SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced that its shareholders approved, at its annual meeting on November 7, 2016, amendments to the company’s articles of incorporation to restrict certain transfers of common shares in order to protect the tax benefits of the company’s net operating losses (NOLs). The amendments generally void transfers of shares that would result in the creation of a new 4.9% shareholder or result in an existing 4.9% shareholder acquiring additional shares. The purpose of the amendments is to assist the company in protecting the value of its accumulated NOLs by limiting transfers of the company’s common shares that could ultimately result in an “ownership change” under Section 382 of the Internal Revenue Code. The amendments to the company’s articles of incorporation are designed to work in tandem with the NOL Rights Plan adopted by the company’s board of directors in September 2016.

The company estimates that it has approximately $10,000,000 of federal NOLs as of September 30, 2016, which may be used in certain circumstances to offset future taxable income and reduce federal income tax liability. The company’s ability to use its NOLs would be substantially limited if an “ownership change” under section 382 of the Internal Revenue Code were to occur. The amendments to the articles of incorporation and the NOL Rights Plan were designed to reduce the likelihood of an ownership change occurring.

SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate healthcare facilities in the Southeast and a pharmacy company in Louisiana. Each of the company’s healthcare facilities is operated locally with a strategy of linking patients’ needs with dedicated physicians and healthcare professionals. For additional information on SunLink Health Systems, Inc., please visit the company’s website at www.sunlinkhealth.com.

This press release may contain certain statements of a forward-looking nature. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements.

SunLink Health Systems, Inc.Robert M. Thornton, Jr., 770-933-7004Chief Executive Officer

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