June 6, 2003

Dear St. Coletta Friends and Family:

By now many of you may have heard or read about a story that is appearing in the Milwaukee Journal Sentinel. Because media stories such as this often do not provide a full and/or accurate accounting of events, I thought it was important for me to communicate with you first thing this morning.

Here are the facts:

· First, and most importantly, St. Coletta’s mission is strong and growing. I can assure you that the Sisters of St. Francis, the Board of Directors and the administration are all fully committed to doing what it takes to ensure St. Coletta’s longevity and viability.

· St. Coletta has never been on the market. New Tribes, an organization providing training for religious missionaries, contacted us to express their interest and to eventually submit an unsolicited offer to purchase.

· There is no acceptable offer “on the table.”

· Our strategic plan calls for us to fully analyze the campus for cost effectiveness and its usefulness both now and in the future.

· Through this process, it has become evident that the campus is becoming obsolete. This has been communicated to all stakeholders at family meetings, all staff meetings, board meetings, and in other organizational communication forums.

· As has been communicated, each year it costs nearly $1 million to operate the buildings that are connected to the central powerhouse. Currently only 66 individuals are served in homes on campus and that number is soon to decrease with the planned closing of the St. Francis Hall homes of Juniper and Bernard.

· Regardless of the outcome of this offer, St. Coletta will continue to have a strong operating presence in Jefferson. Additional growth continues in northern Illinois through our CILA development and in Milwaukee through our recent acquisition of ARC Housing of Milwaukee.

I look forward to discuss this issue more fully with our employees at an upcoming All Staff Meeting scheduled for June 23 at 3:00 pm in the auditorium. It will also be discussed at the annual family meeting (in conjunction with the summer festival) on June 29, 2003 at 10:30 am in the auditorium. In the meantime, if you have questions, please contact myself or Andrea Speth, VP Development, at 920-674-8331.

The Milwaukee Journal article can be found at www.jsonline.com. Additional stories are forth coming in the Watertown Times and the Jefferson Daily Union.