Louisville, KY (October 18 2010) Trilogy Health Services (“Trilogy”) today announced the acquisition of two Ohio long-term care facilities from Genesis HealthCare System (“Genesis”). Included in the transaction are Genesis Extended Care & Rehab in Zanesville and Genesis Health & Rehab-McConnelsville. Details of the purchase were not disclosed. Trilogy currently operates 63 senior living communities in Indiana, Ohio, Kentucky, Michigan and Illinois. Genesis HealthCare System is a regional provider of health care services.

Genesis announced its decision to sell these businesses earlier this year and Trilogy was selected as the purchaser in June. Both facilities currently offer skilled nursing services. Also, effective with the transition are name changes for both locations. The Zanesville location will be renamed Forest View Health Campus and the McConnelsville location will be renamed Highland Oaks Health Center.

“We are very excited about the addition of Highland Oaks and Forest View because of their rich tradition of serving the seniors in Zanesville, McConnelsville and surrounding communities,” said Randall Bufford, president and chief executive officer of Trilogy. “Both locations are served by excellent employees and we are thrilled to be adding this great group of employees to the Trilogy family.”

Trilogy’s plans for these sites include building two new state-of-the-art replacement facilities for the current Zanesville facility. One campus will continue to be located the grounds of Genesis-Bethesda Hospital. Future refurbishments and renovations to the McConnelsville campus are also being planned for later in 2011. According to the facilities’ management, the centers’ strong commitment to providing great service to residents, families and employees fits very well with Trilogy’s culture and values.

“We are excited about working with the leadership at Trilogy Health Services as we continue serve the citizens of McConnelsville and Morgan County,” stated Diana Clifton, Highland Oaks Executive Director. “Trilogy’s commitment to exceptional customer service and delivering care that is personally tailored to each resident’s individual needs will allow us to take the care and services we offer to a new level.”

“The development of the new Zanesville campuses represents an excellent opportunity to enhance the overall physical living environment for the residents and staff members at Forest View,” added Janet Slisher, Executive Director of Forest View. “We are looking forward to being better able to meet the growing and changing needs of those in our communities.”

In other news, Trilogy Health Services announced that they have broken ground on construction of two new health care facilities scheduled to open in mid-2011. The sites are located in Commerce, Michigan and Louisville, Kentucky.

The Commerce, Michigan site will replace West Winds Health Center, which Trilogy acquired in May 2008, and includes a health campus offering a full continuum of services. The health campus will feature the “Town Square” Residential Living model created by Trilogy. The Town Square design allows residents to maximize their independence, while creating a more home-like, less institutional atmosphere. The Town Square design features a predominance of private rooms and has living areas designed as a neighborhood creating a sense of community for each resident. Services will include Assisted Living, Short-Term Rehabilitation, Skilled Nursing, Adult Day Services and Respite Care. These options will allow the campus staff to care for a wide variety of residents – from those who need little assistance to those with complex medical needs.

The Louisville, Kentucky location will be located on Westport Road and will feature a full continuum of care in the Trilogy Town Square model. The campus will offer both skilled care and assisted living with an emphasis on short-term rehabilitative services.

Both the Commerce and Louisville projects are being developed in partnership with Louisville, Kentucky-based DMK Development Group. DMK Development is a regional senior housing developer and general construction firm combining years of healthcare operations and construction experience, with unsurpassed service and value to the burgeoning senior living market. DMK’s unique history and qualifications allows the firm to offer a full array of services ranging from site selection and feasibility expertise, to turn-key design build, and general contracting services.

“Despite a difficult economy, the demand for Trilogy’s unsurpassed customer focused, senior living services are in great demand,” said David Kitchen, president of DMK Development Group. “As the demographic trends continue towards an aging population that requires more and more assistance we feel fortunate to have the opportunity to partner with an innovative industry leader like Trilogy.”

Additional growth plans for Trilogy over the next year include the opening of new health campuses in Lawrenceburg, Greensburg, Bloomington and Valparaiso, Indiana, and the expansion of their Peru, Columbus and Merrillville, Indiana locations.

Trilogy campus communities offer a full range of personalized senior living services, from independent and assisted living, to skilled nursing and rehabilitative services. Trilogy’s senior living services are delivered by staff specially trained to honor, and enhance the lives of our residents through compassion and a steadfast commitment to exceed the expectations of every customer. To learn more Trilogy Health Services visit our web site at www.trilogyhs.com.