Company update

15 September 2010

Wren Extra Care Group plc (AIM: WREN)

("Wren" or the "Company")

Company update

On 7 September 2010, Wren announced that it remained in discussions with a number of possible investors to help complete funding packages necessary to build the Company's Extra Care schemes. While these discussions have continued to progress, there can be no guarantee that the Company will be able to secure the necessary finance to develop its Extra Care schemes. Additionally, as stated previously, Wren remains in discussions with its main lender in order to extend the Company's working capital and other loan facilities which have been extended on a regular basis since 1 May 2010.

The Company continues to sell units at its Warlingham, Surrey development. The Directors expect that the remaining two units will be sold by the end of the year. The Board has continued to take prudent steps to reduce the Company's overhead in order to conserve cash. In addition, the Board is considering the sale of certain, non-core properties which should generate net cash for Wren. Until such time as the Company is able to secure the requisite finance to begin developing its Extra Care schemes, it will be necessary to implement a programme of realising cash from non-Extra Care assets.

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