American Health Properties, Inc.

American Health Properties, Inc. is a self-administered real estate investment trust which specializes in quality health care facilities. In July, 1995 the Company decided to separate its portfolio of investments into two business segments, The Core Group and The Psychiatric Group. The Core Group consists of acute care hospitals, rehabilitation hospitals, long term acute care facilities, assisted living facilities, alzheimer's care facilities and medical office. These are traded as common shares on NYSE trading under AHE. The Psychiatric Group, consists of psychiatric hospitals. The Psychiatric group shares are Depositary shares traded in NASDAQ trading under "AHEPZ". Rental income accounted for 82% of 1998 revenues; mortgage interest income, 3% and interest income and other, 15%.