American Retirement Corporation (ACR) is Added to the Russell 2000 Index.

NASHVILLE, Tenn. -- American Retirement Corporation (NYSE:ACR), a leading national provider of senior living housing and care, announced today that it was added to the Russell 2000 Index, effective at the close of the market on June 24, 2005.

The Russell 2000(R) Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. Membership in Russell's U.S. equity indexes -- widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies -- is determined primarily by market capitalization rankings and style attributes.

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, including independent living, assisted living, skilled nursing and Alzheimer's care. Established in 1978, the Company believes that it is a leader in the operation and management of senior living communities, including independent living communities, continuing care retirement communities, Free-standing AL's, and the development of specialized care programs for residents with Alzheimer's and other forms of dementia. The Company's operating philosophy is to enhance the lives of seniors by striving to provide the highest quality of care and services in well-operated communities designed to improve and protect the quality of life, independence, personal freedom, privacy, spirit, and dignity of its residents. The Company currently operates 67 senior living communities in 14 states, with an aggregate unit capacity of approximately 13,300 units and resident capacity of approximately 14,900. The Company owns 17 communities, leases 44 communities, and manages six communities pursuant to management agreements.