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MOODYS REVISES THE OUTLOOK OF OMEGA HEALTHCARE INVESTORS, INC. TO STABLE; SENIOR DEBT AT Caa1

$200 Milllion of Securities Affected.

New York, July 12, 2002 — Moody’s Investors Service has revised the rating outlook (senior debt at Caa1, preferred stock at Ca) for Omega Healthcare Investors, Inc. to stable, from negative. The change in outlook reflects the recent repayment of the $125 million of senior notes that were due in June 2002. Following this repayment, there are no debt maturities until December 2003, when the REIT’s senior credit facility comes due. Omega’s earnings pressures have improved as more operators, such as Sun Healthcare and Mariner Healthcare, which comprise 33% of Omega’s property portfolio, emerge from bankruptcy. To the extent that cuts in government healthcare reimbursements put additional pressure on operators, Omega may be under renewed financial stress. Omega is not paying its common or preferred stock dividends, with the latter in arrears by over $25 million.

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