Beverly Welcomes Request for Federal Court Injunction.

FORT SMITH, Ark.--(BUSINESS WIRE)--July 9, 1996--Beverly Enterprises, Inc. (NYSE: BEV) today issued the following statement in response to the National Labor Relations Board's request for a Federal court injunction in connection with the April 1 strike called by the Service Employees International Union at 15 of the company's nursing homes in Pennsylvania. The statement can be attributed to James M. Griffith, senior vice president, corporate communications:

"We are delighted with this early opportunity to present the facts about the strike in the fair and impartial forum of a Federal court. The SEIU locals clearly violated the strike notice provisions of the National Labor Relations Act. We informed the unions in writing prior to the strike that such an action would be illegal and that we would take whatever steps were necessary to provide continuing care to our patients -- including the hiring of replacement workers. Under the circumstances, we believe the unions acted in a reckless manner by encouraging their members to strike and they should be accountable to the replaced workers for the financial hardships they have suffered.

"Federal law requires a 10-day strike notice and specifies that any extension must be by mutual agreement in writing. The unions ignored this requirement, encouraged by the NLRB's irresponsible contention that a 72-hour unilateral notice is acceptable. The NLRB already knew, however, that its position had been overturned by the Federal Court of Appeals for the Second Circuit in a case that did not involve Beverly but did address this same issue of legal notice.

"As a result of this illegal strike, Beverly subsidiaries replaced a total of 360 employees. These individuals were placed on a priority re-hire list, even though Beverly has no legal obligation to do so. Some 219 already have been re-hired -- 106 on a full-time basis, the balance as part-time or casual until additional full-time positions become available. These individuals return to jobs comparable with, but not necessarily identical to, the jobs they held prior to the strike. Benefits are provided to all full-time employees and, to lesser degrees, to part-time and casual categories, as has been company policy

"Although we are very pleased with this opportunity to get to Federal court on an accelerated basis, the best place to resolve issues with unions is at the bargaining table. Our teams have been fully prepared to bargain in good faith since before the contracts expired (November 30, 1995 for 18 facilities and December 31, 1994 for two others), and we continue to be willing to negotiate new agreements. The unions, however, have been stalling. They are trying to force negotiations on a state-wide master contract, despite the fact that their NLRB certifications require them to bargain on a facility-specific basis. Varying reimbursement rates and other local market conditions also make facility-specific negotiations a practicable necessity in addition to a legal requirement.

"The unions still are stalling in an attempt to create what in effect is a master contract with a single expiration date, regardless of how they try to disguise their true intentions. This union ploy would only encourage further labor-management confrontations in the future and make it even more difficult to provide continuous quality care for our patients. Nevertheless, our negotiating teams continue to cooperate with a federal mediator in the hope that this unfortunate situation -- which the unions created -- can be resolved on a timely basis."

Beverly Enterprises is the leading provider of long-term healthcare in the United States. It operates nursing/rehabilitation facilities, institutional and mail service pharmacies, acute long-term transitional hospitals, assisted living centers, and hospice and home health centers. Beverly provides medical cost containment and managed care services in a nationwide network spanning 37 states and the District of Columbia.

CONTACT: Beverly Enterprises Inc., Fort Smith

Jim Griffith, 501/484-6912