ElderCare Settles Laboratory Purchases

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FOR IMMEDIATE RELEASE

ElderCare Settles Laboratory Purchases

Auckland – February 1, 2002 – Listed healthcare provider ElderCare New Zealand (NZSE: ELD) today announced that it had settled its purchase of Medical Laboratory Wellington and its subsidiary Nelson Diagnostic Laboratories.

The purchase, which was settled last night as planned, sees ElderCare owning 100% of the shares of the two laboratories from February 1.

ElderCare Chief Executive, Alan Clarke, said the acquisition represented excellent value for ElderCare shareholders and fitted the company’s strategy of acquiring well-managed, efficient healthcare and medical service businesses.

“The community pathology market is worth approximately $180 million per annum and community laboratories form a core part of the primary healthcare delivery mechanism,” said Mr Clarke. “Medical Laboratory Wellington and Nelson Diagnostic Laboratories are both excellent medical practices and substantial businesses with great experience, reputations and professional medical staff.

Both will continue to serve their communities operating under their existing names and under the direction of Dr Clint Teague and their former partner pathologists. The transaction is a further significant step in our move to widen our base in the medical services area and it complements beautifully our existing, aged care and rehabilitation businesses.”

Medical Laboratory Wellington has been in operation since 1932, offering a full range of medical laboratory testing to the public, requesting doctors, hospital outpatients and private hospitals in Wellington, Paraparaumu and Porirua. It is an IANZ registered laboratory and a Telarc registered supplier to (ISO9002), servicing 400 General Practitioners, 94 medical centres and 30 private hospitals and nursing homes.

Nelson Diagnostic Laboratories serves 130 General Practitioners, 12 private hospitals and nursing homes in Nelson and Marlborough. Both facilities are full service community pathology laboratories, and the combined operation is one of the three largest in New Zealand, with revenues of over $16 million per year.

Medical Laboratory Wellington’s Chief Executive and Managing Partner, Dr Clint Teague, will continue to head the company and will be appointed to the Board of ElderCare in coming weeks.

ElderCare in mid 2000, initiated its expansion into the broader healthcare market with the acquisition of the national rehabilitation services provider, Ranworth HealthCare Ltd.

ENDS

Company Background
ElderCare New Zealand Limited (NZSE: ELD) is a medical and 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 medical and 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 complementary businesses in the wider medical and healthcare sector.

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