ElderTrust Addresses Tenant Professional Liability Loss Issue; No Active Florida Exposure.

Business Editors

KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Oct. 14, 2002

ElderTrust (NYSE:ETT; the "Company"), an equity healthcare REIT, today addressed tenant/borrower professional liability loss issues, particularly in Florida.

The Company noted that on October 11, 2002, Genesis Health Ventures, Inc. (NASDAQ:GHVI), the Company's most significant tenant, addressed its belief that it has adequately provided for professional liability losses. In addition, the Company noted that the Company's only Florida exposure is through its investment in ET Capital Corp. ("ETC").

ETC has a $7.8 million second mortgage loan secured by 11 skilled nursing facilities with 1,219 beds. This loan is nonperforming, was written off by ETC in 2000 and no income has been recognized on this investment since that time.

"Last week's announcement by an operator in the long-term care industry regarding professional liability insurance issues, particularly in Florida, has clearly caused concern," said D. Lee McCreary, Jr., ElderTrust's President and Chief Executive Officer. "The Genesis announcement is comforting and we suggest our investors refer to it for more information on this significant tenant. As to Florida, our only exposure is a mortgage through our investment in ETC, a mortgage that was written off some time ago. Our public disclosures and our website continue to note these beds as the mortgage lien is still in place even though we have recognized no income from that investment for quite some time."

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 or refinance mortgage loans totaling approximately $30 million that mature on December 1, 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.

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