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Village Life residents can stay in homes.



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Peter Andren MP - Independent Member for Calare

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19 April 2007

Village Life residents can stay in homes

Residents of Bathurst’s Village Life units will be able to stay in their homes with a new company taking over the management of this and other facilities, according to Peter Andren, Member for Calare.

“The owner of Village Life Bathurst - the MFS Diversified - group has announced SCV Group will take over management of the accommodation and services from Village Life,” Mr Andren said.

“According to MFS: ‘The agreement with SCV ensures that the villages will remain open following the decision by Village Life to terminate its long-term leases over the properties’.

“This means the villages in Bathurst, Dubbo, North Tamworth and Wagga Wagga and others across the country will remain open and the residents will be able to stay in their homes.

“The Managing Director of MFS confirmed this saying: ‘Importantly, this agreement means the residents of the villages won’t be forced to find alternative accommodation.’

“This is great news but this crisis has shown there is a definite need for state and federal legislation to protect elderly residents in this type of serviced accommodation.

“I will continue to pursue this legislative protection so that this sort of crisis, which has been extremely distressing for the residents of Village Life, does not happen again,” Mr Andren said.

EDS NOTE - COPY OF MFS DIVERSIFIED GROUP ANNOUNCEMENT ATTACHED.

For further information: 02 6332 6229 or 0419 612 891

For further information please contact: SHARE REGISTRY

MFS Client Services Computershare Investor Services Pty Limited

Level 1, PKF Building Level 19, 307 Queen Street

1 Lawson Street Brisbane QLD 4000

Southport QLD 4215 Telephone: 1300 552 270

Telephone: 131 MFS (131 637)

E-mail: mail@mfsgroup.com.au Website: www.mfsgroup.com.au

MFS DIVERSIFIED TRUST (“Trust”) ARSN 104 482 206 MFS DIVERSIFIED LIMITED (“Company”) ACN 117 546 326 ASX Code: MFT

ASX ANNOUNCEMENT/MEDIA RELEASE

April 19, 2007

MFS DIVERSIFIED STEPS IN TO KEEP RETIREMENT VILLAGES OPEN

Property investment and development company MFS Diversified Group (ASX: MFT) today announced it had secured an agreement from the SCV Group Limited (ASX: SCV) to manage 10 MFS-owned retirement villages previously managed by operator Village Life Limited.

The requirement for an alternative manager arose when Village Life gave notice that it would be terminating the leases over 10 of the 23 properties owned by MFT on February 27, 2007.

The retirement villages covered under the agreement are in Ballarat, Bathurst, Dubbo, Launceston, Mandurah, Mildura, Shepparton, North Tamworth, Wagga Wagga and Warrnambool.

The agreement with SCV ensures that the villages will remain open following the decision by Village Life to terminate its long-term leases over the properties. MFS Diversified and SCV Group will now move to formal documentation of a 25-year management agreement.

“When this issue arose MFS Diversified became determined to explore all options for ensuring the ongoing care of the elderly residents,” said Craig White, Managing Director of MFS Diversified. “Importantly, this agreement means the residents of the villages won’t be forced to find alternative accommodation,” Mr White said.

SCV Group is one of Australia’s leading operators of long-term, affordable, community-style accommodation to seniors. It operates around 100 communities in Queensland, New South Wales, Victoria, Tasmania, South Australia and Western Australia, offering well-located quality accommodation supported by tailored services.

Mr White said he hoped that MFS Diversified, SCV and Village Life could work together on an orderly transition of management at the villages. He confirmed that they will support the resolution being put to Village Life shareholders at Village Life’s EGM on 24 April 2007 to assign the management rights of the 46 retail and wholesale communities and 32 ING Community Living Fund communities to the SCV Group.

Under this management arrangement MFT will receive income on the villages managed by SCV based on the ongoing occupancy level of each village.

For further information: Craig White Director MFS Diversified Group (07) 5557 7700