##### 



Exhibit 99.1
 
 2005 Annual
Information Form
 March 23, 2006
 For the year ended December 31, 2005
 Health Care is Our Business ä




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##### 



TABLE OF CONTENTS
 PageThis Annual Information FormDocuments Incorporated by Reference
    
    
    1Cautionary Notice Regarding Forward-looking Statements
    
    
    1Corporate StructureIncorporation
    
    
    2Inter-corporate Relationships and Subsidiaries
    
    
    2General Development of BusinessStrategic Initiative
    
    
    3General Overview
    
    
    3Three Year History
    
    
    4Description of the BusinessCompany Profile
    
    
    12Operations
    
    
    12Sources of Revenue
    
    
    16Long-term Care Industry
    
    
    20Competitive Strengths
    
    
    22Business Strategy
    
    
    25Quality of Care
    
    
    27Marketing
    
    
    29Properties
    
    
    30Government Regulations
    
    
    31Employees
    
    
    37Investment in Crown Life Insurance Company
    
    
    37Risk Factors
    
    
    37Dividends
    
    
    39Description of Capital StructureGeneral Description of Capital Structure
    
    
    40Ratings
    
    
    44Market for SecuritiesTrading Price and Volume
    
    
    45Prior Sales
    
    
    46Directors and Officers
    
    
    47Legal Proceedings
    
    
    50Interest of Management and Others in Material Transactions
    
    
    50Transfer Agent and Registrar
    
    
    50Material Contracts
    
    
    50Interests of Experts
    
    
    50Audit Committee Information
    
    
    50Additional Information
    
    
    51




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##### 



THIS ANNUAL INFORMATION FORM
    Documents Incorporated by Reference
  
    
    the Management Information and Proxy Circular of Extendicare Inc. dated March 3, 2006;
    
    the Managements Discussion and Analysis, found on pages 6 through 57 of the 2005
Annual Report of Extendicare Inc., dated February 22, 2006; and
    
    the Consolidated Financial Statements, including Managements Responsibility for
Financial Statements and the Auditors Report, found on pages 58 through 113 of the 2005
Annual Report of Extendicare Inc.
 Cautionary Notice Regarding Forward-looking Statements




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##### 



CORPORATE STRUCTURE
 Incorporation
  Inter-corporate Relationships
   EXTENDICARE (CANADA) INC.
    
    
    (100%) (CANADA)nursing, assisted living and retirement centres; home health care and management of a chronic
care unitEXTENDICARE HEALTH SERVICES, INC.
    
    
    (100%) (UNITED STATES)nursing, assisted living and retirement centres; rehabilitative therapy and group purchasing
servicesLAURIER INDEMNITY COMPANY, LTD.
    
    
    (100%) (BERMUDA)LAURIER INDEMNITY COMPANY
    
    
    (100%) (UNITED STATES)property and casualty insurance captives for United States health care operations
 Subsidiaries
  Jurisdiction
    
    Percentage of Voting Securitiesof
    
    Owned Directly or IndirectlyName
    
    Incorporation
    
    by ExtendicareExtendicare (Canada) Inc.
    
    Canada
    
    100159524 Canada Inc. (1)
    
    Canada
    
    100New Orchard Lodge Limited
    
    Canada
    
    100Extendicare Health Services, Inc.
    
    Delaware
    
    100Extendicare Health Facilities Holdings, Inc.
    
    Delaware
    
    100Extendicare of Indiana, Inc.
    
    Delaware
    
    100Extendicare Homes, Inc.
    
    Delaware
    
    100Northern Health Facilities, Inc.
    
    Delaware
    
    100Fir Lane Terrace Convalescent Center, Inc.
    
    Washington
    
    100Arbors at Toledo, Inc.
    
    Ohio
    
    100Assisted Living Concepts, Inc.
    
    Nevada
    
    100Laurier Indemnity Company, Ltd.
    
    Bermuda
    
    100Laurier Indemnity Company
    
    Wisconsin
    
    100
 
 (1)
    
    Extendicare Inc., through 159524 Canada Inc., owns a 34.8% common equity interest in Crown
Life Insurance Company.




---



##### 



GENERAL DEVELOPMENT OF BUSINESS
 Strategic Initiative
  General Overview
  
    
    significant resident care liability costs from its Florida and Texas nursing home operations;
    
    high debt levels; and
    
    an inadequate reimbursement system in the United States.
  1.
    
    Extendicare recognized early on the risks associated with operating in Florida and
Texas, and articulated and successfully executed a strategy to exit these litigious nursing
home markets by the end of 2000 and 2001, respectively.2.
    
