NHR North Asia Investment Corp.

National Health Realty, Inc., (AMEX: NHR) a long-term health care real estate investment trust, announced net income for the quarter ended June 30, 2007 of $2,948,000 compared to $2,933,000 in the comparable quarter of last year. For the three months ended June 30, 2007 net income per share was 30 cents basic and diluted compared to 29 cents basic and diluted, for the second quarter last year. Basic and diluted funds from operations were 42 cents per share compared to 42 cents basic and diluted, last year. Revenues for the quarter totaled $5,014,000 compared to $4,980,000 last year. For the six months ended June 30, net income was $5,891,000 compared to $6,036,000 for the same six months last year. Net income per share was 59 cents basic and diluted compared to 61 cents basic and diluted last year. Funds from operations per share were 83 cents basic and diluted compared to 86 cents basic and diluted in 2006. Revenues for the six months totaled $10,096,000 compared to $10,143,000 for the same period of the prior year. �Quarterly operating results are in line with Company expectations and include merger related costs of approximately $189,000,� said NHR President Robert Adams. �We are currently focusing our efforts on our proposed merger with National HealthCare Corporation that is expected to be completed in the fall.� 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 having a carrying value of approximately $12.2 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. � Condensed Statement of Income (unaudited) (in thousands, except share and per share amounts) � Three Months Ended Six Months Ended June 30 June 30 � 2007 � � 2006 � � 2007 � � 2006 � Revenues: Rental income $ 4,490 $ 4,444 $ 9,052 $ 9,072 Mortgage interest income � 524 � � 536 � � 1,044 � � 1,071 � � 5,014 � � 4,980 � � 10,096 � � 10,143 � Expenses: Interest 133 152 271 301 Depreciation of real estate 1,340 1,423 2,681 2,846 General and administrative � 458 � � 304 � � 983 � � 539 � � 1,931 � � 1,879 � � 3,935 � � 3,686 � Income before minority interest in consolidated subsidiaries and non-operating income 3,083 3,101 6,161 6,457 � Non-operating income (investment & interest income) 223 190 447 315 � Minority interest in consolidates subsidiaries � (358 ) � (358 ) � (717 ) � (736 ) � Net Income $ 2,948 � $ 2,933 � $ 5,891 � $ 6,036 � � Net income per common share: Basic $ 0.30 $ 0.29 $ 0.59 $ 0.61 Diluted $ 0.30 $ 0.29 $ 0.59 $ 0.61 � Funds from operations: Basic $ 4,142 $ 4,201 $ 8,280 $ 8,572 Diluted $ 4,142 $ 4,201 $ 8,280 $ 8,572 � Funds from operations per common share: Basic $ 0.42 $ 0.42 $ 0.83 $ 0.86 Diluted $ 0.42 $ 0.42 $ 0.83 $ 0.86 � Weighted average common shares: Basic 9,956,260 9,943,199 9,954,074 9,941,341 Diluted 9,971,430 9,946,835 9,970,050 9,946,697 � Common dividends declared $ 0.3325 $ 0.3325 $ 0.6650 $ 0.6650 Balance Sheet Data (in thousands) June 30 Dec. 31, � 2007 � 2006 Real estate properties, net $ 106,682 $ 109,363 Mortgages receivable 12,216 12,541 Long-term debt 7,900 8,750 Stockholders' equity 111,454 112,385 Three Months Ended Six Months Ended June 30 June 30 � 2007 � � 2006 � � 2007 � � 2006 � (in thousands) (in thousands) � Net income applicable to common stockholders $ 2,948 $ 2,933 $ 5,891 $ 6,036 Adjustments: Real estate depreciation 1,340 1,423 2,681 2,846 Minority interest in NHR/OP, L.P. share of add back for real estate related depreciation � (146 ) � (155 ) � (292 ) � (310 ) Funds from operations applicable to common stockholders $ 4,142 � $ 4,201 � $ 8,280 � $ 8,572 � � Basic funds from operations per share $ 0.42 � $ 0.42 � $ 0.83 � $ 0.86 � Diluted funds from operations per share $ 0.42 � $ 0.42 � $ 0.83 � $ 0.86 � � Weighted average shares: Basic 9,956,260 9,943,199 9,954,074 9,941,341 Diluted 9,971,430 9,946,835 9,970,050 9,946,697 National Health Realty, Inc. Portfolio Summary June 30, 2007 (dollars in thousands) � PORTFOLIO STATISTICS � Number of Investment Properties � Investment � Percentage Mortgage loan receivables 5 $ 12,216 10 % Equity ownership 23 � � 106,682 � � � 90 % Total real estate portfolio 28 $ 118,898 100 % � � MORTGAGE LOAN RECEIVABLES � Number of Number Properties � of Beds � Investment Nursing homes 5 714 $ 12,216 � � EQUITY OWNERSHIP � Number of Number Properties � of Beds � Investment Nursing homes 16 1,908 $ 64,594 Assisted living 6 488 28,421 Retirement homes 1 � � 58 � � � 13,667 � 23 2,454 $ 106,682 � � � � � Total Real Estate Portfolio 28 � � 3,168 � � $ 118,898 � � � SUMMARY OF FACILITIES BY TYPE � Number of % of Total Properties � Total $ � Dollars Nursing homes 21 64.60 % $ 76,810 Assisted living 6 23.90 % 28,421 Retirement homes 1 � � 11.49 % � � 13,667 � 28 � � 100.00 % � $ 118,898 � � � SUMMARY OF FACILITIES BY STATE � Percent Assisted Investment Total LTC � Living � Retirement � Amount � Portfolio 1 Florida 8 3 52,594 44.23 % 2 Tennessee 2 2 1 31,934 26.86 % 3 South Carolina 7 25,768 21.67 % 4 Indiana 3 3,361 2.83 % 5 Alabama 1 3,112 2.62 % 6 Missouri 1 � � � � � 2,129 � 1.79 % 21 � � 6 � � � 1 � � 118,898 � 100.00 %