<PAGE>
ElderTrust
A Healthcare Real Estate 101 East State Street
Investment Trust Suite 100
Kennett Square, PA 19348
T 888.234.REIT
T 610.925.4200
F 610.925.4351
Contact: D. Lee McCreary, Jr.
President and Chief Executive Officer
(610) 925-4200
www.eldertrust.com
ElderTrust Announces Filing of Motions With
Bankruptcy Court
Genesis and Multicare File Motions Seeking Approval
of Agreements from the U.S. Bankruptcy Court
Kennett Square, PA (November 27, 2000) - ElderTrust (NYSE:ETT), an equity
healthcare REIT, today announced that Genesis Health Ventures, Inc.
(OTC:GHVIQ.OB) and The Multicare Companies, Inc. today filed the required
motions with the U.S. Bankruptcy Court to seek the Court's approval to enter
into the proposed transactions previously announced by the Company on November
22, 2000. As was noted in that release, the motions will likely be heard by the
Bankruptcy Court in January 2001, and during the period between the filing of
the motions and the Court hearing, the creditors for Genesis and Multicare may
object to all or any portion of the agreements. If approved, the transactions
are scheduled to be completed during January 2001.
"This represents the official step in presenting the agreements to the U.S.
Bankruptcy Court," said D. Lee McCreary, Jr., ElderTrust's President and Chief
Executive Officer. Mr. McCreary added, "As we announced previously, if accepted
as proposed these agreements would increase FFO reported for the period ended
September 30, 2000, presented on an annualized basis, by approximately $1.4
million. This is an increase of approximately 18%. On a per share basis,
annualized FFO reported per basic share for the period ended September 30, 2000
($0.26 annualized to $1.04), based on an 18% increase in FFO would increase FFO
per basic share to approximately $1.22. The proposed transactions, if approved
by the Bankruptcy Court and completed as proposed, should provide us with
increased earnings stability. As such, we believe that today's filings by
Genesis and Multicare with the Bankruptcy Court of motions seeking approval of
the proposed agreements is a truly significant event for us."
<PAGE>
ElderTrust is a real estate investment trust that invests in real estate
properties used in the healthcare services industry, principally along the East
Coast of the United States. Since commencing operations in January 1998, and
without giving effect to the above described agreements, the Company has
acquired direct and indirect interests in 31 buildings and has loans outstanding
of $31 million, net of allowance, in construction and term financing on eight
additional healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Although ElderTrust believes the expectations
reflected in such forward-looking statements are reasonable assumptions, it can
give no assurance that its expectations will be attained. Factors that could
cause actual results to differ materially from ElderTrust's expectations include
the extent to which Genesis and Multicare continue to make lease and loan
payments to the Company, approval of the agreements reached between ElderTrust
and Genesis and Multicare and completion of the transactions contemplated
thereby, real estate conditions, the Company's ability to refinance its existing
bank credit facility when it matures in June 2001 or to further extend the
maturity date thereof, changes in the economic conditions and other risks
detailed from time to time in the Company's SEC reports and filings. The Company
assumes no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.
For more information on ElderTrust
visit ElderTrust's website at www.eldertrust.com
###########
