EXHIBIT 99.1


                           ILM II SENIOR LIVING, INC.

                           WILL NOT EXTEND FINITE-LIFE

      August 22, 2001, Tyson's Corner, Virginia: ILM II Senior Living, Inc.
announced today that at its August 16, 2001 Annual Meeting of Shareholders, the
proposal to extend the finite-life corporate existence of ILM II was not
approved by its shareholders. ILM II's Articles of Incorporation required
holders of a majority of its outstanding shares to approve the proposal. At the
Annual Meeting, holders of approximately 30% of ILM II's outstanding shares
(which approximated 59% of the total shares represented at the meeting) voted in
favor of this proposal. Accordingly, the overall vote was insufficient to
approve the extension and as previously reported, pursuant to ILM II's Articles
of Incorporation, ILM II will liquidate its properties commencing not later than
December 31, 2001.

      For further information, please contact: ILM II toll free at (888)
257-3550.

THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" BASED ON OUR CURRENT
EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE
OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM HISTORICAL RESULTS OR THOSE
ANTICIPATED AND CERTAIN OF WHICH ARE BEYOND OUR CONTROL. THE WORDS "BELIEVE,"
"EXPECT," "ANTICIPATE" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING
STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.