American Retirement Corporation Closes Public Offering of Common Stock

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 26, 2005--American Retirement Corporation (NYSE: ACR - News), a leading national provider of senior living housing and care, announced today the closing of its previously announced public offering of 4,500,000 shares of the Company's common stock, which reflects an increase of 500,000 shares from the offering initially announced by the Company. In addition, the Company announced the closing of the underwriter's over-allotment option to purchase an additional 675,000 shares. The shares were priced at $10.25. The net proceeds of the offering to the Company, after deducting underwriting discounts and commissions and estimated expenses, are approximately $50.3 million.

Jefferies & Company, Inc. acted as underwriter of the offering.

Copies of the prospectus supplement and related base prospectus relating to the offering may be obtained from Jefferies & Company, Inc. at 520 Madison Ave., 12th Floor, New York, New York, 10012.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The offering may be made only by means of the prospectus supplement and related base prospectus.

Statements contained in this press release may be deemed to constitute forward-looking information made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all statements that are not historical statements of fact and those regarding the intent, belief or expectations of the Company or its management and are subject to risks, uncertainties, and assumptions. Important factors that could cause actual results to differ materially from the forward-looking statements made in this press release include those risks described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT:    American Retirement Corporation
                    Ross C. Roadman, 615-376-2412

Source:        American Retirement Corporation