Assisted Living Concepts, Inc. Expands Credit Facility by $20 Million

MENOMONEE FALLS, WI–(EMWNews – August 22, 2008) – Assisted Living Concepts, Inc. (“ALC”)

(NYSE: ALC) announced an amendment (the “Amendment”) to its $100 million

revolving credit agreement with GE Healthcare Financial Services and other

lenders (the “Revolving Credit Agreement”). The Amendment allows ALC to

borrow up to an additional $20 million under the Revolving Credit

Agreement, bringing the size of the facility to $120 million.

ALC originally entered into the Revolving Credit Agreement in November 2006

when it became an independent, publicly traded company listed on the New

York Stock Exchange. The Revolving Credit Agreement provides ALC with the

ability to request that the size of the facility be increased by a total of

$50 million at pricing to be negotiated at the time of the request. Under

the Amendment, U.S. Bank National Association (“US Bank”) agreed, and the

other lenders consented, to allow US Bank to provide the additional $20

million of borrowing capacity with no change in pricing terms. Following

the Amendment, ALC retains the ability to request a further increase of up

to $30 million in borrowing capacity under the Revolving Credit Agreement.

“In this difficult credit market we are extremely pleased with the

confidence and support demonstrated by our lenders,” commented John Buono,

Sr. Vice President, Chief Financial Officer and Treasurer of Assisted

Living Concepts, Inc. “Along with other available funds, we intend to use

this additional availability to fund our expansion plans, acquisitions,

share buyback program and other general corporate purposes.”

As of August 22, 2008, ALC had outstanding borrowings of $45 million under

the Revolving Credit Agreement and, with the additional availability

provided by the Amendment, had available borrowings under the Revolving

Credit Agreement of $75 million.

About Us

Assisted Living Concepts, Inc. and its subsidiaries operate 216 assisted

living residences with capacity for over 9,000 residents in 20 states.

ALC’s assisted living facilities 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 4,800 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 managements expectations about improving occupancy and

private payer mix, are forward-looking statements. These forward-looking

statements generally include words such as “expect,” “intend,” “will,”

“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 in connection with forward-looking statements, other risks and

uncertainties are identified in ALC’s filings with United States Securities

and Exchange Commissions and include, but are not limited to, the

following: changes in the health care industry in general and the long-term

senior care industry in particular because of political and economic

influences; changes in general economic conditions; 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 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.

For further information, contact: Assisted Living Concepts, Inc. John Buono Sr. Vice President, Chief Financial Officer and Treasurer Phone: (262) 257-8999 Fax: (262) 251-7562 Email: Visit ALC’s Website @ www.alcco.com