    As a result of Extendicares ability to divest itself of these and other
underperforming assets, the Company was able to repay a significant portion of its debt
ahead of schedule. EHSI also completed two successful debt issues in 2002 and 2004 and
expanded its credit line. The stronger balance sheet enabled the Company to take on
additional debt in 2005 when it acquired Assisted Living Concepts, Inc. (ALC) in January of
2005.3.
    
    Finally, as U.S. government funding changes started to impact long-term care companies
in 1999 and in contrast to many who tried to cut costs in an effort to regain
profitability, Extendicare made a strategic decision to focus on sales, defined as census
or occupancy in its nursing homes. This enabled the Company to return its core nursing home
business in the U.S. to profitability, within the confines of the new Medicare Prospective
Payment System, or PPS. This was an inherently positive strategy, as it focused on driving
growth and profitability through increased sales, not through cutting costs. As a result,
Medicare census levels have risen steadily since 2000, reaching a same-facility average of
18.4% for 2005. In growing Medicare census, the Company also achieved overall occupancy
growth. Going back to 2000, the average occupancy of EHSIs nursing homes was 87.5%, which
was in line with the industry average. For the year 2005, EHSI increased occupancy to
92.8%.




---



##### 



Three Year History
  U.S. Operations
 Medicare Funding Changes
  st




---



##### 



State Plan Amendments That Affect Medicaid Funding
 st




---



##### 



Acquisition of Assisted Living Concepts, Inc.
  Other Acquisitions
   Construction
  Amended and Restated U.S. Credit Facility
  U.S. Issuance and Retirement of Long-term Debt




---



##### 



Discontinued Operations
  Sale of Florida Leased Properties:
 Nursing Facilities in Minnesota:
 Lakeside, Wisconsin:
  Dispositions
  Provision for Impairment of Long-lived Assets




---



##### 



Provision Against U.S. Advances
  EHSI Tax Recovery
  Foreign Currency Translation
    Self-insured General and Professional Liabilities




---



##### 



Canadian Operations
 Ontario Occupancy
  Ontario Property Tax Funding
  Ontario Long-term Care Funding
    Ontario Long-term Care Legislation
  Alberta Long-term Care Funding




---



##### 



Construction
      Dispositions
  ParaMed Home Health Care




---



##### 



Corporate Developments
 Equity Investment in Crown Life Insurance Company
   Normal Course Issuer Bid
   Multiple Voting andSubordinate Voting
    
    
    
    
    
    Average CostYear
    
    Shares (#)
    
    Total Cost ($)
    
    per Share ($)2005
    
    
    1,505,900
    
    
    
    26,841,000
    
    
    
    17.822004
    
    
    463,800
    
    
    
    6,744,000
    
    
    
    14.542003
    
    
    1,540,700
    
    
    
    7,667,000
    
    
    
    4.98
 Initiation of Common Share Dividends




---



##### 



DESCRIPTION OF THE BUSINESS
 Company Profile
     Operations
 United States
 Organizational Structure




---



##### 



Nursing Care
   Assisted and Independent Living Services




---



##### 



Management and Selected Consulting Services
   Group Purchasing
  Rehabilitative Therapy  Outpatient and Inpatient Services




---



##### 



Canada
  Nursing and Assisted Living and Retirement Care Services
    Management and Consulting Services
   Home Health Care Services




---



##### 



Group Purchasing Services
  Sources of Revenue
 United States
    Years ended December 31(%)
    
    2005
    
    2004
    
    2003Medicare
    
    
    27.1
    
    
    
    30.2
    
    
    
    27.6Private pay
    
    
    28.0
    
    
    
    22.9
    
    
    
    24.1Quality mix
    
    
    55.1
    
    
    
    53.1
    
    
    
    51.7Medicaid
    
    
    44.9
    
    
    
    46.9
    
    
    
    48.3
 Medicare




---



##### 



Medicaid
     Private Pay




---



##### 



Assisted Living Facilities
   Canada




---



##### 



19




---



##### 



Long-term Care Industry
 Aging Population
   Total U.S.
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total5-year
    
    Population
    
    
    
    
    
    
    
    
    
    
    
    
    
