Sunrise and Pramerica Agree to Develop and Own US$1 Billion in Senior Living Communities in the United Kingdom

MCLEAN, Virginia, January 11 /PRNewswire/ --

Sunrise Senior Living, Inc. (NYSE: SRZ), the largest global senior living operator, has announced that it has formed a joint venture with Pramerica Real Estate Investors ("Pramerica") to continue developing senior living properties in the United Kingdom (UK). Pramerica is the real estate investment and advisory business of Prudential Financial, Inc. (NYSE: PRU).

Pramerica, acting on behalf of institutional investors, will own 80 percent of the joint venture, with the remaining 20 percent owned by Sunrise. Property developments will be funded through contributions of up to approximately US$200 million (100 million pounds Sterling) by the partners, based on their percentage interest, with the balance funded by loans provided by third-party lenders, giving the joint venture total investment capacity of up to approximately US$1 billion (approximately 500 million pounds). Sunrise and Pramerica expect the joint venture to develop an estimated 18 assisted living communities in desirable residential locations in metropolitan areas in the UK over the next four years. Sunrise will operate the communities developed under long-term agreements.

Sunrise opened its first property in the UK in 1999. Sunrise has since opened another 11 communities in the UK, with 18 additional UK communities currently under development or in the construction phase, with total capacity for approximately 3,000 residents. Sunrise also has communities operating in Germany and is looking at opportunities in other European markets.

During the second half of 2006, Sunrise approached a handful of potential financial partners to raise additional funding for its strong development pipeline in the UK. Given the strong interest expressed by large institutional investors, Sunrise implemented a competitive process that led to the selection of Pramerica. This is Sunrise's second joint venture with Pramerica and will allow for continued expansion into the growing European markets.

"We are pleased with the success of our first 12 projects in the UK. The acceptance of our innovative, high-end, resident-centered model by our residents and their families is very encouraging and we are clearly filling a gap in the market," said Thomas Newell, president of Sunrise. "We see tremendous potential for growth in the UK and other European markets and believe Pramerica is an excellent partner for the next phase of this growth."

"Pramerica is pleased to be making additional investments in the European senior living market," said Jonathan Short, managing director and head of Pramerica's European merchant banking team. "We believe bringing capital to team-up with an established brand like Sunrise in Europe will create value for investors in both companies as well as serve this rapidly growing segment of the population."

About Sunrise Senior Living

Sunrise Senior Living, a McLean, Va.-based company, employs more than 40,000 people. As of September 30, 2006, Sunrise operated 436 communities in the United States, Canada, Germany and the United Kingdom, with a combined capacity for more than 50,000 residents. Sunrise also had 46 communities under construction in these countries with a combined capacity for more than 6,000 additional residents. Sunrise offers a full range of personalized senior living services, including independent living, assisted living, care for individuals with Alzheimer's and other forms of memory loss, as well as nursing, rehabilitative and hospice care. Sunrise's senior living services are delivered by staff trained to encourage the independence, preserve the dignity, enable freedom of choice and protect the privacy of residents. To learn more about Sunrise, please visit http://www.sunriseseniorliving.com.

About Pramerica Real Estate Investors

Pramerica Real Estate Investors(i) specialized operating units offer a broad range of investment opportunities and investment management services in the United States, Europe, Asia, and Latin America. The company's fund management operations, located in Parsippany, N.J.; Atlanta, Ga.; Munich, London, Mexico City and Singapore, are supported by a network of local offices throughout the world. As of September 30, 2006, Pramerica Real Estate Investors managed US$32.9 billion of gross assets (US$23.7 billion net) on behalf of more than 300 clients and is ranked among the largest real estate investment managers. For more information, visit http://www.pramericarei.com.

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Sunrise believes the expectations reflected in such forward- looking statements are based on reasonable assumptions, there can be no assurances that its expectations will be realized. Sunrise's actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including, but not limited to, its ability to successfully integrate the Aston Gardens and Trinity transactions into the Company's operations, completion of Sunrise's accounting review and finalization of the restatement of its financial statements, the integration and performance of the Company's other recent acquisitions, development and construction risks, 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, satisfaction of closing conditions and availability of financing for development and acquisitions. These and other risks are detailed in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

(i) Pramerica is a tradename used by Prudential Financial. The company is not affiliated in any manner with Prudential plc, a company incorporated in the United Kingdom.

Contact: Lisa Mayr Vice President, Investor Relations and Capital Markets +1-703-744-1787 Web site: http://www.sunriseseniorliving.com http://www.pramericarei.com