American Retirement Corporation Closes Mortgage Debt Transaction

NASHVILLE, Tenn., May 17, 2002 (BUSINESS WIRE) -- American Retirement Corporation (NYSE:ACR) today announced the closing on new mortgage debt on three of its large retirement communities with GE Capital Healthcare Financial Services. The new mortgage debt, which replaces mortgage debt that was to mature on December 2002, is for three years with two additional one-year options available. The $95.7 million mortgage debt, that includes a fixed and a variable rate component, is secured by three of American Retirement's communities in Ft. Worth, Austin and Denver.

"This transaction is a major step towards completing our Refinancing Plan to address our maturing obligations," said Bill Sheriff, Chairman and Chief Executive Officer of the Company. "GE Capital Healthcare Financial Services has been an important lender for the Company and we are pleased to continue that relationship."


About American Retirement Corporation

American Retirement Corporation offers a broad range of care and services to seniors, including independent living, assisted living, skilled nursing and Alzheimer's care. The Company currently operates 65 senior living communities in 14 states with an aggregate capacity for approximately 14,300 residents. The Company's strategy is to develop senior living networks in major metropolitan regions. These networks are comprised of large continuing care retirement communities and free-standing assisted living residences located in the same markets.


About GE Capital Healthcare Financial Services

GE Capital Healthcare Financial Services is the premier provider of capital, financial solutions and related services for the global healthcare market. With $9 billion in assets, GE Capital Healthcare Financial Services offers a full range of financing capabilities from equipment leasing and real estate financing to working capital lending and equity investing. With a dedicated focus and a deep knowledge of the healthcare industry, GE Capital Healthcare Financial Services collaborates with customers to create tailored financial solutions that help them improve their productivity and profitability. GE Capital Healthcare Financial Services' website is GECapitalHealthcare.com.


CONTACT:         American Retirement Corp., Nashville
                         Ross C. Roadman, 615/376-2412

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