Cathedral Rock Corporation Acquires Second Nursing Facility in Granite City, Ill. and Announces First Year Results.

FORT WORTH, Texas--(BW HealthWire)--July 14, 1999--

Cathedral Rock Corporation announced today its recent acquisition of The Colonnades, an intermediate care nursing facility located in Granite City, Ill.

The facility consists of 90 beds on approximately thirteen acres. The Colonnades is the company's second acquisition in Granite City, which is approximately thirty minutes from St. Louis, Mo. Cathedral Rock's other facility, Colonial Care Center was added to the portfolio in December of last year.

Cathedral Rock Corporation is a Texas-based, privately held company, which specializes in the ownership and management of skilled nursing, Assisted Living and congregate care properties. In late June, the company celebrated its first anniversary. During the first year, Cathedral Rock has seen its portfolio grow to thirteen properties in four states, 1,053 units/beds, almost 650 employees and annualized revenues of $24 million.

In addition, Granite City's first Assisted Living facility will break ground on July 14th. The project is being developed by American Senior Alternatives and Cathedral Rock has agreed to manage the property.

"Our rapid growth over the past year is a tribute to both our strong management team and the faith of our lender, Health Care REIT, Inc. (NYSE:HCN). The acquisition of The Colonnades is another positive step in our pursuit of becoming a premier regional operator in senior housing. By expanding our presence in Granite City, we can ensure a quality continuum of care in the community," said C. Kent Harrington, President and Chief Executive Officer.