Dr. Michael Guerriere reports

EXTENDICARE ANNOUNCES CLOSING OF TRANSACTION WITH AXIUM

Effective Sept. 13, 2023, Extendicare Inc. has completed the previously announced transaction with a fund managed by Axium Infrastructure Inc. and its affiliates to form a limited partnership joint venture, Axium Extendicare LTC LP, to redevelop certain of Extendicare's Class C long-term-care (LTC) homes, in which Extendicare will retain a 15-per-cent managed interest. Pursuant to the previously announced purchase and sale agreement between Extendicare and the Joint Venture, the Joint Venture acquired four Class C home redevelopment projects, comprising an aggregate of 960 funded LTC beds, currently under construction in Sudbury, Kingston, Stittsville and Peterborough, Ontario (the "JV Homes").

"The closing of the Axium transaction, coupled with the recent closing of the Revera transaction, marks a significant milestone in Extendicare's strategic repositioning to a less capital-intensive, higher margin business model to drive growth in our long-term care and home health care segments," said President and CEO, Dr. Michael Guerriere. "The need to replace aging long-term care infrastructure is a serious issue for the health sector. Our partnership with Axium positions us to build more homes faster, while continuing to advance our mission to provide high-quality care for seniors across Canada," added Dr. Guerriere.

The estimated proceeds, net of Extendicare's 15% retained interest, realized on the sale of the JV Homes were approximately $147.3 million, comprised of cash proceeds of $59.3 million, the assumption of construction financing facilities of $72.3 million and certain other liabilities and construction related holdbacks, net of taxes and certain closing costs. The net book value of the property and equipment related to the JV Homes is approximately $135.8 million, resulting in an estimated gain, net of taxes, certain closing costs and other provisions of $8.9 million to be recognized in our third quarter results.

The Company will continue to undertake all development activities in respect of the JV Homes and will provide managed services, through Extendicare Assist and SGP Purchasing Partner Network, to the homes upon completion of construction.

About Extendicare

Extendicare is a leading provider of care and services for seniors across Canada, operating under the Extendicare, ParaMed, Extendicare Assist, and SGP Purchasing Partner Network brands. We are committed to delivering quality care throughout the health continuum to meet the needs of a growing seniors population. We operate or provide managed services to a network of 126 long-term care homes and retirement communities (53 owned/73 managed services), provide approximately 9.5 million hours of home health care services annually, and provide group purchasing services to third parties representing approximately 122,785 beds across Canada. Extendicare proudly employs approximately 22,000 qualified, highly trained and dedicated individuals who are passionate about providing high quality care and services to help people live better.

We seek Safe Harbor.