Result of AGM and Issue of Equity

CareTech Holdings PLC

("CareTech" or "the Company")

Result of Annual General Meeting and Issue of Equity

CareTech Holdings PLC (AIM: CTH), a pioneering provider of specialist social care services in the UK, announces that at its Annual General Meeting held earlier today, all resolutions were duly passed on a show of hands.

The Company has, pursuant to the passing by Shareholders of Resolutions 12 and 13 as outlined in the Notice of AGM, today issued 10,000,000 Placing Shares, as described in its announcement of 27 February 2015 of a Placing to raise gross proceeds of £21.0 million.

Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM and, as previously notified, it is anticipated that Admission will take place on or around 8.00 a.m. on 10 March 2015. The Placing Shares will, when issued, be credited as fully paid and will rank equally in all respects with the existing Ordinary Shares, including the right to receive any dividend or other distribution declared, made or paid after Admission, save that the Placing Shares will not rank for the Company's final dividend, which will be paid on 11 May 2015.

On Admission, the Company's issued share capital, as enlarged by the Placing Shares, will consist of 62,016,248 Ordinary Shares. All of these Ordinary Shares carry voting rights of one vote per Ordinary Share. There are no Ordinary Shares held in treasury and so the total number of voting rights in the Company following admission will be 62,016,248. The above figures should be used by shareholders following admission as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Capitalised terms in this announcement have, unless otherwise stated, the same meanings as defined in the Company's announcement of the Placing on 27 February 2015.

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About CareTech

CareTech Holdings plc is a leading provider of specialist social care services, supporting adults and children with a wide range of complex needs in more than 250 specialist services around the UK.

Committed to the highest standards of care and care governance, CareTech provides its innovative care pathways through five divisions covering adult learning disabilities, mental health, young people residential services, foster care and learning services.

CareTech, which was founded in 1993, began trading on the AIM market of the London Stock Exchange in October 2005 under the ticker symbol CTH. Its freehold portfolio comprises 164 properties.