Sunrise Reports Preliminary Selected Financial and Operating Data for Fourth-Qu...(and revenue recognition related to...),Health

revenue recognition related to the Company's Greystone subsidiary, as

described below. This represents an increase of $10 million from the

previously disclosed $130 million cumulative net income adjustments and

is due to a number of miscellaneous adjustments.

-- The Company also expects to record non-cash compensation expense

totaling approximately $44 million pre-tax ($27 million after tax)

related to the impact of the stock option adjustments described in the

Company's release dated November 9, 2007.

-- The Company has now determined that it will be required to adjust its

revenue recognition policies related to its Greystone subsidiary, a

developer and manager of continuing care retirement communities. From

the acquisition date of May 10, 2005 through December 31, 2005,

revenues were recognized based on cash received under the contract.

The cash payments corresponded to project completion milestones as set

forth in the agreements. During the course of the accounting

restatement Sunrise determined that revenue earned under these

contracts should be recognized upon completion of the contract. There

is no change in the amount or timing of the cash flow earned from the

contracts. The total impact of the adjustment is expected to reduce

pretax income by approximately $14 million.

-- More than 40 percent of the $140 million estimated cumulative net

income impact of the restatement adjustments (excluding stock option

expense and Greystone adjustments) relates to periods prior to

2003 and, therefore, will be reflected as a reduction in the opening

balance of retained earnings as of January 1, 2003 in the Company's

restated financial statements when filed. The Company continues to

expect that due to expiration of guarantees, refinanci
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