Five Star Quality Care Settles Litigation Against Sunrise; Five Star Will Receive $4 Million and Begin Managing 10 Senior Living Communities

Five Star Quality Care, Inc. FVE today announced that it has agreed to settle its long running litigation with Sunrise Senior Living, Inc. SRZ in return for a payment from Sunrise to Five Star of $4 million. Thirty-one (31) senior living communities now operated by Five Star were formerly managed by Marriott Senior Living Services, Inc. (MSLS), a subsidiary of Marriott International, Inc. MAR. Marriott sold MSLS to Sunrise in 2003 and these communities began to participate in insurance programs operated by Sunrise. During 2005 and 2006, Five Star terminated Sunrise's management contracts and began direct operations of these 31 senior living communities. In 2008, Five Star learned of excess insurance charges by Sunrise during the period these 31 communities were managed by Sunrise, and Five Star demanded a refund. When Sunrise denied liability and refused to pay, Five Star brought suit against Sunrise. The $4 million payment from Sunrise to Five Star announced today settles this litigation.