Exhibit 99.1

                        Beverly Enterprises and Formation
         Capital Consortium Reach Agreement to Terminate Proxy Contest;
       On-Going Sale Process to Include Consortium on an Equitable Basis


    FORT SMITH, Ark. & ALPHARETTA, Ga.--(BUSINESS WIRE)--April 12,
2005--Beverly Enterprises, Inc. ("BEI") (NYSE: BEV) and the Formation
Capital consortium - comprised of Formation Capital LLC, Appaloosa
Management LP, Franklin Mutual Advisers LLC, and Northbrook NBV -
today announced that they have reached an agreement under which the
consortium will terminate its proxy contest.
    Under terms of the agreement, Arnold Whitman, Chief Executive
Officer of Formation Capital, will withdraw his nominees for election
to the BEI Board of Directors at the Company's April 21, 2005, Annual
Meeting of Stockholders. The consortium and BEI have also signed a
Confidentiality Agreement under which the consortium will be included
in the auction of BEI on a level playing field basis with other
interested parties.

    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. 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.

    BEI, through its operating subsidiaries, is a leading provider of
healthcare services to the elderly in the United States. BEI currently
operates 346 skilled nursing facilities, as well as 18 assisted living
centers, and 56 hospice and home care 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 Contacts:
             Blair C. Jackson, 479-201-5263
             or
             Citigate Sard Verbinnen
             Jim Barron or Debbie Miller, 212-687-8080
             www.beverlycorp.com