FOR IMMEDIATE RELEASE

PRS Contact: Brian McLemore
Executive VP, Development and Marketing
(541) 857-7675

Foster City Contact: Kristi Chappelle
Assistant City Manager
(650) 286-3213

Foster City Council Authorizes Preparation of Ground Lease with PRS for Development of 10.5 Downtown Acres

(Medford, Oregon and Foster City, California) December 18, 2007 – The City of Foster City, California, and Pacific Retirement Services, Inc. (PRS), jointly announced today that work will begin on the preparation of a ground lease and other legal documents for the development of 10.5 acres in downtown Foster City. These agreements will be based on business terms that were given a favorable review by the Foster City Council at its December 17, 2007 meeting. The project will be sponsored and developed by PRS in connection with Sares Regis Group of Northern California, L.P.

The business terms will now guide the drafting of a 99-year ground lease and other agreements between Pacific Retirement Services and Foster City for the 10.5 City-owned acres next to City Hall.

“PRS is planning to develop and operate a 670,000-square-foot Continuing Care Retirement Community (CCRC) on the site,” says Brian McLemore, executive vice president of development and marketing for PRS. “The development will also feature a vibrant downtown square with approximately 31,000 to 50,000 square feet of dining and retail venues, parking, and an affordable senior housing community. We are looking forward to starting the design process in early 2008.”

The CCRC by PRS is expected to offer 251 Independent Living Apartments and 36 Assisted Living Apartments, plus Memory Care for 20 residents and Skilled Nursing Care for 24 residents. PRS’s affordable senior housing community will add 65 apartments, and there will be approximately 640 total parking spaces for the development.

Development of business terms began in July 2007, when the City Council voted unanimously to enter into exclusive, limited term negotiations with the PRS/Sares Regis team. Seven other groups bid for the development opportunity, but the proposal by PRS/Sares Regis best addressed the City’s land use and financial goals for this important site. Based in San Mateo, Sares Regis formed the team and will continue to work with PRS and the City throughout the development process.

“The PRS/Sares Regis group was chosen for its attractive and viable proposal, which offered a supportable mix of senior housing, retail, and public spaces for Foster City residents,” said Foster City Mayor Pam Frisella. “PRS/Sares Regis also brought experience and financial capability to the table, as well as a proven ability to listen well and remain responsive and flexible throughout the long selection process.”

For more information about Pacific Retirement Services, please call (888) 724-6424 or visit www.retirement.org. To learn more about Sares Regis, visit www.srgnc.com. For the latest news about the Foster City development, visit the City’s website at www.fostercity.org.

About Pacific Retirement Services, Inc.
Pacific Retirement Services, Inc., is a not-for-profit corporation and a national leader in the Senior Living industry. Headquartered in Medford, Oregon, PRS currently has approximately 1,600 employees and provides housing and services to more than 4,500 seniors through its many affiliated organizations, including seven Continuing Care Retirement Communities (CCRCs), two managed retirement communities, and twenty-four affordable housing communities. Among its CCRCs are the brand-new Mirabella Seattle and Mirabella Portland; the 668-acre Rogue Valley Manor in Medford, Oregon; Holladay Park Plaza in Portland, Oregon; Cascade Manor in Eugene, Oregon; University Retirement Community in Davis, California; and Trinity Terrace in Fort Worth, Texas.

About Sares Regis Group of Northern California, L.P.
Sares Regis Group of Northern California is a leading California commercial real estate development and property management firm, providing services that address the unique needs of the communities and clients it serves. Based in San Mateo, Sares Regis will assist Pacific Retirement Services, Inc., in developing the 10.5 acre downtown site owned by Foster City into a vibrant market rate retirement community, retail, and town center. Sares Regis will provide integral entitlement and retail planning services to the project, helping to ensure its success while also demonstrating its commitment to the continued growth and development of Foster City and the greater San Francisco Bay area.

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