Judge Rules in Fountain View Favor in Decertification Matter.

Business/Technology Editors

BURBANK, Calif.--(BUSINESS WIRE)--Jan. 22, 2001

Fountain View, Inc., a leading operator of 50 long-term care facilities in California, Texas and Arizona, today announced that a federal administrative law judge had ruled in its favor and reversed the decertification

As a result of this decision the Company expects to receive approximately six million dollars for services rendered during the decertification period. The ruling is subject to appeal by the Health Care Financing Administration.

In a related matter, the Company will continue to vigorously pursue its action against the State of California.

Fountain View is a leading operator of long-term care facilities and a leading provider of a full continuum of post-acute care services, with a strategic emphasis on sub-acute specialty medical care. The Company operates a network of facilities in California, Texas and Arizona, including 44 skilled nursing and six assisted living facilities. In addition to long-term care, the Company provides a variety of high-quality ancillary services such as physical, occupational and speech therapy and pharmacy services.

This press release may make certain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 regarding the future earnings and revenues and plans of the Company. Any such forward-looking statements are subject to various risks and uncertainties that might cause actual results to vary materially. Such risks are described in the Company's annual filing on Form 10-K on file with the Securities and Exchange Commission.