Amica Mature Lifestyles Inc.

Amica Mature Lifestyles Inc.

March 03, 2005 11:31 ET

Amica Mature Lifestyles to Manage Luxury Retirement Campus in Hamilton/Wentworth Region

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 3, 2005) - Amica
Mature Lifestyles Inc. (TSX:ACC)

Mr. Samir Manji, Chairman, President and CEO of Amica Mature Lifestyles
Inc. is pleased to announce that Amica has entered into a 50 year
management agreement to manage Amica at Dundas, a luxury 137 suite
retirement residence in Dundas, Ontario, an exclusive area outside of
Hamilton. Construction of this high end retirement residence is expected
to commence this Spring. The development also includes plans for a
second phase that will include the development of a boutique luxury
condominium residence that will be physically connected to the rental
residence. The total cost for the campus is expected to be $40 million.
As part of the overall agreement, Amica will retain a 17% ownership
interest in the project.

Mr. Manji stated, "Amica at Dundas will be the Company's seventh new
development in the GTA and solidifies Amica's position as the premier
brand manager of luxury independent living retirement communities in the
GTA and Canada."

During the design and construction phase of the development, Amica will
earn design and marketing fees totaling $700,000. The Company will also
receive a marketing bonus based on the number of suites leased during
the first year of operation. As part of its 50 year management
agreement, Amica will earn a base management fee of 6% of gross revenues
and an annual profit participation of 25% for any net operating income
achieved in excess of $2.6 million.

Mr. Manji added, "The last two management agreements that Amica has
entered into have been for a period of 50 years. This is a strong
reinforcement of the confidence that our private equity investors have
in Amica's ability to provide a superior quality of service to its
residents within the exceptional physical residences that are being
designed, constructed and ultimately branded as an Amica Wellness &
Vitality™ Residence. This, in turn, is projected to provide investors
with a strong return on their investment. We estimate that each 50 year
management contract has a value of between $6 to $8 million based on the
discounted value of the future management revenue stream and using
certain assumptions of discount rate and future bonuses that will be
achieved as part of the contract."

The Company is currently in negotiations and/or reviewing other
opportunities in major markets throughout Canada and the northwestern
United States and anticipates the signing of at least two additional
management agreements during the current fiscal year.

Amica Mature Lifestyles Inc., a Vancouver based public company, is a
leading provider of seniors' services and luxury accommodation. There
are 15 Amica Wellness & Vitality™ Residences, including three under
development. The common shares of Amica are traded on the Toronto
Stock Exchange under the symbol "ACC".

Forward-Looking Statement:

Statements made which are not historical facts are forward-looking
statements. Forward-looking statements can be identified because they
generally contain the words "anticipate", "believe", "estimate", "plan",
"expect", "project", or similar words. Such forward-looking statements
are estimates reflecting the best judgment of the Company based upon
current information and involve a number of risks and uncertainties and
other factors that may cause actual results, performance, or
achievements of the Company to differ materially from future results
expressed, projected or implied by such forward-looking statements.
Given these risks and uncertainties, readers are cautioned not to place
undue reliance on the Company's forward-looking statements. These
statements are made as of the date of this document and, except as
required by law, the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:

    Amica Mature Lifestyles Inc.
    Mr. Renzo Barazzuol
    Chief Financial Officer
    (604) 608-6204
    r.barazzuol@amica.ca
    or
    Amica Mature Lifestyles Inc.
    Ms. Fiona Dutta
    Manager, Investor Relations
    (604) 608-6208
    f.dutta@amica.ca
    www.amica.ca