Des Moines, IA, November 18, 2010 — Headquartered in Des Moines, Lifespace Communities, Inc., has received an “A” from Fitch Ratings for a tax exempt bond offering totaling more than $30 million.

“An ‘A’ rating from one of the nation’s major rating agencies is a significant achievement,” says Larry Smith, CFO of Lifespace Communities. “At a time when some continuing care retirement communities across the country are struggling financially, our ‘A’ rating is an important indicator of our financial strength and stability.”

The proceeds of the “A”-rated bond offering, issued today, will be used in part to pay for improvements at the company’s 11 senior living communities in seven states.

The investment-grade rating will allow Lifespace Communities, a not-for-profit organization, to raise capital more easily, with lower financing and debt costs. “We can meet our capital/construction needs in the future on more favorable terms,” Smith says. “That’s advantageous for our residents, who benefit from the capital improvements.”

Future improvements include:

• Remodeling existing health centers to provide more private rooms
• Adding alternative dining venues
• Funding wellness programs

According to Fitch, the rating reflects Lifespace Communities’ light debt and strong debt service coverage, capital spending and revenue. It’s also based on the diverse locations of the 11 senior living communities, located in Minnesota, Iowa, Nebraska, Kansas, Illinois, Pennsylvania and Florida.

With multiple continuing care retirement communities (CCRCs) across the country, Lifespace Communities is considered a “system provider.” According to Jim LeBuhn, Fitch senior director, “Within the Fitch portfolio of rated credits, there is no system rated higher than Lifespace Communities.”

“The geographic diversity lowers the risks associated with changes in demand and competition,” Smith says. “Across the board, our occupancy has remained consistent in spite of the economy. This was another factor in our ‘A’ rating.”

In ratings from Fitch, S&P and Moody’s, Lifespace also earns an “A.” According to Jeffrey Girardi, research specialist for Ziegler Capital Markets/Senior Living Finance in Columbia, MD, the following figures reflect industry ratings.

• There are 1,861 CCRC communities in the U.S.
• Of those, 363 are rated by Fitch, S&P and Moody’s.
• The 363 CCRCs include 58 systems, or multi-site organizations like Lifespace Communities.
• Of those 58 systems, one received an “A+”; three others earned “A” ratings.
• Lifespace Communities, Inc., is one of the three CCRC multi-site systems to receive an “A” rating.

“We encourage seniors to scrutinize this kind of information before joining a community,” Smith says. He advises seniors to check a community’s financial status, observe how the community invests money and research its track record and balance sheet. “We want them to know that their community is a safe, sound investment,”
Smith says.

All 11 Lifespace communities are accredited by the Commission on Accreditation of Rehabilitation Facilities and the Continuing Care Accreditation Commission (CARF-CCAC). Only 15% of communities nationally have received this accreditation, which recognizes the highest standards in administration, finance, care and services to seniors.

Lifespace Communities, Inc. is a nationally recognized not-for-profit leader with 2,500 employees providing an active lifestyle to more than 4,500 seniors residing in 11 communities in seven states. Deerfield in Urbandale is one of the company’s communities. Founded in 1976, the company’s mission is to create and sustain communities celebrating the limitless possibilities in the lives of seniors. For more information, visit www.lifespacecommunities.com.

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For more information:

Larry Smith, CFO
Lifespace Communities
515.288.5805
larry.smith@lifespacecommunities.com

Jim LeBuhn, Senior Director
Fitch, Inc.
312.368.2059
james.lebuhn@fitchratings.com