Assisted Living Concepts, Inc. Responds to New Jersey Actions

MENOMONEE FALLS, WI–(Marketwire – November 22, 2010) – Assisted Living Concepts, Inc. (NYSE: ALC) stated today that it is disappointed with recent actions taken by the New Jersey Department of Health and Human Services and disputes allegations in an order issued by the Department on Friday, November 19, 2010. ALC will pursue appropriate legal remedies for dismissal of the order and related penalties.

“While at certain of our New Jersey buildings we have removed the assisted living licenses and changed our operations over to independent living communities, we are still in the process of registering those buildings with the New Jersey Department of Community Affairs as either multiple dwellings or boarding homes,” stated Laurie Bebo, President and Chief Executive Officer. “This registration process can be lengthy. In the interim, we have demonstrated that seniors living in these retirement communities either receive no health care services or receive services from a variety of home health or personal companion service companies just like many senior living communities in New Jersey. We are not marketing these buildings as assisted living facilities and the staff employed by these communities provides no health care services. We believe the communities will become registered as multiple dwellings or boarding homes under New Jersey’s Department of Community Affairs.

“We are disappointed with the recent actions by the Department of Health and Human Services as they are fully aware of our ongoing participation in the administrative registration process with the Department of Community Affairs. We hope the bureaucratic process will move along more quickly and look forward to an open dialogue with the Department of Community Affairs to accomplish the registrations. We continue to meet the expectations of the tenants who reside with us and believe last Friday’s action by the Department of Health unnecessarily creates disruption for the peace of mind and well being of our tenants and their families.” 

About Us

Assisted Living Concepts, Inc. and its subsidiaries operate 211 senior living residences comprising 9,305 residents in 20 states. ALC’s senior living residences typically consist of 40 to 60 units and offer residents a supportive, home-like setting and assistance with the activities of daily living. ALC employs approximately 4,100 people.

Forward-looking Statements

Statements contained in this release other than statements of historical fact, including statements regarding anticipated financial performance, business strategy and management’s plans and objectives for future operations, including management’s expectations about improving occupancy and private pay mix, are forward-looking statements. Forward-looking statements generally include words such as “expect,” “project,” “point toward,” “intend,” “will,” “indicate,” “anticipate,” “believe,” “estimate,” “plan,” “strategy” or “objective.” Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. In addition to the risks and uncertainties referred to in the release, other risks and uncertainties are contained in ALC’s filings with United States Securities and Exchange Commission and include, but are not limited to, the following: changes in the health care industry in general and the senior housing industry in particular because of governmental and economic influences; changes in general economic conditions, including changes in housing markets, unemployment rates and the availability of credit at reasonable rates; changes in regulations governing the industry and ALC’s compliance with such regulations; changes in government funding levels for health care services; resident care litigation, including exposure for punitive damage claims and increased insurance costs, and other claims asserted against ALC; ALC’s ability to maintain and increase census levels; ALC’s ability to attract and retain qualified personnel; the availability and terms of capital to fund acquisitions and ALC’s capital expenditures; changes in competition; and demographic changes. Given these risks and uncertainties, readers are cautioned not to place undue reliance on ALC’s forward-looking statements. All forward-looking statements contained in this report are necessarily estimates reflecting the best judgment of the party making such statements based upon current information. ALC assumes no obligation to update any forward-looking statement.