Project Update

CareCapital Group plc
18 December 2007


Embargoed: for release at 0700h, 18 December 2007



                             CareCapital Group Plc
                        ("CareCapital" or "the Company")

                 Investment and Development Programme in Germany
                        Construction of Fourth Acquisition

CareCapital Group Plc announces that it has commenced construction on its 3,300
sq.m. medical office building development immediately adjacent to a regional
hospital in Marktredwitz, Northern Bavaria.

This €5.25 million project is scheduled for completion in December 2008 and will
accommodate seven medical practices, including a renal dialysis unit, a pharmacy
and a medical retail unit. The development is fully pre-let and will produce an
initial net rental yield of 7.16% on completion.

CareCapital has a significant medical centre development and investment
programme in Germany, in addition to its UK activities which continue to be
progressed in line with expectations.

                                     -ends-

For further information please visit www.carecapital.co.uk or contact:

Paul Stacey, Managing       Lindsay Mair, Director -         Simon Hudson,
Director                    Corporate Finance
Shareen Courtney, Marketing                                  Paul Youens, Paul Young
CareCapital Group Plc       Daniel Stewart & Co. Plc         Tavistock
                                                             Communications

Tel: [phone]          Tel: [phone]               Tel: [phone]

                                                             or 07966 477256

[e-mail]   [e-mail] [e-mail]
[e-mail]                                  [e-mail]
                                                             [e-mail]




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