Exhibit 99.1

Five Star Quality Care, Inc. Reports Fourth Quarter 2010 Results

Newton, MA (February 22, 2011).  Five Star Quality Care, Inc. (NYSE: FVE) today announced its financial results for the quarter and year ended December 31, 2010.

Fourth Quarter 2010 Financial Highlights:

·                  Total revenues for the fourth quarter of 2010 increased 5.4% to $315.7 million from $299.5 million for the same period the previous year.

·                  Income from continuing operations for the fourth quarter of 2010 was $6.4 million compared to $877,000 for the same period the previous year.

·                  Income per share from continuing operations for the fourth quarter of 2010 was $0.18 and $0.17 per share, basic and diluted, respectively, compared to $0.02 per basic and diluted share for the same period the previous year.

·                  Income from continuing operations for the fourth quarter of 2010 included certain items that, in the aggregate, resulted in a positive impact of $1.0 million, or $0.03 per basic and diluted share, to our earnings.  These items were a $108,000 gain on early extinguishment of debt and a $933,000 gain on sale of available for sale securities. Income from continuing operations for the fourth quarter of 2009 included several similar items that, in the aggregate, resulted in a positive impact of $412,000, or $0.01 per basic and diluted share, to our earnings.  These items were a $317,000 gain on early extinguishment of debt, a $73,000 unrealized gain on our UBS put right related to auction rate securities and a $22,000 unrealized gain on our holdings of auction rate securities.

·                  Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter of 2010 was $11.7 million compared to $5.3 million for the same period the previous year.  As discussed above: EBITDA for the fourth quarter of 2010 included items that, in aggregate, resulted in a positive impact of $1.0 million; and EBITDA for the fourth quarter of 2009 included items that, in aggregate, resulted in a positive impact of $412,000.  EBITDA excluding these items was $10.7 million in the fourth quarter 2010 compared with $4.9 million for the same period the previous year.  A reconciliation of income from continuing operations determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and EBITDA excluding certain items for the quarters ended December 31, 2010 and 2009 appears later in this press release.

Fourth Quarter 2010 Operating Highlights (Senior Living Communities):

·                  Senior living occupancy for the fourth quarter of 2010 was 85.9% compared to 86.2% for the same period the previous year.

·                  Senior living average daily rate for the fourth quarter of 2010 increased by 4.0% to $150.11 from $144.29 in the same period the previous year.

·                  The percentage of senior living revenue derived from private sources other than Medicare and Medicaid for the fourth quarter of 2010 decreased to 70.1% from 71.1% for the same period the previous year.

·                  For those senior living communities that we have operated continuously since October 1, 2009 (comparable communities), occupancy for the fourth quarter of 2010 was 85.8% compared to 86.2% for the same period the previous year and 86.0% for the third quarter of 2010.

·                  The average daily rate at comparable communities for the fourth quarter of 2010 increased by 4.6% to $151.02 from $144.42 in the same period the previous year.

Fiscal Year Financial Highlights:

·                  Total revenue for the year ended December 31, 2010 increased 5.9% to $1.24 billion from $1.17 billion for the same period the previous year.

·                  Income from continuing operations for the year ended December 31, 2010 was $24.8 million compared to $39.7 million for the same period the previous year.

·                  Income per share from continuing operations for the year ended December 31, 2010 was $0.69 and $0.67 per share, basic and diluted, respectively, compared to $1.18 and $1.08 per share, basic and diluted, respectively, for the same period the previous year.

·                  Income from continuing operations for the year ended December 31, 2010 included certain items that, in aggregate, resulted in a positive impact of $1.7 million, or $0.05 and $0.04 per share, basic and diluted, respectively, to our earnings.  These items were a $592,000 gain on early extinguishment of debt, a $4.9 million gain on our holdings of auction rate securities and a $933,000 gain on sale of available for sale securities, offset by a $4.7 million loss on our UBS put right related to our auction rate securities.  Income from continuing operations for the year ended December 31, 2009 included several similar items that, in aggregate, resulted in a positive impact of $33.2 million, or $0.99 and $0.86 per share, basic and diluted, respectively, to our earnings.  These items were a $34.6 million gain on early extinguishment of debt, a $3.5 million unrealized gain on our holdings of auction rate securities and a $795,000 gain on sale of available for sale securities, offset by a $2.9 million loss due to the impairment of our investments in certain marketable securities and a $2.8 million unrealized loss on our UBS put right related to auction rate securities.

·                  EBITDA for the year ended December 31, 2010 was $44.2 million compared to $59.6 million for the same period the previous year.  As discussed above: EBITDA for 2010 included items that, in aggregate, resulted in a positive impact of $1.7 million; and EBITDA for 2009 included items that, in aggregate, resulted in a positive impact of $33.2 million.  EBITDA excluding these items was $42.6 million for 2010 compared with $26.4 million for the same period the previous year.  A reconciliation of income from continuing operations determined in accordance with GAAP to EBITDA and EBITDA excluding certain items for the year ended December 31, 2010 and 2009 appears later in this press release.

