HealthSouth Corporation (OTC Pink Sheets: HLSH) announced that Gregory L. Doody, Executive Vice President, General Counsel and Secretary, will resign effective July 17, 2006 in order to become general counsel of Calpine Corporation (OTC Pink Sheets: CPNLQ).

"We thank Greg for his numerous contributions over the past three years, particularly for helping HealthSouth with the successful settlements and agreements we have reached with various government agencies and other plaintiffs," said Jay Grinney, HealthSouth President and CEO. "Greg began working at HealthSouth as a member of the interim management team in July 2003, a time when the company faced serious legal and regulatory challenges. His skills have been a great asset to this company as we have put the many 'rocks in the road' behind us and we wish him the very best as he moves on to new challenges."

"I have the utmost respect for Jay Grinney and the outstanding senior management team he has assembled. Under his leadership, I have every confidence that HealthSouth will enjoy a very successful future," said Doody. "I am proud of the contributions HealthSouth's talented legal team and outside counsel have made in furthering the company's recovery and, with HealthSouth now on solid footing, am ready to move onto a company where I can continue to use my skills in the restructuring arena."

HealthSouth will continue to work with it's existing outside law firms for corporate legal services as it begins the process of recruiting a new General Counsel. The company anticipates naming an interim General Counsel in the near future who will work with Doody to ensure a smooth transition.

Prior to joining HealthSouth in 2003, Doody was a partner of in the Birmingham-based law firm, Balch & Bingham LLP, where he was a member of the firm's Financial Services and Transactions section and the Corporate, Tax and Finance section. While at Balch & Bingham, Doody's practice focused primarily in the areas of securities, corporate governance, capital markets transactions and financial services regulation.

About HealthSouth

HealthSouth is one of the nation's largest providers of outpatient surgery, diagnostic imaging and rehabilitative healthcare services, operating facilities nationwide. HealthSouth can be found on the Web at www.healthsouth.com.

Media Contact

Andy Brimmer, 205-410-2777

SOURCE: HealthSouth Corporation