American Retirement Corporation Signs Agreement to Manage Nashville Community.

Business Editors/Health/Medical Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 5, 2004

American Retirement Corporation (NYSE:ACR) a leading national provider of senior living housing and care, today announced that the Company signed an agreement to manage Legacy Crossing, in Franklin, Tennessee, effective February 1, 2004. Legacy Crossing is owned by a non-profit, ASF of Franklin, LLC, which opened the community, on September 10, 2001. The community has 124 independent living units.

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 operations 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 was inspired by the vision of its founders, Dr. Thomas F. Frist, Sr. and Jack C. Massey, to enhance the lives of seniors by providing 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 66 senior living communities in 14 states, with an aggregate unit capacity of approximately 13,000 units and resident capacity of approximately 14,600. The Company owns 19 communities, leases 41 communities, and manages six communities pursuant to management agreements. The Company is publicly traded on the New York Stock Exchange and had 19,670,501 shares outstanding as of December 31, 2003.