LOS ANGELES, Oct. 24 /PRNewswire-FirstCall/ -- LifeHouse Retirement Properties, Inc. (Pink Sheets: LHRP), (http://www.lifehouseproperties.com/) is pleased to announce it expanded its geographical footprint and presence in California by becoming the winning bidder in the Pleasant Care 363 Bankruptcy Auction, closing on five leasehold skilled nursing communities on July 31, 2007. The "LifeHouse Consortium", including all the consortium partners, jointly acquired approximately seventeen skilled nursing and three assisted living facilities in the Pleasant Care Bankruptcy Auction, which included a total of 2,680 beds and approximately $135.7 million of revenue. LifeHouse acquired five skilled nursing facilities in the LifeHouse Consortium bid, including 966 beds, located in San Diego, Bakersfield, Paradise, Riverside, and Vista, California. This increases LifeHouse's healthcare services skilled nursing portfolio to a total of 1,489 beds. Mr. Rowan Farber, CEO of LifeHouse Retirement Properties, Inc. explained, "This acquisition was a highly contested bankruptcy auction, which further displayed the Company's abilities to acquire underperforming assets with solid upside potential, at a significant discount. LifeHouse led a large consortium group in a complicated transaction, to successfully purchase quality assets out of this type of bankruptcy process. Most importantly, it provides LifeHouse the opportunity to improve patient care and outcomes at these communities." Mr. Lou Andriotti, COO of LifeHouse Retirement Properties, Inc. added, "We will work diligently to bring our unique patient-centered model of care to the skilled nursing arena, as we continue to create a new benchmark for quality care for this industry segment." Pro Forma for the acquisition, LifeHouse's combined Revenue and EBITDAR will increase to $95.5 million and $14.4 million, respectively, on a current run-rate basis, as of August 31, 2007. EBITDARM (EBITDA before Rent and Management Fees) for the same period was $18.3 million. This acquisition brings the total number of LifeHouse owned and leased communities to twenty-one. LifeHouse's community-based healthcare, rehabilitative services and enhanced-living model of care is designed to reposition distressed and underperforming operations. The Company focuses on providing high quality-based products in today's choice-driven consumers and improving the reputation of these facilities in their respective marketplace. LifeHouse is pleased to announce the addition of Mr. Ruben J. King-Shaw, Jr. to the Board of Directors. From January 2003 to August 2003, Mr. King-Shaw served as Senior Advisor to the Secretary of the Department of the Treasury. From July 2001 to April 2003, Mr. King-Shaw served as Deputy Administrator and Chief Operating Officer of the U.S. Department of Health and Human Services' Centers for Medicare and Medicaid Services (CMS). From January 1999 to July 2001, Mr. King-Shaw served as Secretary of the Florida Agency for Health Care Administration. Mr. King-Shaw serves on numerous boards of directors, including the Scripps Florida Corporation, and is a Trustee of the University of Massachusetts. LifeHouse is also pleased to announce the addition of Lou Andriotti (Chief Operating Officer) and Tracy Clark, Jr. (Chief Financial Officer) to its Board of Directors. Mr. Clark and Mr. Andriotti will replace Mr. David Todt and Mr. Larry Stockman as board members. Mr. Tracy Clark will also replace Mr. David Todt as Secretary and Treasurer of the Company. LifeHouse Retirement Properties, Inc. is focused on strategic acquisitions of senior assisted & independent living and skilled nursing communities in the U.S. The Company's platform provides a strong acquisition and operating team with significant experience in healthcare, mergers & acquisitions, hospitality, real estate and construction, particularly effective in turnaround operations of under performing properties or entire business units. The Company has approximately 2,297 beds (1,489 skilled nursing beds and 808 assisted and independent living units) and over 2,000 full-time equivalent employees. Forward-Looking Statements: The information contained herein should not be construed as a recommendation to purchase any securities. Statements in this news release concerning the company's business outlook or future economic performance, anticipated profitability, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, may be forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those contained in such statements. Such risks, uncertainties, and factors include, but are not limited to, future capital needs, changes and delays in development plans and schedules, acquisition risks, licensing risks, business conditions, competition, changes in interest rates, our ability to manage our expenses, market factors that could affect the value of our properties, the risks of downturns in general economic conditions, availability of financing for development and acquisitions. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Investments in small cap companies are generally deemed to be highly speculative and to involve substantial risk, making it appropriate for readers to consult with professional investment advisors and to make independent investigations before acting on the information. Any investment in small cap companies could prove to be high risk investments with the result in the loss of part, or the total principal investment. DATASOURCE: LifeHouse Retirement Properties, Inc. CONTACT: Rowan Farber, President & CEO of LifeHouse Retirement Properties, Inc., +1-310-230-0444, fax, +1-310-230-6861, Web site: http://www.lifehouseproperties.com/

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