Extendicare REIT

Extendicare REIT

December 21, 2007 14:49 ET

Extendicare REIT Normal Course Issuer Bid Approved by TSX

MARKHAM, ONTARIO--(Marketwire - Dec. 21, 2007) - Extendicare Real Estate Investment Trust ("Extendicare REIT" or the "REIT") (TSX:EXE.UN) announced today that it has received the approval of the Toronto Stock Exchange (the "TSX") to make a normal course issuer bid (the "Bid") for up to 5,500,000 of its trust units (the "REIT Units") on the TSX.

Extendicare REIT had 60,932,026 issued and outstanding REIT Units as at December 14, 2007. The REIT's Bid for up to 5,500,000 REIT Units represents approximately 9.7% of the public float on December 14, 2007, calculated in accordance with the rules of the TSX.

Purchases under the Bid will commence on December 27, 2007 and will terminate on December 24, 2008, or on such earlier date as the Bid is complete. The actual number of REIT Units purchased under the Bid and the timing of any such purchases will be at the discretion of the REIT. Purchases of REIT Units under the Bid will be made through the facilities of the TSX in accordance with its rules. On any trading day, purchases under the Bid will not exceed 42,614 REIT Units, subject to the TSX's block purchase exception. The price that the REIT will pay for any such REIT Units will be the prevailing market price of the REIT Units at the time of purchase and any REIT Units purchased under the Bid will be cancelled. Extendicare REIT has not purchased any of its REIT Units within the last 12 months.

The Board of Trustees of Extendicare REIT has authorized the Bid because it believes that it is an attractive and appropriate use of the REIT's funds to purchase REIT Units when the market price of the REIT Units is such that it does not fully reflect the underlying value of the REIT. Any REIT Units purchased under the Bid will increase the proportionate interest of, and may be advantageous to, all remaining unitholders. During the period of the Bid, the REIT plans to continue its acquisition and capital improvement programs.

Forward-looking Statements

Information provided by Extendicare REIT from time to time, including this release, contains or may contain forward-looking statements concerning anticipated financial events, results, circumstances, economic performance or expectations with respect to the REIT and its subsidiaries, including its business operations, business strategy, and financial condition. Forward-looking statements can be identified because they generally contain the words "expect", "intend", "anticipate", "believe", "estimate", "plan" or "objective" or other similar expressions. Forward-looking statements reflect management's beliefs and assumptions and are based on information currently available, and the REIT assumes no obligation to update any forward-looking statement. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the REIT to differ materially from those expressed or implied in the statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on the REIT's forward-looking statements. Further information can be found in the disclosure documents filed by Extendicare REIT with the securities regulatory authorities, available at www.sedar.com and on the REIT's website at www.extendicare.com.

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