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Sunrise Announces Exploration of Strategic Alternatives.

Article Excerpt
Provides Update on Pending Restatement and Related Matters

Provides Update on Legal Proceedings in Form 8-K Filing

MCLEAN, Va., July 25 /PRNewswire-FirstCall/ -- Sunrise Senior Living, Inc. today announced that its board of directors has decided to explore strategic alternatives intended to enhance shareholder value, including a possible sale of the Company. A committee of non-management directors, originally established in April 2007 to explore strategic alternatives, has engaged Citigroup Global Markets Inc. to act as its financial advisor. The committee, with the assistance of its legal and financial advisors, will consider and review the terms and conditions of any transaction and make a recommendation to the full board. There can be no assurance that the exploration of strategic alternatives will result in any sale transaction.

"For more than 25 years, both as a private and a public company, Sunrise has pioneered new senior living options that have improved the quality of life for hundreds of thousands of seniors and their families," said Paul Klaassen, founder, chairman and CEO of Sunrise Senior Living. "As the committee of non- management directors explores strategic alternatives, the Sunrise team remains committed to serving our residents and their families, while simultaneously working to enhance shareholder value."

The Company does not expect to disclose additional details unless and until its board of directors has approved a specific transaction.

Update on Pending Restatement and Related Matters

The Company today also provided an update on its pending financial restatement and related matters. As previously disclosed, the Company is undergoing a restatement of its financial statements for the years ended December 31, 2003, 2004 and 2005, which will be included in an amendment to the Company's previously filed 2005 Form 10-K. In addition, as previously disclosed, the board of directors has appointed a special independent committee to review certain insider sales of Sunrise stock, the Company's historical practices related to stock option grants and the facts and circumstances...