Abano adds radiology and dental businesses

Company Announcement

Abano Healthcare Group Ltd today settled the acquisition of the businesses of 100 percent of Auckland Dental Group and 40 percent of Ascot Radiology (with an option to acquire a further 40 percent by May 2007) for a cash payment of $2.4 million.

The acquisitions strengthen the Group’s position as a leading healthcare and medical services provider, and introduce a new diagnostics revenue stream that is predominantly private fee payment with strong growth opportunities.

All businesses acquired will continue to operate independently within Abano Healthcare, and will take advantage of back office synergies and management efficiencies to add value to the Group. In line with the Group’s acquisition policies, the three new businesses are projected to generate a return on total funds invested of over 20 percent of their individual operating EBITDA, and over 15 percent on their operating NPAT.

Managing director of Abano Healthcare Group, Mr Alan Clarke, commented on the settlement: “We are delighted to formally welcome the staff at Auckland Dental Group and Ascot Radiology to the Abano group. Both acquisitions add significant growth opportunities for their respective sectors and we look forward to working with our management teams to further develop these.”

Additionally, Abano Healthcare Group Limited today notified the market that it has repaid convertible notes with a balance of $1,066,330 by converting the note into 1,067,396 shares.

The convertible notes were the final of three equal series of convertible notes issued on 31 January 2002 as part consideration for the purchase of the Group’s diagnostic laboratories.

For more information, please contact:

Alan Clarke
Managing Director, Abano Healthcare Group Limited
Tel: 09 3610482
Mob: 021 368 818