July 2007

Hazlewoods LLP advise on the acquisition of Community Support Project Limited together with One-Step (Support) Limited, (One Step)

The Cheltenham based Corporate Finance Team of leading firm of business advisers and chartered accountants, Hazlewoods LLP, led by Partner Andrew Brookes, has recently advised on the acquisition of One Step by CareTech Community Services Limited.

CareTech, based in Hertfordshire, was founded in 1993 and is a leading provider of housing and support care services for adults with learning disability, physical disabilities, challenging behaviours and mental health problems.

The One-Step business was established in 1999 and provides an innovative approach to specialist support and accommodation services for adults who do not require full time residential care. One-Step also operates an OFSTED-registered family support and assessment centre, located in Reading. The business has a total of 83 clients. Supported living services are provided to 77 clients, of which 13 live in self contained flats (provided from 4 freehold properties) and 64 in assured shorthold properties. The assessment centre provides accommodation and support for 6 families.

Commenting on the acquisition, Farouq Sheikh, Executive Chairman, said:

"We are delighted to complete the acquisition; our fourth acquisition since flotation, and bringing our client capacity to over 1,000. The One Step services are of exceptional quality and offer a good fit with CareTech's strategic objective to further develop supported living services to complement our established residential care services. The acquisition further demonstrates the Group's progress in achieving the growth strategy outlined at flotation. The Board continues to evaluate selective acquisition opportunities which will enhance value for our shareholders."

Martin Costelloe, the former proprietor of One Step, said of this opportunity:

"I am delighted that CareTech has offered me the opportunity to remain with One Step and I look forward to the support and enthusiasm of the management team as we take the services forward. CareTech has a sound reputation as an excellent provider and has established a great network amongst commissioners and care managers. I believe that the One Step model complements CareTech's services and offers an attractive range of choices for commissioners."

Financial Due Diligence and advisory advice was led by Andrew Brookes of Hazlewoods LLP, who utilised their un-paralleled experience in the long term care sector to provide advice on all aspects of the transaction to CareTech.

Legal advice was provided by a team led by Jo Ellis and Ann McCarthy at Pinsent Masons in Birmingham, who have established an enviable reputation in the health and care sector.

For further information on this press release, please contact:

Andrew Brookes
Hazlewoods LLP Corporate Finance
Windsor House
Bayshill Road
Cheltenham GL50 3AT
Tel: 01242 246670
e-mail: ab@hazlewoods.co.uk