ADVOCAT ADDS FACILITIES.

FRANKLIN, Tenn.--(BUSINESS WIRE)--Jan. 3, 1996--Advocat Inc. (NYSE:AVC) today announced agreements to add two homes to its Canadian portfolio and convert an existing management contract to ownership.

Cavendish Manor, a 96-bed assisted living home in Niagara Falls, Ontario, was acquired effective January 1, 1996. This home had previously been managed by the Company under a short-term contract.

Bradgate Arms, an upscale 111-bed assisted living facility in the Toronto area, will be managed by the Company for a group of independent investors under a five-year management contract. This contract was effective January 1, 1996.

Finally, the Company has reached an agreement to acquire Brucefield Villa, a 74-unit continuum of care facility in Brantford, Ontario. The Company anticipates a closing on the Brucefield Villa facility in four to six months, dependent upon the transfer of licenses by the Province for the 59-bed nursing home component.

"The two acquisitions match our preferred center profile, including expansion in an existing service area, location in a secondary market and meeting our targeted financial returns," said Dr. Charles W. Birkett, chairman and chief executive officer of Advocat. "These agreements also increase the amount of facility ownership in our portfolio and, as well, advance our involvement in assisted living facilities."

Prior to giving effect to this transaction, Advocat Inc. operated 86 long-term care facilities, including 66 nursing homes containing 7,472 licensed beds and 20 retirement centers containing 2,335 units. The Company's common stock is traded on The New York Stock Exchange under the symbol AVC.

CONTACT: Advocat, Inc., Franklin

Charles W. Birkett or Mary Margaret Hamlett, 615/771-7575