed or not with indication of the reasons.	The costs associated with the event have not changed, and the total contract value remains the same. The extension is within the scope of the original terms of the contract.
Delay consequences on the Company’s financial results	There is no direct impact on the financial statements, as the extension aims to complete the project.
Additional Information	The following Board members have an indirect interest in Afkar Al-Holoul Consulting Company in the field of telecommunications and information technology (Megamind): • Eng. Sobhi Abduljaleel Batterjee (Chairman) • 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 upcoming Ordinary General Assembly of the company’s shareholders to obtain the necessary regulatory approval, with commitment to disclose any subsequent material developments.