Assisted Living Concepts, Inc. Announces Sale of Facility in Indiana.

Business Editors

PORTLAND, Ore.--(BUSINESS WIRE)--Aug. 22, 2002

Assisted Living Concepts, Inc. (OTB.BB:ASLC), a national provider of assisted living services, has entered into an agreement to sell an assisted living facility in Jeffersonville, Indiana to a local operator.

This facility was closed in March 2002. Net proceeds after closing costs will be applied against the Notes issued in connection with the recent reorganization. Closing is subject to numerous closing conditions and is expected to be finalized in October 2002.

"This sale will reduce our interest expense and total debt, and is consistent with our previously announced plan to improve cash flow and profitability," said Steven Vick, President and Chief Executive Officer. "We will continue to look for ways to maximize the value of the company and become more efficient."

ALC is also pleased to announce the addition of Ms. Linda Martin as Chief Operating Officer. Ms. Martin most recently served as Vice President for a national assisted living provider, and was responsible for operations of assisted living and alzheimer's facilities, as well as contracts for pharmacy, ancillary and other services. Mrs. Martin has over 16 years of experience in the healthcare industry, and holds both a BS and MS from the University of Wisconsin.

"Linda brings with her a wealth of experience in health care and specifically in assisted living. She has a proven history of improving operating results and cash flow, and focusing on quality of care. Linda believes strongly in placing people and culture first, and will be instrumental in the future development of our company," said Steven L. Vick, President and Chief Executive Officer.

Assisted Living Concepts, Inc. owns, leases and operates, prior to pending sales, 183 assisted living residences with 7,081 units for older adults who need help with the activities of daily living, such as eating, bathing, dressing and medication management. In addition to housing, the Company provides personal care, support services, and nursing services according to the individual needs of its residents, as permitted by state law. This combination of housing and services provides a home-like setting and cost efficient alternative that encourages independence for individuals who do not require the broader array of medical and health services provided by skilled nursing facilities. The Company currently has operations in Oregon, Washington, Idaho, Nebraska, Iowa, Arizona, Texas, New Jersey, Ohio, Pennsylvania, Indiana, Louisiana, Florida, Michigan, Georgia, and South Carolina.

This press release and statements made by or on behalf of Assisted Living Concepts, Inc. relating hereto may be deemed to constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements, including without limitation, statements containing the words "will," "believes," "anticipates," "estimates," "intends," "expects," "should," "could," and words of similar import, are forward looking statements. These forward-looking statements may be affected by risks and uncertainties, including without limitation (i) our ability to control costs and improve operating margins, (ii) our ability to increase occupancy, (iii) our ability to increase our revenue at a pace which exceeds expense inflation, (iv) our ability to operate our residences in compliance with evolving regulatory requirements, and (v) the degree to which our future operating results and financial condition may be affected by a reduction in Medicaid reimbursement rates. In light of such risks and uncertainties, our actual results could differ materially from such forward-looking statements. Except as may be required by law, we do 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.