Extendicare REIT
TSX : EXE.UN

Extendicare REIT

March 17, 2008 08:00 ET

Extendicare Real Estate Investment Trust Declares March 2008 Distribution

MARKHAM, ONTARIO--(Marketwire - March 17, 2008) - Extendicare Real Estate Investment Trust ("Extendicare REIT" or the "REIT") (TSX:EXE.UN) today announced that it has declared a cash distribution of C$0.0925 per unit for the month of March 2008, which is payable to unitholders of record at the close of business on March 31, 2008, and will be paid on April 15, 2008.

Extendicare Limited Partnership (the "Partnership") also announced that it has declared a cash distribution of C$0.0925 per Class B limited partnership unit for the month of March 2008, which is payable to unitholders of record at the close of business on March 31, 2008, and will be paid on April 15, 2008.

The REIT and the Partnership's current annualized distribution rate is C$1.11 per unit, payable in monthly distributions of C$0.0925 per unit. In accordance with the distribution policy of both the REIT and the Partnership, unitholders of record at the close of business on the last business day of each calendar month will be paid a distribution on or about the 15th day of the following month.

Management estimates that approximately 70% of the 2008 distributions of the REIT and Partnership will be characterized as tax deferred returns of capital for Canadian residents. To the extent a portion of the remaining 30% of distributions paid in 2008 are dividends, such dividends paid to Canadian residents are eligible for the enhanced dividend tax credit.

The REIT has a Distribution Reinvestment Plan, which provides Canadian resident unitholders and holders of Class B limited partnership units with the opportunity to increase their respective investments at a 3% discount to the volume weighted average trading price of the REIT units on the TSX for the five trading days immediately preceding the distribution payment date. A copy of the
Plan package is available on the REIT's website at www.extendicare.com in the Investors section.

About Us

Extendicare REIT, through its wholly owned subsidiaries, is a major provider of long-term care and related services in North America. Through its subsidiaries, Extendicare operates 269 nursing and assisted living facilities in North America, with capacity for approximately 30,300 residents. As well, Extendicare's subsidiaries offer medical specialty services such as subacute care and rehabilitative therapy services in the United States, and home health care services in Canada, and employ approximately 37,700 people in North America.

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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