Capital Senior Living Corporation Completes a 12 Community Assisted Living Transaction

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DALLAS--(Business Wire)--
Capital Senior Living Corporation (the "Company") (NYSE:CSU), one of the
country`s largest operators of senior living communities, today announced that
it has completed the acquisition of 12 leased communities from Signature
Assisted Living of Texas, LLC ("Signature"). The 12 leased communities are
high-quality purpose-built assisted living and memory care facilities located in
Texas. The communities are owned by Health Care REIT, Inc. (NYSE:HCN) and the
Company has replaced Signature as the tenant under a new lease agreement.

"This transaction is very strategic and adds tremendous value for our
shareholders by adding significant top-line growth as well as solid cash flow
and earnings," commented Lawrence A. Cohen, Chief Executive Officer of the
Company. "On an annual basis, the Signature communities are expected to increase
the Company`s CFFO by approximately $2.8 million or $0.10 per share. With this
transaction, the Company will operate a larger platform in Texas with the
opportunity to achieve operating leverage and synergies across the combined
Texas portfolio."

The Signature communities have approximately 677 units and include 532 units of
assisted living and 145 units of memory care, with a combined capacity of 764
residents. In July of this year, occupancy at the combined communities was
approximately 92%. The 12 Signature communities will bring to 29 the total
number of communities the Company operates in Texas.

Annualizing the 12 senior housing communities` revenues as of July 2010 yields
approximately $31.1 million, with EBITDAR of approximately $14.2 million net of
incremental general and administrative expenses. The annual payment due to HCN
is expected to be $8.9 million. Consequently, EBITDAR is expected to exceed the
annual cash payment due HCN by approximately $5.3 million.

The Company will begin consolidating the revenues and expenses of the 12
communities on its income statement, along with the additional expenses related
to this transaction, in the third quarter of 2010.

ABOUT THE COMPANY

Capital Senior Living Corporation is one of the nation`s largest operators of
residential communities for senior adults. The Company`s operating philosophy
emphasizes a continuum of care, which integrates independent living, assisted
living and home care services, to provide residents the opportunity to age in
place. The Company currently operates 78 senior living communities in 23 states
with an aggregate capacity of approximately 11,000 residents.

The forward-looking statements in this release are subject to certain risks and
uncertainties that could cause results to differ materially, including, but not
without limitation to, the Company`s ability to find suitable acquisition
properties at favorable terms, financing, licensing, business conditions, risks
of downturns in economic conditions generally, satisfaction of closing
conditions such as those pertaining to licensure, availability of insurance at
commercially reasonable rates, and changes in accounting principles and
interpretations among others, and other risks and factors identified from time
to time in our reports filed with the Securities and Exchange Commission.

This release contains certain financial information not derived in accordance
with generally accepted accounting principles (GAAP), including adjusted
EBITDAR, adjusted CFFO, adjusted CFFO per share and other items.The Company
believes this information is useful to investors and other interested
parties.Such information should not be considered as a substitute for any
measures derived in accordance with GAAP, and may not be comparable to other
similarly titled measures of other companies.Reconciliation of this information
to the most comparable GAAP measures is included as an attachment to this
release.

Pro Forma July 2010 Annualized
Non-GAAP Reconciliation
($ millions)

Annualized(1)
Adjusted EBITDAR
Net Income from Operations $ 6.5
Depreciation & Amortization 0.1
Signature Lease expense 7.9
Adjusted EBITDAR $ 14.5

Adjusted EBITDAR Margin
Adjusted EBITDAR $ 14.5
Total Revenues 31.1
Adjusted EBITDAR Margin 46.7 %

Adjusted CFFO
Adjusted EBITDAR $ 14.5
Pro Forma Lease expense (8.9 )
Incremental G&A expense (0.3 )
Recurring Capital Expenditures (0.3 )
Income Tax expense (2.3 )
Adjusted CFFO $ 2.8

Adjusted CFFO per share $ 0.10

Diluted shares outstanding 26.7

(1)Represents Signature`s results, for the 12 communities whose leases the
Company is acquiring an interest in, for the month ended July 31, 2010. The
adjusted numbers were then annualized to represent a full year.

Capital Senior Living Corporation
Ralph A. Beattie, 972-770-5600
Chief Financial Officer

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