AGM Statement

CareTech Holdings PLC

("CareTech" or the "Company")

AGM Statement

CareTech Holdings PLC (AIM: CTH), a leading UK provider of specialist social care services, is holding its Annual General Meeting at 10.00am today.

At the meeting, Executive Chairman, Farouq Sheikh, will make the following statement:

"The trading performance of the Company in the year to date is in line with Directors expectations. The board believes that Caretech's care pathway model and breadth of service offering positions it favourably in the current constrained public sector funding environment.

Occupancy levels within the Group's mature operations remains robust and fee rate pressure whilst present is not impacting trading performance to date significantly. There are a number of ongoing discussions with local authorities regarding fee rates for 2011 and beyond.

The Board continue to believe that opportunities for growth through the consolidation of the fragmented specialist care market remain strong. The Board will continue to apply the same rigorous appraisal metrics in assessing the numerous opportunities available to the Company which have thus far ensured that acquisitions add depth and quality to Caretech's service portfolio and deliver sustainable attractive returns.

A further update will be provided ahead of the Company entering a pre close period in respect of the publication of its interim results."

For further information, please contact:

CareTech Holdings PLC 01707 601800

Farouq Sheikh, Executive Chairman

David Pugh, Group Finance Director

Brewin Dolphin Investment Banking 0845 213 4730

Matt Davis

Sean Wyndham-Quin

Buchanan Communications 020 7466 5000

Diane Stewart

Tim Anderson

Carrie Clement