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 continued development of the diversified care pathway model, based on value for money outcomes, and the breadth of its service offering, position the Group favourably in the current public sector funding environment.

As is usual for this time of year there are a number of ongoing fee discussions with local authorities and early indications are that the current fee environment is consistent with our expectations. Occupancy levels within the Group's mature operations remain robust

As set out at the time of our year end results, the recently implemented divisional structure positions the Group to support a growing number of clients. The strategy of focussing on organic initiatives and small bolt-on additions will allow CareTech to continue to grow sustainable earnings through the re-investment of the group's strong operating cashflow. The Board will continue to apply the same rigorous appraisal metrics in assessing the pipeline of opportunities available to the Company.

In recent weeks the Company has commenced discussions with its Bankers on the refinancing of its present banking arrangements. It is pleasing to report that these discussions, which are taking place well ahead of the existing facility's expiry in April 2013, are constructive and progressing well. Further updates will be made as appropriate.

A further trading 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

Michael Hill, Group Finance Director

N+1 Brewin 0203 201 3170

Aubrey Powell

Luke Boyce

Buchanan Communications 0207 466 5000

Diane Stewart

Tim Anderson

Carrie Clement