SPRINGFIELD, OH--(Marketwire - Dec 2, 2011) - AdCare Health Systems, Inc. (NYSE Amex: [ ADK ]), a leading nursing home and assisted living company, has closed the previously announced asset purchase of a skilled nursing and assisted living community in Mountain View, Arkansas for $4.2 million.

The facilities have an aggregate of 129 beds in service that generated an estimated $5.4 million in gross annualized revenues (according to its most recent financials), and their addition is expected to be immediately accretive to AdCare's earnings.

AdCare has initially financed the acquisition through a bank loan. This loan is expected to be refinanced with a long-term loan guaranteed by the Small Business Administration.

The company plans to continue pursuing an aggressive M&A program. Combining its current annualized run-rate with transactions currently in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $300 million. This would represent an increase of more than 460% over the company's revenues in 2010, and an increase of more than 11 times revenues in 2009 when it initiated its M&A campaign.

"This signing brings the total number of facilities we've purchased, leased, or managed to 42, with now six in Arkansas," said Chris Brogdon, AdCare's vice chairman and chief acquisitions officer. "The addition of these facilities is in line with our expansion into the Southeast, and will leverage the professional support staff we've already established in the region."

According to Boyd Gentry, AdCare's president and CEO: "This acquisition fits AdCare's strategic objective of acquiring operations with Medicare and Managed Care upside, and we anticipate its optimization to be in line with our previous successes. As we recently reported, our optimization strategy has increased Medicare Census 37.5%, on average, for facilities acquired so far in our M&A campaign."

"We are continuing to evaluate a number of attractive opportunities around our original home base in the Midwest as well as in the Southern regions of the U.S.," added Gentry, "with our M&A program and the optimization of new facilities remaining our primary focus going forward."

About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE Amex: [ ADK ]) is a recognized innovator in senior living and health care facility management. AdCare develops, owns and manages assisted living facilities, nursing homes and retirement communities. Since its inception in 1988, AdCare's mission has been to provide the highest quality of healthcare services to the elderly. For more information about AdCare, visit [ www.adcarehealth.com ].

Important Cautions Regarding Forward-Looking Statements
Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "plans," "intends," "anticipates" and variations of such words or similar expressions, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to, statements about the company's expected annualized revenue run-rate. Such forward-looking statements reflect management's beliefs and assumptions and are based on information currently available to management, and involve known and unknown risks, results, performance or achievements of AdCare which may differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by AdCare with the Securities and Exchange Commission and include, among others, AdCare's ability to secure lines of credit and/or an acquisition credit facility, find suitable acquisition properties at favorable terms, changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs and changes in the competitive marketplace. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. Except where required by law, AdCare undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.