For Release:  January 25, 2005

Contact:  Gerald Coggin, Senior VP of Corporate Relations

Phone:  (615) 890-2020

NHR receives notice from AMEX

            MURFREESBORO, Tenn. -- National Health Realty, Inc., (AMEX:NHR), a real estate investment trust, said that on Jan. 20, 2005, it  received a notice from the American Stock Exchange that the Company is currently not in compliance with the Amex board of directors composition requirements as set forth in Section 121A of the Amex Company Guide.  Specifically, the Company does not currently have a majority of independent directors serving on its board.  The warning letter gives NHR until May 31 to regain compliance with the Amex requirements. The Company intends to correct the instance of noncompliance with the Amex Company Guide as soon as reasonably possible and will comply with the independence standards of Amex Company Guide section 121A by May 31.

NHR owns the real property of 16 skilled nursing facilities, six assisted living centers and one retirement center.  NHR also owns first and second mortgage notes totaling $13.7 million.  These notes are secured by operating skilled nursing facilities and other health care properties.  Additional information including NHR’s most recent press releases may be obtained on NHR’s web site at www.nationalhealthrealty.com.  The company trades on the American Stock Exchange with the symbol NHR. 

Statements in this press release that are not historical facts are forward-looking statements. NHR cautions investors that any forward-looking statements made involve risks and uncertainties and are not guarantees of future performance. All forward-looking statements represent NHR’s best judgment as of the date of this release.

-30-