Counsel Corporation Completes Sale of Canadian Retirement Centres.

Business Editors

TORONTO--(BUSINESS WIRE)--June 1, 2004

Reduces Lease Expense on Canadian Nursing Homes

Counsel Corporation (NASDAQ:CXSN)(TSX:CXS) announced today that it has completed the previously announced sale of its five retirement centres in Ontario and British Columbia. The total sale price was Cdn$30 million. The properties had a net book value of approximately Cdn$22 million and were subject to mortgages aggregating approximately Cdn$18 million.

Separately, Counsel has also reduced the lease rate that it pays on the seven Canadian nursing homes that it leases pursuant to a 20-year and 7-month lease that commenced June 1, 1994. The base rental rate for the next ten years of the lease term, commencing June 1, 2004, has been reduced to Cdn$3.5 million annually from Cdn$4.3 million annually during the first ten years of the lease.

During the fourth quarter of 2002, Counsel Corporation made the strategic decision to exit the long-term care business and adopted a plan of disposal for its long-term care facilities. After the sale of the retirement homes, Counsel still owns three nursing homes in Texas as well as an interest in the seven leased Canadian nursing homes. The Company is actively seeking to sell these remaining long-term care assets.

"The sale of the retirement homes and the reduction in our lease obligations strengthens Counsel's cash position and brings us closer to our objective of exiting the long-term care sector so that we can better focus on our core businesses: communications and real estate," stated Allan Silber, Chairman and CEO.

About Counsel Corporation

Counsel Corporation (TSX:CXS / NASDAQ:CXSN) is a diversified company focused on acquiring and building businesses using its financial and operational expertise in two specific sectors: communications and real estate. Counsel's communications platform is focused on building upon its existing communications investment, Acceris Communications Inc. (OTCBB:ACRS), through organic growth and by acquiring additional customer revenues. Counsel's real estate platform has a focused strategy of investing in and developing income producing commercial properties, primarily retail shopping centers. For further information, visit Counsel's website at www.counselcorp.com.

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which they currently operate, but because of the factors herein listed, as well as other factors beyond their control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.