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PORTLAND, OR-Assisted Living Concepts, owner and operator of some 183 adult-care facilities, says it has cut staff and now will sell off several properties in order to cover the associated costs.

Although specifics on the number of layoffs were not part of the announcement, the national provider of assisted living services says the retrenching has been under development by new management for three months and that the personnel reductions are expected to result in savings of over $1.3 million per annum.

“We are making progress on several of the initiatives mentioned to in our first quarter results, including bringing down our operating expenses for corporate staff. While staff reductions are always difficult, this move is necessary to more closely align our cost structure with our existing operations,” said Steven L. Vick, President and Chief Executive Officer. “We will continue to work diligently to reduce costs where possible and improve our financial performance, while maintaining the quality of services provided to our residents.”

Proceeds from the property sales–five facilities in Florida and Georgia– will be applied against the Notes issued in connection with the recent reorganization. The transaction is subject to numerous closing conditions and is expected to be finalized in the fourth quarter of 2002.

“This sale will help us to reduce our leverage and improve both cash flow and operational efficiency,” said Mr. Vick. “Given the lack of significant presence by the Company in these markets and the insurance climate in Florida, we believe it is in our interest to focus our efforts elsewhere.” The transaction is subject to numerous closing conditions and is expected to be finalized in the fourth quarter of 2002.

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