ILM II SENIOR LIVING, INC. GIVES NOTICE OF
TERMINATION OF FACILITIES LEASE AGREEMENT
AND MAKES DIVIDEND DECISION
FOR IMMEDIATE RELEASE:
June 14, 2000, Tysons Corner, Virginia: ILM II Senior Living, Inc.
announced today that it has caused its subsidiary, ILM II Holding, Inc., to
deliver to ILM II Lease Corporation, an affiliate of ILM II and ILM II Holding,
a notice stating that pursuant to the terms of the existing Facilities Lease
Agreement, the agreement would terminate on the date of consummation of the
pending merger of ILM II with Capital Senior Living Corporation (NYSE: CSU).
Subject to the satisfaction of certain conditions and the receipt of requisite
approvals, consummation of the merger is expected to occur on or about July 30,
2000.
ILM II also announced that its Board of Directors has determined not to
declare any dividends on shares of ILM II's common stock for the remainder of
Fiscal Year 2000. ILM II cited transaction costs previously incurred and to be
incurred through closing of the pending merger with Capital and the
establishment of a reserve to fund the short-term operations of ILM II's senior
living communities if the merger with Capital is not consummated. ILM II also
announced that, should the merger not be consummated, its Board of Directors
would reevaluate its dividend policy.
ILM II together with ILM Senior Living, Inc. and their affiliates, own 13
senior living communities in nine states with a total resident capacity of 2,100
residents.
If you have any questions regarding this press release, please call ILM
II, toll free at 1-888-257-3550.
* * *
THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" BASED ON OUR
CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE
OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM HISTORICAL RESULTS OR THOSE
ANTICIPATED AND CERTAIN OF WHICH ARE BEYOND OUR CONTROL. THE WORDS "BELIEVE,"
"EXPECT," "ANTICIPATE" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING
STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.
