AdCare Health Systems, Inc. Announces the Refinancing of Three Assisted Living Properties in Ohio

Jul 01, 2008, 01:00 ET from AdCare Health Systems, Inc.

    SPRINGFIELD, Ohio, July 1 /PRNewswire-FirstCall/ -- AdCare Health
 Systems, Inc. (Amex:   ADK), an Ohio based long term care, home care and
 management company, today announced the refinancing of three assisted
 living properties in Ohio.
     Community's Hearth & Home, LTD, owns two twenty unit assisted living
 properties located in Springfield, Ohio and Hearth & Home of Urbana, LLC,
 owns one thirty-two unit assisted living property located in Urbana, Ohio.
 Both entities are limited liability companies with 50% owned by AdCare and
 50% owned by Community-Mercy Health Partners. AdCare was the developer and
 is the manager of the three properties.
     Red Mortgage Capital, Inc., an FHA/MAP lender, processed and funded the
 total $4,006,500 232/223(f) refinancing at an annual interest rate of 6.65%
 for a period of 35 years. The loan was closed on June 26, 2008 and is also
 subject to an annual insurance cost of one half per cent.
     David A. Tenwick, Chairman of AdCare, stated, "We have been in the
 process of refinancing most of our real estate holdings and announcements
 will be made as additional properties are refinanced. The longer term and
 non-recourse re-financings should help with our equity and acquisition-line
     About AdCare Health Systems, Inc.
     AdCare Health Systems, Inc. (Amex:   ADK) develops, owns and manages
 assisted living facilities, nursing homes and retirement communities and
 provides home health care services. Prior to becoming a publicly traded
 company in November of 2006, AdCare operated as a private company for 18
 years. AdCare's 920 employees provide high-quality care for patients and
 residents residing in the 15 facilities that they manage, seven of which
 are assisted living facilities, six skilled nursing centers and two
 independent senior living communities. The Company has ownership interests
 in seven of those facilities. In the ever expanding marketplace of long
 term care, AdCare's mission is to provide quality healthcare services to
 the elderly.
     Safe Harbor Statement
     Statements contained in this press release that are not historical
 facts may be forward-looking statements within the meaning of federal law.
 Such forward-looking statements reflect management's beliefs and
 assumptions and are based on information currently available to management.
 The forward- looking statements involve known and unknown risks, results,
 performance or achievements of the Company to differ materially from those
 expressed or implied in such statements. Such factors are identified in the
 public filings made by the Company with the Securities and Exchange
 Commission and include the Company'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.

SOURCE AdCare Health Systems, Inc.