Public Sector Pension Investment Board Successfully Completes Bid for Retirement Residences Real Estate Investment Trust

Market Wire, January, 2007

Public Sector Pension Investment Board ("PSPIB") and Retirement Residences Real Estate Investment Trust ("Retirement REIT") (TSX: RRR.UN)(TSX: RRR.DB.B)(TSX: RRR.DB.C) announced today that 4,056,362 additional units (4.3% of the total issued and outstanding units) were tendered during the extension period of the take-over bid made by PSPIB Destiny Inc. (PSPIB Destiny"), a wholly-owned subsidiary of PSPIB.

With these additional units, PSPIB Destiny will own approximately 87,533,064 units of Retirement REIT, representing approximately 93.7% of the issued and outstanding units. PSPIB Destiny has instructed the depositary to take up and pay for all of the additional units tendered to the offer. Retirement REIT unitholders who hold their units through a broker or other financial intermediary will receive payment of the purchase price through such broker or intermediary, while unitholders holding units in registered form will receive payment directly from the depositary.

Since more than 90% of the outstanding units have been tendered to the offer, PSPIB Destiny intends to use the compulsory acquisition provisions in Retirement REIT's declaration of trust to acquire the remaining units. PSPIB Destiny expects to complete the compulsory acquisition as soon as reasonably practicable.

PSPIB Destiny expects the units to be de-listed from the Toronto Stock Exchange upon completion of the compulsory acquisition.

PSPIB Destiny first announced its intention to make the offer on October 5, 2006 and it mailed its take-over bid circular to Retirement REIT unitholders on October 23, 2006. Pursuant to the offer, PSPIB Destiny offered to purchase for cash all of the outstanding units of Retirement REIT at a price of $8.35 per unit.

About Retirement REIT

Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 224 retirement and long term care facilities, including 40 facilities in select United States markets, and provides management services to 8 homes for other parties, with an aggregate resident capacity in excess of 26,500. Retirement REIT also provides nursing placement and in-home health care through its Central Health Services unit. For further information, see the Retirement REIT website at www.retirementreit.com .

About PSPIB

PSPIB is a Canadian crown corporation established to manage employer and employee contributions made after April 1, 2000 to the Federal Public Service, the Canadian Forces and the Royal Canadian Mounted Police pension funds.

Contacts: Retirement Residences Real Estate Investment Trust Tim Benson Vice President, Investor Relations & Corporate Finance (289) 360-1224 Website: www.retirementreit.com Public Sector Pension Investment Board Anne-Marie Laurendeau Director, Communications and Government Relations (514) 937-2772 Email: amlaurendeau@investpsp.ca