Exhibit 99.2

Beverly Divests/Closes Eight Eldercare Facilities; Material Gain to be
Recorded for the 2003 Fourth Quarter

    FORT SMITH, Ark.--(BUSINESS WIRE)--Dec. 31, 2003--Beverly
Enterprises, Inc. (NYSE: BEV) today announced that it divested or
closed eight additional eldercare facilities in December. The seven
skilled nursing facilities and one assisted living center were
expected to generate about $34 million in revenues during 2003.
    "We continue to strengthen our nursing facility portfolio by
divesting or closing under-performing assets, minimizing geographic
span-of-control challenges and maximizing our presence in those
markets that offer the highest potential for profitable growth," said
William R. Floyd, Beverly Chairman and Chief Executive Officer. "With
the exception of a profitable facility in Hawaii that we sold for
strategic market-concentration reasons, the December transactions
involved unprofitable facilities that offered little potential for
significant improvement within our organization. As a result of
divestitures during the 2003 fourth quarter, we expect to record a
material gain during the period."
    The December transactions bring the total number of facilities
divested or closed during 2003 to 89. These 89 facilities were
expected to collectively account for 20 percent of planned Skilled
Nursing Facility revenues, but 36 percent of that unit's projected
patient care liability costs in 2003. The latest transactions:

        Hawaii: Beverly sold the Hale Nani skilled nursing facility
        containing 288 beds for cash to Heritage Management, Inc., a
        privately held operator of skilled nursing facilities that
        last month purchased 21 other operations from Beverly.

        Missouri: Beverly terminated its lease on a 128-bed facility
        in Florissant. It also closed a 94-bed facility in Neosho.

        Kansas: Beverly sold a 60-bed facility in Wathena to Wathena
        LLC.

        Minnesota: A 48-bed facility in Long Lake that had been closed
        earlier in the year was sold to Long Lake Assisted Living LLC.

        Arkansas: A 105-bed facility in Blytheville was closed.

        Indiana: In Greenfield, Beverly terminated its lease on a
        52-bed skilled nursing facility and ceased operation of a
        16-unit assisted living center.

    Net cash proceeds from these transactions will be used primarily
to further reduce Beverly's debt. JPMorgan serves as the exclusive
financial advisor to Beverly for the divestiture strategy.
    This release is intended to be disclosure through methods
reasonably designed to provide broad, non-exclusionary distribution to
the public in compliance with the Securities and Exchange Commission's
Fair Disclosure Regulation. This release may contain forward-looking
statements, including statements related to performance in 2003 and
beyond, made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
involve known and unknown risks and uncertainties that may cause the
company's actual results in future periods to differ materially from
forecasted results. These risks and uncertainties include: national
and local economic conditions, including their effect on the
availability and cost of labor, utilities and materials; the effect of
government regulations and changes in regulations governing the
healthcare industry, including the company's compliance with such
regulations; changes in Medicare and Medicaid payment levels and
methodologies and the application of such methodologies by the
government and its fiscal intermediaries; the effects of adopting new
accounting standards; liabilities and other claims asserted against
the company, including patient care liabilities, as well as the
resolution of lawsuits brought about by the announcement or settlement
of federal government investigations and increases in the reserves for
patient care liabilities; the ability to predict future reserves
related to patient care and workers' compensation liabilities; the
ability to replace or refinance debt obligations; the ability to
reduce overhead costs, obtain pricing concessions from suppliers,
improve the effectiveness of our fundamental business processes and
develop new sources of profitable revenues; the ability to execute our
strategic growth initiatives and implement our strategy to divest
certain of our nursing facilities in a timely manner at fair value;
the ability to attract and retain qualified personnel; the
availability and terms of capital to fund acquisitions, capital
improvements and on-going operations; the competitive environment in
which the company operates; the ability to maintain and increase
census levels; and demographic changes. These and other risks and
uncertainties that could affect future results are addressed in the
company's filings with the Securities and Exchange Commission,
including Forms 10-K, 10-K/A and 10-Q.
    Beverly Enterprises, Inc. and its operating subsidiaries comprise
a leading provider of healthcare services to the elderly in the United
States. They operate 372 skilled nursing facilities, as well as 20
assisted living centers, and 26 hospice and home care centers. Through
AEGIS Therapies, they also offer rehabilitative services on a contract
basis to nursing facilities operated by other care providers.

    CONTACT: Beverly Enterprises Inc., Fort Smith
             Investor Contact:
             James M. Griffith, 479-201-5514
             or
             News Media Contact:
             Blair C. Jackson, 479-201-5263
             www.beverlynet.com