This study attempted to define the current bases for physical exercise and activity for healthy older adults and to use those data as a basis for developing physical exercises and activities for older adults with mental impairments. An 8-week exercise program was developed and evaluated to determine its effect on satisfaction and quality of life for 24 older adults (ages 73-96) with mental impairments and to provide a demonstration of a comprehensive exercise program for older adults with Alzheimer's disease or dementia living in long-term care facilities. The exercise program was designed to improve physical flexibility of the shoulders, back, and posterior legs and to improve grip strength. The program was designed to consider symptoms and behaviors of the target population, such as short attention spans, cognitive processing deficits, and agnosic reactions. Findings indicated that the exercise program resulted in some improvements and retention of flexibility and strength abilities. The Life Satisfaction Scale (LSS) was administered before and after the program, but 16 of the 24 subjects were unable to complete the LSS interview. Of the remaining eight subjects, all but one showed significant improvement in perceived life satisfaction. (Contains approximately 160 references.) (JDD)