Skilled Healthcare Group - Annual Reports

On June 9, 2009, the Audit Committee of the Board of Directors of Skilled Healthcare Group, Inc. concluded that our financial statements for each of the fiscal quarters in 2006 through 2008, and the Company's quarterly financial statements for the first quarter 2009 needed to be restated and should no longer be relied upon by investors. The Company has filed an amended Annual Report on Form 10-K/A for the fiscal year ended December 31, 2008 to restate our consolidated financial statements as of December 31, 2008 and 2007, and for the years ended December 31, 2008, 2007 and 2006, including the corresponding quarterly periods in 2008 and 2007. We also restated our unaudited interim consolidated financial statements as of and for the three months ended March 31, 2009 on an amended Form 10-Q/A for such period. We do not intend to file any other amended Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q for periods affected by the restatement.

Please see the press releases dated June 10, 2009 and June 29, 2009 for additional details on the announcement of the expected restatement and the completion of the restatement and amended filings. Further detail is also provided in the above amended filings.

Cumulative charges against after-tax earnings for all periods affected between January 1, 2006 and March 31, 2009 were $8.4 million in the aggregate, consistent with the estimate that management provided on June 9, 2009 of between $8 million and $9 million.