EXHIBIT 99.1
ILM II ANNOUNCES SALE OF ITS 75% INTEREST
IN ITS SANTA BARBARA SENIOR LIVING FACILITY TO
CAPITAL SENIOR LIVING CORP.
FOR IMMEDIATE RELEASE:
August 30, 2000, Tysons Corner, Virginia: ILM II Senior Living, Inc.
announced today that it has sold to Capital Senior Living Corporation (NYSE:
CSU) its 75% interest in its senior living facility located in Santa Barbara,
California in consideration of Capital's payment of approximately $10 million
and the assumption by Capital of all of the transaction costs incurred to date
by the Company in connection with its previously announced proposed merger with
Capital. The remaining 25% co-tenancy interest in the Santa Barbara facility was
owned by ILM Holding, Inc., a subsidiary of ILM Senior Living, Inc., and was
transferred to Capital at the time the ILM Senior Living and Capital merger was
consummated.
The Company determined to sell its interest in the Santa Barbara facility
because of the following factors: Capital had publicly announced that it did not
receive and was not at that time in possession of sufficient loan proceeds with
which to consummate the proposed merger; the Company's Board of Directors
believed that the purchase price (for the Santa Barbara facility) was fair, from
a financial point of view; and, the merger agreement relating to the proposed
merger provides that if the proposed merger is not consummated by September 30,
2000, it may be terminated by either the Company or Capital, and that if Capital
has consummated its proposed merger with ILM Senior Living (which it has), at
the time of the termination, the Company would be contractually obligated to
sell to Capital its 75% interest in the Santa Barbara facility.
In connection with the proposed merger, Capital has recently announced
that it is in the process of seeking alternative financing resources. At this
time, there is no certainty as to whether Capital will be able to obtain
alternative financing, or if so obtained, whether it will be sufficient to
consummate the proposed merger. Similarly, there can be no assurance as to
whether the merger will be consummated or, if consummated, as to the timing
thereof.
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
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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.
