Skilled Healthcare Announces Conclusion of Strategic Alternatives Exploration; Believes It is Well Positioned for the Future

Skilled Healthcare Group, Inc.

today announced that its Board of Directors has determined to conclude the Company's previously-announced exploration of strategic alternatives, including a potential sale of the Company's real estate assets or the whole company. This decision was made after consideration of the reduction to Medicare reimbursement rates announced by the Centers for Medicare & Medicaid Services on July 29, 2011, which the Board believes has diminished the prospects of maximizing shareholder value through a sale of the Company or its real estate assets in the near term. The Company believes it is well positioned for the future with its conservative management model and diverse operations, and Company management will continue to focus on maximizing shareholder value through the operation of the Company's business.