Beverly Reiterates Performance Targets for Third and Fourth Quarter.

Business Editors & Health/Medical Writers

FORT SMITH, Ark.--(BW HealthWire)--Oct. 1, 2001

Beverly Enterprises, Inc. (NYSE:BEV) today provided the following updates on its plans and performance to investors at the Raymond James Healthcare Conference in Nashville (TN):

-- The company reiterated that its objectives for earnings from operations
(before special charges) are 13 cents per share diluted for the third quarter
of 2001 and 14 cents for the fourth quarter. Each of these quarters benefit
from a reduction of $2.5 million (or about 1.5 cents per share diluted) in
depreciation and amortization expenses related to the sale of its Florida
operations.

-- The previously announced sale of 49 nursing homes and four assisted living
facilities in Florida is proceeding on schedule and is expected to close during
the fourth quarter. Net proceeds from the $165 million cash sale will be used
primarily to repay debt.

-- Earnings in 2002 will benefit from (a) the sale of Florida operations (about
9-12 cents per share diluted) and (b) the reduction in goodwill expenses
specified in FASB 142 (about 3.5 cents per share diluted).

-- Negotiations continue with officials from the Centers for Medicare and
Medicaid Services to resolve certain outstanding reimbursement issues arising
from prior year Medicare cost report audits.

Beverly made these statements to be consistent with the Securities and Exchange Commission's "fair disclosure" guidelines and in advance of the previously mentioned presentation to investors.

This release is intended to be disclosure through methods reasonably designed to provide broad, non-exclusionary distribution to the public in compliance with the Securities and Exchange Commission's Fair Disclosure Regulation. The release may contain forward-looking statements, including statements related to expected 2001 performance, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include: licensing of operators and closing the sale of the Florida properties; national and local economic conditions, including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including the Company's compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries; liabilities and other claims asserted against the Company, including patient care liabilities, as well as the resolution of lawsuits brought about by the announcement of the federal government investigations or the settlements of such investigations; the ability to predict future reserves related to patient care liabilities; the ability to attract and retain qualified personnel; the availability and terms of capital to fund acquisitions and capital improvements; the competitive environment in which the Company operates; the ability to maintain and increase census levels; and demographic changes. These and other risks and uncertainties that could affect future results are addressed in the Company's filings with the Securities and Exchange Commission, including Forms 10-K and 10-Q.

Beverly Enterprises and its operating subsidiaries comprise a leading provider of healthcare services to the elderly in the United States. They currently operate 526 skilled nursing facilities, as well as 34 assisted living centers (including the Florida operations), 56 home care and hospice agencies and 161 outpatient therapy clinics. Through AEGIS Therapies, they also offer rehabilitative services on a contract basis to nursing homes operated by other care providers.