Conversion to Trust Details

Effective November 10, 2006, as part of a shareholder approved plan of arrangement, Extendicare distributed Assisted Living Concepts, Inc. (ALC) to its shareholders, and converted the remainder of the operations to a Canadian Real Estate Investment Trust (Extendicare REIT). On completion of the Arrangement, Extendicare Subordinate Voting shareholders received for each share one ALC subordinate voting Class A common share (ALC Class A Share) and one Extendicare REIT unit (REIT Unit) or, if they have elected, one exchangeable limited partnership unit (Exchangeable LP Unit). Extendicare Multiple Voting shareholders received for each share one ALC multiple voting Class B common share (ALC Class B Share) and 1.075 REIT Units or, if they have elected, 1.075 Exchangeable LP Units. For details of the tax implications of this conversion, please refer to the Extendicare website ( www.extendicare.com ) and select "Investor Information".