PRESS RELEASE - FOR IMMEDIATE RELEASE

           Omega Healthcare Investors, Inc. Completes Rights Offering
                             and Explorer Investment

     TIMONIUM,  Md.,  February  21,  2002 -- Omega  Healthcare  Investors,  Inc.
(NYSE:OHI)  today  announced the  completion of its rights  offering and private
placement  with Explorer  Holdings,  L.P.  Stockholders  exercised  subscription
rights to purchase a total of 6,402,632 shares of common stock at a subscription
price of $2.92 per share,  raising gross proceeds of $18.70  million.  Omega has
accepted all the validly  exercised  subscription  rights,  and Omega's transfer
agent is in the  process of  distributing  stock  certificates  to  stockholders
exercising their subscription rights. In a related transaction, Omega closed its
previously  announced private placement with Explorer  Holdings,  L.P.,  Omega's
largest stockholder, raising gross proceeds of $31.30 million.

     Omega  expects to use the  proceeds  from the rights  offering  and private
placement to repay  outstanding  indebtedness  and for working capital and other
general  corporate  purposes.  The  completion  of the rights  offering  and the
Explorer  investment were the only conditions  precedent to the effectiveness of
the previously announced amendments to Omega's senior credit facilities.

     Omega  is a  Real  Estate  Investment  Trust  investing  in  and  providing
financing to the long-term care industry.

                        FOR FURTHER INFORMATION, CONTACT
                        Bob Stephenson at (410) 427-1722
                             -----------------------

     This  announcement  includes  forward-looking  statements.  Omega has based
these  forward-looking  statements on its current  expectations  and projections
about future  events.  Although  Omega  believes  that its  assumptions  made in
connection with the forward-looking statements are reasonable, no assurances can
be given that its assumptions and expectations  will prove to have been correct.
These forward-looking statements are subject to various risks, uncertainties and
assumptions.  Omega  undertakes no  obligation to publicly  update or revise any
forward-looking  statements,  whether  as a result  of new  information,  future
events or otherwise. In light of these risks, uncertainties and assumptions, the
forward-looking  events  discussed  in this  announcement  might not  occur.  In
particular, there can be no assurance that the proceeds from the rights offering
and private  placement,  together with the proceeds from anticipated asset sales
and  cash  flow  from  operations,   will  be  sufficient  to  fully  repay  the
indebtedness that matures during the first half of 2002.