9 AUGUST 2013 GROUP UPDATE - 30 JUNE 2013 VALUATIONS

Aveo Healthcare (ASX: AEH) is pleased to advise that its portfolio of retirement assets has been valued and as at 30 June 2013 the portfolio value remains materially unchanged from 31
December 2012.
Key assumptions in the Retirement portfolio valuation are the discount rate (12.5%); property price growth forecasts (Year 1-5: 3%-4%, Year 6 onwards: 4.5%); and the long-term turnover rate (10 years for Independent Living Units and 4 years for Serviced Apartments) all of which remain consistent with the prior comparative period.
In June and December 2012, the Group made adjustments to decrease unit list prices for Independent Living Units and Serviced Apartments, which is a key input into the valuation, by a total of approximately 10%. The unit list prices at June 2013 remain largely in line with those used at December 2012.
As with previous financial year ends, an independent valuation of Aveo Healthcare's retirement portfolio has been conducted by Deloitte Touche Tohmatsu which supports the Directors' valuation.
Consistently with the AICD best practice guidelines, the Directors' valuation is excluded from the determination of Aveo Healthcare's underlying result. For the year ended 30 June 2013, the underlying result is expected to be in the range of $1m to $3m.
The above results are preliminary and are subject to finalisation of the audited accounts which will be released to the market on 21 August 2013.
Aveo Healthcare's portfolio comprises five villages consisting of 1,028 Independent Living Units,
252 Serviced Apartments and 25 Aged Care beds.

For further information contact:

Nina Lesnanska, Communications and Investor Relations Manager

P: 02 9270 6168 M: 0404 811 469 E: Nina.Lesnanska@aveo.com.au

About Aveo Healthcare

Aveo Healthcare has established itself as a market leader in provision of quality retirement accommodation in South East Queensland. Aveo Healthcare's villages offer high-quality recreational and health facilities for elderly Australians coupled with a range of accommodation options to suit each resident's housing preference and level of independence. Operating under the Aveo brand, Aveo Healthcare's philosophy is 'Quality of Life'. This philosophy is embedded in all areas of the company's business including creating a friendly and productive working environment for employees, ensuring the company is a sound investment for shareholders and providing a superior lifestyle for residents. Issued by Aveo Healthcare (ASX: AEH) ABN 75 061 421 565 www.aveohealthcare.com.au

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