Brookdale Announces Fourth Quarter and Full Year 20...(nse (income) amortization of deferred ga...),Health

We believe Adjusted EBITDA is useful to investors in evaluating our performance, results of operations and financial position for the following reasons:
-- It is helpful in identifying trends in our day-to-day performance

because the items excluded have little or no significance to our day-

to-day operations;

-- It provides an assessment of controllable expenses and affords

management the ability to make decisions which are expected to

facilitate meeting current financial goals as well as achieve optimal

financial performance; and

-- It is an indication to determine if adjustments to current spending

decisions are needed.

The table below reconciles Adjusted EBITDA from net loss for the three and twelve months ended December 31, 2007 and 2006 (in thousands):

Three Months Ended Twelve Months Ended

December 31, December 31,

2007(1)(2) 2006(1) 2007(1)(2) 2006(1)

Net loss $(49,237) $(37,357) $(161,979) $(108,087)

Minority interest 113 233 (393) 671

Benefit for income taxes (32,852) (25,004) (101,260) (38,491)

Equity in loss of unconsolidated

ventures 1,024 1,419 3,386 3,705

Loss (gain) on extinguishment of

debt 1,880 (1,222) 2,683 1,526

Other non-operating income (164) - (402) -

Interest Expense:

Debt 30,036 22,439 114,518 74,133

Capitalized lease obligation 6,953 6,734 2
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