New Banking Facility

CareTech Holdings PLC

("CareTech" or "the Group" or the "Company")

New Banking Facility Completed

CareTech Holdings PLC (AIM: CTH), a leading UK provider of specialist social care services is pleased to announce that it has successfully completed the refinancing of its banking facilities well ahead of the existing facility expiry in April 2013.

In the current uncertain Banking times it is pleasing that all three of the current club of banks have continued to support the Company in the new facility. Allied Irish Bank, with whom CareTech has had a long relationship, has rejoined the club of banks. The new facilities total £149.4 million comprising a term loan, a revolving credit facility and an overdraft facility for working capital. The term of the new facilities is four-and-a-half years, expiring in January 2017. After taking account of hedging costs the facilities are at a highly competitive all-in debt service charge of less than 4.5%, which further emphasises the Company's strong asset backing and attractiveness to lenders.

These facilities are provided by a syndicate of 4 banks which are:

Allied Irish Banks P.L.C.

Lloyds TSB Bank plc

Santander UK P.L.C.

The Royal Bank of Scotland plc

At 31 March 2012 total Group net debt was £131.5 million. As part of the refinancing, the Group's freehold property portfolio was independently valued at £225 million.

The new bank facility will replace the previous £160m facility and the Board has decided to reduce the size of its total facilities in line with its strategic focus of delivering growth in earnings principally through organic developments.

In the six years since the IPO the Group's EBITDA has grown from £2.4m to £23.2m in 2011 whilst the diluted earnings per share have grown by an annual compound rate of 35% from 4.1p to 25.4p in 2011. This new facility coupled together with the Group's strong operating cashflow provides the Group with a strong platform on which to build continued earnings growth.

Farouq Sheikh, Executive Chairman, said:

"We are delighted to report the successful renegotiation of our banking arrangements well ahead of the existing facility's expiry in April next year. We are extremely pleased that all three current lenders are participating in this new facility and that previous lender Allied Irish Bank is a participant again."

"The total debt service cost of the new arrangements after hedging is under 4.5% which I believe represents an excellent result obtained in extremely difficult financial markets. The new arrangements provide a clear and attractive funding structure to facilitate the medium term growth of the business."

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