Brookdale Announces Fourth Quarter and Full Year 20...(pital expenditures to maintain and ...),Health

improve our facilities.

The table below reconciles Cash From Facility Operations from net cash provided by operating activities 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 cash provided by operating

activities $61,253 $32,235 $199,662 $85,912

Changes in operating assets and

liabilities (33,117) 5,556 (36,571) 17,936

Refundable entrance fees received(3) 8,901 7,860 25,919 14,760

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

Recurring capital expenditures, net (5,561) (8,500) (25,048) (23,518)

Reimbursement of operating expenses

and other 1,320 1,150 4,430 5,000

Cash From Facility Operations $28,727 $33,653 $148,835 $90,902

(1) The calculation of Cash From Facility Operations 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) CFFO 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 of

estimated uncollectible accounts and $1.1 million of accounting'/>"/>