Greenbriar corrects and replaces previous earnings announcement; ticker symbol corrected.

--(BUSINESS WIRE)--

Greenbriar reports second quarter and six months

DALLAS--Aug. 19, 1996--Greenbriar Corp. (AMEX: GBR) announced today its operating and financial results for the second quarter ended June 30, 1996, including a review to date of its transition from a retirement and

Revenues from assisted living facility operations for the second quarter of 1996 and the first six months of 1996 were $4,319,000, compared to $555,000 in the first six months in 1995. Total revenues for the second quarter were $4,366,000.

The company's revenues in 1996 reflect its long range strategy of becoming a major provider in the rapidly expanding assisted living industry. Effective March 31, 1996, Greenbriar acquired Wedgwood Retirement Inns Inc. of Vancouver, Wash., which operated 16 assisted living facilities in six states with a capacity for 1,276 residents consisting of 15 facilities owned by Wedgwood or in which it had leasehold or ownership interest and one facility managed for a third party.

The company had a net loss of $302,000 for the second quarter of 1996 compared to net earnings of $351,000 for the same period in 1995. For the first six months of 1996, Greenbriar had net earnings of $325,000 compared to $3,457,000 for the same period in 1995. Results in 1995 were from Greenbriar's prior operations in real estate investment, sales of assets and mobility products.

The loss per share for the second quarter of 1996 was $.12 versus earnings of $.09 a share for the same period in 1995. For the six month period, per share earnings were $.05 compared to $.90 in 1995.

"We made significant progress in implementing our growth strategy in the assisted living industry by acquiring Wedgwood. The acquisition added personnel to increase our management depth in preparation for the rapid development of Greenbriar residences in several states," said James R. Gilley, chairman, president and chief executive officer of Greenbriar. "The company will continue with its growth plan through acquisition and construction of facilities. We opened the Greenbriar at Denison, Texas in June. We now operate 1,319 assisted living units (16 residences). We have 438 units under construction in seven residences and 508 units under development in eleven residences.

Gilley said Greenbriar has site selection teams pursuing sites in several western, southwestern, and southeastern states. The company has residences currently under construction in New Mexico, Texas, Oklahoma and Georgia and under development in Washington, Oregon, California, Texas, Florida, Georgia and North Carolina.

According to Gilley, the company does not expect overall profitability in fiscal 1996. "We have had and expect to continue to experience start-up losses resulting from the lag in resident revenues as new facilities come on line. We've also increased general and administrative expenses by adding key personnel in anticipation of growth. We're investing in our future and building what we believe to be a solid foundation to enable us to become an innovative leader in the assisted living industry," Gilley said.

The company, headquartered in Dallas, has announced plans to be operating or have under construction and development at least 40 residences with more than 3,000 units in 21 states by the end of 1997.

Except for certain historical information, the above paragraphs contain forward-looking statements that predict the future development of the company. The realization of these predictions will be subject to a number of variable contingencies and there is no assurance that they will occur in the time frame proposed. The risks associated with the potential actualization of the company's plans include: contractor delays, the availability and cost of financing, availability of managerial oversight and regulatory approvals, to name a few. -0-

                          Greenbriar Corporation
                          (Amounts in Thousands)

                  Three Months Ended          Six Months Ended
                  June 30,    June 30,     June 30,     June 30,
                   1996         1995         1996         1995

Revenues
  Revenue from
    assisted
    living
    facilities    $4,319          --        $4,319       $ 555
  Other               47          --            47          --

Operating
expenses           2,706          --         2,706         276

  Gross operating
  income           1,660          --         1,660         279

Facility lease
  expense            454          --           454          --
Facility depreciation
  & amortization     405          --           405          42

  Income from
  facility operations 801         --           801         237

Other income (expense)
  Corporate general
    & administrative
    expenses         (807)      (610)       (1,519)     (1,259)
  Interest income     224        375           468         568
  Interest expense   (798)        (3)         (798)        (98)
  Gain on sale of
    assets             --        655            32       5,804
  Other               (34)        (1)          416         (32)
                   (1,415)       416        (1,401)      4,983

Earnings (loss)
  from continuing
  operations before
  income taxes       (614)       416          (600)      5,220

Income tax expense
  (benefit)          (234)       143          (229)      1,775

  Earnings (loss)
    from continuing
    operations       (380)       273          (371)      3,445

Discontinued
  operations           78         78           696          12

  NET EARNINGS (LOSS) (302)      351           325       3,457

Preferred stock
  dividend
  requirement        (114)       (47)         (148)       (128)

Earnings (loss)
  allocable to
  common
  shareholders      ($416)      $304          $177      $3,329

Earnings (loss)
  per share
   Continuing
     operations    ($0.14)     $0.06        ($0.15)      $0.90
   Net earnings    ($0.12)     $0.09         $0.05       $0.90

Weighted average
  number of
  common and
  equivalent
  shares outstanding 3,478     3,511         3,460       3,679
-0-
                    Income From Facility Operations
                    Three months ended June 30, 1996
                         (Amounts in Thousands)

                     Stabilized        Start-up        Total
                     Facilities       Facilities
                         (a)              (b)

Revenue from
  assisted living
  facilities           $ 3,646          $ 673        $ 4,319

Operating expenses       2,093            613          2,706

Gross operating income   1,553             60          1,613

Facility lease expense     392             62            454
Facility depreciation
  & amortization           294            111            405

Income (loss) from
  facility operations     $ 887          ($113)          $754

(a) Stabilized facilities are those facilities that have been
operating for one year or have achieved stabilized occupancy of
95%.

(b)  Start-up facilities are those facilities that have not been
operating for one year and have not achieved a stabilized occupancy
of 95% or more.

(c)  The company had 11 stabilized and 5 start-up facilities.

CONTACT: Greenbriar Corporation

Bob Griffis/Oscar Smith, 214/407-8400

or

KCSA

Adam Friedman/Joe Mansi, 212/682-6300 ext. 215/205