Exhibit 99.1

Beverly Enterprises Board Votes to Pursue Sale of the Company

    FORT SMITH, Ark.--(BUSINESS WIRE)--March 22, 2005--Beverly
Enterprises, Inc. (NYSE: BEV) today announced that its Board of
Directors has unanimously voted to conduct an auction process to
maximize value for all of the company's stockholders as soon as
practicable through a sale of the company. The Board has directed its
financial advisors, Lehman Brothers and JPMorgan, to immediately begin
contacting potential bidders, including the Whitman/Appaloosa group,
and has instructed management to work with all qualified bidders.
    William R. Floyd, Chairman and Chief Executive Officer, said, "We
are proud of the dramatic turnaround we've achieved in operating and
financial results over the past several years, and we are confident
the substantial stockholder value we have created is only beginning to
be recognized by the financial markets. At the same time, we recognize
the time has come to actively explore ways through which we can
significantly accelerate the value creation process.
    "The expression of interest from the Whitman/Appaloosa group in
acquiring BEI has caused a dramatic change in the composition of our
stockholder base. Many of these new stockholders have a significantly
shorter time horizon for their investments. Therefore, the Board is
determined to pursue all possible means of maximizing stockholder
value in the near term. We are committed to moving carefully, but
expeditiously through this process.
    "Our Board, which has overseen the dramatic turnaround we've
achieved during the past five years, believes that it is best able to
conduct a fair and open auction and to negotiate a transaction that
will maximize value for all BEI stockholders -- and do so in a manner
that will be least disruptive to our business, clients, patients and
associates.

    "I want to emphasize that:

    --  Our Board is committed to conducting a fair and open process
        that will facilitate participation by all qualified parties;

    --  The company will immediately commence the auction process; and

    --  The independent directors will actively oversee the process."

    To ensure maximum accountability in pursuing an effective sale
process, the Board has unanimously voted to hold a special meeting of
stockholders six months following the upcoming April 21, 2005, annual
meeting, if requested by beneficial owners of at least 20% of the
company's common stock. This will allow BEI's stockholders to remove
and replace the Board next October if they are not satisfied with the
auction process.
    The Company will require each participant in the sale process,
including the Whitman/Appaloosa group, to agree to a customary
confidentiality and "standstill" agreement, which will expire on
August 20, 2005. This will enable any stockholder to request that the
company hold a special stockholder meeting on October 21, 2005, six
months after the annual meeting, to nominate directors and to have two
months to solicit proxies for use at that meeting.
    Mr. Floyd continued: "Given the complexity of the required due
diligence, including appraisal of nearly 300 properties, we expect the
process will take a number of months. Importantly, as we move forward
in this process, we are mindful that adherence to our mission of
providing quality care is the best way to assure that this process
results in a successful transaction. Our clients, patients and their
families should rest assured that -- throughout this process -- our
entire organization will continue to provide quality care. Our
associates remain focused on serving our clients, our patients and
their families, and BEI is focused on continuing its industry
leadership in innovation and quality patient care."
    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 347 skilled
nursing facilities, as well as 18 assisted living centers, and 56
hospice and home health centers. Through Aegis Therapies, BEI also
offers rehabilitative services on a contract basis to facilities
operated by other care providers.

    IMPORTANT INFORMATION

    On March 15, 2005, Beverly Enterprises, Inc. ("BEI") filed a
definitive proxy statement with the Securities and Exchange Commission
relating to BEI's solicitation of proxies with respect to its 2005
annual meeting of stockholders. BEI URGES INVESTORS AND SECURITY
HOLDERS TO READ THE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT
INFORMATION. You may obtain BEI's proxy statement, any amendments or
supplements to the proxy statement and other relevant documents free
of charge at www.sec.gov or at www.beverlycorp.com under the tab
"Investor Information" and then under the heading "SEC Filings". You
may also obtain a free copy of BEI's proxy statement, any amendments
and supplements to the proxy statement and other relevant documents by
writing to Beverly Enterprises, Inc. at One Thousand Beverly Way, Fort
Smith, Arkansas 72919, Attn: Investor Relations.

    INFORMATION REGARDING PARTICIPANTS

    Information regarding the names, affiliation and interests of
individuals who may be deemed participants in the solicitation of
proxies for BEI's 2005 annual meeting of stockholders is contained in
the definitive proxy statement filed by BEI with the Securities and
Exchange Commission on March 15, 2005.

    FORWARD LOOKING STATEMENTS

    The statements in this document relating to matters that are not
historical facts are forward-looking statements based on management's
beliefs and assumptions using currently available information and
expectations as of the date hereof. Forward-looking statements are not
guarantees of future performance and involve certain risks and
uncertainties, including the risks and uncertainties detailed from
time to time in BEI's filings with the Securities and Exchange
Commission. In addition, our results of operations, financial
condition and cash flows also may be adversely impacted by the
unsolicited indication of interest in an acquisition of BEI by
Appaloosa Management, LP, Franklin Mutual Advisors, LLC, Formation
Capital, LLC and Northbrook NBV, LLC, and related actions taken by
this group, including the nomination of candidates for election to
BEI's board of directors. These actions may impact our ability to
attract and retain customers, management and associates and may result
in the incurrence of significant advisory fees, litigation costs and
other expenses. Although BEI believes that the expectations reflected
in such forward-looking statements are reasonable, it cannot give any
assurances that these expectations will prove to be correct. BEI
assumes no duty to publicly update or revise such statements, whether
as a result of new information, future events or otherwise.

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