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The Ensign Group Acquires Texas Skilled Nursing Facility
Date:1/5/2009

LUFKIN, Texas, Jan. 5 /PRNewswire-FirstCall/ -- The Ensign Group, Inc. (Nasdaq: ENSG), announced today that it has acquired Southland Healthcare Center, a 150-bed skilled nursing facility in Lufkin, Texas. The transfer was effective January 1, 2009. The facility has been renamed Southland Rehabilitation & Healthcare Center.

(Logo: http://www.newscom.com/cgi-bin/prnh/20071213/LATH168LOGO )

"This is a strategic acquisition, and adds to our growing critical mass in the important East Texas area," said Christopher Christensen, Ensign's President and Chief Executive Officer, noting that Southland is only 45 minutes from Ensign's successful Timberwood Nursing & Rehabilitation Center in nearby Livingston, Texas. He added that Ensign expects the newly-acquired facility, which had an occupancy rate of 56% at acquisition, to be accretive to earnings in 2009.

Ensign purchased the facility from an out-of-state operator who acquired the property in November 2006. Barry Port, President of the Ensign subsidiary that will include Southland, noted that the physical plant is in good condition and includes 18 highly-desirable private suites. He also noted that the operation is in good condition, adding, "We look forward to being a key addition to the Lufkin area's healthcare community, and to building upon the solid foundation that Southland's outstanding staff has established there."

A multi-disciplinary transition team took over the operation in the early morning hours New Year's Eve. Among other things, the facility's new local leaders are adjusting clinical systems and staff to serve a larger skilled nursing population. Renovations and other building improvements are planned as well.

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SOURCE The Ensign Group, Inc.
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