Sunrise Reports Preliminary Selected Financial and Operating Data for Fourth-Qu...(ty operating expenses for the quarter wo...),Health

been approximately $213.7 million, representing a 4.1 percent increase

over the prior year.

-- The same-community occupancy rate was 90.6 percent for the quarter 2007

compared to 91.6 percent in the prior-year fourth quarter. The

occupancy rate for communities in ventures was 90.6 percent, down from

91.6 percent in the prior-year fourth quarter. For consolidated

communities, the occupancy rate was 90.7 percent, down from 91.6

percent in the prior-year fourth quarter. The decline in occupancy was

largely due to a decrease in occupancy for The Fountains communities.

In addition, as previously disclosed, the Company has identified

several existing markets and select communities that have shown

declines in occupancy and has put plans in place to address these

markets.

-- Sunrise's management believes that total revenue under management and

total same-community revenues, average daily rate, occupancy and

expenses are useful indicators of trends in Sunrise's management

business. For such data broken down by consolidated communities and

unconsolidated ventures, please refer to the Supplemental Information

attached. The preliminary financial data and operating metrics provided

herein are not necessarily indicative of the results of operations of

the Company for the three and twelve months ended December 31, 2007 and

2006. Because the Company's restatement of its financial statements

has not been completed, Sunrise is unable at this time to provide a

reasonable estimate of either its fourth-quarter 2007 or fourth-quarter

2006 results of operations.

Cash and debt

-- On December 31, 2007, Sunrise had approximately $320 million of cash

and cash equivalents. Of this balance approximately $1
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