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Sunrise Misses NYSE Deadline for Filing 2006 Form 10-K
Date:3/18/2008

ssion of championing quality of life for seniors and their families."

Controls and Procedures Improvements and Corporate Governance Reforms

As previously disclosed, Sunrise's Board of Directors established a Special Independent Committee in December 2006 that reviewed, among other things, the facts and circumstances relating to the historical accounting treatment of significant categories of accounting errors that have now been restated. Also as previously disclosed, the Board of Directors directed the Special Independent Committee to develop recommendations regarding any remedial measures, including those pertaining to internal controls and processes over financial reporting, that it determined were warranted. The Committee recommended adoption of remedial measures that were designed to prevent recurrence of inappropriate accounting practices and ensure sound, timely and accurate financial reporting and comprehensive disclosure. The Board of Directors has adopted those measures in their entirety and instructed management to develop a detailed timetable for their implementation, which will be monitored by the Board. Those remedial measures focus on these areas:

Personal Accountability. The Board recognizes that the Company's leadership sets the tone and culture that play a critical role in creating and maintaining an appropriate control environment. As previously disclosed, the Board has separated from Sunrise all officers who had any substantial involvement in, or direct or supervisory responsibility for, the accounting function that caused the errors in the restatement, which included the President, Chief Financial Officer for the period prior to August 2005, and Treasurer (who had been the Chief Accounting Officer from 2000 through 2004). Other members of the senior finance team had either resigned or been separated from Sunrise previously. As a result, the entire senior finance organization responsible for the accounting errors now being res
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SOURCE Sunrise Senior Living, Inc.
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