EXHIBIT 99.5



                                 PRESS RELEASE
                                        

 
Contact:  J. Timothy Wesley
          Chief Financial Officer, Vice President of Development
          and Secretary
          (502) 719-1650

                  ATRIA COMMUNITIES ANNOUNCES MERGER AGREEMENT

     Louisville, Kentucky.  April 20, 1998.  Atria Communities, Inc. ("Atria")
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(Nasdaq/NM:  ATRC), and Kapson Senior Quarters Corp. ("Kapson"), an affiliate of
Lazard Freres Real Estate Investors LLC, today announced that they have signed a
definitive merger agreement under which Kapson will acquire Atria in a
transaction valued at approximately $750 million.  Under the terms of the merger
agreement, a subsidiary of Kapson will merge into Atria and the public
stockholders of Atria will receive $20.25 per share in cash.  Vencor, Inc.
("Vencor"), which currently holds approximately 42.8% of the currently
outstanding common stock of Atria, will also receive $20.25 per share in cash
for approximately 88% of its Atria shares (approximately $177.5 million), and
will retain its remaining shares of Atria after the closing of the merger.

     In connection with the execution of the merger agreement, Kapson entered
into support agreements with Vencor and certain officers and directors of Atria
collectively holding approximately 46.4% of the currently outstanding Atria
common stock under which Vencor and such directors and officers have agreed to
vote their shares in favor of the merger.  Atria has also agreed to pay Kapson a
break-up fee of  approximately $18.2 million and reimburse Kapson's expenses in
certain circumstances.

     The merger is subject to customary conditions, including approval of
Atria's stockholders and certain regulatory approvals.  BT Alex. Brown
Incorporated has provided financial advisory services to Atria's Board of
Directors and has issued a fairness opinion in connection with the merger.

     Atria, based in Louisville, Kentucky, is a leading national provider of
assisted and independent living services for the elderly.  Atria currently
operates 53 communities in 19 states with 5,247 units.  Atria has 41 additional
communities currently under development.

FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE SUBJECT TO
CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY.  CERTAIN RISKS ARE DETAILED IN THE COMPANY'S REPORTS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.