NEWS  RELEASE
FOR  IMMEDIATE  RELEASE                  Contact  Emeritus:  Raymond  Brandstrom
July  24,  2003                          Chief  Financial  Officer
                                         (206) 298-2909

          US BANKRUPTCY COURT APPROVES EMERITUS BID TO ACQUIRE ALTERRA

SEATTLE,  WA,  JULY  24,  2003 -- Emeritus Assisted Living (AMEX: ESC) (Emeritus
Corporation),  a  national  provider  of assisted living and related services to
senior citizens, announced today that the United States Bankruptcy Court for the
District  of  Delaware approved a Merger Agreement which provides that an entity
controlled  by  Emeritus Corporation, with capital from an affiliate of Fortress
Investment  Group  LLC,  will acquire Alterra Healthcare Corporation ("Alterra")
upon  the  closing  of  the  merger.  The total consideration provided under the
Merger  Agreement, subject to certain adjustments, is $76 million.  Emeritus has
guaranteed  $6.9  million  of  such  closing  consideration.  The transaction is
conditioned on, among other things, confirmation of Alterra's Chapter 11 Plan of
Reorganization and the receipt of regulatory approvals, and is expected to close
in  the  fourth  quarter  of  this  year.  The Merger Agreement, approved by the
Bankruptcy  Court  yesterday, was selected as the winning bid at an auction held
in  Delaware  on  July  17,  2003.

ABOUT  THE  COMPANY
Emeritus  Assisted  Living is a national provider of assisted living and related
services to seniors.  Emeritus is one of the largest developers and operators of
freestanding  assisted  living  communities throughout the United States.  These
communities  provide  a  residential housing alternative for senior citizens who
need  help  with  the  activities of daily living with an emphasis on assistance
with personal care services to provide residents with an opportunity for support
in  the  aging  process.  Emeritus  currently holds interests in 174 communities
representing  capacity  for  approximately  18,000  residents  in  33  states.
Emeritus's  common  stock  is  traded  on  the American Stock Exchange under the
symbol  ESC, and its home page can be found on the Internet at www.emeritus.com.

"Safe  Harbor"  Statement  under the Private Securities Litigation Reform Act of
1995:  A  number  of the matters and subject areas discussed in this report that
are  not  historical  or current facts deal with potential future circumstances,
operations,  and prospects.  The discussion of such matters and subject areas is
qualified  by  the  inherent  risks  and  uncertainties  surrounding  future
expectations  generally,  and  also may materially differ from our actual future
experience  as  a  result  of  such  factors  as: the effects of competition and
economic  conditions  on  the  occupancy  levels in our communities; our ability
under current market conditions to maintain and increase our resident charges in
accordance  with rate enhancement programs without adversely affecting occupancy
levels;  increases  in  interest  rates that would increase costs as a result of
variable  rate  debt;  our  ability  to  control  community  operation expenses,
including  insurance and utility costs, without adversely affecting the level of
occupancy  and  the level of resident charges; our ability to generate cash flow
sufficient to service our debt and other fixed payment requirements; our ability
to  find sources of financing and capital on satisfactory terms to meet our cash
requirements  to  the  extent  that  they  are not met by operations; and making
satisfactory  arrangements  for  the  continued  operation  of  the  Emeritrust
communities  beyond  June  30,  2003,  when  our management agreements for those
communities  expire.  We  have attempted to identify, in context, certain of the
factors that we currently believe may cause actual future experience and results
to differ from our current expectations regarding the relevant matter or subject
area.  These and other risks and uncertainties are detailed in our reports filed
with  the Securities and Exchange Commission (SEC), including our Annual Reports
on  Form  10-K  and  Quarterly  Reports  on  Form  10-Q.