Exhibit 99.1

      American Retirement Corporation Closes Cypress Acquisition

    NASHVILLE, Tenn.--(BUSINESS WIRE)--March 6, 2006--American
Retirement Corporation (NYSE: ACR) ("ARC" or the "Company"), a leading
national provider of senior living housing and care, today announced
that it completed the acquisition, through newly-formed joint
ventures, of four senior living communities from affiliates of Cypress
Senior Living, Inc. for an aggregate purchase price of $146.3 million.
The communities are located in Arlington, Dallas and Ft. Worth, Texas
and Leawood, Kansas.
    The communities were acquired through two joint ventures, which
are owned 20% by the Company and 80% by an institutional real estate
investor. Merrill Lynch Capital, a division of Merrill Lynch Business
Financial Services Inc., provided approximately $96 million of first
mortgage financing for the transaction. The debt has a five year term
and requires the payment of interest only at a floating rate based
upon LIBOR. The remainder of the purchase price was funded by
proportional capital contributions from the members of the joint
venture entities. ARC will manage the portfolio pursuant to a
long-term management agreement.
    The portfolio is comprised of 896 independent living units, with
an average of 224 units per community. The four communities generated
total revenues of approximately $19 million for the year ended
December 31, 2005, with ending occupancy for the month of December of
approximately 86% for the portfolio.
    "We are excited about adding these high-quality communities into
our portfolio. These communities fit us extremely well. They are well
located in major metropolitan markets, add to our local market
critical mass in two key markets and, yet, we see a significant upside
potential," said Bill Sheriff, Chairman, President and CEO of the
Company. "We are also pleased to partner once again with Merrill Lynch
in this transaction. They continue to demonstrate a strong
understanding of the senior housing market and we look forward to
future transactions with them. The joint venture structure allows us
to judiciously use our cash resources and to maximize our
shareholders' value by obtaining a strong return through our
management fee and minority interest, which includes a provision for
enhanced returns based on exceeding certain targets."
    The Company will file a Form 8-K with the SEC which provides
further information concerning the transaction.

    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 80 senior living communities
in 19 states, with an aggregate unit capacity of approximately 15,200
units and resident capacity of approximately 16,900. The Company owns
31 communities (including 13 communities in joint ventures), leases 43
communities, and manages 6 communities pursuant to management
agreements.

    Safe Harbor Statement

    Statements contained in this press release and statements made by
or on behalf of ARC 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
concerning the future financial performance of the acquired
communities and their effect on the Company's financial performance
and all statements regarding future collaborations with Merrill Lynch
Capital. These forward-looking statements may be affected by certain
risks and uncertainties, including without limitation the following:
(i) the Company's ability to successfully integrate the Cypress
portfolio into the Company's operations, (ii) the Company's ability to
successfully locate and consummate future transactions with Merrill
Lynch Capital, (iii) the risk that the Company will be unable to
improve its results of operations, increase cash flow and reduce
expenses, (iv) the risks associated with adverse market conditions of
the senior housing industry and the United States economy in general,
(v) the risk associated with the Company's debt and lease obligations,
and (vi) the risk factors described in the Company's Annual Report on
Form 10-K for the year ended December 31, 2005 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