Company Update

WREN EXTRA CARE GROUP PLC

("Wren" or the "Group")

Company update

Wren the property development group and specialist retirement home developer of Extra Care facilities announces the following update.

As announced on 5th October 2010 LPA receivers were appointed to Wren Estates Ltd, a subsidiary company within the group. Also as previously announced on 6th October 2010 LPA receivers were appointed to Warlingham Developments Ltd ("WD") and Warlingham Developments Two Ltd ("WD2"), which are not group companies but companies with which Wren Estates Ltd has profit share arrangements. In both instances the Group has fully co-operated with the LPA receivers GVA Grimley Ltd. The Group has not as yet been notified of the intentions of either of the LPA receivers or of sums due to its main lender (the "Lender").

As a separate matter, certain irregularities have come to light including cash withdrawals using the Company credit card and charging of personal expenditure to the Company. These matters are being investigated and legal action may be initiated if appropriate.

In addition, it has come to light that part of the development site assembled by WD2 has been acquired in the name of a partner of a former director, Paul Treadaway, using funds provided by WD. This is contrary to the Board's previous understanding that WD2 the owner of all elements of the development site.

WD2 was funded by both the Lender and by Wren Estates Ltd for the purposes of acquiring and developing the site. The fact that this piece of land is currently not registered in the name of the Company may create problems for both the Lender and for Wren Estates Ltd, both of whom are looking to the sale of the development site to fund the payment of monies owing by WD2.

The Directors have provided this information to the Lender and will be seeking to ensure that any damage to Wren is minimised as far as possible.

Wren Extra Care Group Plc,

James Butterfield Corporate Development Director, +44 (0) 7770 225 253

Michael O'Donnell Financial Director, +44 (0) 7990 540 549

www.wrenhomesplc.co.uk

Shore Capital, Tel. 020 7408 4090

Pascal Keane

Peckwater PR, Tel.07879 458364

Tarquin Edwards