LifeHOUSE Retirement Properties, Inc. Completes the Sale and Recapitalization of the Corporation’s Communities

  
    
  
  
    
      LifeHOUSE Retirement Properties, Inc. (LHRP.PK, the “Seller” or 
      the “Corporation”) said today that it has completed the sale of 
      substantially all of its assets to a newly formed entity, LifeHOUSE 
      Holdings, LLC (“LifeHOUSE”, the “Buyer” or the “Company”), an 
      affiliate of Westport Capital Partners LLC (“Westport”). The transaction 
      was approved by the Seller’s Board of Directors on September 12, 2008, 
      and by a vote of more than a super-majority of the Seller’s 
      shareholders, as of October 5, 2008.
    
    
      LifeHOUSE senior executives will continue to operate the Company 
      (or Buyer entity), and substantially all of the employees of the various 
      communities will remain in place. Rowan Farber, Chief Executive Officer 
      of LifeHOUSE, stated, “We are excited to be working with the 
      principals at Westport. They are very supportive of the LifeHOUSE 
      mission of delivering our unique patient-centered model of care. The 
      recapitalization of our Company significantly reduces our financial 
      leverage and creates a much stronger corporation that will continue to 
      focus on our core strategy of delivering value-added services and 
      support to our residents and employees. We are striving to create a new 
      benchmark for quality-care in this industry as we become the center for 
      quality, excellence and learning.” This initiative will be supported by 
      additional renovation capital that will be provided by Westport and 
      other sources to further enhance life-enrichment programs at LifeHOUSE 
      communities.
    
    
      LifeHOUSE concentrates on delivering premier traditional and 
      alternative services and products to its residents, with an emphasis on 
      an “aging in place” quality and continuum of care. The recapitalization 
      is the next step in implementing the Company’s mission and philosophy as 
      it positions itself in the marketplace and extends its brand to new 
      acquisitions. The LifeHOUSE approach will help advance the 
      quality commitment and create a learning environment to effect 
      continuous performance improvement in clinical processes to better meet 
      the needs of our residents. The Company will continue to strive for a 
      holistic environment which provides independence, dignity, and choice in 
      a resident-centered, employee-focused environment.
    
    
      After the completion of the transaction, which was principally 
      structured as an asset purchase, the Seller will no longer have any 
      operations and will wind up its affairs.
    
    
      The reorganized Company, under the control of Westport, will be 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 
      healthcare, mergers & acquisitions, hospitality, real estate and 
      construction. The Company is particularly effective in turnaround 
      operations of under-performing properties or entire business units. The 
      Company has approximately 2,386 beds (1,580 skilled nursing beds and 806 
      assisted and independent living units) and over 2,000 full-time 
      equivalent employees. For more information, please visit our website: www.lifehouseproperties.com.
    
    
      About Westport Capital Partners, LLC
    
    
      Westport is a real estate investment firm providing domestic and 
      international investment opportunities to institutional and private 
      clients. Headquartered in Westport, CT, the firm also has offices in Los 
      Angeles and Mumbai, India. Westport invests in real estate through 
      direct and indirect property ownership, and through public and private 
      real estate securities and financial instruments. In the healthcare 
      space, Westport seeks to invest in markets with strong operating 
      dynamics and where value can be created through asset recapitalization, 
      active management and asset repositioning.
    
    
      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 Corporation'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 
      Corporation 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.