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The Class I Adjustable Dividend Preferred Shares, Series 4 of Extendicare Inc.
Holders of Series 3 Shares are entitled, at their option, to convert all or any of the Series 3 Shares held by them into fully paid, non-assessable Series 4 Shares on a share- for-share basis on February 16, 2006.
Conversion of either the Series 3 or Series 4 Shares may be effected by providing written notice to Computershare Trust Company of Canada (the "Transfer Agent") in the form of the conversion panel on the back of the certificates or a facsimile thereof acceptable to the Transfer Agent, accompanied by the certificate(s) representing the Series 3 or Series 4 Shares the holder desires to have converted, between January 10, 2006 and February 10, 2006.