Extendicare Completes Reorganization

On November 10, 2006 Extendicare Inc. and Extendicare REIT successfully completed a $1.6 billion reorganization resulting in the distribution of Assisted Living Concepts, Inc. to Extendicare shareholders and the conversion of the remaining business of Extendicare into a Canadian real estate investment trust, Extendicare REIT. Immediately following the closing of the reorganization, approximately 59.2 million REIT units and 11.0 million exchangeable limited partnership units of Extendicare Limited Partnership were outstanding. The Extendicare REIT units trade on the Toronto Stock Exchange. The Class A shares of Assisted Living Concepts, Inc. now trade on the NYSE.

Bennett Jones LLP represented Extendicare Inc. with a team that included Alan Bell, Jeff Kerbel, John Kousinioris, Andrew Kingsmill, Jon Truswell, Colin Perry, Shawn Lynn (corporate); John Owen, Tom Bauer (tax); Robert Staley, Derek Bell (litigation); Peter Birkness, Helgi Maki (commercial); Deron Waldock (benefits) and Mary Beth Currie (employment).

Cravath, Swaine & Moore LLP represented Extendicare Inc. and Assisted Living Concepts, Inc. with a team that included John Gaffney, Erik Tavzel, Kevin Coen, Jessica Tones (corporate) and Steve Gordon, Lauren Angelilli and Vinay Shandal (tax).