Exhibit 99.2

Beverly Enterprises, Inc. Adopts Shareholder Rights Plan

    FORT SMITH, Ark.--(BUSINESS WIRE)--Jan. 25, 2005--The Board of
Directors of Beverly Enterprises, Inc. (NYSE: BEV) today adopted a
Shareholder Rights Plan. Under the Plan, each Right will entitle
shareholders to buy one one-thousandth of a share of newly created
Series A Junior Participating Preferred Stock of the Company at an
exercise price of $50.00.
    Under the Plan, if a person or group becomes the owner of 10% or
more of the Company's common stock, each Right will entitle its holder
to purchase, for the Right's $50 exercise price (as it may be adjusted
under the Plan), a number of Beverly common shares having a market
value at that time of twice the Right's exercise price. Rights held by
the triggering person or group will become void and not be exercisable
to purchase shares at the bargain purchase price.
    The Beverly Board will be entitled to redeem the Rights at $.01
per Right at any time before a person or group has acquired 10% or
more of the outstanding common stock. The Rights Plan will expire on
January 26, 2015. The Rights distribution is not taxable to
shareholders.
    The Rights are designed to ensure that all shareholders of Beverly
Enterprises, Inc. receive fair and equal treatment in the event of any
proposed takeover of the Company and to guard against partial tender
offers, open market accumulations and other abusive tactics to gain
control of Beverly to the detriment of shareholders.
    Beverly Enterprises, Inc. and its operating subsidiaries are
leading providers of healthcare services to the elderly in the United
States. BEI, through its subsidiaries, currently operates 351 skilled
nursing facilities, as well as 18 assisted living centers, and 53
hospice and home health centers. Through Aegis Therapies, BEI also
offers rehabilitative services on a contract basis to facilities
operated by other care providers.

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