EXHIBIT 99.2

                           ILM II SENIOR LIVING, INC.
                           RECEIVES TERMINATION LETTER
                                      FROM
                        CAPITAL SENIOR LIVING CORPORATION

February 14, 2001, Tyson's Corner, Virginia: ILM II Senior Living, Inc. today
announced that on February 8, 2001, it received notice from representatives of
Capital Senior Living Corporation (NYSE: CSU), terminating the merger agreement
among ILM II, Capital and a subsidiary of Capital which agreement had provided
for the merger of ILM II with and into Capital's subsidiary.

      As stated in their termination letter, Capital terminated the merger
agreement because of concerns it has relating to ILM II's claimed election in
1996 to defer built-in gains taxes upon its conversion from a C-corporation to a
Real Estate Investment Trust. As previously reported in ILM II's public filings,
ILM II claimed this election based upon the advice of its outside tax
accountants, has operated since 1996 under the belief that such election was
validly perfected, and is pursuing administrative relief with the Internal
Revenue Service to ensure the availability of ILM II's election to defer such
corporate level built-in gains taxes. ILM II believes that it has a legitimate
basis to claim the election based, in part, and with reliance upon the advice of
its outside tax accountants. Ultimate resolution of this matter is at the
discretion of the Internal Revenue Service. An adverse determination by the
Internal Revenue Service would result in the payment of interest and penalties
due on tax payments which were deferred since 1996. ILM II cannot estimate with
certainty the timing of such resolution nor can there be any assurance as to the
outcome of this matter.

      As previously reported, pursuant to ILM II's organizational instruments it
is required to liquidate its properties not later than December 31, 2001. ILM
II's Board of Directors and management are working diligently with their outside
legal counsel and with Cohen & Steers Capital Advisors LLC, ILM II's financial
advisors, to identify, formulate and pursue all strategic financial alternatives
to maximize shareholder value, including, without limitation, putting ILM II up
for sale as a going-concern and liquidating ILM II's senior living properties by
means of public auction, privately negotiated sale or otherwise. ILM II intends
to contact and invite prospective purchasers to submit bona fide offers to
acquire ILM II's stock or assets upon terms and conditions in the best
interests of shareholders.

Contact:  J. William Sharman, Jr. (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
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EVENTS OR OTHERWISE.