STOCKLAND — M&A Activity 2010

Sep 5, 2010

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FOR IMMEDIATE RELEASE TO ASX AND MEDIA

6 Septem b er 2010

Company A nnounce m ents Offic e Australian Securities E xchange Level 4, 2 0 Bridge St r eet Sydney N S W 2000

Aevum Target’s Statement Supports Rejection of Stockland’s Inadequate Offer

Aevum Li m ited today issued its T arget’s St a tement ad v ising shar e holders to r eject the i n adequate, opportuni s tic and unsolicited tak e over offer from Stock l and Corpo r ation Limit e d (“Stockl a nd”).

Aevum’s C hairman, M r Graham Lenzner, s a id:

“Aevum is one of the largest pur e retiremen t companies listed on t he ASX and it has a strong independ e nt future. S tockland’s offer fails t o reflect th e underlyin g value of t h e busines s or the strategic benefits that Aevum co u ld deliver t o Stocklan d .

“The Targ e t’s Statem e nt include s a number of key val u e metrics w hich stron g ly support the Board’s vi e w that Sto c kland’s $1.50 per sh a re offer significantly u n dervalues Aevum. In particular, the Indep e ndent Exp e rt’s midpoint valuatio n is $2.07 p e r share, the average b roker valuation of Aevum is $ 2.05 per s h are and A e vum’s NT A is $2.02 p er share. T hese valu a tions are r e spectively 38%, 37% and 35% a bove Stoc k land’s $1. 5 0 per shar e offer.”

The Target’s Statem e nt also set s out seven key reaso n s why Aevum shareh o lders sho u ld REJECT S tockland's Offer:

1. Stockland's Offer is s u bstantially inadequat e and significantly und e rvalues A e vum 2. The Indep e ndent Ex p ert, Lonergan Edward s & Associ a tes Limite d , has conc l uded Stockland's Offer is n e ither fair n or reasonable

2. Aevum is o ne of Australia's lead i ng retirem e nt sector c o mpanies 4. Aevum ha s a strong p latform in t he growing retirement sector and is well pla c ed to deliver fut u re growth a nd enhan c e shareholder value

3. The timing of Stockla n d's Offer i s highly op p ortunistic 6. Aevum’s D irectors consider that Stockland’ s Offer doe s not adeq u ately refle c t the strategic value Aevu m can deliv e r

4. Stockland's offer is c o nditional a n d uncertain

In declaring Stocklan d ’s offer as neither fair nor reaso n able, the I n dependent Expert not e d that “th e Offer consideration o f $1.50 per s hare is si g nificantly l o wer than our assesse d valuation range for Aevum sh a res”.

The Indep e ndent Ex p ert stated t h at it "expect[s] that S t ockland will be able t o generate s ignificant synergies a s a result o f acquirin g 100% of A evum” but that “Aevu m sharehol d ers are not being offered an appropriat e share of t h e expecte d synergie s ”.

Aevum Limited ACN 0 8 7 648 691 • L evel 6, 23-25 O’Connell St r eet, Sydney N SW 2000 GPO Bo x 5282, Sydn e y NSW 2001 • Telephone ( 02) 8223 09 0 0 • Facsimile 02 8223 099 9 • www.aevu m .com.au

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FOR IMMEDIATE RELEASE

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The Indep e ndent Ex p ert also no t ed that, su b sequent t o the announcement o f Stockland’s offer, Aevum ha d released updated information o n the future operating p erforman c e and proj e cted cash flows of A e vum whic h was likely to have a p ositive impact on shareholder an d investor / analysts views on t h e Compa n y.

Aevum’s M anaging Director, Mr S teve Man n , said:

“Aevum h a s delivere d strong FY 1 0 results a nd is forec a sting a significant inc r ease in operating cash flow f or FY11. W e expect to continue to reinvest in the busi n ess, for ex a mple thro u gh developm e nt and ref u rbishment s which will drive grow t h in the m e dium and l o ng term.”

Mr Lenzn e r conclude d :

“Aevum’s B oard is driven at all ti m es by a c o mmitment to maximising Aevum ' s sharehol d er value. We contin u e to belie v e it is in th e best inter e sts of Aev u m shareh o lders to rej e ct Stockland’s offer and theref o re encour a ge shareh o lders to take no actio n .”

As of 3 September, t w o weeks a f ter Stockl a nd's offer o pened, Stockland has only recei v ed acceptanc e s represe n ting 0.12 % of Aevum' s total issu e d share c a pital.

If any Aev u m shareh o lders have queries th e y can contact the Ae v um Share h older Infor m ation Line on 1800 7 0 4 395 (Toll Free) or +61 2 8256 3 393 (calle r s outside A ustralia).

About Aevum Limited Aevum Limit e d is a long e s tablished ow n er, operator a nd developer of retiremen t villages and aged care fa c ilities. Today it ma n ages 30 facilities across N S W, Victoria, Q ueensland, S outh Australia and Weste r n Australia providing retirement a c commodatio n and service s to over 3,10 0 units, for Au s tralian senio r s. Aevum als o has four ag e d care facilities with 367 beds. A e vum employ s over 600 de d icated and c o mmitted staff. Contact: Jim Kelly or A ndrew Stok e s Ron Malek, C o-Chief Exe c utive Jamie Gari s , Managing D irector FD Third Pe r son Greenhill C a liburn Greenhill C a liburn +61 2 8298 6 100 +61 2 9229 1409 +61 2 922 9 1448

Aevum Limited ACN 0 8 7 648 691 • L evel 6, 23-25 O’Connell St r eet, Sydney N SW 2000 GPO Bo x 5282, Sydn e y NSW 2001 • Telephone ( 02) 8223 09 0 0 • Facsimile 02 8223 099 9 • www.aevu m .com.au