Eldercare Releases Details of Renounceable Rights

FOR IMMEDIATE RELEASE

Eldercare Releases Details of Renounceable Rights Issue

Auckland – October 17, 2001 – Listed healthcare provider, ElderCare New Zealand (NZSE: ELD) has released details of its $3.478 million renounceable rights issue.

The rights issue is part of previously announced plans to raise $10.478 million to repay debt, strengthen the company’s balance sheet and fund medical and healthcare acquisitions.

Shareholders are being offered one new ordinary share at 16.5 cents per share for every 7.5 existing Eldercare shares held at the Record Date of Friday 12 October 2001.

Closing date for applications to participate in the issue is 5pm on November 9, 2001. The rights will trade on the New Zealand Stock Exchange until November 7 and new shares will be allotted on November 12.

An investment statement and prospectus detailing the terms of the issue was sent to shareholders on Monday. Also distributed in the shareholder pack was notice of the Company’s annual meeting to be held in Auckland on October 31.

Also as previously announced, the company plans to raise $2 million from a placement of 12.12 million ordinary shares at 16.5 cents per share to Alliance Capital Management New Zealand Ltd and a further $5 million by way of a Convertible Note in favour of Cullen Investments. Both the share placement, and the Convertible Note are to be considered by shareholders at the annual meeting.

Cullen Investments Limited and associated parties, which hold 57 percent of ElderCare shares, have indicated their intention to take up their entitlements in full. ElderCare directors are also taking up their full entitlements in the rights issue.

ElderCare chairman Maurice Kidd, in a letter to shareholders, said the capital raising would place the company in a sound financial position with a strong balance sheet and the resources to make a number of acquisitions. “We have identified and are negotiating with a number of excellent medical practices that have a solid history of growth and profit performance and we expect to make further announcements shortly,” he said.

Company Background
ElderCare New Zealand Limited (NZSE: ELD) is a healthcare provider. The company owns a substantial portfolio of nursing homes, assisted living and assessment and rehabilitation facilities throughout New Zealand. These offer an array of specialised services to cater for the healthcare needs of a broad range of New Zealanders. The company has embarked on a programme that will see it expand its operations into other fee income generating businesses in the wider healthcare sector.

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