EXHIBIT 99.1

NEWS RELEASE

FOR INFORMATION CONTACT:

Ross C. Roadman
SVP, Strategic Planning and Investor Relations
American Retirement Corporation
615-376-2412

FOR IMMEDIATE RELEASE

   AMERICAN RETIREMENT CORPORATION PRICES PUBLIC OFFERING AT $26.60 PER SHARE

Nashville, Tennessee (January 20, 2006) - American Retirement Corporation (NYSE:
ACR), a leading national provider of senior living housing and care, announced
today the pricing of a public offering of 3,000,000 shares of the Company's
common stock. The offering was priced at $26.60 per share. All of the shares are
being sold by the Company. The proceeds of the offering to the Company, after
underwriting discounts and commissions and estimated expenses, will be
approximately $78 million.

Jefferies & Company, Inc. acted as underwriter of the offering. The Company has
granted the underwriter a 30-day option to purchase up to 450,000 additional
shares to cover over-allotments, if any.

The Company intends to use the net proceeds from the offering to repay
outstanding debt, to fund possible future acquisitions, to fund expansion
activity, and for general corporate purposes, including working capital.

Copies of the prospectus supplement and related base prospectus relating to the
offering may be obtained from Jefferies & Company, Inc. at 520 Madison Ave.,
12th Floor, New York, New York, 10012.

This press release does not constitute an offer to sell or a solicitation of an
offer to buy the securities described herein, nor shall there be any sale of
these securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful. The offering may be made only by means
of the prospectus supplement and related base prospectus.

Statements contained in this press release and statements made by or on behalf
of American Retirement Corporation relating hereto may be deemed to constitute
forward-looking information made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements include all statements that are not historical statements of fact and
those regarding the intent, belief or expectations of the Company or its
management, including, without limitation, all statements regarding the
Company's future operating and financial expectations and its strategy to
improve financial and operating results. These forward-looking statements are
subject to risks, uncertainties, and assumptions. Important factors that could
cause actual results to differ materially from the forward-looking statements




made in this press release include those risks described in the Company's
filings with the Securities and Exchange Commission. In light of the significant
uncertainties inherent in the forward-looking statements included herein, the
Company's actual results could differ materially from such forward-looking
statements. The Company does not undertake any obligation to publicly release
any revisions to any forward-looking statements contained herein to reflect
events and circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.