1 FILED PURSUANT TO RULE 424(B)(3) REGISTRATION NO. 333-45443 PROSPECTUS SUPPLEMENT DATED APRIL 28, 1999 TO THE PROSPECTUS DATED APRIL 10, 1998 ALTERNATIVE LIVING SERVICES, INC. Alternative Living Services, Inc. (the "Company") has prepared this Prospectus Supplement to update certain information included in the Company's Prospectus dated April 10, 1998 relating to the Company's $35,000,000 aggregate principal amount of 6.75% Convertible Subordinated Debentures due 2006 (the "Debentures") issued in a private placement on May 17, 1996 and the 1,717,217 shares of common stock, $.01 par value, of the Company that are issuable upon conversion of the Debentures, subject to adjustment under certain circumstances. The table set forth in the Prospectus under the caption "SELLING SECURITYHOLDERS" is hereby supplemented as follows: PRINCIPAL PRINCIPAL AMOUNT AMOUNT OF OF DEBENTURES DEBENTURES PERCENT OF BENEFICIALLY THAT MAY BE OUTSTANDING NAME OWNED SOLD DEBENTURES - ---- ------------ ----------- ----------- Morgan Guaranty Trust Company of New York As Trustee of the Commingled Pension Trust Fund (Multi-Market Special Investment Fund II) of Morgan Guaranty Trust Company of New York ............................... $675,000 $675,000 1.9% Morgan Guaranty Trust Company of New York As Trustee of the Commingled Pension Trust Fund (Multi-Market Special Investment Fund I) of Morgan Guaranty Trust Company of New York ............................... $599,000 $599,000 1.7% Jefferies & Company........................................................... $500,000 $500,000 1.4% Morgan Guaranty Trust Company of New York As Investment Manager and Agent for The Alfred P. Sloan Foundation (Multi-Market Account) ..................................................... $113,000 $113,000 * Morgan Guaranty Trust Company of New York Trustee of the Multi-Market Special Investment Trust Fund of Morgan Guaranty Trust Company of New York .................................................. $113,000 $113,000 * *Less than 1%