LOS ANGELES, Jan. 29 /PRNewswire-FirstCall/ -- LifeHouse Retirement Properties, Inc. (OTC:LHRP) is pleased to announce it closed on the purchase of two Skilled Nursing Communities, located in Sylmar and Bakersfield, California, on January 12, 2007. Pro forma for the acquisition, LHRP's revenue will increase over 113% from $16.0 million to $34.1 million on a combined basis, for the twelve month period through October 31, 2006. The Sylmar Community acquisition was completed for $9.3 million and included the fee simple real-estate. The implied capitalization rate was 18.1%, based on pro forma EBITDA of $1.7 million for the twelve month period through October 31, 2006. The Bakersfield Community acquisition was completed for $2.8 million and comprised the acquisition of the leasehold interest, which has a 20-year remaining term. The implied acquisition multiple was 3.0x, based on pro forma EBITDA of $1.0 million for the twelve month period through October 31, 2006. Both communities have an aggregate of 325 beds. LHRP currently has four additional skilled nursing facilities in escrow and in the due diligence process. These comprise an additional 524 beds. One of the facilities is expected to close shortly, pending the landlord lender's consent, and includes an additional 199 beds and generates approximately $1.1 million of pro forma EBITDA, for the twelve month period through October 31, 2006 Mr. Rowan Farber, President & CEO of LifeHouse Retirement Properties, Inc., stated that "these acquisitions provide significant scale to our current operating platform and the opportunity for our expansion into the California region. We believe that the LifeHouse healthcare service delivery model will be well received in these markets and that we will be able to significantly reposition these communities. This will provide significant benefits for our residents, new employees and shareholders." This acquisition brings the total number of LifeHouse owned and operated communities to twelve. The Company still has approximately $12.5.0 million of capital to deploy in its Acquisition Line, which Management believes can be leveraged to approximately $50.0 million of additional buying power. 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 investment banking, health care, hospitality, finance, construction, and real estate, particularly effective in turnaround operations of under performing properties or entire business units. The Company has approximately 1024 beds and 750 full-time and part-time 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., Phone: +1-310-230-0444, or Fax: +1-310-230-6861, or

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