ElderCare Raises $3.3 Million In Rights Issue

Recapitalisation Programme Yields $10.3 Million To Date

Auckland – November 21, 2001 – Listed healthcare provider, ElderCare New Zealand (NZSE: ELD), today announced that there had been a 95.5 percent take-up of its renounceable rights issue, raising $3.3 million.

The new equity was raised on the basis of one new ordinary share at 16.5 cents per share for every 7.5 shares held at the record date of Friday 12 October 2001. The company issued 20,143,188 new ordinary shares, representing 11.8% of the total shares then on issue, at a nominal value of $3,323,626. This leaves the Company with a total of 190,374,395 ordinary shares now on issue.

ABN AMRO Craigs, who organised the renounceable rights issue, reported strong interest and buying from both institutional investors and existing shareholders.

In conjunction with other capital raising initiatives recently approved by shareholders ElderCare has now raised $10.3 million in new equity since its Annual Meeting. The capital injections have further strengthened the Group’s financial position by increasing the level of equity in the business, in readiness for its next round of acquisitions. They have also enabled the Company to reduce overall Group debt to less than $29 million, as forecast at the meeting.

“We’re delighted with the positive response to the rights issue and the market’s acceptance of the Group’s direction as New Zealand’s largest listed medical and healthcare operator,” said Chief Executive Officer, Alan Clarke. “The recapitalisation leaves us in a strong financial position to continue with our strategy of expanding on our base of retirement, rehabilitation and medical diagnostic practices.”

ElderCare expects to receive a further $3.6 million from land sales by the beginning of April 2002.

ENDS

Company Background

ElderCare New Zealand Limited (NZSE: ELD) is a medical and healthcare service 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 recently expanded its medical services, entering the diagnostic medicine market, and announced it had reached agreement to purchase 100% of the shares in Medical Laboratory Wellington and Nelson Diagnostic Laboratories, positioning it as New Zealand’s largest listed medical and healthcare group.

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