Exhibit 99.1

                         American Retirement Corporation
                 Announces Expansion of Philadelphia Community


    NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 29, 2005--American
Retirement Corporation (NYSE:ACR), a leading national provider of
senior living housing and care, announced that it has completed a
package of loans from Guaranty Bank to facilitate the expansion of its
Brandywine, Pennsylvania continuing care retirement community. The
aggregate principal amount of the loans is $25.8 million.
    The Company expects to begin construction of 28 additional
entrance fee independent living units, in two buildings, to be known
as the Terrace Homes at Brandywine in the first quarter. It obtained a
$9.4 million construction loan in order to finance construction and
expects to complete construction by the end of 2006. The loan will
primarily be repaid from entrance fees received as new residents move
in.
    An $11.4 million construction loan was also obtained in order to
finance an ongoing 57-unit expansion to the healthcare center that
will add upscale living units for 63 new assisted living residents and
reconfigure the healthcare center to enhance other service offerings
for dementia care and skilled nursing. The project started in July
2005 and is projected to be completed by July 2006. Additionally, a
$5.0 million term loan was obtained as a replacement for a prior loan.
    Freedom Village at Brandywine is an entrance fee continuing care
retirement community that includes 292 independent living units as
well as assisted living, Alzheimer's and skilled nursing units. The
community, which opened in 1998, is currently 95% occupied. Both
expansions are being built by Warfel Construction Company of
Lancaster, Pennsylvania.

    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 76 senior living communities
in 19 states, with an aggregate unit capacity of approximately 14,300
units and resident capacity of approximately 16,000. The Company owns
27 communities (including 9 communities in joint ventures), leases 43
communities, and manages 6 communities pursuant to management
agreements. Approximately 83% of the Company's revenues come from
private pay sources.

    Safe Harbor Statement

    This press release contains certain forward-looking statements
within the meaning of the federal securities laws, which are intended
to be covered by the safe harbors created thereby. Those
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, but not
limited to, all statements regarding the Company's expectations
concerning the development and expansion projects, the repayment of
loans and the projects' effect on the Company's financial performance.
All forward-looking statements may be affected by certain risks and
uncertainties, including without limitation the following: (i) the
Company's ability to successfully complete the development, expansion,
lease up, and unit sales of the projects, (ii) the risk that the
Company may experience adverse changes in operating results and cash
flow, (iii) the risks associated with adverse market conditions of the
senior housing industry and the United States economy in general, (iv)
the risk associated with the Company's debt and lease obligations, and
(v) 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.
    Should one or more of those risks materialize, actual results
could differ materially from those forecasted or expected. Although
the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of
these assumptions could prove to be inaccurate, and therefore, there
can be no assurance that the forward-looking statements included in
this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by the Company or any other person that
the Company's forecasts, expectations, objectives or plans will be
achieved. The Company undertakes no 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