American Stock Exchange OK's Plan Submitted by Emeritus.

Business Editors

Emeritus Assisted Living (AMEX:ESC) (Emeritus Corporation), announced today that it was notified on June 24, 2002, that the American Stock Exchange ("AMEX" or the "Exchange") had accepted a plan submitted by Emeritus to bring the Company back into compliance with the AMEX's continued listing standards.

The AMEX had previously discussed with the Company that it was below certain of AMEX's continued listing guidelines, specifically Section 1003 (a) (iii) which requires shareholder's equity of at least $6,000,000 if a company has had losses from continuing operations in its five most recent fiscal years.

The Company submitted a plan to the Exchange which was accepted by the Exchange on June 24, 2002, granting the Company an extension of time to regain compliance. The Company will be subject to periodic review by Exchange staff during the plan period. Failure to make progress consistent with the plan, or failure to regain compliance by the end of the plan period could result in the Company being de-listed from the AMEX.

About Emeritus Assisted Living

Emeritus Assisted Living is a national provider of assisted living and related services to seniors. Emeritus is one of the largest developers and operators of freestanding assisted living communities throughout the United States. Emeritus also participates in a joint venture to develop assisted living communities in Japan. These communities provide a residential housing alternative for senior citizens who need help with the activities of daily living with an emphasis on assistance with personal care services to provide residents with an opportunity for support in the aging process. Emeritus currently holds interests in 157 communities representing capacity for approximately 14,000 units in 31 states and Japan. Emeritus' common stock is traded on the American Stock Exchange under the symbol ESC, and its home page can be found on the Internet at www.emeritus.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: A number of the matters and subject areas discussed in this press release that are not historical or current facts deal with the potential future circumstances, operations, and prospects. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from Emeritus' actual future experience as a result of such factors as: the effects of competition and economic conditions on the occupancy levels in Emeritus' communities; Emeritus' ability under current market conditions to maintain and increase its resident charges in accordance with rate enhancement programs without adversely affecting occupancy levels; increases in interest rates that would increase costs as a result of variable rate debt; ability of Emeritus to control community operation expenses, including insurance and utility costs, without adversely affecting the level of occupancy and the level of resident charges; the ability of Emeritus to generate cash flow sufficient to service its debt and other fixed payment requirements; Emeritus' ability to find sources of financing and capital on satisfactory terms to meet its cash requirements to the extent that they are not met by operations; and making satisfactory arrangements for the continued operation of the Emeritrust communities beyond June 30, 2003, when our management agreements for those communities expires. Emeritus has attempted to identify, in context, certain of the factors that they currently believe may cause actual future experience and results to differ from Emeritus' current expectations regarding the relevant matter or subject area. These and other risks and uncertainties are detailed in the Company's reports filed with the Securities and Exchange Commission (SEC), including Emeritus' Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.