ElderTrust Announces Closing of Certain Transactions under the Genesis Restructuring Agreement.

Business Editors

WILMINGTON, Del.--(BUSINESS WIRE)--Nov. 7, 2003

ElderTrust (NYSE:ETT), an equity healthcare REIT, today announced that it has closed certain transactions set forth in its definitive Master Agreement (the "Genesis Agreement") with Genesis Health Ventures, Inc. (NASDAQ:GHVI, "Genesis").

Transactions which have closed to date under the Genesis Agreement include:

-- The sale of the Liberty Court property to Genesis for

consideration of approximately $10.3 million in cash.

-- The reduction of rentals on the Heritage Woods and Sanatoga

Court properties in exchange for a cash payment of $2.6

million.

-- The sale to Genesis of the Company's ownership interest in its

subsidiary that is the prime lessee on seven properties. Prior

to the sale, those properties were subleased to Genesis and

accounted for by the Company as capital leases ("Meridian 7").

The consideration for this transaction was $93.4 million,

including $18 million in cash and Genesis' assumption of $75.4

million of debt and lease obligations.

To date, the total consideration received by the Company under the Genesis Agreement is approximately $106.3 million, excluding closing costs and returned security deposits.

Transactions yet to be completed under the Genesis Agreement include:

-- The sale of 4 properties (Willowbrook, Phillipsburg, Riverview

Ridge and Pleasant View) for consideration of $14.6 million,

including the assumption of approximately $6.3 million in

mortgage debt.

-- Receipt of a consent fee of $5 million upon completion of

Genesis' intended spin-off of its ElderCare division (the

"Spin-Off"), which will be known as Genesis HealthCare 

Corporation ("HealthCare"). Approximately $635,000 of this fee

is conditioned on obtaining third party consents on two of the

properties to be sold.

-- As part of the Spin-Off, ElderTrust assets that are leased to

Genesis will be spun off and leased to HealthCare.

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. The Company currently owns 22 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 achieve the planned reductions in recurring overhead expenses, the extent to which it can consummate the proposed transactions with Genesis Health Ventures, Inc. (and after the Spin-Off, HealthCare), the Company's principal tenant, the extent to which Genesis (and after the Spin-Off, HealthCare) 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.

For more information on ElderTrust

visit ElderTrust's Web site at www.eldertrust.com