Abano Healthcare end of year results to 31 May 2005

Published Friday 29 July 2005

Abano Healthcare Group Limited today announced its full year results for the financial year ended 31 May 2005, with increased Group revenue, decreased debt and a small net loss after tax of $38,000.

Media Release
29 July 2005

STRONG BUSINESS PORTFOLIO BOOSTS CONFIDENCE IN FUTURE FOR ABANO HEALTHCARE GROUP

Abano Healthcare Group Limited today announced its full year results for the
financial year ended 31 May 2005, with increased Group revenue, decreased debt
and a small net loss after tax of $38,000.

The focus for Abano’s board and management for the past year was to strengthen
the Group’s business portfolio to generate a higher return on invested capital, by
implementing an appropriate financial and capital structure and securing experienced
management and executive personnel to lead the Group forward.

Over the year, the value of the Group’s portfolio was improved by the acquisition of
new businesses offering higher returns, and following a strategic review, a decision
was taken to divest ElderCare, the Group’s aged care business, as it no longer met
Abano’s investment criteria.

The Group’s capital structure was strengthened during the year with a placement to
RECT Funds Management. In addition, a 1:10 share consolidation was undertaken to
allow a more meaningful analysis of the company, particularly financial performance
on a per share basis.

Debt reduced from $36.4 million to $34.0 million, with a corresponding drop in
interest costs.

The audited results for the year showed revenues increasing to $66.7 million, up from
$64.9 million in the previous year, and earnings before interest, tax, depreciation and
amortisation (EBITDA) up to $7.6 million compared with $6.8 million for the same
period last year.

Results were at the higher end of the forecast provided by the Group in May 2005,
and Abano reported a small net loss after tax of $38,000 compared with a loss of
$0.5 million for the same period last year.

Revenue from both Abano Diagnostics and Abano Dental was slightly up on the
previous year, with a four month contribution from Ascot Radiology, and benefits from
dental practices acquired in December 2004 and February 2005.

Abano Rehabilitation was down on the previous year as restructuring and contract
negotiations with ACC continued. An improved future earnings stream is expected as
the contracting environment settles. Revenue in the aged care sector increased as
benefits were realised from facility refurbishments, upgrades and extensions carried
out in the past two years.

Since year end, the board of Abano has progressed a number of decisions and taken
actions which will impact positively on the Group’s future return on investment. These
include the settlement of the ElderCare sale and an exit from the aged care market.

In addition, the company announced the conditional acquisition of 70 percent of Bay
Audiology Limited and entry into the audiology sector, planned to occur in October
2005. Two dental practices were also acquired in the Waikato region as part of the
growth strategy for Abano’s dental network, Lumino.

Managing director of Abano Healthcare, Mr Alan Clarke, said: “The past year at
Abano has seen a lot of important changes, as we focused on generating a higher
return on our funds invested across the Group, and continued to build a strong
portfolio of healthcare businesses. We look forward to the future with confidence in
our strategy and in our ability to deliver.”

Abano Healthcare Group has today announced that the 2005 annual meeting will be
held at 10.30am, Friday 23 September in the Pakuranga Hunt Room, Ellerslie
Convention Centre in Auckland.

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For more information, please contact:

Alan Clarke
Managing Director, Abano Healthcare Group Limited
Tel: 09 3610482 Mob: 021 368 818