National HealthCare (NHC) 8-K NHC reports second quarter earnings

Exhibit 99

For release: August 9, 2006

Contact: Gerald Coggin, Sr. V.P. Investor Relations

Phone: (615) 890-2020

NHC reports second quarter earnings

MURFREESBORO, Tenn. -- National HealthCare Corporation (AMEX: NHC), today announced second quarter net income of $10,363,000 or 84 cents per basic share, compared to $5,908,000 or 48 cents per basic share in the second quarter of 2005, an increase of 75.4%.

Revenues increased to $140,669,000 compared to $134,330,000 for the same period a year earlier.

Second quarter occupancy at owned and leased skilled nursing centers averaged 93.95% compared to 93.8% a year ago.

Quarterly results include $4,385,000 after tax from the recovery of a note receivable from a center that we manage.

NHC provides services to 74 long-term health care centers with 9,155 beds. NHC also operates 30 homecare programs, six independent living centers and assisted living centers at 22 locations. NHC's other services include managed care specialty medical units, Alzheimer's units, hospice, and a rehabilitation services company. In order to understand in all material respects the financial condition, results of operations and cash flows of NHC, the investor must review our most recent Form 10-Q quarterly report, Form 10-K annual report and press releases which are available on our web site atwww.NHCcare.com.

Statements in this press release that are not historical facts are forward-looking statements. NHC cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. The risks and uncertainties are detailed from time to time in reports filed by NHC with the S.E.C., including Forms 8-K, 10-Q and 10-K, and include, among others, the following: liabilities and other claims asserted against us, including claims related to the 2003 fire and patient care liabilities, as well as the resolution of current litigation; availability of insurance and assets for indemnification; national and local economic conditions; including their effect on the availability and cost of labor, utilities and materials; the effect of government regulations and changes in regulations governing the healthcare industry, including our compliance with such regulations; changes in Medicare and Medicaid payment levels and methodologies and the application of such methodologies by the government and its fiscal intermediaries, the ability of third parties for whom we have guaranteed debt to refinance certain short term debt obligations; and other factors referenced or incorporated by reference in the S.E.C. filings. The risks included here are not exhaustive. All forward-looking statements represent NHC's best judgment as of the date of this release.

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NHC reports second quarter earnings

Condensed Statements of Income

(in thousands, except share and per share amounts) Three Months Ended June 30 Six Months Ended June 30

		2006		2005		2006		2005
Revenues:
Net patient revenues	$	123,954	$	118,759	$	247,290	$	235,091
Other revenues		16,715		15,571		30,330		29,954
Net revenues	$	140,669	$	134,330	$	277,620	$	265,045
Costs and Expenses:
Salaries, wages and benefits	$	77,317	$	72,071	$	151,041	$	142,584
Other operating		39,146		37,679		79,415		74,775
Write-off (recovery) of notes receivable		(7,309)		---		(7,309)		1,000
Rent		10,338		10,855		20,630		20,811
Depreciation and amortization		3,470		3,728		6,884		7,442
Interest		243		378		520		808
Total costs and expenses	$	123,205	$	124,711	$	251,181	$	247,420
Income Before Income Taxes		17,464		9,619		26,439		17,625
Income Tax Provisions		(7,101)		(3,711)		(10,656)		(6,803)
Net Income	$	10,363	$	5,908	$	15,783	$	10,822
Earnings Per Share:
Basic	$	.84	$	.48	$	1.28	$	.88
Diluted	$	.80	$	.46	$	1.22	$	.85
Weighted average common shares outstanding
Basic		12,293,838		12,240,890		12,287,883		12,235,437
Diluted		12,936,216		12,753,192		12,897,356		12,753,444

Balance Sheet Data		June 30		December 31,
(in thousands)		2006		2005
Cash, restricted cash and marketable securities	$	207,708	$	202,301
Current assets		268,744		260,579
Total assets		434,477		410,625
Current liabilities		155,163		147,191
Long-term obligations		26,612		27,571
Deferred lease credits		5,641		6,154
Deferred revenue		27,748		25,465
Stockholder's capital		217,943		203,059

Selected Operating Statistics Three Months Ended June 30,

		2006		2005
Per Diems:
Medicare	$	314.51	$	306.66
Medicaid		129.52		125.39
Private Pay and Other		185.98		193.03
Patient Days:
Medicare		95,845		91,250
Medicaid		295,903		297,267
Private Pay and Other		146,514		133,853
		538,262		522,370
Average Per Diem	$	177.83	$	174.39

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