Extendicare Real Estate Investment Trust Declares January 2008 Distribution

MARKHAM, ONTARIO, Jan 15 (MARKET WIRE) --
Extendicare Real Estate Investment Trust ("Extendicare REIT" or the
"REIT") (TSX: EXE.UN) today announced that it has declared a cash
distribution of C$0.0925 per unit for the month of January 2008, which is
payable to unitholders of record at the close of business on January 31,
2008, and will be paid on February 15, 2008.

Extendicare Limited Partnership (the "Partnership") also announced that
it has declared a cash distribution of C$0.0925 per Class B limited
partnership unit for the month of January 2008, which is payable to
unitholders of record at the close of business on January 31, 2008, and
will be paid on February 15, 2008.

The REIT and the Partnership's current annualized distribution rate is
C$1.11 per unit, payable in monthly distributions of C$0.0925 per unit.
In accordance with the distribution policy of both the REIT and the
Partnership, unitholders of record at the close of business on the last
business day of each calendar month will be paid a distribution on or
about the 15th day of the following month.

Management estimates that approximately 70% of the 2008 distributions of
the REIT and Partnership will be characterized as tax deferred returns of
capital. To the extent a portion of the remaining 30% of distributions
paid in 2008 are dividends, such dividends paid to Canadian residents are
eligible for the enhanced dividend tax credit.

The REIT has a Distribution Reinvestment Plan, which provides Canadian
resident unitholders and holders of Class B limited partnership units
with the opportunity to increase their respective investments at a 3%
discount to the volume weighted average trading price of the REIT units
on the TSX for the five trading days immediately preceding the
distribution payment date. A copy of the Plan package is available on the
REIT's website at www.extendicare.com in the Investors section.

About Us

Extendicare REIT, through its wholly owned subsidiaries, is a major
provider of long-term care and related services in North America. Through
its subsidiaries, Extendicare operates 267 nursing and assisted living
facilities in North America, with capacity for approximately 30,200
residents. As well, Extendicare's subsidiaries offer medical specialty
services such as subacute care and rehabilitative therapy services in the
United States, and home health care services in Canada, and employ
approximately 37,800 people in North America.

Forward-looking Statements

Information provided by Extendicare REIT from time to time, including
this release, contains or may contain forward-looking statements
concerning anticipated financial events, results, circumstances, economic
performance or expectations with respect to the REIT and its
subsidiaries, including its business operations, business strategy, and
financial condition. Forward-looking statements can be identified because
they generally contain the words "expect", "intend", "anticipate",
"believe", "estimate", "plan" or "objective" or other similar
expressions. Forward-looking statements reflect management's beliefs and
assumptions and are based on information currently available, and the
REIT assumes no obligation to update any forward-looking statement. These
statements are not guarantees of future performance and involve known and
unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements of the REIT to differ materially
from those expressed or implied in the statements. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on the
REIT's forward-looking statements. Further information can be found in
the disclosure documents filed by Extendicare REIT with the securities
regulatory authorities, available at www.sedar.com and on the REIT's
website at www.extendicare.com.

Contacts:
Extendicare REIT
Mark E.F. Utting, CFA
Director, Investor Relations
(905) 470-5483
(905) 470-4003 (FAX)
Email: mutting@extendicare.com
Website: www.extendicare.com

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