ElderTrust Announces U.S. Bankruptcy Court Opinion on Genesis and Multicare Joint Plan of Reorganization; Company Also Announces Removal From New York Stock Exchange Watchlist.

Business Editors

KENNETT SQUARE, Pa.--(BUSINESS WIRE)--Sept. 13, 2001

ElderTrust (NYSE:ETT; the "Company"), an equity healthcare REIT, announced today that the U.S. Bankruptcy Court has issued an opinion approving the joint plan of reorganization ("Plan"), subject to certain minor modifications, of its primary tenants, Genesis Health Ventures, Inc. (OTC:GHIQ.OB; "Genesis") and The Multicare Companies, Inc. ("Multicare" and collectively, "Debtors").

The Debtors are in the process of re-submitting the joint plan, with the required modifications, to the court for confirmation. As is noted in their press release dated September 12, 2001, the Debtor's anticipate that the Plan will become effective by the end of September. This action sets the stage for the Debtors to emerge from chapter 11 bankruptcy.

As has been previously announced, ElderTrust's transactions with the Debtors were subject to separate agreements that were approved by the bankruptcy court and executed in January, 2001. The Court's opinion does not impact these agreements.

"This is a very positive event for ElderTrust and its shareholders," said D. Lee McCreary, ElderTrust's President and Chief Executive Officer. "Creditworthy tenants are a critical component of our business and the Debtors emergence should re-establish their credit standing."

The Company also announced that the New York Stock Exchange (NYSE) recently notified the Company that, based on recent trading prices of the Company's common shares, the Company has met the NYSE's continued listing standards and, therefore, the NYSE will be removing the Company from its "Watch List."

In accordance with the NYSE rules, the Company will be subject to a 12-month follow-up period during which the Company will be reviewed to ensure that it does not again fall below any of the NYSE's continued listing standards.

"We want to thank the NYSE for giving us the opportunity to execute our business plan, which has enabled us to satisfy the NYSE requirements for continued listing of our common shares," said Mr. McCreary. "Our NYSE listing is an important asset and our clearing the Watchlist is an important step toward the day when this issue will be behind us."

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 five 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.

For more information on ElderTrust

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