Update on Wellington Pathology’s joint bid for community pathology services

Company Announcement

Wellington Pathology Limited, a subsidiary of Abano Healthcare Group Limited, has been advised that its joint bid to provide medical laboratory services to Capital & Coast District Health Board and Hutt Valley District Health Board, is one of two preferred bids under consideration by the District Health Boards (“DHB”) but that the joint venture is the second choice of preferred supplier.

Wellington Pathology Limited’s joint bid was made with Valley Diagnostic Laboratories

Limited, a subsidiary of Sonic Healthcare (New Zealand) Limited.

Wellington Pathology Limited and Valley Diagnostic Laboratories Limited also each made separate bids for the medical laboratory services contract, in addition to their joint bid. Wellington Pathology Limited and Valley Diagnostic Laboratories Limited have both been advised that their separate bids have been unsuccessful.

If the District Health Boards are not satisfied with the progress of negotiations with their first choice preferred provider by 7 April 2006, they will commence negotiations with the joint venture.

Wellington Pathology Limited has been the provider of community pathology services to the people of Wellington for over sixty years, employing over 170 local health professionals, and is the incumbent service provider to Capital & Coast District Health Board. The laboratory has revenues of over $15 million pa and has an investment cost to Abano of $7.6 million.

The decision by the combined District Health Boards not to take the joint venture bid forward at this time is of serious concern to the Abano board. However, the Abano board remains committed to completing the RFP process with the combined District Health Boards.

For more information, please contact:

Alan Clarke, Managing Director, Abano Healthcare Group Limited
Tel: 09 300 1412 or 021 368-818

For more information on Abano Healthcare Group, please visit