EX-99.1

Contact:
Steven M. Cavanaugh, Chief Financial Officer
419/252-5601
e-mail scavanaugh@hcr-manorcare.com

TOLEDO, Ohio, July 26, 2007 — Manor Care, Inc. (NYSE:HCR) today announced that 2007 second-quarter revenues increased 7 percent to $958 million from $894 million a year ago. Net income was $44 million, or 54 cents per diluted share, which includes the impact of unusual expenses amounting to about 11 cents per share, primarily for transaction costs related to our evaluation of strategic alternatives and greater than normal stock-based compensation as a result of the dramatic increase in the company’s stock price. In addition, diluted shares increased nearly 5 percent from the 2007 first quarter, as discussed further below.

For the first six months of 2007, revenues increased to $1.92 billion, and net income was about $74 million, or 93 cents per diluted share.

Manor Care’s Board of Directors declared a quarterly cash dividend on the company’s common stock of 17 cents per share, which is payable on August 27, 2007 to shareholders of record on August 13, 2007.

“The strong results of this quarter especially stand out because of the additional demands on our management and operations personnel in bringing our strategic alternatives initiative to a highly successful conclusion,” said Paul A. Ormond, Manor Care chairman, president and CEO. “We completed another quarter in which our key operating metrics continued near their historical highs. Occupancy levels in our skilled nursing and rehabilitation centers were again at 89 percent, while our Quality Mix of Medicare, private pay and managed care/insurance revenues remained at their record high of 73 percent. Caring for a greater mix of high-acuity patients who require

intensive rehabilitation and complex medical care after a hospital stay helped drive a nearly 8 percent increase in average Medicare rates from a year ago.

“Our hospice and home care operations continued on a fast track with revenues growing 17 percent from a year ago. This business is now on an annualized run rate of about $540 million. Our hospice operations have been the primary driver of this success, and we expect our hospice services to remain a steady and significant contributor to our revenue and earnings growth.”

Manor Care’s operating results have produced $162 million in operating cash flow year-to-date. This cash generation has enabled the company to continue to invest in facility maintenance and renovation, increase its dividend and invest in growth initiatives. Due to the ongoing review of our strategic alternatives, the company did not engage in any share repurchases during the second quarter. Diluted shares increased approximately 5 percent from the 2007 first quarter, principally due to the absence of share repurchases and share dilution from the company’s convertible bonds which was driven by the significant increase in our stock price.

Continuing to generate significant cash has improved the company’s ability to invest in high-demand growth markets to better serve short-term, post-acute patients. During the 2007 second quarter, Manor Care completed the expansion of two skilled nursing and rehabilitation centers. Thirty-two nursing center expansions, including 17 related to expanding physical rehabilitation space and capabilities, are ongoing. One new skilled nursing and rehabilitation center opened in the second quarter, and ground was broken for another new center.

“I’m especially proud of our excellent operating performance this quarter because it was a powerful reminder of the strength of our employee team and the level of their professionalism in caring for our patients and residents,” Mr. Ormond said. “On July 2, we announced that our Board of Directors had approved a transaction with global private equity firm The Carlyle Group to take our company private in an all cash transaction valued at about $6.3 billion, or $67 per share. Our management and

employee team was one of the primary reasons Carlyle was interested in investing in our company, and we expect this relationship to make us an even stronger and more successful health care provider in the years ahead.”

Manor Care will not be conducting a conference call for this quarter’s earnings release.

Manor Care, Inc., through its operating group HCR Manor Care, is a leading provider of short-term post-acute services and long-term care. The company’s nearly 60,000 employees provide high-quality care for patients and residents through a network of more than 500 skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. The company operates primarily under the respected Heartland, ManorCare Health Services and Arden Courts names. Shares are traded on the New York Stock Exchange under the ticker symbol HCR.

Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of federal law. Such forward-looking statements reflect management’s beliefs and assumptions and are based on information currently available to management. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the company to differ materially from those expressed or implied in such statements. Such factors are identified in the public filings made by the company with the Securities and Exchange Commission and include changes in the health care industry because of political and economic influences, changes in regulations governing the industry, changes in reimbursement levels including those under the Medicare and Medicaid programs, changes in the competitive marketplace, and changes in current trends in the cost and volume of general and professional liability claims. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.


	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
				(In thousands, except per share amounts)
Revenues	$	957,780		$	894,214		$	1,916,846		$	1,763,509
Expenses
Operating		790,310			736,106			1,580,434			1,459,016
General and administrative		53,372			43,792			126,875			95,897
Depreciation and amortization		37,852			36,146			74,839			72,088
Asset impairment		—			—			—			11,082

		881,534			816,044			1,782,148			1,638,083

Income before other income (expenses) and
income taxes		76,246			78,170			134,698			125,426
Other income (expenses):
Interest expense		(8,550	)		(7,779	)		(17,220	)		(14,919	)
Loss on sale of assets		(361	)		(217	)		(5,132	)		(159	)
Equity in earnings of affiliated companies		525			2,001			984			3,587
Interest income and other		1,272			393			1,138			1,228

Total other expenses, net		(7,114	)		(5,602	)		(20,230	)		(10,263	)

Income before income taxes		69,132			72,568			114,468			115,163
Income taxes		25,488			27,017			40,965			42,607

Income before cumulative effect		43,644			45,551			73,503			72,556
Cumulative effect of change in accounting principle, net of tax		—			—			—			(2,476	)

Net income	$	43,644		$	45,551		$	73,503		$	70,080

Earnings per share — basic:
Income before cumulative effect	$	0.60		$	0.60		$	1.00		$	0.94
Cumulative effect		—			—			—			(0.03	)

Net income	$	0.60		$	0.60		$	1.00		$	0.90

											(a)
Earnings per share — diluted:
Income before cumulative effect	$	0.54		$	0.58		$	0.93		$	0.91
Cumulative effect		—			—			—			(0.03	)

Net income	$	0.54		$	0.58		$	0.93		$	0.88

Weighted-average shares:
Basic		73,231			76,277			73,138			77,593
Diluted		80,595			78,489			78,748			79,658
Cash dividends declared per common share	$	0.17		$	0.16		$	0.34		$	0.32


	June 30,		December 31,
	2007		2006
	(In thousands)
Cash	$	87,436	$	17,658
Other current assets		588,712		601,536
Property and equipment		1,478,898		1,493,576
Other		272,826		285,707

Total assets	$	2,427,872	$	2,398,477

Current liabilities	$	476,697	$	485,182
Current portion of long-term debt		383,762		38,447
Long-term debt		567,813		955,211
Other long-term liabilities		349,936		346,444
Shareholders’ equity		649,664		573,193

Total liabilities and shareholders’ equity	$	2,427,872	$	2,398,477

Shares outstanding		73,279		72,760
YTD shares repurchased		0


	Quarter ended June 30,
	2007			2006
Occupancy		89	%		89	%
Revenue allocation:
Private and other		33	%		33	%
Medicare		40	%		39	%
Medicaid		27	%		28	%
Quality Mix		73	%		72	%
Per Diems:
Private and other (excluding assisted living)	$	240.25		$	228.00
Private and other (assisted living)	$	128.92		$	123.38
Medicare	$	412.46		$	382.31
Medicaid	$	158.84		$	151.52
Number of Facilities:
Skilled nursing facilities		280			276
Assisted living facilities:
Springhouses		11			11
Arden Courts		54			54

Total		65			65

Number of Beds:
Skilled nursing facilities		38,509			37,936
Assisted living facilities		5,080			5,080
Outpatient therapy clinics		85			94
Hospice and home health offices		122			115
Cash flow from operations (in millions)	$	68		$	76
Capital Expenditures (in millions):
Maintenance and renovations	$	20		$	25
New construction	$	6		$	15