Exhibit 99.1

Advocat Settles All Outstanding Claims With State of Arkansas

    FRANKLIN, Tenn.--(BUSINESS WIRE)--Sept. 13, 2004--Advocat Inc.
(NASDAQ OTC:AVCA) today announced that it reached an agreement with
the Attorney General for the State of Arkansas to settle all civil
claims filed against the Company by the State for alleged violations
by the Company in Arkansas. In the agreement, the Company did not
admit or agree, to any degree, any violation of any statute nor any
standard of care.
    In consideration of the settlement with the State of Arkansas,
Advocat will pay the State $400,000 in monthly payments over 24 months
and agreed to pay at least $600,000 to install sprinkler systems in
nursing homes owned by the Company in the State of Arkansas. The
settlement also included $300,000 in funds already expended by the
Company for additional training of nursing home staff.
    "We are pleased to reach the settlement with Arkansas," stated
William R. Council, III, Chief Executive Officer of Advocat. "We did
not agree with the Attorney General's assertions in their lawsuits and
were prepared to fight them vigorously. However, we understand and
agree that this is a compromise settlement of doubtful and disputed
claims. We appreciate the willingness of the Arkansas Attorney General
to work with us on a settlement and believe it is in the best interest
of our residents in Arkansas and our shareholders. The safety and
security of our residents was our primary goal and I believe this
settlement with the State of Arkansas underscores our commitment to
providing quality care," concluded Mr. Council.
    Forward-looking statements made in this release involve a number
of risks and uncertainties, including but not limited to, uncertainty
regarding the Company's ability to restructure or refinance its debt,
the impact of under-insured professional liability claims, factors
affecting the long-term care industry in general, governmental
reimbursement, government regulation, health care reforms, the impact
of future licensing surveys, changing economic and market conditions
and other risk factors detailed in the Company's Securities and
Exchange Commission filings. Advocat Inc. is not responsible for
updating the information contained in this press release beyond the
published date, or for changes made to this document by wire services
or Internet services.
    Advocat Inc. provides long-term care services to nursing home
patients and residents of assisted living facilities in nine states,
primarily in the Southeast.
    For additional information about the Company, visit Advocat's web
site: http://www.irinfo.com/avc

    CONTACT: Advocat Inc., Franklin
             William R. Council, III, 615-771-7575