Beverly Enterprises, Nursing Homes Prepared for Year 2000; Company's $25 Million Investment, Preparedness Activities Detailed.

Business Editors & Health/Medical Writers

FORT SMITH, Ark.--(BW HealthWire)--Dec. 27, 1999

Beverly Enterprises, Inc. (NYSE:BEV), today released a list of preparations it has taken in anticipation of the Millennium and the so-called Year 2000 or Y2K "bug." Led by a Y2K Task Force, which was developed in 1997, Beverly's activities have centered on corporate-wide systems, controls and equipment to support the delivery of safe, quality nursing care to its 54,000 nursing home residents nationwide.

Over the last two years, the company has invested more than $25 million to take measures designed to ensure that its corporate headquarters as well as the 561 nursing homes and 34 assisted living facilities it operates through subsidiaries are prepared for the transition.

"We took the turn of the century seriously and went to great lengths to make sure that the critical aspects of our operations are functional when the clock strikes midnight on December 31," said David Banks, Chairman and Chief Executive Officer of Beverly. "We feel confident that we applied the right amount of resources in time and money in making preparations and in working with suppliers of critical services to ensure readiness. Our primary concern has been and always will be the health and safety of our residents. The serious manner in which we addressed this challenge best represents that commitment to both them and their loved ones."

Specific actions that were taken to support the company's nationwide network of nursing homes include:

-- Upgraded each facility's software and hardware to ensure Y2K

compliance.

-- Surveyed vendor/supply chain readiness, including on-site visits

to five of the company's largest-volume vendors that supply

critical supplies to its nursing facilities.

-- Contracted with one of two national medical device vendors to

complete a project to determine and certify the Y2K readiness of

equipment located in the nursing homes that operate with embedded

chips such as: medical devices, security systems, and

environmental systems (HVAC, elevators, etc.).

-- Coordinated the facility contingency planning process to ensure

consistency across all nursing homes, including development by

Beverly Healthcare of an intranet website for tracking each

facility's progress throughout the contingency planning phase.

-- Provided each facility with a complete packet of materials for

contingency planning, including a detailed checklist to be

completed after midnight on December 31, 1999 to determine that

all critical systems/equipment in the facility are working

properly. Results will be communicated to the Y2K Command Center

in Fort Smith.

-- Set up a Y2K Command Center at the company's Fort Smith

headquarters to monitor events over the New Year's weekend and

resolve any issues that may arise.

The company conducted remediation and testing of all mission-critical information technology systems and hardware, including facility-based systems used to transmit input data to headquarters for processing. In addition, contingency planning was developed for all critical corporate functions that support the company's day-to-day business in the field, such as accounts payable, payroll, billing, etc.

Through operations of its subsidiary, Beverly Healthcare, Beverly Enterprises, Inc., operates 561 nursing homes and 34 assisted living facilities in 30 states including the District of Columbia. In addition to skilled nursing and assisted living care, subsidiaries of the company provide outpatient rehabilitation, hospice and home care.