Mr. David Bacon reports

EXTENDICARE COMPLETES PREVIOUSLY ANNOUNCED $200 MILLION PRIVATE PLACEMENT OF COMMON SHARES

Extendicare Inc. has completed its previously announced bought deal private placement of common shares of the company. Pursuant to the private placement, the company issued an aggregate of 10.64 million offered shares at an issue price of $18.80 per offered share for gross proceeds of approximately $200-million.

The private placement was co-led by CIBC Capital Markets, as sole bookrunner, and BMO Capital Markets, on behalf of a syndicate of underwriters that included National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., ATB Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc. and Desjardins Securities Inc.

The company intends to use the proceeds from the private placement (net of underwriters' fees and expenses) of approximately $192-million to partially finance the previously announced acquisition by the company's wholly owned home health care subsidiary, ParaMed Inc., of all of the equity interests of CBI Home Health LP and CBI (GP) 3 Inc. and their respective subsidiaries from CBI Health LP and CBI GP Holdco Inc.

The offered shares were offered by way of a private placement to accredited investors in all provinces of Canada and in the United States on a private placement basis to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended. The offered shares are subject to a four-month hold period under applicable securities laws in Canada.

In connection with closing of the private placement, the previously announced $150-million equity bridge facility entered into by the company to backstop the private placement will be cancelled in its entirety in accordance with its terms.

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. It is committed to delivering quality care to meet the needs of a growing seniors population, inspired by its mission to provide people with the care they need, wherever they call home. It operates a network of 99 long-term-care homes (59 owned and 40 under management contracts), delivers approximately 13.5 million hours of home health care services annually, and provides group purchasing services to third parties representing approximately 152,100 beds across Canada. Extendicare proudly employs approximately 28,000 qualified, highly trained and dedicated team members who are passionate about providing high-quality care and services to help people live better.

We seek Safe Harbor.