Brookdale Announces Fourth Quarter and Full Year 20...(9473 23561 Amortization of de...),Health

Amortization of deferred

financing costs 2,186 1,882 7,064 5,061

Change in fair value of

derivatives and amortization 42,329 (1,384) 73,222 38

Interest income (2,442) (3,101) (7,519) (6,810)

Loss from operations (174) (35,361) (41,207) (44,693)

Depreciation and amortization 65,235 74,000 299,925 188,129

Straight-line lease expense 6,624 8,077 25,439 24,699

Amortization of deferred gain (1,087) (1,086) (4,342) (4,345)

Amortization of entrance fees (5,019) (4,751) (19,241) (8,149)

Non-cash compensation expense (6,037) 13,987 20,113 26,612

Entrance fee receipts(3) 13,916 16,327 45,249 27,556

Entrance fee disbursements (4,069) (4,648) (19,557) (9,188)

Adjusted EBITDA $69,389 $66,545 $306,379 $200,621

(1) The calculation of Adjusted EBITDA includes merger, integration, and

certain other non-recurring expenses, as well as acquisition

transition costs, totaling $8.1 million and $6.6 million for the three

months ended December 31, 2007 and 2006, respectively, and $19.0

million and $16.8 million for the twelve months ended December 31,

2007 and 2006, respectively.

(2) Adjusted EBITDA for the year ended December 31, 2007 includes $7.0

million of charges to facility operating expenses in the quarter ended

December 31, 2007, which relates to the Company's desire to conform

its policies across all of its platforms including $5.9 million

related to estimated uncollectible accounts and $1.1 million of

accounting conformity adjustments pertaining to inventory and certain

accrual policies.

(3) Includes the receipt of
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