Actica Establishes Operations in Stockholm; Sells All Elderly Care Properties.

Business Editors

GOTHENBURG, Sweden--(BUSINESS WIRE)--Oct. 5, 2001

Actica Omsorg, Capio's Elderly Care business area, is establishing operations in Stockholm by acquiring the Rosengarden elderly care company and its subsidiary Crebona. At the same time, Actica is selling all eight of its elderly care properties to Bokbacken in the form of a non-cash issue in return for a 37.5% ownership stake in Bokbacken Vardfastigheter AB. The transaction will boost Actica Omsorg's revenues to slightly more than SEK 500 M on an annual basis.

Actica will assemble all elderly care units in the Malardalen region, namely Bjornbo, Rosengarden and Crebona, in Actica Stockholm. All of the units are well established and provide Actica with a sound platform in the region. All of the operations will be led by the current management at Rosengarden.

Actica Omsorg's eight properties, with a combined book value of SEK 200 M, have been sold to Bokbacken Vardfastigheter AB. In return, Actica received a 37.5% ownership interest. Bokbacken specialises in nursing- care properties for elderly residents. The company already owns seven properties in the Stockholm and Gothenburg areas. The principal owner is Bovard i Sverige AB.

"We are establishing a strong organisation in Stockholm and Malardalen that can independently focus on development and expansion in the region. The fact that we are simultaneously given the opportunity to concentrate exclusively on our core operations in the care-services area is a major advantage," says Sture Ericsson, President of both Actica Omsorg and Capio's Elderly Care business area.

"Our ambition to develop operations is significantly strengthened through the establishment of operations in Stockholm and the transaction with Actica. Rosengarden and Crebona will function as Actica's Stockholm base. The fundamental care philosophy defined under the 'On our own terms' theme will be further developed in co-operation with Actica Omsorg," says Tommy Andersson, President of Rosengarden.

Rosengarden and Crebona currently have nine units: Rosegarden and Haglidsgarden in Vasteras, Linden in Jarfalla, Bjorkgarden in Solna, Asengarden, Axelberg's nursing home and Rosengarden in Stockholm, Konstantinopel in Norrkoping and Hjartebacken in Kristianstad. In addition, operations will start at the Edo service house in February 2002 and at Tunasen in Uppsala in April 2002.

Actica Omsorg - Capio's Elderly Care business area - specialises in care services for the elderly, tailored to meet individual needs. Actica, which conducts operations in Sweden and the other Nordic countries, has annual revenues of approximately SEK 500 M, with about 1,100 employees.