Newton, MA (January 7, 2004): Senior Housing Properties Trust (NYSE: SNH) today announced that it has settled its pending litigation with Marriott International, Inc. (NYSE: MAR) and Sunrise Senior Living Services, Inc., f/k/a Marriott Senior Living Services, Inc. ("SLS").

The litigation between SNH and Marriott and SLS commenced in 2002 and has been previously described in public announcements since then. During the pendency of this litigation, Marriott sold the stock of SLS to Sunrise Senior Living, Inc. (NYSE: SRZ).

Under the terms of the settlement announced today, SNH and Marriott and SLS have agreed to dismiss all claims and counterclaims asserted in the litigation between the parties in the Circuit Court of Montgomery County, Maryland, and SNH has agreed to withdraw its appeal of the final judgment entered against it in the litigation between the parties in the Superior Court for Middlesex County, Massachusetts. Also under the terms of the settlement, Marriott has agreed to pay SNH $1,250,000.

The settlement announced today is a compromise of the parties' disputes, entered into to avoid the expense and inconvenience of litigation, and neither SNH nor Marriott or SLS has admitted any liability, violation of law or wrongdoing in connection with the subject matter of the Maryland or Massachusetts litigations.

SNH is a real estate investment trust headquartered in Newton, MA which owns 150 senior living properties located throughout the United States.