    ElderlyPeriod
    
    Growth Rate
    
    65-74
    
    75-84
    
    85+
    
    (65+)2005-2010
    
    
    4.5
    %
    
    
    14.2
    %
    
    
    -0.8
    %
    
    
    19.6
    %
    
    
    9.7
    %2010-2015
    
    
    4.3
    %
    
    
    25.1
    %
    
    
    4.0
    %
    
    
    11.4
    %
    
    
    16.3
    %2015-2020
    
    
    4.2
    %
    
    
    19.4
    %
    
    
    16.6
    %
    
    
    6.5
    %
    
    
    16.8
    %2020-2025
    
    
    4.1
    %
    
    
    12.3
    %
    
    
    27.2
    %
    
    
    10.2
    %
    
    
    16.3
    %2025-2030
    
    
    4.1
    %
    
    
    6.3
    %
    
    
    20.6
    %
    
    
    19.9
    %
    
    
    12.5
    %Source: U.S. Census Bureau,
International Data Base, published October 10, 2002
   Supply/Demand Imbalance
     20




---



##### 



Cost Containment Pressures
  Changing Family Dynamics
  Competition
      21




---



##### 



Competitive Strengths
 Leading Provider of Long-term Care Services
   Significant Facility Ownership
   United States
    
    Canada
    
    TotalNo. of
    
    Resident
    
    No. of
    
    Resident
    
    No. of
    
    ResidentFacilities
    
    Capacity
    
    Facilities
    
    Capacity
    
    Facilities
    
    CapacityOwned
    
    
    285
    
    
    
    19,421
    
    
    
    45
    
    
    
    6,086
    
    
    
    330
    
    
    
    25,507Leased (1) (2)
    
    
    65
    
    
    
    3,186
    
    
    
    9
    
    
    
    1,231
    
    
    
    74
    
    
    
    4,417Managed
    
    
    12
    
    
    
    968
    
    
    
    23
    
    
    
    3,603
    
    
    
    35
    
    
    
    4,571Total
    
    
    362
    
    
    
    23,575
    
    
    
    77
    
    
    
    10,920
    
    
    
    439
    
    
    
    34,495
 (1)
    
    The remaining terms of the 65 leased facilities that EHSI operates, not
including renewal options, range from one to nine years, the average being
seven years. Five of the assisted living facilities are operated under capital
lease arrangements. In addition, EHSI has a right of first refusal for four
nursing facilities and retains options to purchase one nursing facility and
five assisted living facilities.(2)
    
    The nine leased facilities in Canada are operated by ECI under 25-year
capital lease arrangements.
  22




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##### 



Focus on Core Business
   Geographic Diversity
    Management Focus on Key Performance Drivers
     23




---



##### 



Dual U.S. Medicare and Medicaid Certification
  Expansion of Non-government Based Revenue
  Experienced and Proven Management Team
   24




---



##### 



Business Strategy
 United States
 Provide Quality, Clinically Based Services
  Increase Medicare Census Within Nursing Homes
  Increase Private-Pay Census Within Assisted Living Facilities
  Expand Non-government Based Revenue Sources
   25




---



##### 



Leverage Presence in Small Urban Markets
  Actively Manage the Asset Portfolio
  Expansion
   Increase Management and Consulting Services Agreements
  Increase Operating Efficiency
   26




---



##### 



Canada
   .
 Quality of Care
 Commitment to Care
      27




---



##### 



Employee Training
   28




---



##### 



Marketing
 United States
  Canada
    29




---



##### 



Properties
  Assisted Living &Nursing Centres
    
    Retirement Centres
    
    Chronic Care Units
    
    TotalNo. of
    
    Resident
    
    No. of
    
    Resident
    
    No. of
    
    Resident
    
    No. of
    
    ResidentState/Province
    
    Facilities
    
    Capacity
    
    Facilities
    
    Capacity
    
    Facilities
    
    Capacity
    
    Facilities
    
    Capacity(note 1)Ohio
    
    
    29
    
    
    
    3,020
    
    
    
    20
    
    
    
    809
    
    
    
    
    
    
    
    
    
    
    
    49
    
    
    
    3,829Pennsylvania
    
    
    26
    
    
    
    3,021
    
    
    
    17
    
    
    
    648
    
    
    
    
    
    
    
    
    
    
    
    43
    
    
    
    3,669Indiana
    
    
    19
    
    
    
    1,866
    
    
    
    23
    
    
    
    965
    
    
    
    
    
    
    
    
    
    
    
    42
    
    
    
    2,831Wisconsin
    
    
    24
    
    
    
    2,024
    
    
    
    12
    
    
    
    631
    
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    2,655Washington
    
    
    15
    
    
    
    1,588
    
    
    
    23
    
    
    
    1,006
    
    
    
    
    
    
    
    
    
    
    
    38
    
    
    
    2,594Texas
    
    
    
    
    
    
    
    
    
    
    42
    
    
    
    1,708
    
    
    
    
    
    
    
    
    
    
    
    42
    
    
    
    1,708Kentucky
    
    
    19
    
    
    
