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HealthSouth Corporation Expands International Operations to Saudi Arabia

HealthSouth Corporation announced today that it has signed a formal affiliation agreement with the Sultan Bin Abdul Aziz Foundation of the Kingdom of Saudi Arabia to develop and manage one of the largest rehabilitation facilities in the world. The Sultan Bin Abdul Aziz City for Humanitarian Services, located north of Riyadh, Saudi Arabia, is under construction and is expected to be completed in the summer of 2001.

"HealthSouth is proud to be part of this affiliation, the goal of which is to integrate the highest quality of rehabilitative healthcare into the Kingdom of Saudi Arabia, with its strong cultural beliefs and traditions," said HealthSouth's Chairman of the Board and Chief Executive Officer Richard M. Scrushy. "There are significant synergies between HealthSouth and Sultan Bin Abdul Aziz Foundation. As the largest provider of both inpatient and ambulatory rehabilitative healthcare services in the United States, HealthSouth is prepared to use its strengths to help ensure the success of the Sultan Bin Abdul Aziz City for Humanitarian Services."

Dr. Rashid Aba-Alkheil, Director General of The Foundation, stated that His Royal Highness, Prince Sultan Bin Abdul Aziz, the Founder and Chairman of the Board of Trustees, and His Royal Highness Prince Faisal Bin Sultan, Secretary General, desire to secure an affiliation with the best rehabilitative healthcare provider in the world. "This is the reason HealthSouth Corporation was selected to work with the Foundation on this project," said Dr. Aba-Alkheil.

The Sultan Bin Abdul Aziz City for Humanitarian Services will be one of the largest rehabilitation facilities in the world and will include:

  *  Acute comprehensive rehabilitation care for children and adults with
     disabilities - 250 inpatient beds.

  *  Intermediate extended care facility for the elderly - 150 beds with day
     care and respite capabilities.

  *  Medical and surgical specialty polyclinics.

  *  Centers for ambulatory surgery, cranial facial surgery and child

HealthSouth Corporation is the United States' largest provider of outpatient surgical, diagnostic, and rehabilitative healthcare services, with more than 2,000 facilities in all 50 states, the United Kingdom, Australia, Puerto Rico, and Canada.

Sultan Bin Abdul Aziz Al Saud Foundation was established seven (7) years ago by His Royal Highness, Prince Sultan Bin Abdul Aziz , Deputy Prime Minister of the Kingdom and Minister of Defense and Aviation. The Foundation's noble goal is to help people help themselves and bridge the gap of the unavailable social and medical services to needy within Saudia Arabia, and to cooperate with similar organizations around the world.

Statements contained in this press release which are not historical facts are forward-looking statements. Without limiting the generality of the preceding statement, all statements in this press release concerning or relating to estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. In addition, HealthSouth, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of HealthSouth's senior management based upon current information, involve a number of risks and uncertainties and are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. HealthSouth's actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including those identified in this press release and in the public filings made by HealthSouth with the Securities and Exchange Commission, including HealthSouth's Annual Report on Form 10-K for the year ended December 31, 1999 and its Quarterly Reports on Form 10-Q, and forward- looking statements contained in this press release or in other public statements of HealthSouth or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.

For more information, members of the media should contact Kristi Gilmore at 205-970-7824.

SOURCE: HealthSouth Corporation

Contact: Kristi Gilmore of HealthSouth Corporation, 205-970-7824