NHI Extends Current Credit Facility, Suspends Dividends for 2000.

Business Editors and Health/Medical Writers

MURFREESBORO, Tenn.--(BUSINESS WIRE)--Oct. 9, 2000

National Health Investors, Inc. (NHI and NHIPr - NYSE) announced today that it received a 30 day extension to Nov. 10 on its Bank of Tokyo-Mitsubishi (BTMT) $102 million credit facility by making a payment of $7.5 million to reduce the principal.

During the 30-day extension, NHI intends to enter into an amendment to the credit facility. The agreement in principle between the parties provides for collateralizing the BTMT credit facility and an existing $25 million Bank of Montreal term loan. The maturity date on the BTMT credit facility will be extended through Dec. 31, 2001 and the remaining balance on the Bank of Montreal loan will not be due until July 30, 2002. In addition, the banks are requiring substantial principal reductions over the next 14 months. NHI expects that the collateral for the credit facility and term loan will include a substantial portion of its first mortgage portfolio and the extended credit facility and term loan will bear an interest rate of LIBOR plus two percent.

NHI also has a $38 million subordinated convertible debenture due on Jan. 2, 2001. NHI officials said a third and fourth quarter dividend would not be paid until the $38 million subordinated convertible debentures are paid in full or refinanced. Any dividend reduction or elimination will be used to pay required debt. Over time, NHI believes this debt reduction will enhance its cash flow. NHI fully intends to preserve its status as a Real Estate Investment Trust.

Over the last several months, NHI and the banks have negotiated continuously regarding the credit renewal. While NHI believes an agreement in principal has been reached with the bank group regarding the terms and conditions of the new credit facility, no assurances can be given that a final agreement will be signed. If NHI is not able to renew the bank credit facility, it may be forced to seek one of the alternatives previously disclosed, including the sale of assets, merger, the sale of additional equity, or the filing for reorganization.

Statements in this press release that are not historical facts are forwarding-looking statements that involve a number of risks and uncertainties. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: ability to reach agreement with certain creditors to extend maturity on terms NHI believes are reasonable prior to due dates; receipt of sufficient cash flow to repay debt as it becomes due; ability to continue to meet REIT status; general industry distress, including the on-going effect of reimbursement cutbacks; and the description of the risk factors mentioned from time to time in NHI's SEC reports, including, but not limited to the report on the Form 10Q for the quarter ended June 30, 2000. NHI cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. NHI has no duty to update information in this release. All forward-looking statements represent NHI's judgments as of the date of this release.