SPRINGFIELD, OH--(Marketwire - Jan 6, 2012) - AdCare Health Systems, Inc. (NYSE Amex: [ ADK ]), a leading nursing home and assisted living company, has signed a definitive purchase agreement for three skilled nursing facilities in Arkansas for $27.3 million.

The facilities have an aggregate of 439 beds and generate an estimated $22.2 million in gross annualized revenues according to their most recent financials. The acquisition is anticipated to be completed in the first quarter of 2012. AdCare plans to finance the acquisition of the facilities with a traditional bank loan.

Combining the company's current annualized run-rate with transactions in the process of closing, AdCare's estimated annualized revenue run-rate is expected to exceed $322 million. This would represent an increase of more than 500% over the company's revenues in 2010, and an increase of more than 12 times revenues since initiating its M&A campaign in the fall of 2009.

"Included in this portfolio is a 157 bed skilled nursing facility located in close proximity to a major Little Rock acute-care hospital," said Boyd Gentry, AdCare's president and chief executive officer. "This facility has recently been completely renovated, which allows us to reposition it as a major provider of sub-acute services. We expect this strategy to generate a significant increase in revenues as we improve this facility's occupancy with higher acuity patients. The other two facilities are ideally configured with a significant number of private rooms."

According to Chris Brogdon, AdCare's vice chairman and chief acquisitions officer: "This signing brings the total number of facilities we've put under contract to 54 since we began our current M&A program. With our M&A program and the integration of new facilities remaining our major focus in 2012, we continue to evaluate a number of opportunities that fit our acquisition strategy."

Gentry added: "We have been targeting facilities in the Midwest and Southern states that have not traditionally concentrated on providing post-acute services. Then, once acquired, we have worked to increase Medicare census and occupancy, as well as optimize reimbursement and patient care. This strategy continues to yield results, as our team has been successful at increasing both higher acuity patients and associated reimbursement rates in excess of 25% versus pre-acquisition levels."

AdCare expects to complete the acquisition of at least 23 additional facilities in the first quarter of 2012: the three announced today, five facilities in Oklahoma and the company's largest transaction to-date of 15 facilities across the Southeast.

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 and statements regarding the signing and expected closing of transactions, as well as statements regarding transactions being accretive to the company's earnings. 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.