ILM I LEASE CORPORATION
                               RECEIVES NOTICE OF
                                 TERMINATION OF
                           FACILITIES LEASE AGREEMENT

FOR IMMEDIATE RELEASE:

      June 14, 2000, Tysons Corner, Virginia: ILM I Lease Corporation announced
today that it received a notice from ILM Holding, Inc. indicating that, pursuant
to the terms of the existing Facilities Lease Agreement, the agreement would
terminate on the date of consummation of the pending merger by and between ILM
Senior Living, Inc., an affiliate of Lease I, Capital Senior Living Corporation
(NYSE: CSU) and certain Capital affiliates. Subject to the satisfaction of
certain conditions and the receipt of requisite approvals, consummation of the
merger is expected to occur on or about July 30, 2000. If the merger is
consummated, Lease I's operations would not be expected to continue beyond the
termination of the lease agreement. As a result of the lease agreement
termination, it is currently expected that Lease I would have nominal value
after payment of expenses and other costs, and the Board accordingly would
review Lease I's status and continued existence.

      If you have any questions regarding this press release, please call Lease
I, toll free at 1-888-257-3550.

                                     * * *

      THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" BASED ON OUR
CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE
OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM HISTORICAL RESULTS OR THOSE
ANTICIPATED AND CERTAIN OF WHICH ARE BEYOND OUR CONTROL. THE WORDS "BELIEVE,"
"EXPECT," "ANTICIPATE" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING
STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.