13D Filing: Osmium Partners and Diversicare Healthcare Services Inc. (DVCR)

Except as disclosed above, none of the Reporting Persons has
any other plans or proposals which relate to, or would result in, any of the
matters referred to in paragraphs (a) through (j), inclusive, of the
instructions to Item 4 of Schedule 13D. The Reporting Persons may, at any time
and from time to time, review or reconsider their position and/or change their
purpose and/or formulate plans or proposals with respect thereto.

ITEM 5. Interest in Securities of the Issuer

Each Reporting Person disclaims beneficial ownership with
respect to any shares of Common Stock other than the shares owned directly and
of record by such Reporting Person.

The percentages set forth in this response are based on the
6,458,836 shares of Common Stock outstanding as of July 28, 2017, as reported by
the Issuer in its Quarterly Report on Form 10-Q for the quarter ended June 30,
2017 as filed with the SEC on August 3, 2017.

(b) Osmium Partners and Mr. Lewis may be deemed to share with
Fund I, Fund II and Fund III (and not with any third party) the power to vote or
direct the vote of and to dispose or direct the disposition of the 356,106
shares of Common Stock, 172,993 shares of Common Stock and 113,804 shares of
Common Stock reported herein, respectively.

(c) The following Reporting Persons engaged in the following
transactions with respect to the Issuers Common Stock during the 60 days
preceding September 8, 2017 and the 60 days preceding the date of this
filing:

Osmium Capital, LP