8-K: Current report filing

PRESS RELEASE - FOR IMMEDIATE RELEASE

FOR FURTHER INFORMATION CONTACT
Essel W. Bailey, Jr., Chairman and CEO, or F. Scott Kellman,
Chief Operating Officer, at (734) 887-0200

OMEGA ANNOUNCES RESTRUCTURING TALKS WITH TENANTS

ANN ARBOR, MICHIGAN - MARCH 31, 2000 - Omega Healthcare
Investors, Inc. (NYSE:OHI) ("Omega" or the "Company") announced today that
Advocat, Inc. ("Advocat"), a Nashville-based operator of 31 nursing homes owned
by Omega in Arkansas, Alabama, Tennessee, Florida and Kentucky, has suspended
its rent/interest payments with respect to the foregoing facilities. Advocat
restated third quarter earnings in December and has not yet filed its December
31 financial statements, as required by its security agreements with Omega.
Rents and interest payable by Advocat amount to approximately $12.7 million
annually. Omega holds letters of credit and security deposits, totaling
approximately $5 million. The Company is in negotiations with Advocat regarding
a possible restructuring of its agreements.
The Company also reported that Integrated Health Services,
Inc. ("Integrated") has ceased paying interest on $55 million in mortgages owed
to Omega. Interest payable by Integrated amounts to approximately $5.5 million
annually. Omega holds $1.25 million in letters of credit to secure payment
performance of the foregoing. Omega continues to negotiate with Integrated with
respect to payment of interest for the properties operated by Integrated during
the pendency of Integrated's bankruptcy proceeding.
This uncertainty with respect to cash flow from these tenants
will be a focus of Omega's Board of Directors as it considers dividend levels at
its meeting scheduled for April 24, 2000.
Omega is a Real Estate Investment Trust investing in and
providing financing to the long-term care industry. At December 31, 1999, it
owned or had mortgages on 256 healthcare and assisted living facilities with
more than 27,000 beds located in 28 states and operated by 24 independent
healthcare operating companies.
This press release includes statements that are not purely
historical and are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including statements regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. All
statements, other than historical fact, contained in this press release are
forward-looking statements. All forward-looking statements included in this
press release are based on information available to the Company on the date
hereof, and the Company assumes no obligation to update such forward-looking
statements. Although the Company believes that the assumptions and expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct or that the
Company will take any actions that may presently be planned.

# # #