Advocat's Board Unanimously Rejects Unsolicited Non-Binding Expression of Interest From Covington Investments

Advocat Inc. AVCA today announced that its Board of Directors had previously reviewed, and then rejected, unsolicited non-binding expressions of interest made by Covington Investments, LLC to acquire Advocat, initially for $7.50 per share, and more recently for $8.50 per share, in cash, in each case such expression of interest being subject to due diligence and other conditions. The Board unanimously determined that the non-binding expressions of interest were not in the best interests of Advocat's shareholders. The Board informed Covington of that determination in response to each unsolicited expression of interest submitted by Covington. Covington publicly announced its most recent expression of interest on May 11, 2012. Advocat has sent the following letter to Covington in response: