Exhibit 99.2

                       RESTATED FINANCIAL INFORMATION
            (showing the effect of the management obligations of
     Arbour Elder Services, Inc. with respect to operations in February and
                               March of 1997) 

                          AGES HEALTH SERVICES INC.
             RESTATED CONDENSED BALANCE SHEET AT MARCH 31, 1997
                                 (Unaudited) 



                                                                            Restatement Adjustments
                                                                         ----------------------------
                                                           Historical     Ages (a)          Other           Restated
                                                           ----------    ----------     -------------    ---------------

Assets
 
                                                                                             
Current: 
  Cash and cash equivalents                                $  144,457    $  239,737     $ (64,508)(b)    $  (159,788)(e)
  Accounts receivable, less allowance for uncollectible 
   accounts of $473,468                                     2,164,782       172,903      (783,043)(c)      1,208,836 
  Prepaid expenses                                             55,482        27,626       (13,556)(d)         14,300 
  Current portion of long-term note receivable related 
   to discontinued operations                                   7,702         2,702         2,702 (c)          7,702 
  Deferred taxes                                               15,000             0             0             15,000
                                                           ---------------------------------------------------------
 
      Total current assets                                  2,387,423       442,968      (858,405)         1,086,050
                                                           ---------------------------------------------------------
 
Property and equipment, net of accumulated depreciation
of  $166,305                                                  177,681        (7,962)      (11,901)(d)        173,742
                                                           ---------------------------------------------------------
 
Long-term note receivable related to discontinued 
 operations, less current portion                              10,320        (3,192)       (3,192)(c)         10,320
                                                           ---------------------------------------------------------
 

                                                           $2,575,424    $  431,814     $(873,498)       $ 1,270,112
                                                           =========================================================
 
Liabilities and Stockholders' Equity 
 
Current liabilities: 
  Short-term borrowings                                    $1,525,938    $1,019,560     $(486,378)(b)    $   20,000 
  Accounts payable                                            307,271       (66,270)     (120,648)(b)       252,893 
  Dividends payable                                            25,000         5,000             0            20,000 
  Accrued expenses                                            506,347      (298,797)     (211,121)(b)       594,023 
  Current portion of long-term debt and loans payable         215,780             0             0           215,780
                                                           --------------------------------------------------------
 
      Total current liabilities                             2,580,336       659,493      (818,147)(b)     1,102,696 
 
Long-term debt and notes payable, less current portion        299,118        (1,942)            0           301,060 
Deferred income taxes                                          15,000             0             0            15,000
                                                           --------------------------------------------------------
 
      Total liabilities                                     2,894,454       657,551      (818,147)        1,418,756
                                                           --------------------------------------------------------
 
Commitments and contingencies 
 
Stockholders' equity                                         (319,030)     (225,737)      (55,351)         (148,644)
                                                           --------------------------------------------------------
 

                                                           $2,575,424    $  431,814     $(873,498)       $1,270,112
                                                           ========================================================

- --------------------
<Fa>  To eliminate the assets and liabilities of Ages Health Services Inc. 
      ("Ages") for February and March 
<Fb>  To reflect cash disbursed and similar adjustments that would not have 
      been eliminated due to the management obligations of Arbour Elder 
      Services, Inc. 
<Fc>  To reflect cash received and similar adjustments that would not have 
      been eliminated due to the management obligations of Arbour Elder 
      Services, Inc. 
<Fd>  To reflect expenses incurred and similar adjustments that would not 
      have been eliminated due to the management obligations of Arbour Elder 
      Services, Inc. 
<Fe>  Certain short term borrowings, accounts payable and accrued expenses 
      were paid out during the management period by Arbour to fulfill its 
      obligations in the Agreement and also as an advance against cash due at 
      closing.