    1,633
    
    
    
    1
    
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    1,688Minnesota (note 2)
    
    
    7
    
    
    
    947
    
    
    
    1
    
    
    
    58
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    1,005Oregon
    
    
    3
    
    
    
    214
    
    
    
    20
    
    
    
    703
    
    
    
    
    
    
    
    
    
    
    
    23
    
    
    
    917Idaho
    
    
    2
    
    
    
    194
    
    
    
    9
    
    
    
    344
    
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    538Arizona
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    400
    
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    400South Carolina
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    351
    
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    351Nebraska
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    324
    
    
    
    
    
    
    
    
    
    
    
    9
    
    
    
    324New Jersey
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    312
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    312Iowa
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    224
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    224Louisiana
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    173
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    173Delaware
    
    
    1
    
    
    
    120
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    120West Virginia
    
    
    1
    
    
    
    120
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    120Michigan
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    117
    
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    117Total United States
    
    
    146
    
    
    
    14,747
    
    
    
    216
    
    
    
    8,828
    
    
    
    
    
    
    
    
    
    
    
    362
    
    
    
    23,575Ontario
    
    
    52
    
    
    
    7,754
    
    
    
    1
    
    
    
    493
    
    
    
    1
    
    
    
    120
    
    
    
    54
    
    
    
    8,367Alberta
    
    
    13
    
    
    
    1,137
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    1,137Manitoba
    
    
    5
    
    
    
    762
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    762Saskatchewan
    
    
    5
    
    
    
    654
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    654Total Canada
    
    
    75
    
    
    
    10,307
    
    
    
    1
    
    
    
    493
    
    
    
    1
    
    
    
    120
    
    
    
    77
    
    
    
    10,920Total
    
    
    221
    
    
    
    25,054
    
    
    
    217
    
    
    
    9,321
    
    
    
    1
    
    
    
    120
    
    
    
    439
    
    
    
    34,495
  1.
    
    Some of the assisted living and retirement units are in wings attached to the nursing homes.
In these cases, the facility is only counted once as a nursing centre, but the resident
capacity is split and categorized as nursing beds and assisted living/retirement units,
respectively.2.
    
    Minnesota excludes three nursing homes designated as held for sale.
   30




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##### 



Government Regulations
 United States
  General Regulatory Requirements
  Nursing Facility Regulation
      31




---



##### 



Assisted Living Facility Regulation
     32




---



##### 



Restrictions on Acquisitions and Construction
   Regulation of Fraud and Related Matters
    33




---



##### 



Office of the Inspector General
   34




---



##### 



Cross Decertification and De-Licensure
  Ongoing Initiatives
  Environmental Laws and Regulations
    Health Insurance Portability and Accountability Act
    35




---



##### 



Corporate
Compliance Program
  Canada
   Extendicare 2005 AIF 36




---



##### 



Employees
  Investment
in Crown Life Insurance Company
  Risk
Factors
 Foreign
Currency Translation
  Government
Funding
   37




---



##### 



Government
Regulation
    Conditional
Asset Retirement Obligation
    Insurance
    38




---



##### 



Debt
Covenants
  Credit
and Interest Rates
     DIVIDENDS
  Common Shares
    

Preferred SharesMultiple
    
    Subordinate
    
    Class I
    
    Class I
    
    Class I
    
    Class II($ per share)
    
    Voting
    
    Voting
    
    Series 2
    
    Series 3
    
    Series 4
    
    Series 12005
    
    
    0.100
    
    
    
    0.200
    
    
    
    0.7802
    
    
    
    0.9900
    
    
    
    0.7913
    
    
    
    0.8722004
    
    
    
    
    
    
    
    
    
    
    0.7109
    
    
    
    0.9900
    
    
    
    0.7208
    
    
    
    0.8082003
    
    
    
    
    
    
    
    
    
    
    0.8320
    
    
    
    0.9900
    
    
    
    0.8438
    
    
    
    0.936
   39




---



##### 



DESCRIPTION
OF CAPITAL STRUCTURE
 General Description of Capital Structure
  Subordinate
Voting Shares and Multiple Voting Shares
 Priority
         40




---



##### 



Voting
Rights
  Required Approval
  Conversion Privileges
  Dividends
  Class I Preferred Shares
 Issuable in Series
  Priority
   Voting Rights
   41




---



##### 



Required
Approval
   Redemption Privileges
  Conversion Privileges
  Dividends
     Class II Preferred Shares
 Issuable in Series
  Priority
   42




---



##### 



Voting
Rights
  Required Approval
  Redemption and Conversion Privileges
  Dividends
  Normal Course Issuer Bid
   43




