Emeritus Announces Acquisitions

Emeritus Corporation ESC today announced the closing of acquisitions involving eight communities consisting of approximately 825 units. On October 29, 2010, the Company completed the lease acquisition of a 100-unit assisted living and memory care community located in Brandon, Mississippi. The lease agreement provides for an initial term expiring on September 30, 2018, with an option to renew for an additional 15-year term. The lease agreement also contains a purchase option. This is a financing lease with a total asset value and corresponding financing lease obligation of $10.6 million. On December 1, 2010, the Company completed the acquisition of two communities consisting of 321 units located in Florida that previously had been operated by the Company under long-term leases and accounted for as operating leases. The total purchase price was $21.5 million. In addition, on December 1, 2010, the Company completed the acquisition of an 80-unit assisted living community located in Little Rock, Arkansas. The total purchase price was $11.2 million. These acquisitions were financed with mortgage debt of approximately $28.0 million.