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Conference Call:

On February 22, 2011 at 5:00 p.m. Eastern Time, Bruce J. Mackey Jr., President and Chief Executive Officer, and Paul V. Hoagland, Chief Financial Officer, will host a conference call to discuss the fourth quarter and year end financial results.  Following the Company’s remarks, there will be a question and answer period.

The conference call telephone number is (800) 230-1059.  Participants calling from outside the United States and Canada should dial (612) 234-9959. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call.  A replay of the conference call will be available through 11:59 p.m. Eastern Daylight Time Tuesday, March 1, 2011. To hear the replay, dial (800) 475-6701, or (320) 365-3844 from outside the United States and Canada. The replay pass code is 179293.

A live audio webcast of the conference call will also be available in a listen only mode on the Company’s website at www.fivestarseniorliving.com.  Participants wanting to access the webcast should visit the Company’s website about five minutes before the call.  The archived webcast will be available for replay on the Company’s website for about one week after the call.

About Five Star Quality Care, Inc.:

Five Star Quality Care, Inc. is a senior living and healthcare services company.  Five Star owns or leases and operates 212 senior living communities with 22,562 living units located in 30 states.  These communities include independent living, assisted living and skilled nursing communities.  Five Star also operates five institutional pharmacies and two rehabilitation hospitals.  Five Star is headquartered in Newton, Massachusetts.

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Supplemental Information

FIVE STAR QUALITY CARE, INC.

CONSOLIDATED STATEMENT OF INCOME

 (in thousands, except per share data)

(unaudited)

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FIVE STAR QUALITY CARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(in thousands, except share data)

(unaudited)

2

 FIVE STAR QUALITY CARE, INC.

 SENIOR LIVING COMMUNITY OPERATING DATA(1)

 (dollars in thousands, except average daily rate)

(1)    Excludes data for institutional pharmacy, rehabilitation hospital operations and discontinued senior living operations.

(2)             Community expenses consist of senior living wages and benefits and other senior living operating expenses as shown on our consolidated statement of income.

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FIVE STAR QUALITY CARE, INC.

COMPARABLE SENIOR LIVING COMMUNITY OPERATING DATA(1)

(dollars in thousands, except average daily rate)

(1)             Excludes data for institutional pharmacy, rehabilitation hospital operations and discontinued senior living operations.

(2)             Communities that we have operated continuously since October 1, 2009.

(3)             Communities that we have operated continuously since January 1, 2009.

(4)             Community expenses consist of senior living wages and benefits and other senior living operating expenses as shown on our consolidated statement of income.

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FIVE STAR QUALITY CARE, INC.

SENIOR LIVING COMMUNITY FINANCIAL DATA(1)

(dollars in thousands, except average daily rate)

(1)    Excludes data for discontinued senior living operations.

(2)    Includes rehabilitation and other specialty service revenues provided at residential facilities and expenses associated with our captive insurance company.

COMPARABLE SENIOR LIVING COMMUNITY FINANCIAL DATA(1)

(1)    Excludes data for discontinued senior living operations.

(2)    Includes rehabilitation and other specialty service revenues provided at residential facilities and expenses associated with our captive insurance company.

(3)    Communities that we have continuously operated since October 1, 2009.

(4)    Communities that we have continuously operated since January 1, 2009.

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FIVE STAR QUALITY CARE, INC.

OTHER OPERATING DATA(1)

(dollars in thousands, except average daily rate)

(1)    Excludes data for institutional pharmacy operations and discontinued senior living operations.

(2)    Communities are categorized by the type of living units which constitute a majority of the total living units at the community.

(3)    Includes 2,026 skilled nursing units in communities where assisted living and independent living services are the predominant services provided for the three months and year ended December 31, 2010 and 2009.

(4)    Includes 95 assisted living and independent living units in communities where skilled nursing services are the predominant services provided for the three months and year ended December 31, 2010 and 2009.

(5)    Other senior living revenues relates primarily to rehabilitation and other specialty service revenues provided at residential facilities and does not include revenues from institutional pharmacy or rehabilitation hospital operations.

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FIVE STAR QUALITY CARE, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 (in thousands, except per share data)

Earnings before interest, taxes, depreciation and amortization, or EBITDA, and EBITDA excluding certain items are not financial measures determined according to U.S. generally accepted accounting principles, or GAAP. We consider EBITDA and EBITDA excluding certain items to be a meaningful disclosure because we believe that the inclusion of these non-GAAP financial measures may help investors to gain a better understanding of changes in our core operating results, and can also help investors who wish to make comparisons between us and other companies on both a GAAP and a non-GAAP basis. EBITDA and EBITDA excluding certain items as presented may not, however, always be comparable to amounts calculated by other companies. These non-GAAP financial measures are used by management to evaluate financial performance and resource allocation for our communities and for us as a whole and for comparing such performance to that of prior periods and to the performance of our competitors. This information should not be considered as an alternative to net income or any other financial operating or performance measure established by GAAP. The reconciliation of income from continuing operations to EBITDA and EBITDA excluding certain items, for the three months and year ended December 31, 2010 and 2009 is as follows:

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