---



##### 



Ratings
   RatingS&P
    
    Rating
    
    Outlook
    
    Rank *2010
Notes
    
    B+
    
    stable
    
    (14) of 222014 Notes
    
    B
    
    stable
    
    (15) of 22Credit Facility and Term Loan
    
    1, BB
    
    stable
    
    (12) of 22Corporate rating
    
    BB-
    
    stable
    
    (13) of 22
      RatingMoodys
    
    Rating
    
    Outlook
    
    Rank *2010 Notes
    
    B1
    
    stable
    
    (14) of 212014 Notes
    
    B2
    
    stable
    
    (15) of 21Credit Facility and Term Loan
    
    Ba2
    
    stable
    
    (12) of 21Corporate family rating
    
    Ba3
    
    stable
    
    (13) of 21
     
 *
    
    Numbers in brackets indicate the rank of the rating, with 1 being the highest, 2 being the next, etc.     44




---



##### 



MARKET
FOR SECURITIES
 Trading
Price and Volume
   Multiple Voting Shares
    
    Subordinate Voting Shares
    
    Class I Preferred Shares,(TSX: EXE.MV)
    
    (TSX: EXE.SV)
    
    Series 2 (TSX: EXE.PR.B)2005
    
    High
    
    Low
    
    Volume
    
    High
    
    Low
    
    Volume
    
    High
    
    Low
    
    VolumeMonth
    
    ($)
    
    ($)
    
    Traded
    
    ($)
    
    ($)
    
    Traded
    
    ($)
    
    ($)
    
    Traded12
    
    
    19.50
    
    
    
    17.55
    
    
    
    54,986
    
    
    
    18.94
    
    
    
    17.50
    
    
    
    3,233,557
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    60011
    
    
    19.80
    
    
    
    18.25
    
    
    
    34,347
    
    
    
    19.60
    
    
    
    18.00
    
    
    
    3,701,643
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    2,30010
    
    
    20.97
    
    
    
    18.79
    
    
    
    42,495
    
    
    
    20.98
    
    
    
    18.75
    
    
    
    3,618,331
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    31809
    
    
    21.30
    
    
    
    18.75
    
    
    
    59,259
    
    
    
    21.25
    
    
    
    18.61
    
    
    
    4,796,976
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    1,04308
    
    
    19.60
    
    
    
    17.69
    
    
    
    30,270
    
    
    
    19.75
    
    
    
    17.55
    
    
    
    4,690,648
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    1,79007
    
    
    19.40
    
    
    
    17.40
    
    
    
    23,031
    
    
    
    19.20
    
    
    
    17.50
    
    
    
    2,834,116
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    1,21006
    
    
    19.10
    
    
    
    17.50
    
    
    
    33,510
    
    
    
    18.83
    
    
    
    17.50
    
    
    
    4,352,012
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    2,33905
    
    
    19.00
    
    
    
    16.05
    
    
    
    46,323
    
    
    
    18.29
    
    
    
    15.62
    
    
    
    7,673,745
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    10004
    
    
    20.00
    
    
    
    16.35
    
    
    
    36,477
    
    
    
    19.93
    
    
    
    16.20
    
    
    
    4,471,337
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    22103
    
    
    20.50
    
    
    
    18.16
    
    
    
    123,244
    
    
    
    20.00
    
    
    
    18.00
    
    
    
    7,095,938
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    1,56202
    
    
    19.01
    
    
    
    16.50
    
    
    
    41,497
    
    
    
    19.05
    
    
    
    17.70
    
    
    
    3,560,308
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    32901
    
    
    19.00
    
    
    
    15.65
    
    
    
    65,655
    
    
    
    18.96
    
    
    
    15.18
    
    
    
    8,126,340
    
    
    
    24.75
    
    
    
    24.75
    
    
    
    1,132
 Class I Preferred Shares,
    
    Class I Preferred Shares,
    
    Class II Preferred Shares,Series 3 (TSX: EXE.PR.C)
    
    Series 4 (TSX: EXE.PR.D)
    
    Series 1 (TSX: EXE.PR.E)2005
    
    High
    
    Low
    
    Volume
    
    High
    
    Low
    
    Volume
    
    High
    
    Low
    
    VolumeMonth
    
    ($)
    
    ($)
    
    Traded
    
    ($)
    
    ($)
    
    Traded
    
    ($)
    
    ($)
    
    Traded12
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19.92
    
    
    
    19.92
    
    
    
    84711
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.06
    
    
    
    20.00
    
    
    
    2,50010
    
    
    19.40
    
    
    
