Mr. David Bacon reports

EXTENDICARE ANNOUNCES CLOSING OF $450 MILLION INAUGURAL OFFERING OF INVESTMENT GRADE SENIOR UNSECURED NOTES

Extendicare Inc. has successfully closed its previously announced offering of $450-million aggregate principal amount of 4.345 per cent senior unsecured notes due April 14, 2031. The notes have been assigned a final rating of BBB, with a stable trend, by Morningstar DBRS.

The company used approximately $427.7-million of the net proceeds of the offering to: (i) repay in full the indebtedness owing under its term credit facility; and (ii) repay a portion of the indebtedness owing under its revolving credit facility, with the balance of the net proceeds expected to be used for working capital and other general corporate purposes, including the repayment of other existing indebtedness.

In conjunction with the debt repayment, Extendicare's existing syndicated credit facilities have been amended and restated to reflect an investment-grade credit rating structure, including the release of all security previously granted to the lenders, such that the company's remaining revolving credit facility will be senior unsecured debt that ranks equally and pari passu with the notes.

About Extendicare Inc.

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist and SGP Purchasing Network brands. Extendicare is committed to delivering quality care to meet the needs of the growing seniors population, inspired by the company's mission to provide people with the care they need, wherever they call home. Extendicare operates a network of 99 long-term-care homes (59 owned and 40 under management contracts), delivers approximately 24 million hours of home health care services annually and provides group purchasing services to third parties representing approximately 153,600 beds across Canada. Extendicare proudly employs approximately 31,500 and manages an additional 5,000 individuals through its joint ventures, all of whom are highly qualified, trained and dedicated team members who are passionate about providing high-quality care and services to help people live better.

We seek Safe Harbor.