Dear Friends of Frontier Management:

I write this letter to you with a great humility and a sense of pride in that we launched our services nearly 8-years ago and began a very important journey. We continue to maintain a simple philosophy: always innovating, always serving, always caring.

On January 25, 2008, we broke ground on Fountain View Manor, a 50-bed memory care community, in Granite City, Illinois. Additionally, we will break-ground in Lake Havasu City, Arizona on Lake View Terrace Memory Care and in Newberg, Oregon on our new memory care community during the first half of 2008. Further, we intend to announce other developments in the second half of 2008 in Colorado, Utah, Arizona and Oregon.

2008 has also brought new management opportunities that include The Oaks Cottages in Lebanon, Oregon (a 15-unit cottage community) and Rosewood Specialty Care in Hillsboro, Oregon (a 48-bed memory care community). We appreciate the trust that our clients have given to us and we will work hard to continue to deliver the best care with our high standards of management.

We have also completed our joint venture agreement with Reichmann International Development Corp., based in Toronto, Ontario, Canada. We are excited about this relationship and look forward to announcing many new projects during the coming years.

In 2008, we will launch the Resident of the Year award and we will announce the winner for 2007 very soon. Our residents are so very special to us and we very much appreciate each one. I would also like to thank all residents, their family members and responsible parties for selecting one of our communities for their living and care options.

As for our many employees – Great Job! You are doing a wonderful service for so many deserving people and you should feel good about what you do, whom you do it for and for dedicating your life to those who depend on your commitment. Thank you!

I look forward to reporting back to you very soon and thank each and every one of you for what you do to make a tremendous difference in the lives of others.

Sincerely,

Gregory A. Roderick
CEO & President

Copyright 2002-08, Frontier Management LLC, all rights reserved.