Exhibit 99.1

                    American Retirement Corporation
      Completes Financing for Austin, Texas Community Expansion

    NASHVILLE, Tenn.--(BUSINESS WIRE)--Sept. 28, 2005--American
Retirement Corporation (NYSE: ACR), a leading national provider of
senior living housing and care, announced that it had entered into a
$21 million construction loan with GMAC Commercial Mortgage Bank in
order to finance the expansion of one of its communities in Austin,
Texas. The expansion involves the development of a 99-bed skilled
nursing facility ("SNF") that will be integrated into the community.
    The Company will add the 99-bed SNF expansion to its existing
successful free-standing assisted living community, The Summit at
Lakeway. The expansion is part of its master development plan for the
community, which ultimately envisions a fully-integrated entry-fee
CCRC. The master plan includes the current AL (58 AL units and 15
Alzheimer's units), a phased entry-fee independent living component
(beginning with approximately 200 units/villas and growing to an
estimated 478 units), and the recently initiated 99-bed SNF. The SNF
building will be built adjacent to the current AL building on the 5
acre parcel currently owned by the Company. The Company has options to
purchase two parcels of land - an additional 42 acres across the
street and additional acres adjacent to the existing AL - where the
independent living units will be built.
    "We have operated successfully in the Austin area for over 10
years with one highly-regarded CCRC and 2 very successful AL's," said
Bill Sheriff, Chairman, President and CEO of American Retirement
Corporation. "Located in Lakeway, Texas, a fast-growing suburb of
Austin, the campus for this development is located in a
well-established, higher end neighborhood that benefits from the rapid
demographic growth of the area. It is natural that we expand our
operations from a highly successful free-standing assisted living
community into a full-service retirement center. We have seen the need
for additional quality skilled nursing care continuing to rise to
support our network as well as for growing demand in the area."

    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, including independent living, assisted living,
skilled nursing and Alzheimer's care. Established in 1978, the company
believes that it is a leader in the operation and management of senior
living communities, including independent living communities,
continuing care retirement communities, free-standing assisted living
communities, and the development of specialized care programs for
residents with Alzheimer's and other forms of dementia. The company's
operating philosophy is to enhance the lives of seniors by striving to
provide the highest quality of care and services in well-operated
communities designed to improve and protect the quality of life,
independence, personal freedom, privacy, spirit, and dignity of its
residents. The company currently operates 68 senior living communities
in 15 states, with an aggregate unit capacity of approximately 13,500
units and resident capacity of approximately 15,100. The company owns
18 communities, leases 43 communities, and manages seven communities
pursuant to management agreements.

    Safe Harbor Statement

    Statements contained in this press release and statements made by
or on behalf of American Retirement Corporation relating hereto may be
deemed to constitute forward-looking information made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements include all statements that
are not historical statements of fact and those regarding the intent,
belief or expectations of the Company or its management, including,
without limitation, all statements regarding the Company's
expectations for the future construction or development of the
community. These forward-looking statements may be affected by certain
risks and uncertainties, including without limitation the following:
(i) the Company's ability to maintain or increase occupancy at the
Company's communities, (ii) the Company's ability to obtain the
required regulatory and land use approvals for future development,
(iii) the Company's ability to successfully pre-sell entry-fee units
for new developments, (iv) the risks associated with adverse market
conditions of the senior housing industry and the United States
economy in general, (v) the Company's ability to obtain new financing
for the project and (vi) the risk factors described in the Company's
Annual Report on Form 10-K/A for the year ended December 31, 2004
under the caption "Risk Factors" and in the Company's other filings
with the SEC. In light of the significant uncertainties inherent in
the forward-looking statements included herein, the Company's actual
results could differ materially from such forward-looking statements.
The Company does not undertake any obligation to publicly release any
revisions to any forward-looking statements contained herein to
reflect events and circumstances occurring after the date hereof or to
reflect the occurrence of unanticipated events.



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