American Retirement Acquires Philadelphia Retirement Community.

Business Editors/Health & Medical Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 1, 2000

American Retirement Corporation (NYSE: ACR), one of the largest providers of senior living housing and health care services, announced today that it has added Freedom Village at Brandywine to its portfolio of properties. Freedom Village at Brandywine is a five-story, 800,000 square foot community located outside Philadelphia in Chester County, Pennsylvania. The 373-unit CCRC ("Continuing Care Retirement Community") offers a full continuum of services including independent living, assisted living, Alzheimer's care and skilled nursing.

Opened in July 1998, this community was chosen as the "Best Retirement Community" in the Chester County Daily Local News' Reader's Choice Awards. The community's 292 independent living units sold out in less than 21 months, and the entire community of 373 units is currently around 93% occupied.

American Retirement acquired an option to purchase Freedom Village at Brandywine in connection with its acquisition of Freedom Group, Inc. in July 1998 and has provided development and management services to the community since that time. The community was purchased from a group of private investors using a synthetic lease structure.

"We are excited about the addition of Freedom Village at Brandywine to our portfolio - it is in a great market, has terrific residents and a wonderful, caring staff," said Bill Sheriff, Chairman and Chief Executive Officer of American Retirement. "The community has developed a warm, active, fun-loving, spirited personality. It is a very strong community financially and our shareholders will be well served by the attractive return this community is expected to contribute to ARC."

American Retirement Corporation offers a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and Alzheimer's care. The Company currently operates 60 senior living communities in 15 states with an aggregate capacity for approximately 14,000 residents. The Company's strategy is to develop Senior Living Networks in major metropolitan regions. These networks are made up of large continuing care retirement communities and free-standing assisted living residences located in the same markets, with skilled nursing capabilities at one or more of the network communities.

This press release and statements made by or on behalf of American Retirement Corporation in connection herewith, including statements regarding expectations of future economic performance and return, may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be affected by certain risks and uncertainties, including those described in American Retirement Corporation's Annual Report on Form 10-K for the year ended December 31, 1999 under the caption "Risk Factors" and in American Retirement's other filings with the Securities and Exchange Commission and the risk associated with the integration of new acquisitions. In light of those significant uncertainties, American Retirement Corporation's actual results could differ materially from such forward-looking statements. American Retirement Corporation does not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.