Alterra Healthcare Corporation Names Patrick Kennedy as Interim Chief Executive Officer; Announces Consulting Agreement With Affiliate of Holiday Retirement Corp

Business Wire, Nov 2, 2001

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Nov. 2, 2001

Alterra Healthcare Corporation (AMEX: ALI) today announced the election of Patrick F. Kennedy as Chief Executive Officer, effective immediately. Mr. Kennedy, a senior executive and director of Holiday Retirement Corp., is expected to serve as Alterra's Chief Executive Officer through the completion of Alterra's restructuring. Alterra also announced that it has entered into a consulting agreement with Holiday Retirement Consulting Services LLC, an affiliate of Holiday Retirement Corp., pursuant to which the services of Mr. Kennedy as well as other members of Holiday's senior management team will be made available to Alterra.

Mr. Kennedy, a business lawyer by training, practiced transactional law for 15 years with large New York and Seattle based law firms prior to joining Holiday Retirement Corp., a major operator of independent living retirement facilities, in 1995. At Holiday he has held a variety of positions, most recently serving as Senior Vice President and a member of the Board of Directors with responsibility for Holiday's international operations.

"We believe Pat Kennedy is a great addition to our talented and dedicated management team as we seek to achieve positive cash flow from operations and complete our restructuring. As a senior executive with Holiday and as a business lawyer, Pat has a skill set that is well suited to managing our efforts to accomplish these tasks," said Jerry L. Tubergen, Chairman of the Board. "We will continue our search for a permanent CEO for Alterra, but do not expect to conclude our search until our restructuring is substantially completed," noted Tubergen.

Pursuant to its consulting agreement with Holiday, Alterra also expects to benefit from the advice and assistance provided by Holiday's senior management as Alterra seeks to continue to deliver quality service, optimize rates and control costs, all of which are directed at continuing to grow the Company's cash flow. According to Alterra's President, Steven Vick, "Having access to Holiday's experienced management team will be a great resource for our management team as we pursue operating improvements while seeking to complete our restructuring."

Alterra offers supportive and selected healthcare services to our nation's frail elderly and is the nation's largest operator of freestanding Alzheimer's/ memory care residences. Alterra currently operates in 26 states. Holiday Retirement is the largest operator of independent living retirement facilities in North America, currently managing over 70,000 units in the United States, Canada and Europe.

Alterra's common stock is traded on the American Stock Exchange under the symbol "ALI."

The statements in this release relating to matters that are not historical facts are forward-looking statements based on management's beliefs and assumptions using currently available information. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it is unable to provide assurances that these expectations will prove to be correct. Forward-looking statements involve a number of risks and uncertainties, including, but not limited to, risks associated with recent defaults under loan and lease obligations, risks associated with a shortfall in liquidity and the implementation of a restructuring plan, risks associated with the disposition of assets and termination of leases, substantial debt and operating lease payment obligations, operating losses associated with new residences, the Company's need for additional financing and liquidity, risks associated with construction activities, risks associated with competition, governmental regulation and other uncertainties outlined in the Company's reports filed with the Securities and Exchange Commission. Should one or more of these risks materialize (or the consequences of one or more of these risks worsen) or should the Company's underlying assumptions prove incorrect, the Company's actual results of operation and financial position in the future could differ materially from those forecasted or expected. The Company assumes no duty to publicly update such statements.