Statement re REIT Conversion

Primary Health Properties PLC
13 June 2006





             Primary Health Properties PLC ('PHP' or 'The Company')

                       Proposed conversion to REIT status


Primary Health Properties, one of the UK's largest providers of modern primary
healthcare facilities, announces today that it intends to convert to REIT status
at the earliest available opportunity.  The conversion is dependent upon
finalisation of the Government's proposed REIT legislation detailed in this
year's Finance Bill.

To enter the new REIT regime, PHP will be required to make a conversion payment
equal to 2% of the value of its UK property assets as at 31 December 2006 and
will subsequently be exempt from corporation tax on UK rental income and capital
gains from UK property sales.  Under the proposed legislation, PHP will be
required to pay dividends to shareholders at a level of at least 90% of the
tax-exempt income - a position that is in accordance with its existing dividend
policy.

Managing Director, Harry Hyman, said:

'We are enthusiastic about the opportunities and benefits REIT status presents
to PHP and its investors.  Subject to final approval of the Governments
proposals in their current form, we intend to convert as soon as is practical
after January 1st 2007.  I am confident that the Company will continue to
fulfill its primary objectives under REIT status: the generation of rental
income and capital growth through investment in primary health care property and
the return of value to shareholders.'



                                     -ends-


Enquiries:

Bell Pottinger Corporate & Financial
David Rydell/Kate Ruck Keene
Tel: [phone]


Primary Health Properties PLC
Harry Hyman, Managing Director
Tel: [phone]
Mobile: [phone]




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