AdCare Health Systems, Inc. Reports Discontinuation of Definitive Merger Agreement with Family Home Health Serv...( AdCare Also Reports Sale of Its Ma...),Health

AdCare Also Reports Sale of Its Marion Assisted Living Property for a

Profit of $600,000

David A. Tenwick to Join Family's Board of Directors

SPRINGFIELD, Ohio, Sept. 12 /PRNewswire-FirstCall/ -- AdCare Health Systems, Inc., an Ohio corporation (Amex: ADK), and Family Home Health Services, Inc., a Nevada corporation, today announced termination of a certain definitive merger agreement previously reported on June 6th, 2007, without consummating the merger and without further obligations on either party. The decision to terminate the Agreement followed an indication of a majority of Family's Preferred Series A shares that they would not currently support the merger transaction.

The parties further announced that David A. Tenwick, Adcare's Chairman, has agreed to join the Board of Directors of Family Home Health Services, Inc.

David A. Tenwick, Chairman of AdCare, stated, "The logic of combining AdCare and Family remains valid. We are hopeful that AdCare and Family will develop a closer relationship in the future, and I look forward to joining their board and working with Family's management team." Mr. Tenwick added, "AdCare's management team and advisors continue their commitment to identifying quality merger and acquisition opportunities that will add value for our shareholders. We are currently reviewing these various targets that meet our criteria, with the intent to consummate one or more transactions."

Kevin Ruark, President of Family, said, "We are, of course, disappointed by the need to terminate the merger agreement. However, we are very pleased to welcome Dave to our Board of Directors. His unique skills and experiences will be invaluable to th
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