ElderTrust Addresses Bankruptcy Reorganization Plans Filed by Genesis and Multicare.

Business Editors

KENNETT SQUARE, Pa.--(BUSINESS WIRE)--June 6, 2001

ElderTrust (NYSE:ETT), an equity healthcare REIT today announced that on June 5, 2001 Genesis Health Ventures, Inc. (OTC:GHVIQ.OB), and The Multicare Companies, Inc., filed a joint plan of reorganization with the U.S. Bankruptcy Court.

These companies filed for bankruptcy protection on June 22, 2001. A significant plan component calls for Multicare to become a wholly-owned subsidiary of Genesis. Together these customers represent approximately 70% of ElderTrust's revenues. As previously announced, the Company and Genesis had concluded court approved agreements in January 2001. The plans filed yesterday have no impact on those agreements.

Genesis also announced that the plan was endorsed by the steering committees of both Genesis' and Multicare's senior bank lenders and the Genesis unsecured creditors. The Multicare unsecured creditor committee has not approved the plan.

"This is a significant achievement by Genesis' management and we applaud their efforts,' stated D. Lee McCreary, Jr., ElderTrust's President and Chief Executive Officer. `We have not yet had an opportunity to review the filing but, based on discussions with Genesis management, understand that the reorganized company will have a very acceptable leverage level which should enhance their status as a good credit tenant. In addition, and based on our understanding of the bankruptcy process, we believe that this filing may allow Genesis to emerge from bankruptcy by the end of this calendar year. We are clearly hoping that both of these events occur."

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, the Company has acquired direct and indirect interests in 32 buildings and has loans outstanding of $21.7 million 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, the Company's ability to further extend or refinance its Bank Credit Facility when it matures in August 2002, real estate conditions, 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.

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visit ElderTrust's website at www.eldertrust.com