    19.40
    
    
    
    330
    
    
    
    24.00
    
    
    
    24.00
    
    
    
    1,200
    
    
    
    20.75
    
    
    
    19.89
    
    
    
    5,54809
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24.00
    
    
    
    24.00
    
    
    
    1,000
    
    
    
    20.65
    
    
    
    19.35
    
    
    
    5,80008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24.00
    
    
    
    24.00
    
    
    
    1,200
    
    
    
    19.75
    
    
    
    19.31
    
    
    
    50007
    
    
    20.50
    
    
    
    19.35
    
    
    
    1,010
    
    
    
    24.00
    
    
    
    24.00
    
    
    
    800
    
    
    
    20.26
    
    
    
    20.26
    
    
    
    14206
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.25
    
    
    
    20.02
    
    
    
    1,25005
    
    
    19.25
    
    
    
    19.25
    
    
    
    100
    
    
    
    24.00
    
    
    
    22.00
    
    
    
    1,200
    
    
    
    21.50
    
    
    
    19.25
    
    
    
    1,33504
    
    
    20.75
    
    
    
    19.60
    
    
    
    350
    
    
    
    24.50
    
    
    
    24.50
    
    
    
    100
    
    
    
    21.20
    
    
    
    20.05
    
    
    
    1,14503
    
    
    20.50
    
    
    
    19.75
    
    
    
    1,450
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.10
    
    
    
    20.05
    
    
    
    65302
    
    
    21.90
    
    
    
    21.90
    
    
    
    140
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.50
    
    
    
    20.10
    
    
    
    3,93701
    
    
    22.00
    
    
    
    22.00
    
    
    
    190
    
    
    
    24.25
    
    
    
    24.25
    
    
    
    100
    
    
    
    20.80
    
    
    
    20.00
    
    
    
    1,800
  45




---



##### 



Subordinate Voting Shares(NYSE: EXE)2005
    
    High
    
    Low
    
    VolumeMonth
    
    (US$)
    
    (US$)
    
    Traded12
    
    
    16.00
    
    
    
    14.90
    
    
    
    298,00011
    
    
    16.60
    
    
    
    15.47
    
    
    
    183,40010
    
    
    17.89
    
    
    
    15.78
    
    
    
    208,60009
    
    
    18.09
    
    
    
    15.73
    
    
    
    210,20008
    
    
    16.39
    
    
    
    14.51
    
    
    
    258,40007
    
    
    15.95
    
    
    
    14.22
    
    
    
    189,40006
    
    
    15.25
    
    
    
    14.05
    
    
    
    472,90005
    
    
    14.47
    
    
    
    12.39
    
    
    
    373,90004
    
    
    16.41
    
    
    
    13.01
    
    
    
    387,10003
    
    
    16.70
    
    
    
    14.50
    
    
    
    295,90002
    
    
    15.40
    
    
    
    14.27
    
    
    
    205,70001
    
    
    15.30
    
    
    
    12.50
    
    
    
    303,700
 Prior
Sales
   46




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##### 



DIRECTORS
AND OFFICERS
  Name / Residence / Director since / Term of
    
    Current Positions with Extendicare / Principal OccupationOffice to Expire
    
    for Past Five YearsDAVID J. HENNIGARCG, F
Nova Scotia, CanadaDirector since: October 8, 1980Term of office to expire:2007
    
    Mr. Hennigar is Chairman of Extendicare Inc. and has held this
position since 1985. He is also Chairman of Annapolis Group
Inc. (a private holding company in real estate development),
High Liner Foods Incorporated (a public value-added food
processing company), Aquarius Coatings Inc. (a public company
in paint manufacturing and developing), and Landmark Global
Financial Corporation (a public investment and management
company), as well as Chairman and founder of Acadian Securities
Inc. (a private investment dealer). Mr. Hennigar serves as a
director of the following additional public companies: Crombie
Real Estate Investment Trust; MedX Health Corp.; Sentex Systems
Ltd.; SolutionInc Technologies Limited; and VR Interactive
Corporation. In addition, he serves as a director of a number
of private companies, including Crown Life Insurance Company,
Minas Basin Holdings Limited and Scotia Investments Limited.H. MICHAEL BURNSCG, ISOntario, CanadaDirector since: March 24, 1978Term of office to expire: 2008
    
    Mr. Burns is Deputy Chairman of Extendicare Inc. and has held
this position since 1992, and he is President of Kingfield
Investments Limited (a private investment company). He is a
director of Algoma Central Corp. and Landmark Global Financial
Corporation (both public companies), and is Chancellor of
Renison College, at the University of Waterloo. Mr. Burns is a
former executive of Extendicare Inc., having served as
President (1985  1992), Chairman (1984  1985), and Chairman
and CEO (1980  1984).FREDERICK B. LADLYCG, HR, QS
Ontario, CanadaDirector since: June 6, 1986Term of office to expire:2007
    
