NEWS  RELEASE
FOR  IMMEDIATE  RELEASE                Contact  Emeritus:  Raymond  Brandstrom
July  18,  2003                        Chief  Financial  Officer
                                       (206) 298-2909

                                       Contact  Alterra:  Mark  Ohlendorf
                                       President
                                       (414) 918-5403

   EMERITUS IS THE WINNING BIDDER IN THE AUCTION TO ACQUIRE ALTERRA HEALTHCARE

SEATTLE,  WA  &  MILWAUKEE, WI, JULY 18, 2003 -- Emeritus Assisted Living (AMEX:
ESC) (Emeritus Corporation) and Alterra Healthcare Corporation (Alterra) jointly
announced  today  that  a  majority owned subsidiary of Emeritus, with financing
provided  by  an  affiliate  of  Fortress  Investment Group LLC, was the winning
bidder  at  an auction conducted yesterday in the Alterra bankruptcy proceeding,
pursuant  to  which  Alterra  was  offering  for  sale 100% of the equity of the
restructured  Alterra  upon  its  emergence  from  its  Chapter  11  bankruptcy
proceeding.  The  proposed  acquisition  is  expected  to  be  consummated  upon
confirmation  of  Alterra's Chapter 11 plan of reorganization, and is contingent
upon  satisfaction  of various conditions, including receipt of Bankruptcy Court
approval  and  consents  from  certain of Alterra's secured lenders and lessors.

Alterra,  a national assisted living company headquartered in Milwaukee, filed a
voluntary  Chapter  11  bankruptcy  petition  on January 22, 2003.  On April 10,
2003,  the  Bankruptcy  Court approved bidding procedures establishing a process
for  Alterra  to  seek  and  select  a  transaction  to  address its capital and
liquidity  needs upon completion of its bankruptcy reorganization by selling its
capital  stock  or  assets.  A  hearing  in  the Bankruptcy Court to approve the
Emeritus  bid  as  the  highest  and  best  bid  is scheduled for July 23, 2003.

Upon  emerging  from  its  Chapter  11 reorganization, Alterra is expected to be
comprised  of  approximately  300 communities with bed capacity of 13,000.  Upon
completing  the acquisition, Emeritus will operate approximately 475 communities
comprising  26,500  units  in  38  states.  Combined  annual operated revenue is
expected  to  be  approximately  $800  million.

ABOUT  EMERITUS

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  of  Emeritus:  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.


ABOUT  ALTERRA

Alterra offers supportive and selected healthcare services to our nation's frail
and  elderly  and  is  the  nation's  largest  operator  of  freestanding
Alzheimer's/memory  care  residences.  Alterra  currently operates in 24 states.


"Safe  Harbor"  Statement  under the Private Securities Litigation Reform Act of
1995  of  Alterra:  Certain  of  the  information  contained  herein  should  be
considered  "forward-looking  statements"  within  the  meaning  of  the Private
Securities  Litigation  Reform  Act of 1995 that reflect Alterra's current views
with  respect  to  certain  current and future events and financial performance.
Such  forward-looking statements are and will be, as the case may be, subject to
many  risks,  uncertainties  and  factors  relating  to Alterra's operations and
business  environment  which  may  cause  the  actual  results  of Alterra to be
materially  different  from  any  future  results  expressed  or implied in such
forward-looking  statements.  Factors  that could cause actual results to differ
materially  from  these  forward-looking statements include, but are not limited
to,  the following:  the ability of Alterra to satisfy its operating and capital
needs  during  the  pendency  of  its  bankruptcy  case;  Alterra's  ability  to
successfully  negotiate  necessary modifications and amendments with its secured
lenders  and  lessors; Alterra's ability to access financing needed to refinance
significant  pending  debt  maturities;  the ability of Alterra to continue as a
going  concern;  the  ability  of  Alterra  to  develop,  prosecute, confirm and
consummate  a Chapter 11 plan of reorganization; Alterra's ability to consummate
a  liquidity  transaction  in  connection with its bankruptcy case providing net
proceeds  in  amounts necessary to effectively address the projected capital and
liquidity  needs  of  Alterra;  risks  associated with third parties seeking and
obtaining  court  approval  for  the  appointment  of a Chapter 11 trustee or to
convert  Alterra's  bankruptcy  case  to  a Chapter 7 liquidation; the potential
adverse  impact  of  Alterra's Chapter 11 filing on Alterra's relationships with
its  residents, vendors and employees; competition and the ability of Alterra to
attract  private  pay residents to its residences; Alterra's ability to fund and
maintain  self  insurance  programs  at  levels  necessary  to address potential
liability claims and satisfy the requirements of lenders and lessors; government
legislation  and  regulation;  and  other  risks and uncertainties as may be set
forth  from  time  to  time  in  Alterra's reports filed with the Securities and
Exchange  Commission.