AVCA Diversicare Healthcare Services, Inc. (MM)

Advocat Inc. (Nasdaq:AVCA) a premier provider of long term care services primarily in the Southeast and Southwest, today announced it entered into a lease agreement to operate a 154 bed skilled nursing center in Louisville, Kentucky. The nursing center is owned by a real estate investment trust and the lease provides for an initial fifteen-year lease term with a five-year renewal option. The nursing center has annual revenues of approximately $10 million and is expected to be accretive to earnings early in the Company's tenure as the operator of the skilled nursing center. The Company began operating the skilled nursing center on September 24, 2012.

Commenting on the transaction, Kelly J. Gill, the Company's President and Chief Executive Officer, stated, "A major focus of our strategic operating initiatives has been on portfolio growth.  This lease agreement represents our third nursing center addition in less than one year. The acquisition of Highlands Nursing and Rehabilitation Center in Louisville, Kentucky increases the Company's footprint in Kentucky to eight nursing centers.  Unlike Rose Terrace in West Virginia, which we built on a de novo basis, and Arbor Place of Clinton in Kentucky, which we reopened, this nursing center is already occupied and will contribute to our earnings more quickly than those buildings. As we have become more active in our portfolio-growth strategy, our pipeline continues to grow and I am optimistic that we can reasonably expect to see more facility additions in the near future."

Advocat provides long-term care services to patients in 48 skilled nursing centers containing 5,538 licensed nursing beds, primarily in the Southeast and Southwest. For additional information about the Company, visit Advocat's web site: www.advocatinc.com.

CONTACT: Company Contact:
         Kelly J. Gill
         Chief Executive Officer
         615-771-7575
         
         Investor Relations:
         Charles Lynch
         Westwicke Partners
         443-213-0504