NEWS RELEASE
FOR IMMEDIATE RELEASE Contact: Raymond Brandstrom
October 15, 2003 Chief Financial Officer
(206) 298-2909
EMERITUS ANNOUNCES UPDATE TO ALTERRA TRANSACTION
SEATTLE, WA, OCTOBER 15, 2003 -- Emeritus Assisted Living (AMEX: ESC) (Emeritus
Corporation), a national provider of assisted living and related services to
senior citizens, announced today further details of the previously disclosed
investment by the Company in Alterra Healthcare Corporation (Alterra). The
Company previously announced its intent to acquire Alterra through a joint
venture entity controlled by Emeritus. The Company has renegotiated the terms
of the joint venture with its partners under which an affiliate of Fortress
Investment Group LLC, which was to contribute $1.5 million of equity and $62.5
million of debt, will now contribute $49 million of equity and $15 million of
debt and have the right to appoint a majority of the directors of the
reorganized Alterra. The Company's investment in Alterra will be $7.0 million,
excluding any transaction costs. The transaction continues to be conditioned
on, among other things, confirmation of Alterra's Chapter 11 Plan of
Reorganization and the receipt of regulatory approvals, and is still expected to
close in the fourth quarter of this year.
ABOUT THE COMPANY
Emeritus Assisted Living is a national provider of assisted living and related
services to seniors. Emeritus is one of the largest developers and operators of
freestanding assisted living communities throughout the United States. These
communities provide a residential housing alternative for senior citizens who
need help with the activities of daily living with an emphasis on assistance
with personal care services to provide residents with an opportunity for support
in the aging process. Emeritus currently holds interests in 169 communities
representing capacity for approximately 17,600 residents in 32 states.
Emeritus's common stock is traded on the American Stock Exchange under the
symbol ESC, and its home page can be found on the Internet at www.emeritus.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: A number of the matters and subject areas discussed in this report that
are not historical or current facts deal with potential future circumstances,
operations, and prospects. The discussion of such matters and subject areas is
qualified by the inherent risks and uncertainties surrounding future
expectations generally, and also may materially differ from our actual future
experience as a result of such factors as: the effects of competition and
economic conditions on the occupancy levels in our communities; our ability
under current market conditions to maintain and increase our resident charges in
accordance with rate enhancement programs without adversely affecting occupancy
levels; increases in interest rates that would increase costs as a result of
variable rate debt; our ability to control community operation expenses,
including insurance and utility costs, without adversely affecting the level of
occupancy and the level of resident charges; our ability to generate cash flow
sufficient to service our debt and other fixed payment requirements; our ability
to find sources of financing and capital on satisfactory terms to meet our cash
requirements to the extent that they are not met by operations; and making
satisfactory arrangements for the continued operation of the Emeritrust
communities as our management agreements for those communities expire. We have
attempted to identify, in context, certain of the factors that we currently
believe may cause actual future experience and results to differ from our
current expectations regarding the relevant matter or subject area. These and
other risks and uncertainties are detailed in our reports filed with the
Securities and Exchange Commission (SEC), including our Annual Reports on Form
10-K and Quarterly Reports on Form 10-Q.