Capital Senior Living Corporation and Holiday Retirement Corp. Settle Dispute.

DALLAS--(BUSINESS WIRE)--April 14, 1999--

Capital Senior Living Corporation (NYSE:CSU), one of the country's largest developers and operators of senior living communities, announced today that it has settled all claims by and against Holiday Retirement Corp. and its affiliates. The lawsuit was filed by Holiday Retirement Corp. on February 12, 1999, alleging its copyright and related trade dress had been violated by Capital on five communities developed by Triad Senior Living I, L.P. in which Capital is a 19% limited partner and provides development services under a third party development agreement. Capital had denied all allegations and filed a counterclaim against Holiday and the other plaintiffs on March 18, 1999.

James A. Stroud, Chairman of Capital, commented, "We are pleased to have resolved this matter expeditiously and without any cost to our Company. The five communities involved in the dispute used the Waterford Prototype I design, which has been modified. We are currently developing our Waterford Prototypes II through IV, which provide additional amenities to our residents and greater operating efficiencies."

Lawrence A. Cohen, the Company's acting Chief Executive Officer, commented, "We look forward to opening the 25 Waterford Communities that are currently under construction or development and are excited by the robust interest our recently completed Waterford Communities have been receiving. Our Waterford Communities provide seniors with quality lifestyles at affordable rates with a focus towards a continuum of care to accommodate our residents' needs as they age in place."

The Company is one of the country's largest developers and operators of senior living communities. The Company currently operates 36 communities in 18 states with a capacity of approximately 6,000 residents. The Company currently has 32 communities under construction or development, which will have a capacity of approximately 4,700 residents, including 25 new Waterford Communities with a capacity of approximately 3,600 residents. The Company is currently negotiating terms for additional sites. The Company is also expanding 10 existing communities to accommodate approximately 600 residents. Upon completion of these developments and expansions, the Company is expected to increase its capacity to approximately 11,300 residents. The Company's operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living and personal care to provide residents with the opportunity to age in place.

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including but not without limitation to, the Company's ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturns in economic condition generally, and satisfaction of closing conditions such as those pertaining to licensure. These and other risks are detailed in the Company's reports filed with the Securities and Exchange Commission.