How do I tell my 5 year old daughter she has a half-sibling?

When I was younger my girlfriend and I had a girl whom we placed for adoption.  I have kept in touch and visited over the course of the past 12 years and have pictures of my biological daughter displayed throughout my house.  I have since married and have 2 daughters ages 5 and 2.  My 5 year old is beginning to ask questions about Kelsey and we have always said that she is our special family friend.  How do I appropriately tell a 5 year old that she has a half-sister from on of Daddy’s previous relationships?  Or do I tell her at all?  Please help!

Related posts:

  1. I have a five year old daughter that has not seen her biological father since she was a year old. Now he wants to see her.
  2. Should I make my daughter come with me to visit her placed sibling?
  3. I love my sister (my daughter's bio mom) but I don't want her in my daughter's life. How do I explain the relationship?

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