Although specifics on the number of layoffs were not part of theannouncement, the national provider of assisted living servicessays the retrenching has been under development by new managementfor three months and that the personnel reductions are expected toresult in savings of over $1.3 million per annum.

"We are making progress on several of the initiatives mentionedto in our first quarter results, including bringing down ouroperating expenses for corporate staff. While staff reductions arealways difficult, this move is necessary to more closely align ourcost structure with our existing operations," said Steven L. Vick,President and Chief Executive Officer. "We will continue to workdiligently to reduce costs where possible and improve our financialperformance, while maintaining the quality of services provided toour residents."

Proceeds from the property sales--five facilities in Florida andGeorgia-- will be applied against the Notes issued in connectionwith the recent reorganization. The transaction is subject tonumerous closing conditions and is expected to be finalized in thefourth quarter of 2002.