Brookdale Completes Acquisition of American Retirement and Equity Follow-On Offering

CHICAGO and NASHVILLE, Tenn., July 25 – Brookdale Senior Living Inc. (NYSE: BKD) and American Retirement Corporation (NYSE: ACR) today announced that Brookdale has completed its acquisition of American Retirement. Under the terms of the merger agreement, Brookdale acquired all outstanding shares of American Retirement for an aggregate purchase price of approximately $1.2 billion, or $33.00 per share in cash. American Retirement's shares will cease trading at the close of the market today and will no longer be listed on the New York Stock Exchange. The acquisition received stockholder approval at a special meeting of American Retirement stockholders on July 19, 2006.

The combined company will be the largest operator of senior living facilities in the United States based on total capacity with over 530 facilities in 33 states and the ability to serve over 50,000 residents. The combined company will operate 97 independent living facilities with 18,890 units/beds, 409 assisted living facilities with 21,284 units/beds, 27 continuing care retirement communities with 9,874 units/beds, and 3 skilled nursing facilities with 395 beds. Upon completion of transactions that have yet to close, the combined company will operate over 547 facilities and approximately 52,000 units.

Commenting on the transaction, William B. Doniger, Vice Chairman of Brookdale, said, "We are very pleased to have completed this transaction so quickly and smoothly. With the addition of American Retirement, in our opinion Brookdale now operates the highest quality portfolio of senior housing assets in the United States."

Mark J. Schulte, Co-Chief Executive Officer of Brookdale continued, "We look forward to bringing the outstanding people and communities from American Retirement Corporation into the Brookdale family, continuing both companies' tradition of delivering the highest level of service to our residents. This is a great result for two outstanding organizations and the very talented people who have helped build them."

W.E. Sheriff, Co-Chief Executive Officer of Brookdale and former Chief Executive Officer of American Retirement Corporation commented, "Internally we have seen a lot of excitement about this combination, and I speak for all American Retirement associates when I say that I look forward to the partnership with Brookdale."

In connection with the completion of the acquisition of American Retirement, Brookdale today announced the closing of its previously announced underwritten offering of 22,121,518 shares of its common stock at a public offering price of $39.50 per share. Of the total shares sold, 17,721,519 shares were issued by Brookdale and 4,399,999 shares were sold by Health Partners, an existing stockholder, including 2,885,415 shares sold pursuant to the exercise of the underwriters over-allotment option. Brookdale received net proceeds from the sale of such shares of approximately $675.5 million. Brookdale did not receive any proceeds from the sale of the shares by Health Partners.

A portion of the proceeds from this offering, together with $650.0 million received pursuant to a previously announced equity commitment received from a fund managed by an affiliate of Fortress Investment Group LLC, were used in connection with the consummation of the acquisition of American Retirement.

Goldman, Sachs & Co. and Lehman Brothers Inc. acted as joint bookrunning lead managers and as representatives for the underwriters in this offering, Citigroup Global Markets Inc. acted as joint lead manager and JP Morgan Securities Inc., Banc of America Securities LLC and Cohen & Steers Capital Advisors, LLC acted as co-managers in this offering.