American Retirement Appoints New Board Members.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 25, 2003

American Retirement Corporation (NYSE: ACR), a leading national provider of senior living housing and care, today announced the appointment to its Board of Directors of Eddie Pearson, President and CEO of DigiScript, and John McCauley, Executive Director of Risk and Insurance Management of Vanderbilt University. Mr. Pearson's term ends with the Company's 2005 Annual Meeting and Mr. McCauley's term ends with the Company's 2006 Annual Meeting. Mr. Pearson was also appointed to the Company's Audit Committee.

Mr. Pearson was appointed President and CEO of DigiScript, a company that specializes in capturing live presentations and making them available on demand via the Internet and/or CD-ROM, in June 2003. Previously, Mr. Pearson was a top executive in companies providing services to the healthcare industry, including CEO of an internet-based healthcare exchange and supply efficiency solutions provider, CFO of a systems and information integration solutions firm, CFO of a decision support and data warehousing solutions company, and CFO of a provider of strategic planning and decisions support solutions. Mr. Pearson is a certified public accountant (currently inactive) and was in public practice for several years. Mr. Pearson serves on the board of Summit American Television, Inc. and several non-profit organizations.

Mr. McCauley joined Vanderbilt University as Executive Director of Risk and Insurance Management in March 1996. Previously, he was Senior Executive Director of Risk Management/Claims Counsel at Charter Medical Corporation, Director of Risk Management for NKC Inc. (Norton Healthcare) and Corporate Claims Manager for Humana, Inc. Mr. McCauley is licensed to practice law in Tennessee and Kentucky.

Additionally, the Company announced that long-time board member Clarence Edmonds resigned for personal reasons. Mr. Edmonds has served as a director of the Company since its inception and as a director of various of the Company's predecessors since 1987.

"Eddie and John bring a wealth of valuable knowledge and experience to the Board and will serve the interests of our shareholders well. Eddie's background in healthcare, technology, systems, accounting, and healthcare demographics will be a tremendous asset to the board. John's expertise in risk management will assist the Company in dealing with the risk management issues facing the healthcare industry. In accepting Clarence's resignation, the Board thanked him for his 17 years of service to the Company. We will miss his counsel and guidance and wish him well in his retirement," said Bill Sheriff, Chairman, President and CEO.

COMPANY PROFILE

American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors. Established in 1978, the Company believes that it is a leader in the management of senior living communities, including independent living communities, continuing care retirement communities, free-standing assisted living communities, and specialized care programs for residents with Alzheimer's and other forms of dementia. The Company currently operates 65 senior living communities in 14 states, with an aggregate unit capacity of approximately 12,900 and resident capacity of approximately 14,500.