Emeritus Announces Agreement to Lease Eleven Communities

Emeritus Corporation, a national provider of assisted living and related services to senior citizens, announced today that it has entered into an agreement to lease 11 communities from affiliates of HCP, Inc.. The communities are comprised of 1,462 units and are located in California, Connecticut, Massachusetts, Maryland, New Jersey, and Virginia. The term of the lease is ten years with an option to purchase the properties beginning at the end of the fifth year and continuing through the end of the lease term.

The closing of this lease transaction is subject to due diligence and other customary conditions to closing. The Company expects the transaction to close by the end of the fourth quarter of 2008.

Emeritus Corporation is a national provider of assisted living and Alzheimer’s and related dementia care services to seniors. Emeritus is one of the largest and most experienced operators of freestanding assisted living communities located throughout the United States. The Company’s communities provide a residential housing alternative for senior citizens who need help with the activities of daily living with an emphasis on assistance with personal care services to provide residents with an opportunity for support in the aging process. Emeritus currently operates 289 communities in 36 states representing capacity for 24,800 units and approximately 29,500 residents. For more information about Emeritus, visit the Company’s Web site at www.emeritus.com.