Brookdale Announces Third Quarter 20...(ree and nine months endedSeptember 30 20...),Health

Three Months Ended Nine Months Ended

September 30, September 30,

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

Net cash provided by operating

activities $53,499 $30,438 $138,409 $53,677

Changes in operating assets and

liabilities (8,796) 2,452 (3,454) 12,380

Refundable entrance fees received(2) 8,696 4,144 17,018 6,900

Entrance fee refunds disbursed (5,084) (3,529) (15,488) (4,540)

Recurring capital expenditures, net (6,213) (7,658) (19,487) (15,018)

Reimbursement of operating expenses

and other 1,168 1,000 3,110 3,850

Cash From Facility Operations $43,270 $26,847 $120,108 $57,249

(1) The calculation of Cash From Facility Operations includes merger,

integration and certain other non-recurring expenses, as well as

acquisition transition costs, totaling $4.0 million and $3.6 million

for the three months ended September 30, 2007 and 2006, respectively,

and $11.0 million and $10.2 million for the nine months ended

September 30, 2007 and 2006, respectively.

(2) Total entrance fee receipts for the three months ended September 30,

2007 and 2006 were $14.4 million and $7.9 million, respectively,

including $5.7 million and $3.7 million, respectively, of

non-refundable entrance fee receipts included in net cash provided by

operating activities. Total entrance fee receipts for the nine months

ended September 30, 2007 and 2006 were $31.3 million and $11.2

million, respectively, including $14.3 million and $4.3 million,

respectively, of non-refundable entrance fee
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