Mr. Douglas Harris reports

EXTENDICARE REIT DECLARES MARCH 2012 DISTRIBUTION

Extendicare Real Estate Investment Trust has declared a cash distribution of seven cents per unit of the REIT for the month of March, 2012, which is payable to unitholders of record at the close of business on March 30, 2012, and will be paid on April 16, 2012.

The current annualized distribution rate of the REIT is 84 cents per unit, payable in monthly distributions of seven cents per unit. In accordance with the distribution policy of the REIT, unitholders of record at the close of business on the last business day of each calendar month will be paid a distribution on or about the 15th day of the following month.

Management estimates that approximately 70 per cent of the 2012 distributions of the REIT will be characterized as tax-deferred returns of capital for Canadian residents. To the extent that the remaining 30 per cent of the distributions of the REIT made in 2012 are taxed as dividends, those paid to Canadian residents are eligible dividends under the Income Tax Act (Canada). The REIT is not required to, and does not, calculate its "earnings and profits" pursuant to the United States Internal Revenue Code of 1986, as amended, and therefore no portion of its distributions represent qualified dividend income for U.S. tax purposes.

The REIT has a distribution reinvestment plan (the DRIP), which provides Canadian resident holders of REIT units with the opportunity to increase their respective investments at a 3-per-cent discount to the volume-weighted average trading price of the REIT units on the Toronto Stock Exchange for the five trading days immediately preceding the distribution payment date. A copy of the plan package is available under the investors section of the REIT's website.

We seek Safe Harbor.