Extendicare REIT
TSX : EXE.UN

Extendicare REIT

September 17, 2007 08:01 ET

Extendicare Real Estate Investment Trust Declares September 2007 Distribution

MARKHAM, ONTARIO--(Marketwire - Sept. 17, 2007) - 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 September 2007, which is payable to unitholders of record at the close of business on September 28, 2007, and will be paid on October 15, 2007.

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 September 2007, which is payable to unitholders of record at the close of business on September 28, 2007, and will be paid on October 15, 2007.

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 Extendicare REIT's distributions in 2007 will be characterized as non-taxable returns of capital. The remaining portion of the distributions paid in 2007 is taxable dividends, and those paid to Canadian residents are eligible dividends as per the Canadian Income Tax Act.

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 our website at www.extendicare.com in the Investor Information section.

About Us

Extendicare Inc., an indirect wholly owned subsidiary of Extendicare REIT, is a major provider of long-term care and related services in North America. Through its subsidiaries, Extendicare Inc. operates 234 nursing and assisted living facilities in North America, with capacity for approximately 26,900 residents. As well, through its subsidiaries Extendicare Inc. offers medical specialty services such as subacute care and rehabilitative therapy services in the United States, and home health care services in Canada. Extendicare Inc. employs approximately 33,600 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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