New York – January 28, 2008

Cain Brothers, one of the largest investment banks on Wall Street specializing in the health care services industry, announced the successful closing of a $93,625,000 bond offering for the Acacia Creek at Union City Project, an affiliate of Masonic Homes of California. Cain Brothers was the sole manager of the offering. The offering consists of variable rate revenue bonds due in 2038.

The bonds relating to the Acacia Creek at Union City Project, which is located approximately 40 miles south of San Francisco, will be used to build and equip 152 independent living apartments. This is the first phase of a continuing care retirement center (CCRC) expansion that will eventually include assisted living, dementia care, and a second retirement community to be constructed in Covina, California later this year. Acacia Creek’s innovative program structure will purchase skilled nursing care on a contract basis from the existing Masonic Home’s skilled nursing facility.

A key feature of the financing was the ability to use Masonic Homes of California’s guaranty to back the bonds instead of having the project bear the costs associated with third party credit enhancement, especially during the current time of uncertainty surrounding the monoline bond insurance companies. Masonic Homes has AA ratings from Standard & Poor’s and Fitch. The bonds will be remarketed based on the strength of the Masonic Homes credit ratings alone with a stand-by liquidity feature provided by Bank of America.

“This is the first self-credit enhanced financing in CCRC start-up history,” said Bill Pomeranz, Managing Director, of Cain Brothers. Because an interest rate swap was also used as part of the overall financing plan, Acacia Creek was able to lock up a 10-year fixed rate at 3% and achieve a total financing cost of less than 3.5%. The Project’s low debt service costs combined with a shared skilled nursing facility means that the Project will be affordable for the average senior resident in the area, a critical objective of the Masonic Homes.

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The Acacia Creek at Union City Project Official Statement can be accessed at http://www.munios.com/id.asp?id=%9D%9Dw%81by%B1ml1152

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Cain Brothers is an investment banking firm that focuses exclusively on the health care industry. Our clients include providers, payors, medical device and equipment companies, information technology companies, outsourcing companies, and financial sponsors. The firm has one of the largest teams of experienced bankers and traders on Wall Street dedicated to the health care industry. Operating out of offices in New York, Chicago, Houston, San Francisco, Atlanta, Indianapolis, Long Beach, and Sarasota, Cain Brothers creates custom-tailored, market-based solutions for the many strategic, financial, and operating challenges facing its clients. Cain Brothers’ venture capital affiliates, Health Enterprise Partners and CB Health Ventures, invest capital in fast-growing health care service and information technology companies.

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Contact Bill Pomeranz
415-962-2954
bpomeranz@cainbrothers.com

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This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction.