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AMERICAN HEALTH PROPERTIES INC. REACHES AGREEMENT WITH FOUR WINDS KATONAH

 AMERICAN HEALTH PROPERTIES INC. REACHES AGREEMENT
 WITH FOUR WINDS KATONAH
 DENVER, April 9 /PRNewswire/ -- American Health Properties Inc. (NYSE: AHE) announced that it had reached agreement with Four Winds Hospital in Katonah (Westchester County), N.Y. ("Four Winds") regarding a modification of the terms of its first mortgage loan agreement. AHE will permit Four Winds to capitalize up to $2.0 million of interest due under the loan agreement. Such capitalized interest will be added to the outstanding principal amount under the loan agreement. The $2.0 million will be deferred pursuant to an agreed-upon schedule for the mortgage interest payments due March 1, 1992, through July 1, 1992. The deferral affects only Four Winds Katonah interest payments in 1992 and does not affect any other AHE property.
 The company also announced that, as projected, AHE received $2.8 million of extraordinary income in the first quarter of 1992 as payment for the sale of its right to purchase a rehabilitation hospital in San Diego. This income will be more than sufficient to offset the interest deferral outlined above. The aggregate net impact of these two transactions is a positive $800,000, or approximately $.046 per share. As a result, AHE does not anticipate any interruption of its 1992 earnings or dividends as a result of the Four Winds' transaction.
 In consideration for the interest deferral, Four Winds agreed to pledge as further security for the mortgage loan all principal and interest payments due under a $7.6 million note receivable due to Four Winds from the Four Winds Hospital in Saratoga Springs, N.Y. Four Winds also agreed to modify its contingent interest agreement with the company to provide AHE with the potential for an increased participation in the revenue growth at the hospital commencing in 1993.
 Robert L.B. Diener, president of the company, stated that "we have been involved in intensive discussions with management of Four Winds concerning the business and operations of the hospital. We believe that Four Winds is taking the appropriate steps to ensure the long-term viability of the hospital. Management of Four Winds has advised AHE that admissions have increased approximately 30 percent over the prior year as a result of the hospital's marketing initiatives and that this is helping to offset declining lengths of stay."
 Four Winds' management has also advised AHE that it is implementing a program to significantly reduce the cost of the services it provides in order to remain highly competitive in its marketplace. AHE believes that it will take some time for the full benefit of the marketing initiatives and the cost reductions to be realized and, consequently, has agreed to provide Four Winds with a $2.0 million short-term line of credit for working capital purposes. The line will be secured by all collateral securing the mortgage loan (including the Saratoga Note) and will be cross-defaulted to the mortgage loan.
 AHE is a real estate investment trust (REIT) specializing in quality health care facilities. The company's investments include 25 acute care, rehabilitation and psychiatric hospital properties located in 14 states.
 -0- 4/9/92
 /CONTACT: Robert L.B. Diener, president and CEO of American Health Properties, 303-796-9793/
 (AHE) CO: American Health Properties Inc. ST: Colorado, New York IN: HEA FIN SU:


DM-JL -- LA027 -- 7026 04/09/92 19:25 EDT
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Publication:PR Newswire
Date:Apr 9, 1992
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