American Retirement Reports $200 Million of New Financing Commitments.

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 21, 1999--

American Retirement Corporation (NYSE:ACR), one of the largest providers of senior living and health care services, announced today that it had arranged $200 million of financing to further fund its growth.

The first part of the financing package is a $75 million commitment for a 3-year revolving credit facility from Bank United as agent and SouthTrust Bank of Alabama as co-agent. Additionally, another $75 million is to be syndicated, on a best efforts basis, as part of this agreement. The line of credit will be used to fund development, acquisitions or expansions of senior living communities. Initial funding was completed on June 21st in the amount of $17.2 million.

Secondly, Health Care REIT, Inc. has committed a $50 million credit facility for the development and acquisition of assisted living residences and continuing care retirement communities.

"We are pleased to have these financing commitments to provide additional funding for the development of our Senior Living Networks," said Bill Sheriff, Chairman and Chief Executive Officer of American Retirement. "We have a large number of projects, particularly assisted living residences, under construction or in development which will build the network presence in our targeted markets."

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. The Company currently operates 46 senior living communities in 16 states with an aggregate capacity for approximately 12,900 residents. American Retirement is currently developing or constructing 29 senior living communities and expanding 9 of its existing communities, which in the aggregate will add capacity for approximately 3,500 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.

Bank United, headquartered in Houston, is the largest publicly traded depository institution based in Texas, with $14.9 billion in assets. Bank United operates a commercial banking group with 19 regional offices in 16 states. SouthTrust Bank is a $39 billion bank headquartered in Birmingham, Alabama. SouthTrust currently operates over 600 offices throughout the South. Health Care REIT, Inc. is a self-administered real estate investment trust that invests in health care facilities, primarily nursing homes, assisted living facilities, retirement centers and specialty care facilities. Founded in 1970, Health Care REIT has a $1.2 billion portfolio of 232 facilities located in 34 states.

This press release and statements made by or on behalf of American Retirement Corporation relating hereto 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 filings with the Securities and Exchange Commission, the fact that the aforementioned financing commitments are subject to a number of conditions, and the possibility that the aforementioned best efforts syndication may be unsuccessful. In light of the significant uncertainties inherent in the forward-looking statements included herein, 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.