Louisville, KY (October 09 2008) Trilogy Health Services today announced that they are in a due diligence period with the Franciscan Sisters of Chicago Service Corporation (FSCSC) to acquire six Franciscan Communities.

These communities are: St. James Manor and Villas in Crete, Ill., George Davis Manor in West Lafayette, Indiana, St. Elizabeth Healthcare Center in Delphi, Indiana, St. Mary Healthcare Center in Lafayette, Indiana and Franciscan Health Care Center in Louisville, Kentucky. Also included is St. Clare Healthcare Center in Otterbein, Indiana, which has not been operating since 2003. Trilogy currently manages 51 senior living communities in Indiana, Ohio, Kentucky and Michigan.

The transaction should be completed in a few months, subject to Trilogy's due diligence, regulatory approvals and customary closing conditions. This sale would not include Franciscan Communities' two affordable senior housing communities: St. James Senior Estates in Crete and Franciscan Senior Estates in Louisville.

"We are looking forward to completing the transaction with Franciscan Communities so that we can begin working with their dedicated team of leaders and associates at these fine communities," said Randall Bufford, president and chief executive officer of Trilogy. "Franciscan Communities is known for providing the very best in service to seniors, and that aligns with our mission of providing compassionate service that exceeds the expectations of every customer."

"We are delighted that Trilogy Health Services is interested in acquiring these quality senior living communities," said Thomas Allison, president and chief executive officer for FSCSC. "Proceeds from the sale of these communities would be reinvested into our ministry and used to expand our efforts into areas where there is unmet need. Trilogy has a well-deserved reputation for compassionate management and high quality health services in the markets they serve."

Franciscan Communities, which is sponsored by the Franciscan Sisters of Chicago, offers independent living, assisted living, skilled nursing, dementia care and rehabilitation services, and currently operates senior living communities in Indiana, Kentucky, Texas, Ohio and Illinois. Franciscan Communities also provides home and community-based health services in Indiana, a shelter for women and their children who are survivors of domestic violence in Indiana and affordable housing.

Trilogy 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 commitment to exceeding customer expectations. To learn more Trilogy Health Services visit our web site at www.trilogyhs.com.