    Mr. Ladly is Deputy Chairman of Extendicare Inc. and has held
this position since 1997, and is Vice-Chairman of Crown Life
Insurance Company (a private company). He serves on the boards
of High Liner Foods Incorporated (a public food processing
company) and Knudsen Engineering Limited (a private company
specializing in digital systems for marine applications). Mr.
Ladly is a former executive of Extendicare Inc., having served
as Chief Executive Officer (1992  1997), and as President and
CEO of Extendicare (Canada) Inc. (1984  1992).MEL
RHINELANDER
Wisconsin, United StatesDirector since: May 2, 2000Term of office to expire:May 8, 2006
    
    Mr. Rhinelander is President and Chief Executive Officer of
Extendicare Inc. and serves as a director of Sobeys Inc. (a
public retail food distribution company). He was appointed
Chief Executive Officer of Extendicare Inc. in August 2000,
following his appointment as President in August 1999. He is
also Chairman and Chief Executive Officer of Extendicare Health
Services, Inc. (EHSI), and has served as a director of EHSI
since 1998. Mr. Rhinelander has been with the Extendicare group
of companies since 1977 and has served in a number of senior
positions.
  47




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##### 



Name / Residence / Director since / Term of
    
    Current Positions with Extendicare / Principal OccupationOffice to Expire
    
    for Past Five YearsDEREK
H.L. BUNTAINA, F, HR,
IS
Grand Cayman, Cayman IslandsDirector since: April 26, 1995Term of office to expire:2008
    
    Mr. Buntain is President of The Dundee Bank, a private bank
offering banking services to international clients, and
President and Chief Executive Officer of Goodman & Company
(Bermuda) Limited (investment counsel). He serves as a director
of the following public companies: Dundee Precious Metals Inc.;
Eurogas Corporation; Sentex Systems Ltd.; and CencoTech Inc.SIR
GRAHAM DAYCG, F,
HR
Nova Scotia, CanadaDirector since: April 26, 1989Term of office to expire:2007
    
    Sir Graham Day is Counsel to the Atlantic Canada law firm of
Stewart McKelvey Stirling Scales. He serves as a director of
Empire Company Limited (a public holding company with
investments in retail food distribution, real estate, theatres
and corporate investment activities). He also serves as a
director of a number of private companies, including Minas
Basin Holdings Limited, Scotia Investments Limited and Jacques
Whitford Group Ltd. Sir Graham is a Fellow of the Institute of
Corporate Directors and holds the Herbert S. Lamb Chair in
Business Education at the Dalhousie University Graduate
Business School.DAVID
M. DUNLAPA, HR,
QS
Ontario, CanadaDirector since: October 8, 1980Term of office to expire:May 8, 2006
    
    Mr. Dunlap is Chairman of G.F. Thompson Co. Ltd., a private
manufacturer and distributor of plumbing products company, and
he is a director of St. Andrews College.GEORGE A. FIERHELLERA, IS
Ontario, CanadaDirector since: April 21, 1981Term of office to expire:May 8, 2006
    
    Mr. Fierheller is President of Four Halls Inc., a private
investment and consulting firm, and Chair Emeritus of The
Greater Toronto Marketing Alliance. In addition, Mr. Fierheller
is a Member of the Order of Canada and Past President of the
Toronto Board of Trade.DR. SETH B. GOLDSMITHCG, QS
Florida, United StatesDirector since: February 23, 1995Term of office to expire:May 8, 2006
    
    Dr. Goldsmith is an attorney and Professor Emeritus at the
University of Massachusetts at Amherst. He is a former Chief
Executive Officer of the Miami Jewish Home & Hospital for the
Aged, and has served as a consultant to numerous organizations
including the World Health Organization, Geneva, Switzerland,
and the U.S. Army.MICHAEL J.L. KIRBYCG, HR, QS
Ontario, CanadaDirector since: March 11, 1987Term of office to expire:2008
    
    Mr. Kirby is a member of The Senate of Canada. Mr. Kirby also
serves as a director of the following public companies: The
Bank of Nova Scotia; Indigo Books & Music Inc.; CPI Plastics
Group Ltd.; Energy Savings Income Fund; MDC Partners Inc.; and
Brainhunter Inc.ALVIN
G. LIBINA,
F
Alberta, CanadaDirector since: January 20, 1984Term of office to expire:2008
    
