September 2012

Dear Shareholders,

CRH Medical initiated its Clinical Sales Support Program with Magellan Medical Technology Consultants this month. A few weeks ago in Vancouver, CRH Medical management met with a number of the principals from Magellan to map out a strategy focusing on two mandates:

1. Increase the adoption of the CRH O’Regan System within gastroenterology practices already trained by CRH Medical
2. Introduce the technology to GI practices not yet trained

Both initiatives are being implemented to support our long-term revenue growth and profitability.

Magellan, if you recall from our September 4th press release, is a consulting organization focused exclusively on the medical technology industry and has previously worked with companies such as Medtronic and Johnson & Johnson.

On paper, Magellan is an impressive organization. After in-person strategy sessions with them, we are more confident than ever in our partnership. The meetings also provided us with an opportunity to become better acquainted with the individuals who will be representing CRH and the O’Regan System on the street, further solidifying our decision.

Our overriding sentiment after spending time with these individuals is that we’ll have representatives in the field with a remarkable clinical and sales pedigree. As an example, our representative for the Miami area has 20 years of medical sales experience, which he accumulated after a nine-year career as an emergency medical technician.

Susan Johnson, President and CEO of Magellan Medical Technology Consultants shares our views that our partnership could be a productive one.

“Magellan has been partnering with industry leaders over the past 18 years researching, developing and commercializing innovative technology,” said Johnson. “We are excited to be involved with CRH Medical and look forward to improving patients’ quality of life with the O’Regan System. We are optimistic that our highly qualified, clinical sales specialists will be able to leverage this unique opportunity in the GI marketplace to create a meaningful commercial impact on CRH’s behalf. ”

CRH’s Medical Director, Dr. Mitch Guttenplan, led the training component of the recent meetings with Magellan. He provided the reps with a thorough understanding of the O’Regan System’s clinical utility, and educated them about our business and the contribution we make in the GI space.

Over the past year and half, the gastroenterologist community has become much more aware about the safety and efficacy of the O’Regan System, which has resulted in a diverse and expanding customer base. We’re excited about our Clinical Sales Support Program largely because we believe it will help increase the scale of our business, which is something we plan to talk about in greater detail during our third quarter conference call.

Moving forward into the general surgeon marketplace

Also in September, we accelerated our commercial initiatives with the general surgeon community – a market segment we believe has commercial upside for CRH Medical. Many general surgeons are active in the surgical treatment of hemorrhoids, and, because of the O’Regan System’s ease of use, we feel that many would be receptive to a new and better way to treat the condition.

This past month, we also acquired a database of 15,000 general surgeons in the United States. We have now integrated these contacts into our current database and have begun reaching out to these surgeons to familiarize them with the O’Regan System.

Towards the end of the month, we began preparations for the American College of Surgeons 2012 Annual Clinical Congress, scheduled for September 30 – October 4, 2012, in Chicago. It’s the first year that we will have a presence at the conference and we are eager to get to know our prospective customers and introduce our technology to them.

We look forward to sharing the October edition of the CRH Investor Bulletin with you, and as always, we appreciate your interest and support.

Sincerely,

Adam Peeler, Media and Investor Relations
TMX Equicom
416.815.0700 x 225
apeeler@equicomgroup.com

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