Exhibit 99.1


Beverly Enterprises Closes Sale of $215 Million of Senior Subordinated
Notes

    FORT SMITH, Ark.--(BUSINESS WIRE)--June 25, 2004--Beverly
Enterprises, Inc. (NYSE:BEV) announced today that it has closed the
sale of its $215 million aggregate principal amount of 7-7/8% Senior
Subordinated Notes due 2014 (the "2014 Notes"). The 2014 Notes were
issued at a price of 98.318% of par to yield 8.125%. Maturing on June
15, 2014, the 2014 Notes are general unsecured obligations
subordinated in right of payment to Beverly's existing and future
senior unsubordinated indebtedness and are guaranteed by certain
subsidiaries of Beverly.
    The proceeds from the sale and issuance of the 2014 Notes were
approximately $211 million. Beverly will use these proceeds, together
with cash on hand, to purchase for cash Beverly's 9-5/8% Senior Notes
due 2009 (the "2009 Notes") tendered in the tender offer that Beverly
commenced on June 9, 2004 and to pay related fees and expenses. As of
5 p.m. ET today, $189.8 million of the outstanding $200 million
aggregate principal amount of the 2009 Notes have been tendered and
accepted for payment by Beverly.
    The 2014 Notes were sold to qualified institutional buyers in
reliance on Rule 144A and outside the United States in compliance with
Regulation S under the Securities Act of 1933, as amended. The 2014
Notes have not been registered under the Securities Act and may not be
offered or sold by holders thereof without registration unless an
exemption from such registration requirements is available.
    In conjunction with this refinancing, Beverly executed and
delivered an amendment to its existing credit agreement to permit,
among other things, the issuance of the 2014 Notes and permit the
purchase of the 2009 Notes pursuant to the tender offer, which reduced
the interest rate on the term loan portion of its senior secured
credit facility by 50 basis points and expanded the size of its
revolving credit facility from $75 million to $90 million.
    This announcement is not an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of
securities in any state where such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the
securities laws of any such state.
    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 2004 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; the ability to integrate acquisitions and
realize synergies and accretion; 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 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; our
ability to obtain adequate insurance coverage with financially viable
insurance carriers, as well as the ability of our insurance carriers
to fulfill their obligations; the ability to replace or refinance debt
obligations and realize accretions from any such replacement or
refinancing; 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 values; 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
repurchase our stock and changes in the stock price after any such
repurchases; 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 Beverly's filings with
the Securities and Exchange Commission, including its Forms 10-K,
10-K/A and 10-Q.
    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 Inc., Fort Smith
             Investor Relations:
             James M. Griffith, 479-201-5514
             or
             News Media:
             Blair C. Jackson, 479-201-5263
             www.beverlycares.com