ElderTrust Announces Appointment of Michael R. Walker as Acting President and Chief Executive Officer.

Business Editors

WILMINGTON, Del.--(BUSINESS WIRE)--Sept. 4, 2003

ElderTrust (NYSE:ETT), an equity healthcare REIT, today announced that its Board of Trustees had appointed Michael R. Walker, Chairman of the Board, to the additional positions of acting President and Chief Executive Officer. Mr. Walker replaces D. Lee McCreary, Jr., who today resigned all positions with the Company and its subsidiaries, including as President and Chief Executive Officer and as a trustee of the Company.

"Lee McCreary has been with the Company since its founding in 1997 as its Chief Financial Officer and later was promoted to President and Chief Executive Officer. Lee led the Company through the transformation of the long- term care industry brought about by the Balanced Budget Act of 1997," said Mr. Walker. He added, "His leadership enabled the Company's share price to recover to its current level of approximately $9.81. We very much appreciate his efforts."

Mr. McCreary stated, "During the last six years, we created a new company and saw it weather turbulent events in the credit markets and in senior care. It has been challenging and personally rewarding to have been a part of this experience. However, it's time for new leadership to take the Company into the future. In parting, I wish the Board of Trustees and the Company's current management the greatest success."

The Company also announced that it would recognize approximately $1.3 million of severance expense during the quarter ending September 30, 2003 relating to Mr. McCreary's departure.

As previously announced on July 28, 2003, the Company has engaged Wachovia Securities to assist the Board of Trustees in analyzing the future direction of the Company. Mr. Walker said, "That process is ongoing."

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 interests in 30 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 based upon 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 it can consummate the previously announced proposed restructuring transactions with Genesis Health Ventures, Inc., the Company's principal tenant, the extent to which Genesis (and after its proposed spin-off of its healthcare assets, the spun-off entity) continues to make lease payments to the Company, 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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