Statement re REIT conversion

Primary Health Properties PLC 02 January 2007 2 January 2007 Primary Health Properties PLC ("PHP" or the "Company") UK-REIT Conversion and change of accounting reference date - PHP, the provider of modern primary healthcare facilities, today announces that its conversion to UK-REIT status took effect from 1 January 2007. - In June 2006, PHP announced its intention to convert to a UK -REIT. Shareholders approved conversion on 18 December 2006. Conversion effective from 1 January 2007- the earliest possible conversion date. - The Company will achieve significant annual tax savings on income and capital gains tax paid on disposal of assets - The Company will now pay minimum of 90% of the profits of the tax exempt business in dividends - in line with current dividend policy and in accordance with REIT legislation. - The Company also announces, with effect from 1 January 2007, the change of its accounting reference date to 31 December. The current accounting reference period, which commenced on 1 July 2006, will therefore comprise 18 months ending 31 December 2007. The Company will publish interim financial statements for the 6 months ended 31 December 2006 and 6 months ending 30 June 2007, prior to publishing final financial statements for the 18 months ending 31 December 2007. Harry Hyman, Executive Managing Director of PHP, said: "I am extremely pleased that we have been able to complete the UK -REIT conversion. Our new status will enhance overall shareholder returns, augment the company's growth prospects, and significantly reduce the Company's corporate income taxes. At PHP, we have always believed in maximum possible distribution of after tax profits to shareholders and UK- REIT status will allow us to further implement this policy. We look to the future with enthusiasm." -ends- Enquiries: Bell Pottinger Corporate & Financial David Rydell/ Victoria Geoghegan Tel: 020 7861 3232 Primary Health Properties PLC Harry Hyman, Managing Director Tel: 01483 306 912 This information is provided by RNS The company news service from the London Stock Exchange
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