PRIORY GROUP NO. 3 PLC Results for the Quarter and Year Ended 31 December 2013

PRIORY GROUP NO. 3 PLC Results forPRIORY GROUP NO. 3 PLC Results for the Quarter and Year Ended 31 December 2013 PR Newswire LONDON, April 2, 2014 Group Financial Highlights Q4 performance • Revenue for Q4 2013 increased by £8.2m to £124.2m, a rise of 7.1% (Q4 2012: £116.0m), predominantly due to the Healthcare division, driven by NHS Acute bed demand as well as continuing maturity of homes in Amore Care. [1]• Adjusted EBITDAR is up £2.2m to £36.5m, an increase of 6.4% (Q4 [1]2012: £34.3m) and Adjusted EBITDA is up £2.1m to £33.5m, an increase of 6.7% (Q4 2012: £31.4m) primarily due to higher revenue, partially offset by the £1.8m increased cost of wage inflation and investment in quality assurance. Full year performance • Revenue YTD 2013 increased by £17.7m to £480.8m, a rise of 3.8% (YTD 2012: £463.1m). [1]• Adjusted EBITDAR YTD 2013, in line with expectation, is down 4.1% [1]to £138.4m (YTD 2012: £144.3m) and Adjusted EBITDA down 5.0% to £126.4m (YTD 2012: £133.0m). The movements are predominantly due to changes in the trading environment in which our Education division operates, notably a requirement to split residential accommodation from teaching facilities and fewer residential placements, as well as the cost of wage inflation across the group (£5.9m) and increased investment in quality assurance (£2.0m) across all divisions, partly offset by a strong performance in Healthcare. [2]• Operating cash conversion of 85.6% (2012: 90.7%).