ElderTrust Addresses Genesis Restructuring Announcement.

Business Editors

WILMINGTON, Del.--(BUSINESS WIRE)--Feb. 13, 2003

ElderTrust (NYSE:ETT), an equity healthcare REIT, today addressed the announcement on February 12, 2003 by Genesis Health Ventures, Inc. (NASDAQ:GHVI) that Genesis intends to spin off its ElderCare division in a tax free transaction.

ElderTrust assets that are leased to Genesis would be spun off as part of the transaction. (Hereafter "ElderCare" will refer to the entity to be spun off and "Genesis" will refer to the remaining entity).

ElderTrust currently leases 19 assets, consisting of 11 skilled nursing, 7 assisted living and one independent living facilities, to ElderCare ("Leased Properties"). In addition ElderTrust leases 4 skilled nursing and 4 assisted living facilities to entities in which ElderCare will own an equity interest ("Managed Properties").

In general, the initial lease terms for these properties mature in 2008 and can be renewed by the lessee for up to ten more years. The Leased Properties leases are fully, and the Managed Property leases partially, guaranteed by Genesis. Rents received under these agreements represent approximately 86% of the Company's rental revenue recorded for the quarter ended December 31, 2002.

ElderTrust refers readers to its public filings for a more detailed discussion of these entities and the leases.

Under ElderTrust's existing agreements with Genesis and ElderCare,

-- the leases cannot be assigned without ElderTrust's consent, and the announced transaction may include an assignment of the leases that requires ElderTrust's consent;

-- the Genesis guarantees are terminated only if ElderTrust consents to the assignment of the underlying leases.

To date, ElderTrust has received no significant information regarding the proposed transaction other than that contained in the Genesis press release and conference call. In addition, neither ElderCare nor Genesis has requested permission to assign the leases or to be released from guarantees. As a result the Company has no formal position on this transaction at this time.

"As we have seen over the past few years the long-term care industry is a rapidly changing environment," said D. Lee McCreary, Jr., ElderTrust's President and Chief Executive Officer. "As a financier to this industry, our business is to help our customers reach their goals. We view the Genesis decision as just such an opportunity and look forward to continuing our relationship with them."

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 32 properties.

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 Health Ventures, Inc., the Company's principal tenant, continues to make lease payments to the Company, the Company's ability to extend mortgage loans totaling approximately $14.9 million that mature on April 10, 2003, 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.

For more information on ElderTrust visit ElderTrust's Web site at www.eldertrust.com