Continuum Health Care Announces Grants

Continuum Health Care Inc. ("Continuum" or the "Corporation") ("TSX-V: CCF") is pleased to announce that on December 13, 2006, the Rural Affordable Supportive Living ("RASL") Program, a program established by the Alberta government though Alberta Infrastructure and Alberta Seniors, approved of a grant of $2,126,322 for the development of a ninety-six unit supportive living facility in High River, Alberta.

The Corporation anticipates that the proposed High River, Alberta facility will be a joint venture with Eldercare Communities Ltd. of Calgary, Alberta and the Corporation's subsidiary, Continuum Health Care Holdings Ltd.

The public announcement of this grant has been postponed until this time due to the instructions received from the Alberta Minister of Seniors and Community Supports to maintain the confidentiality of the results of the RASL awards pending the official announcement of such by the Alberta Government and their MLA's in the various provincial ridings. As such, pursuant to subsection 7.1(2) the Corporation filed a material change report on a confidential basis pending the public announcement of the grants by the Alberta Government.

The Alberta Government publicly announced the grant of $2,444,310 to Continuum Health Care Holdings Ltd. for the Corporation's Camrose facility on February 2, 2007, and as a result of such public announcement the Corporation released a press release and material change report to the public on February 2, 2007 in relation to that grant only. The second grant for $2,126,322 for the facility in High River that is the subject matter of this press release was publicly announced by the Alberta Government on the morning of February 9, 2007. -- www.tsx.com