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AdCare Health Systems, Inc. Continues To Be Profitable; Reports 2009 Second Quarter Earning Results

SPRINGFIELD, Ohio, August 14, 2009 /PRNewswire-FirstCall/ — AdCare Health Systems, Inc. (NYSE AMEX: ADK), an Ohio based long term care, home care and management company, today reported financial results for its second quarter of 2009.

Revenues for the quarter ended June 30, 2009 were $6,613,127 as compared to $6,016,536 for the same quarter in 2008, an increase of $596,591. The increase was mostly due to improved occupancy in our skilled nursing centers and enhanced revenues in our home health care division. Management will continue to focus on expanding the revenue base at its home health care operations.

The net income for the quarter ended June 30, 2009 was $147,101 as compared to$22,963 for the second quarter ended June 30, 2008, an improvement of $124,138. The improvement in net income would have been significantly higher without the $413,593 gain on the acquisition of the Lincoln Lodge in the second quarter of last year. Basic and diluted net income per share for the quarter ended June 30, 2009 was $0.04 as compared to a basic and diluted net income per share of $0.01 for the same quarter ended June 30, 2008.

Revenues for the six-months ended June 30, 2009 were $12,998,016 as compared to $12,009,078 for the same period in 2008, an increase of $988,938. Net income for the six-months ended June 30, 2009 was $242,915 as compared to a loss of $116,507 for the same period in 2007, an improvement of $359,422. Again, the increase was due mostly to improved occupancy in our skilled nursing centers and assisted living facilities as well as improved revenues in our home health care division. Basic and diluted net income per share for the six-months ended June 30, 2009 was $0.07 as compared to a basic and diluted net loss per share of ($0.02) for the same six-months period ended June 30, 2008.

David A. Tenwick, Chairman of AdCare, stated that “I am extremely encouraged that the Company is moving in the right direction and profitability continues to improve despite the challenging economic environment.” He continued, “The Company has made great strides in improving its financial performance. I am especially pleased with the improvement in income from Operations for the first six months of 2009, increasing to $931,286 from $154,801 for the same period last year. In addition, we continued to improve our working capital position by $815,324, since the end of last year with current assets now $275,302 more than current liabilities.” He added that “AdCare is still seeking attractive acquisitions and business opportunities in the health care field that have the potential to expand our operations.”

About AdCare Health Systems, Inc.

AdCare Health Systems, Inc. (NYSE AMEX: ADK - News) develops, owns and manages assisted living facilities, nursing homes and retirement communities and provides home health care services. Prior to becoming a publicly traded company in November of 2006, AdCare operated as a private company for 18 years. AdCare's 920 employees provide high-quality care, management services and other services for patients and residents residing in 20 facilities, seven of which are assisted living facilities, twelve skilled nursing centers and one independent senior living community. The Company has ownership interests in eight of those facilities. In the ever-expanding marketplace of long-term care, AdCare's mission is to provide quality healthcare services to the elderly.