Brookdale Announces Fourth Quarter and Full Year 20...( conformity adjustments pertaining...),Health

conformity adjustments pertaining to inventory and certain accrual

policies.

(3) Total entrance fee receipts for the three months ended December 31,

2007 and 2006 were $13.9 million and $16.3 million, respectively,

including $5.0 million and $8.5 million, respectively, of non-

refundable entrance fee receipts included in net cash provided by

operating activities. Total entrance fee receipts for the twelve

months ended December 31, 2007 and 2006 were $45.2 million and $27.6

million, respectively, including $19.3 million and $12.8 million,

respectively, of non-refundable entrance fee receipts included in net

cash provided by operating activities.

The calculation of Cash From Facility Operations per outstanding common share is based on outstanding common shares at the end of the period, excluding any unvested restricted shares.

Beginning in 2008, reported CFFO will be modified to subtract principal amortization related to capital leases that do not have a bargain purchase option. Below is a table that presents the CFFO results since 2006 under this modified definition of CFFO.

($ per share, 2007 Quarter Ending: Full Full

all items rounded to the March June Sept. Dec. Year Year

nearest penny) 31 30 30 31 2007 2006

Current Reported CFFO 0.33 0.42 0.43 0.28 1.46 1.06

Less: Amortization (0.04) (0.04) (0.04) (0.04) (0.16) (0.08)

Plus: Amort of Leases w/

Below Mkt. Purchase Options

and Debt 0.03 0.02 0.03 0.03 0.10 0.04

Reported CFFO per Revised

Definition 0.32 0.41 0.41 0.27 1.41 1.03

Impact of Integration-related

Accounting Items - - - 0.07 0.07 -

Integration
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