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

tated is now no longer with the Company. As previously announced, an entirely new senior finance management team is in charge of financial reporting. Remedial actions for employees, including terminations, reassignments, reprimands, increased supervision and training, have been or will be taken by senior management.

The CEO and Founder of Sunrise is dedicated to re-establishing the appropriate tone and culture necessary to restore an effective control environment. He has voluntarily repaid to the Company all his bonus compensation that he was awarded in 2003 through 2005 (net of taxes) and has disclaimed any opportunity to receive bonuses for 2006 and 2007.

Culture of Compliance. The Board, together with the senior management team, recognizes that a strong control environment sets the tone of the organization, influences the control consciousness of its employees, and is the foundation for all other components of internal control over financial reporting. The Board has directed management to revise the existing code of ethical conduct and business practices which will outline, in plain English, principles to guide ethical decision-making and provide practical answers to ethics questions regularly asked in the workplace. Each employee will be required annually to provide written acknowledgement that he has read the Code and intends to comply with it. The Board has also established the position of a Chief Compliance Officer, for which the Company is now recruiting, and a Compliance Office, which will design and implement a company wide compliance program and provide mandatory employee training on the Code of Conduct. Management will continue to promote existing compliance tools, including an anonymous whistleblower hotline and ethics questionnaires. The Board has substantially bolstered the resources dedicated to internal audit. All of these initiatives are fundamental to setting the tone and the standards of behavior that the Company expects from its em
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SOURCE Sunrise Senior Living, Inc.
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