American Retirement Reports $75 Million of New Financing Commitments.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 3, 1999--

American Retirement Corporation (NYSE:ACR), one of the largest providers of senior living and health care services, announced today that it had arranged $75 million of financing to further fund its growth.

First, Guaranty Federal has committed a $50 million credit facility. The line of credit will be used to fund construction of senior living residences and/or expansions of current American Retirement senior living communities.

Separately, Bank One has made a $25 million commitment to participate in American Retirement's previously announced 3-year revolving credit facility with Bank United as agent and SouthTrust Bank of Alabama as co-agent. The facility will also be used to fund the development and acquisition of assisted living residences and continuing care retirement communities.

"We have now announced over $200 million of firm financing commitments since June. Included in the $200 million is $100 million from the revolving credit facility from Bank United, SouthTrust Bank and Bank One, with another $50 million to be syndicated. We are also pleased to add Guaranty Federal's $50 million credit facility, along with the previously announced Health Care REIT $50 million credit facility to our financing commitments," said Bill Sheriff, Chairman and Chief Executive Officer of American Retirement. "This will provide the funding for the next twelve months of development as well as a significant level of acquisition activity as we continue to grow our Senior Living Networks."

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 49 senior living communities in 16 states with an aggregate capacity for approximately 13,100 residents. American Retirement is currently developing or constructing 28 senior living communities and expanding 10 of its existing communities, which in the aggregate will add capacity for approximately 3,700 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.

Dallas, Texas-based Guaranty Federal Bank has assets of more than $12 billion and deposits of more than $7.0 billion. It operates over 130 banking centers in Texas and California. Guaranty is a wholly owned subsidiary of Temple-Inland Financial Services, Inc., a Fortune 500 corporation with $3.5 billion in revenues. Guaranty Bank is a nationally-recognized real estate lender with commitments in 1998 of $4.4 billion. Guaranty began providing construction financing for seniors housing in 1997 and has committed over $650 million to date.

Bank One Corporation, headquartered in Chicago, is the nation's fifth largest bank holding company, with assets of more than $256 billion. It offers a full range of financial services to commercial and business customers and consumers. Bank One is the leading commercial bank in the Midwest, and third largest provider of corporate banking services nationally. It is the world's largest VISA issuer, the third largest bank lender to small businesses, a leading national automotive lender, and one of the top 25 managers of mutual funds. A leader in the retail market, Bank One operates approximately 1,900 banking centers and a nationwide network of ATMs.

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.