HCP Initiates Litigation against Sunrise Senior Living

LONG BEACH, Calif.--(Business Wire)--
HCP (NYSE:HCP) announced that it, together with three of its tenants, has filed
complaints against Sunrise Senior Living, Inc. and its subsidiaries ("Sunrise")
based on Sunrise`s defaults under management and related agreements covering 64
HCP-owned properties operated by Sunrise. The complaints, filed in the Delaware
Chancery Court on June 29, 2009, allege, among other things, that Sunrise
systematically breached various contractual and fiduciary duties, including
operating the properties in a manner that impermissibly favored the interests of
Sunrise and its affiliates at the expense of HCP and its tenants. In addition to
equitable relief and money damages relating to the defaults, HCP and its tenants
are seeking judicial confirmation of rights to terminate the agreements on the
64 properties.

HCP became the owner of 101 senior housing communities operated by Sunrise
through its 2006 acquisition of CNL Retirement Properties, Inc. As previously
disclosed, HCP transitioned 11 of those communities to a new operator in
December 2008, and shortly thereafter notified Sunrise that it was in default of
its obligations under the agreements for the remaining 90 communities. Sunrise
responded to HCP`s default notices by denying that it was in violation of its
agreements in any material respect. The agreements provide Sunrise with various
periods to cure the defaults, which periods have now expired. More recently, HCP
announced that the management agreements on 15 additional Sunrise-managed
communities were terminated effective October 1, 2009.

ABOUT HCP

HCP, Inc., an S&P 500 company, is a real estate investment trust (REIT) that,
together with its consolidated subsidiaries, invests primarily in real estate
serving the healthcare industry in the United States. As of March 31, 2009,
HCP`s portfolio of properties, excluding assets held for sale but including
properties owned by unconsolidated joint ventures, totaled 692 properties among
the following segments: 264 senior housing, 100 life science, 254 medical
office, 23 hospital and 51 skilled nursing. For more information, visit the
Company`s website at www.hcpi.com.

FORWARD-LOOKING STATEMENTS

The statements contained in this release which are not historical facts are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those set forth in or implied by
forward-looking statements. These risks and uncertainties include general
economic conditions, the risks associated with litigation in general, including
the costs and time that must be devoted to litigation, the potential diversion
of management attention that may result from being engaged in litigation, and
the possibility of adverse results, the disruption to HCP`s operations being
more severe than currently expected, and other risks and uncertainties detailed
from time to time in the Company`s filings with the Securities and Exchange
Commission. While the Company anticipates that subsequent events and
developments may cause its views to change, it specifically disclaims any
obligation to update these statements. These statements should not be relied
upon as representing the Company`s views as of any date subsequent to the date
of this press release.

HCP
James F. Flaherty III
Chairman and Chief Executive Officer
562-733-5100

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