NEWS  RELEASE
FOR  IMMEDIATE  RELEASE                            Contact:  Raymond  Brandstrom
July  2,  2003                                     Chief  Financial  Officer
                                                   (206) 298-2909

          EMERITUS ANNOUNCES FINANCE TRANSACTION FOR THREE COMMUNITIES

SEATTLE,  WA,  JULY  2,  2003  -- Emeritus Assisted Living (AMEX: ESC) (Emeritus
Corporation),  a  national  provider  of assisted living and related services to
senior  citizens,  announced  that  the  Company has transferred its interest in
three leases to a new lessor.  The Company received approximately $10 million in
cash  proceeds  and  anticipates recognizing a gain of approximately $6 million,
which  will  be  amortized  over  the  remaining  life of the leases.  The three
facilities  are  purpose-built  assisted  living  communities located in Auburn,
Massachusetts;  Louisville,  Kentucky;  and  Rocky  Hill,  Connecticut.

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.