Cautionary Language

The information appearing on DHC ’s website includes statements which constitute forward looking statements. These forward looking statements are based upon DHC ’s present intents, beliefs or expectations, but forward looking statements are not guaranteed to occur and may not occur. DHC ’s actual results may differ materially from those contained in DHC ’s forward looking statements. The information contained in DHC ’s filings with the Securities and Exchange Commission, including under “Risk Factors" and “Warnings Concerning Forward Looking Statements” in DHC ’s periodic reports and other filings, identifies important factors that could cause DHC ’s actual results to differ materially from those stated in DHC ’s forward looking statements. DHC ’s filings with the SEC are available on the SEC’s website at www.sec.gov and are also accessible on DHC ’s website at the following link: SEC Filings. You should not place undue reliance upon forward looking statements.

The documents provided in this archived section are provided for historical purposes only. The information contained in each document is accurate only as of the date each document was originally issued or such earlier date stated in those documents. Diversified Healthcare Trust does not undertake any obligation to update any information contained in these documents. For current information about the company, please refer to our most recent public SEC Filings.

OK
Cautionary Language

Please note that you are about to view content from a third party website. DHC does not by its inclusion imply its endorsement of or concurrence with the data provided on this website.

OK

Court Declines To Preliminarily Enjoin Sale Of Marriott Management Contracts

December 20, 2002

Newton, MA (December 20, 2002): Senior Housing Properties Trust (NYSE: SNH) today announced that a Massachusetts court declined to preliminarily enjoin the sale by Marriott International, Inc. (NYSE: MAR) of management contracts for 31 senior living communities.

The 31 senior living communities are owned by SNH, leased to Five Star Quality Care, Inc. (AMEX: FVE) and managed by Marriott Senior Living Services, Inc., a 100% subsidiary of Marriott. On December 2, 2002, SNH and FVE sought and obtained a temporary order from the Massachusetts Superior Court which prohibited Marriott from assigning or transferring these management contracts. At that time SNH announced that this order would be reviewed at a court hearing held later in December. The further hearing was held on Wednesday, December 17 and an order denying SNH's request for an injunction before trial was issued on Friday, December 20, 2002. Today's decision does not end this Massachusetts case. A trial is expected to be held during 2003 which will finally decide the transfer rights and obligations under the management contracts of SNH, FVE, Marriott and any Marriott transferee.

A related court case is pending in the Circuit Court for Montgomery County, Maryland. In that Maryland case, Marriott has sued SNH and FVE to prohibit termination of these same 31 management contracts. SNH and FVE had served notice to Marriott that the contracts would terminate because of home office costs and insurance charges which Marriott improperly allocated to the managed communities, because unfair profits were realized by Marriott from purchases for the account of the managed communities which are directed by Marriott to its affiliates, because Marriott used FVE's working capital for Marriott's own purposes without interest and for other reasons. The Maryland court enjoined the contract terminations on November 27, pending a hearing to be held in December. The Maryland court hearing has now been rescheduled to January 2003.

WARNING REGARDING FORWARD LOOKING STATEMENTS

THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND THE FEDERAL SECURITIES LAWS. FOR EXAMPLE, THE FACTS THAT MASSACHUSETTS AND MARYLAND COURTS HAVE ISSUED PRELIMINARY ORDERS WHICH PERMIT OR PROHIBIT ACTIONS BY MARRIOTT, SNH AND FVE MAY IMPLY THAT THE FINAL OUTCOME OF THESE CASES WILL ALSO PERMIT OR PROHIBIT THOSE ACTIONS. HOWEVER, AFTER FURTHER HEARINGS, ONE OR BOTH OF THESE COURTS MAY REVOKE THE PRIOR ORDERS OR ISSUE NEW AND DIFFERENT ORDERS. SIMILARLY, SNH'S ASSERTIONS THAT MARRIOTT HAS IMPROPERLY ALLOCATED CHARGES TO THE MARRIOTT COMMUNITIES, IMPROPERLY PROFITED FROM SALES BY MARRIOTT AFFILIATES TO THOSE COMMUNITIES OR USED FVE'S WORKING CAPITAL FOR MARRIOTT'S OWN PURPOSES WITHOUT INTEREST ARE BEING DISPUTED BY MARRIOTT. DISCOVERY DURING LAWSUITS OR DECISIONS BY COURTS MAY RESULT IN DIFFERENT AND CONTRARY CONCLUSIONS. THE PENDING LITIGATION MAY BE EXPENSIVE AND MIGHT HAVE UNEXPECTED OUTCOMES. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE UPON THESE FORWARD LOOKING STATEMENTS.

IR Contact

U.S Green Building Council Energy Star Partner      Green Lease Leaders