January 2007

Hazlewoods play a major role in the Recapitalisation of TRACSCARE Limited and Truecare Holdings Limited

The Cheltenham based Corporate Finance Team of leading firm of business advisers and chartered accountants, Hazlewoods LLP, led by Partner Andrew Brookes and Senior Manager Richard Dade, has recently advised on the £37m recapitalisation of TRACSCARE Limited and the £16m recapitalisation of Truecare Holdings Limited. Both companies are backed by Sovereign Capital Partners LLP.

TRACSCARE and Truecare are both dedicated to providing specialist care to adults with learning difficulties and mental health needs in the UK. Both companies were acquired by Sovereign in March 2004 and have achieved considerable growth over the years. TRACSCARE today operates 46 homes with new home openings underway. Truecare has grown to 12 residential homes in Hampshire and the New Forest providing care to adults with complex needs and challenging behaviour.

Vendor Due Diligence was provided by Hazlewoods LLP in order to facilitate the transaction, allowing a competitive tendering process to take place, thus maximising the position for the companies.

Commenting on the transaction, Andrew Brookes noted: "We have worked with both TRACSCARE and Truecare in the past, advising on the BIMBO of Truecare and on a number of bolt-on acquisitions for both companies. As such, we were delighted to assist in the recapitalisation exercise, which will allow both companies to continue their rapid development, in partnership with Sovereign".

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