HispanicBusiness

Our same-facility ADC of 12,235 in the 2012 fourth quarter was 201 below the 2011 fourth quarter level of 12,436 due to lower Skilled Mix ADC of 191 and Medicaid ADC of 12, partially offset by an increase in private/other ADC of 2. In comparison to the 2012 third quarter, our same-facility ADC was lower by 118 due to lower Medicaid ADC of 111 and Skilled Mix ADC of 46, partially offset by an increase in private/other ADC of 39. Our average same-facility occupancy was 84.3% this quarter compared to 84.7% in the 2011 fourth quarter, and 84.8% in the 2012 third quarter.

Our same-facility Skilled Mix ADC represented 21.4% of our residents in the 2012 fourth quarter compared to 22.5% in the 2011 fourth quarter and 21.5% in the 2012 third quarter.

OTHER RECENT DEVELOPMENTS

As previously disclosed, our wholly owned U.S. subsidiary, EHSI, has received subpoenas from the U.S. Department of Health and Human Services (DHHS), Office of the Inspector General (OIG), relating to the possible submission of claims that they believe may be in violation of the U.S. Social Security Act. During the 2012 fourth quarter, representatives of the OIG and the U.S. Department of Justice (DOJ) met with senior representatives of EHSI to discuss their investigation to date related to quality of care. EHSI is currently preparing a response to the OIG and DOJ and continues to cooperate with them in their investigation, which also includes the provision and billing of rehabilitation services.

If Extendicare is found to have violated the U.S. Social Security Act or other applicable laws and regulations, Extendicare may incur, among other things, fines, civil monetary penalties, recoupments and administrative sanctions (including suspension or exclusion from participation in the Medicare and Medicaid programs). Any of these outcomes could have a material adverse effect on the business, results of operations, or financial condition of Extendicare. At the present time, Extendicare is unable to predict the ultimate outcome of the DHHS OIG subpoenas referred to above, including any required corrective action, or to estimate the costs that may result. Extendicare believes that it is in material compliance with the U.S. Social Security Act and other applicable laws and regulations. Based on current knowledge, management does not believe that liabilities, if any, arising from these matters will have a material adverse effect on the consolidated financial position, or results of operations of Extendicare.

CONFERENCE CALL AND WEBCAST

On February 28, 2013, at 10:00 a.m. (ET), we will hold a conference call to discuss our 2012 fourth quarter and year end results. The call will be webcast live and archived in the investors/presentations & webcasts section of our website at www.extendicare.com. Alternatively, the call-in number is 1-866-696-5910 or 416-340-2217, conference ID number 9846412#. A replay of the call will be available until midnight on March 15, 2013. To access the rebroadcast, dial 1-800-408-3053 or 905-694-9451, followed by the passcode 8498095#. Slides accompanying remarks during the call will be posted to our website as part of the live webcast. Also, a supplemental information package containing historical quarterly financial results and operating statistics can be found on the website under the investors/financial reports section.

ABOUT US

Extendicare is a leading North American provider of post-acute and long-term senior care services. Through our network of owned and operated health care centers, our qualified and experienced workforce of 35,700 individuals is dedicated to helping people live better through a commitment to quality service that includes skilled nursing care, rehabilitative therapies and home health care services. Our 246 senior care centers in North America have capacity to care for approximately 26,800 residents.