HEALTHSOUTH Corporation today announced that it remained comfortable with consensus Wall Street estimates for the remainder of 2002. The Company indicated that it knew of no reason for the recent decline in its stock price.

"We have had strong operating results through the first half of 2002," said Richard M. Scrushy, Chairman of the Board and Chief Executive Officer of HEALTHSOUTH. "While the current market instability has had an adverse effect on our stock price, the fundamentals of our business continue to be solid, and we remain confident in our guidance for the rest of the year. We see this as an opportunity to reactivate our stock repurchase plan and we began repurchasing shares this morning."

HEALTHSOUTH Corporation will announce its second quarter results of operations on Wednesday, August 7, 2002.

HEALTHSOUTH is the nation's largest provider of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, with approximately 1,900 locations in all 50 states, the United Kingdom, Australia, Puerto Rico and Canada. HEALTHSOUTH can be found on the Web at http://www.healthsouth.com/ .

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, 2001 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.

  CONTACT:  Richard M. Scrushy, Chairman & CEO, or Tadd McVay, Executive
            Vice President and Treasurer of HEALTHSOUTH Corporation,
            +1-205-967-7116

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SOURCE: HEALTHSOUTH Corporation