Exhibit 99.1

          Martha Schram Named President of Aegis Therapies;
        Appointed Senior Vice President of Beverly Enterprises

     FORT SMITH, Ark.--(BUSINESS WIRE)--June 24, 2004--Beverly
Enterprises (NYSE:BEV) today announced the appointment of Martha
Schram as senior vice president, and president of Aegis Therapies.
Aegis provides physical, speech and occupational therapy to 367
Beverly nursing homes and 547 facilities operated by other care
providers. Previously, Schram was vice president of Aegis. She will
report to Cindy Susienka, executive vice president of Beverly.
    "Since joining Beverly in 1998, Martha has been one of the key
players in building our therapy business -- both internally and
externally," said William R. Floyd, chairman, president and chief
executive officer of Beverly. "Under her leadership, Aegis Therapies
has grown to become the nation's leading provider of contract
rehabilitative therapies, with 2004 projected revenues of $270
million.
    "Most significantly, the non-Beverly part of this business has
grown from start-up status a few years ago to a revenue run-rate of
$120 million," he noted. "A key reason for this growth is that Aegis
has differentiated itself from the competition through superior
service and the ability to demonstrate the cost-effectiveness of its
various therapy regimens. Martha has played a key role in this
successful growth."
    Prior to joining Beverly, Schram was an area vice president for
NovaCare and also served as Executive Director of Rehabilitation
Services for Divine Savior Hospital in Portage, Wis. She earned a
Bachelor of Science degree in physical therapy from the University of
Colorado.
    Beverly Enterprises, Inc. and its operating subsidiaries are
leading providers of healthcare services to the elderly in the United
States. At May 31, 2004, Beverly operated 367 skilled nursing
facilities, as well as 19 assisted living centers, and 26 hospice
centers. Through Aegis Therapies, Beverly also offers rehabilitative
services on a contract basis to facilities operated by other care
providers.

    CONTACT: Beverly Enterprises, Fort Smith
             Blair C. Jackson, 479-201-5263
             www.beverlycares.com