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                                                                   EXHIBIT 99.1


FOR IMMEDIATE RELEASE

OCTOBER 21, 1998

FOR MORE INFORMATION:                                            [ARV LOGO]
SUZANNE C. SHIRLEY
V.P.--INVESTOR AND PUBLIC RELATIONS
(714) 751-7400

              ARV ASSISTED LIVING ANNOUNCES TERMINATION EVENT UNDER
                    STOCKHOLDERS AGREEMENT AND OTHER ACTIONS

COSTA MESA, CALIFORNIA, OCTOBER 21, 1998 - ARV Assisted Living, Inc. [AMEX: SRS]
announced today that the Board of Directors has determined that certain rights
and obligations have terminated under its Amended and Restated Stockholders
Agreement with Lazard Freres Real Estate Investors L.L.C., which through its
affiliates is the Company's largest stockholder. Under the Stockholders
Agreement, a termination event is deemed to occur on the date on which Lazard no
longer beneficially owns ARV Common Stock having a market value of at least
$25,000,000. On October 12, 1998, the closing price of ARV's common stock on the
American Stock Exchange was $2.75 per share, resulting in an aggregate market
value for Lazard's shares of less than $25,000,000.

As a consequence of a termination event under the Stockholders Agreement, Lazard
no longer has the right to designate nominees to ARV's Board of Directors or to
participate in future equity offerings by ARV and, effective as of January 11,
1999, will no longer be subject to certain standstill provisions which prohibit
Lazard from acquiring 50% or more of ARV's common stock, or from soliciting
mergers or similar transactions involving ARV or otherwise seeking control of
ARV. In pending litigation with ARV, Lazard has taken the position that such
standstill provisions have already terminated, which, if successful, would
result in an earlier termination of the standstill provisions.

In part due to the termination event under the Stockholders Agreement, the Board
of Directors today took actions designed to protect stockholders in the event of
an unsolicited takeover bid by anyone, including Lazard. ARV believes these
actions are appropriate in recognition of the different relationship that now
exists between ARV and Lazard than existed at the outset of the relationship.
Specifically, Lazard is now a direct competitor of ARV by virtue of its recent
acquisitions of Kapson Senior Quarters Corp. and Atria Communities, Inc. The
Board of Directors has amended its stockholder rights agreement to provide that
the acquisition by Lazard of 50% or more of ARV's common stock is an event that
triggers the distribution of rights under that agreement. ARV also has amended
its Bylaws to remove the right of stockholders owning a majority of ARV common
stock to call a special meeting of ARV's stockholders.




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The Board of Directors today also increased the number of directors from nine to
ten and appointed ARV's President/Chief Operating Officer, Douglas M. Pasquale,
to serve as a Class A director until the 2001 annual meeting of ARV's
stockholders. This carries out the anticipated course of action previously
disclosed to stockholders. Howard Phanstiel, ARV's Chairman and Chief Executive
Officer, stated "We are pleased to welcome Doug Pasquale to the ARV Board. Since
he joined the company this past June, the Board has been impressed with the
instrumental role Doug is playing in restructuring the operations management
team and laying the foundation for enhanced financial performance by our
communities."

Commenting on the amendment to the stockholder rights plan, Phanstiel added,
"The rights plan as amended is designed to treat all ARV stockholders fairly and
to encourage anyone seeking to acquire the company to negotiate with ARV's Board
prior to attempting a takeover. The actions taken by the Board today guard
against open market accumulations and other tactics to gain control of the
company without all stockholders receiving fair value."

Founded in 1980, ARV is one of the largest providers of assisted living services
in the nation, currently operating 62 communities containing approximately 7,700
units in 11 states. In addition, the company has 9 properties in various stages
of development. The company's apartment division operates 2,300 units that are
under contract or in negotiations for sale.






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