    Mr. Libin is President and Chief Executive officer of Balmon
Investments Ltd., a private management services and investment
company. He is Chairman of the Alberta Ingenuity Fund, is a
director and one of the owners of the Calgary Flames of the
National Hockey League, and serves as a director of several
private corporate and community boards. Mr. Libin is also an
Officer of the Order of Canada and a member of the Alberta
Order of Excellence.
  48




---



##### 



Name / Residence / Director since / Term of
    
    Current Positions with Extendicare / Principal OccupationOffice to Expire
    
    for Past Five YearsJ.
THOMAS MACQUARRIE, Q.C.A, F,
HR
Nova Scotia, CanadaDirector since: October 8, 1980Term of office to expire:2007
    
    Mr. MacQuarrie, is a senior partner in the Atlantic Canada law
firm of Stewart McKelvey Stirling Scales. He serves as a
director of High Liner Foods Incorporated and Aquarius Coatings
Inc., both public companies, as well as of a number of private
corporations.MALEN
S. NGA,
IS
Ontario, CanadaDirector since: May 5, 2005Term of office to expire:2008
    
    Ms. Ng is Chief Financial Officer of the Workplace Safety and
Insurance Board of Ontario (2003  present). From 1975 to
2002, Ms. Ng was employed by Hydro One Inc., its subsidiaries
and predecessor Ontario Hydro, where she occupied several
executive positions, including: President and CEO of Hydro One
Networks Inc. (2000  2002); Executive Vice President of Wires
Operations Hydro One Inc. (2001  2002); and Executive Vice
President and CFO of Hydro One Inc. (1999  2001). Ms. Ng is a
director of Sobeys Inc. (a public retail food distribution
company) and of Jacques Whitford Group Ltd (a private
consulting and environmental solutions firm).CHARLES H. ROADMAN II, MDQS
Virginia, United StatesDirector since: August 3, 2004Term of office to expire:May 8, 2006
    
    Dr. Roadman is the retired President and Chief Executive
Officer of the American Health Care Association (1999  2004)
and the former Surgeon General of the U.S. Air Force (1996 
1999). Dr. Roadman serves as a director and advisor on a number
of private corporate boards and associations.RICHARD
L. BERTRAND
Wisconsin, United States
    
    Mr. Bertrand is Senior Vice-President and Chief Financial
Officer of Extendicare Inc. He was appointed to his current
position in September 2004. Prior to that he was the Senior
Vice-President of Development of EHSI. Mr. Bertrand joined the
Extendicare group of companies in 1976, serving in various
financial capacities during that time.JILLIAN
E. FOUNTAIN
Ontario, Canada
    
    Ms. Fountain has been Corporate Secretary of Extendicare Inc.
since 1999, and has been a member of the Companys financial
reporting department in various capacities since 1988.
 
 A 
Audit Committee, CG Corporate Governance and Nominating Committee, F  Finance Committee, HR Human Resources Committee,IS Information Systems Committee, QS Quality Standards Committee   49




---



##### 



LEGAL
PROCEEDINGS
  INTEREST
OF MANAGEMENT AND OTHER MATERIAL TRANSACTIONS
  TRANSFER
AGENT AND REGISTRAR
  MATERIAL
CONTRACTS
  INTERESTS
OF EXPERTS
  AUDIT
COMMITTEE INFORMATION
   50




---



##### 



ADDITIONAL
INFORMATION
  (1)
    
    when the securities of the Company are in the course of a distribution pursuant to a short
form prospectus or a preliminary short form prospectus, which has been filed in respect of a
distribution of its securities:
 (i)
    
    one copy of the 2005 AIF of the Company, together with one copy of any document, or
the pertinent pages of any document, incorporated therein by reference;(ii)
    
    one copy of the Consolidated Financial Statements and Auditors Report to the
Shareholders of the Company for the financial year ended December 31, 2005, together with
one copy of any interim financial statements of the Company subsequent to the Consolidated
Financial Statements for the financial year ended December 31, 2005;(iii)
    
    one copy of the Management Information and Proxy Circular of the Company dated March
3, 2006 for the annual meeting of shareholders to be held on May 8, 2006; and(iv)
    
    one copy of any other documents that are incorporated by reference into the
preliminary short form prospectus or the short form prospectus; or
 (2)
    
    at any other time, one copy of the documents referred to in paragraphs (1) (i), (ii) and
(iii) above, provided that the Company may require the payment of a reasonable charge from
such a person or company who is not a holder of securities of the Company where the documents
are furnished by the Company pursuant to this paragraph (2).
   51




---



#####