PRESS RELEASE - FOR IMMEDIATE RELEASE


                         FOR FURTHER INFORMATION CONTACT
           Essel W. Bailey, Jr., President and CEO, at (734) 887-0200

                OMEGA HEALTHCARE INVESTORS ANNOUNCES LITIGATION;

                      UPDATE ON SPECIAL STOCKHOLDER MEETING


         ANN ARBOR, MICHIGAN - JUNE 29, 2000 - Omega Healthcare Investors,  Inc.
(NYSE:OHI)  ("Omega" or the "Company")  announced today that a customer known as
Madison/OHI Liquidity Investors, L.L.C., has filed a lawsuit alleging breach and
anticipatory breach of a commercial contract.  The principals of Madison/OHI are
Bryan Gordon of Incline  Village,  Nevada and Ronald Dickerman of New York City.
In addition,  Mr.  Dickerman has  individually  filed a separate action alleging
violations of Section 10(b) of the Securities  Exchange Act of 1934. The Company
believes  that each lawsuit is baseless and without  merit and intends to assert
its rights and to defend vigorously.

         Omega also announced that the  solicitation of proxies for the upcoming
July 14,  2000  Special  Meeting of  Stockholders  is  proceeding  and urged all
stockholders who have not voted to do so promptly.

         Essel W. Bailey,  Jr., Omega's President and CEO, stated: "As explained
in my  June  15  letter  to  stockholders,  Omega  faces  significant  liquidity
challenges  arising from the combined  impact of the current  environment in the
long-term  care  industry and the need to repay $81 million of debt due July 15,
with an additional  $48 million due February 2001.  After careful  analysis of a
variety of  alternatives,  the Omega Board  unanimously  approved  the  Explorer
investment  and the new stock  incentive  plan which will  replace our  existing
stock option plan. We urge  stockholders  who support the infusion to vote "FOR"
both the  proposals  covered by our June 15, 2000 proxy  statement,  because the
approval of both  proposals is a condition to the equity  infusion." The Company
clarified that the options currently  proposed to be awarded to management under
the  proposed  new plan will be priced at the higher of fair market value or the
effective per common share price of Explorer's investment.

         The record date for determining stockholders entitled to receive notice
of and to vote at the special  meeting is the close of business on June 2, 2000.
The proxy materials are available on the SEC website at  http://www.sec.gov  and
also may be obtained by contacting the Company's  proxy  solicitor,  Georgeson &
Co., at 800/223-2064.

         Omega is a Real Estate  Investment  Trust  investing  in and  providing
financing to the  long-term  care  industry.  At March 31, 2000, it owned or had
mortgages on 278 healthcare and assisted living facilities with more than 28,000
beds located in 29 states and  operated by 26  independent  healthcare operating
companies.


         This news  release  contains  forward-looking  statements  that involve
risks and uncertainties  described from time to time in the SEC reports filed by
the Company.

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