Mr. Douglas Harris reports

EXTENDICARE REIT DECLARES APRIL 2012 DISTRIBUTION

Extendicare Real Estate Investment Trust has declared a cash distribution of seven cents per unit of the REIT for the month of April, 2012, which is payable to unitholders of record at the close of business on April 30, 2012, and will be paid on May 15, 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.

We seek Safe Harbor.