Beverly Stock Repurchase Program Authorized

Business Wire, June 13, 1996

FORT SMITH, Ark.--(BUSINESS WIRE)--June 13, 1996--Beverly Enterprises, Inc. (NYSE:BEV) today announced that its Board of Directors has authorized a stock repurchase program. The company may repurchase, from time to time on the open market, up to a total of 10 percent of its approximately 100 million outstanding shares of common stock.

"One of the continuing strengths of Beverly is the cash flow our operations generate," said David R. Banks, Beverly Chairman and Chief Executive Officer. "Our first priority for these funds continues to be investing in the growth of our business. However, as excess cash becomes available from operations or from the disposition of non-strategic assets, stock repurchase certainly could be an attractive option, especially at current price levels."

Beverly Enterprises is the leading provider of long-term health care in the United States. It operates nursing/rehabilitation facilities, institutional and mail order pharmacies, acute long-term transitional hospitals, assisted living centers, hospice and home health centers. Beverly provides medical cost containment and managed care services through its nationwide network.

CONTACT: Beverly Enterprises, Inc., Fort Smith

Jim Griffith, 501/484-6912