Exhibit 99.1

American Retirement Corporation Announces Call of $4.5 Million of Its
10% Series B Convertible Senior Subordinated Notes

    NASHVILLE, Tenn.--(BUSINESS WIRE)--Feb. 12, 2004--American
Retirement Corporation (NYSE:ACR), a leading provider of senior living
housing and care, today announced that it was electing to redeem $4.5
million in principal amount of its 10% Series B Convertible Senior
Subordinated Notes Due 2008. The Notes selected by the Trustee will be
redeemed on March 12, 2004 at a Redemption Price of 105.0% (expressed
as a percentage of principal amount), plus accrued but unpaid interest
to the Redemption Date.
    According to the terms of the Notes, the Notes may be converted
into shares of the Company's Common Stock at a conversion price of
$2.25 per share. The right to convert the Notes selected for
redemption will terminate and be lost at the close of business on
March 12, 2004.
    As of February 11, 2004, there were $9.2 million principal amount
of the Notes outstanding - with $6.7 million of the original $15.9
million having previously been converted, bringing the number of
outstanding shares to 20.4 million. The closing price of the Company's
Common Stock on February 11, 2004 was $5.19 per share.
    "We have already experienced $6.7 million of conversions of the
10% Series B Notes to equity in the last nine months. Based on the
current stock price, management believes that this conversion presents
a good opportunity to our noteholders to exercise their conversion
right prior to redemption. The anticipated conversions will not only
build equity, but they will also reduce our cost of capital and
leverage. The conversions, which will benefit the company and its
shareholders, exemplify the company's ongoing strategy of improving
its capital position," said Bryan Richardson, Executive Vice President
and Chief Financial Officer.

    COMPANY PROFILE

    American Retirement Corporation is a national senior living and
health care services provider offering a broad range of care and
services to seniors. Established in 1978, the Company is a leader in
the operations and management of senior living communities, including
independent living communities, continuing care retirement
communities, Free-standing AL's, and the development of specialized
care programs for residents with Alzheimer's and other forms of
dementia. The Company currently operates 66 senior living communities
in 14 states, with an aggregate unit capacity of approximately 13,000
units and resident capacity of approximately 14,600. The Company owns
19 communities, leases 41 communities, and manages six communities
pursuant to management agreements. The Company's portfolio ended
December 31, 2003 at 92% occupancy.

    CONTACT: American Retirement Corporation, Nashville
             Ross C. Roadman, 615-376-2412