DALLAS – (BUSINESS WIRE) – Capital Senior Living Corporation, one of the country’s largest operators of senior housing communities (NYSE: CSU) announced today the formation of a joint venture with Blackstone Real Estate Advisors (“Blackstone”), an affiliate of The Blackstone Group, to acquire in excess of $200 million of senior housing properties. The venture will be owned 90% by Blackstone and 10% by the Company. The Company will earn management fees under long-term management contracts and potential additional incentive payments.

“We are excited to form this venture with Blackstone,” stated Lawrence A. Cohen, Chief Executive Officer of the Company. “With the capital markets severely constrained for senior housing properties, it is an opportune time to combine Blackstone’s financial strength with Capital’s operating expertise. This transaction recognizes the strength of our management, improves our balance sheet, enhances our liquidity, and creates opportunities to expand our management services.”

On December 31, 2001, the venture acquired The Amberleigh at Woodside Farms, a 394 resident capacity independent living community located in Williamsville, NY. The Company will continue to manage The Amberleigh under a long-term management contract.

“We believe The Amberleigh acquisition represents the strengths of the joint venture. By combining the financial strength and reputation of Blackstone with the operational and acquisition experience of Capital Senior Living, the venture was able to close quickly for all cash with permanent financing to be funded at a later date,” James A. Stroud, Chairman of the Company, said. “We look forward to additional acquisition opportunities.”

“We are pleased to be working with such an experienced management team as Capital Senior Living,” stated Steve Galiotos, Managing Director of The Blackstone Group. “We anticipate that our newly formed joint venture will become one of the more active acquirers of senior housing properties during 2002.”

ABOUT THE COMPANY

Capital Senior Living Corporation is one of the nation’s largest operators of residential communities for senior adults. The Company’s operating philosophy emphasizes a continuum of care, which integrates independent living, assisted living, and home care services, to provide residents the opportunity to age in place.

The Company currently owns and/or operates 49 communities in 20 states with a total capacity of approximately 8,000 residents. In the communities operated by the Company, 84 percent of residents live independently and 16 percent require assistance with activities of daily living.

ABOUT THE BLACKSTONE GROUP

The Blackstone Group, a private investment bank with offices in New York and London, was founded in 1985. Blackstone’s Real Estate Group has raised four funds representing approximately $3.6 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties with a total transaction value of about $12 billion. In addition to real estate, The Blackstone Group’s core businesses include Mergers and Acquisitions Advisory, Restructuring and Reorganization Advisory, Private Equity Investing, Private Mezzanine Investing, and Liquid Alternative Asset Management.

The forward-looking statements in this release are subject to certain risks and uncertainties that could cause results to differ materially, including, but not without limitation to, the Company’s ability to find suitable acquisition properties at favorable terms, financing, licensing, business conditions, risks of downturn in economic condition generally, and satisfaction of closing conditions such as those pertaining to licensure. These and other risks are detailed in the Company’s reports filed with the Securities and Exchange Commission.