| Media Contact              |   | August 2, 2010              |
|----------------------------|--------|----------------------------------------------------------------------------------------------|
| Andy Brimmer, 205-410-2777 |   |  For Immediate Release                                                                  |
| Helen Todd, 205-969-5608   |   |                                                                                         |
| helen.todd@healthsouth.com |   |                                                                                         |

| ·   | Consolidated net operating revenues were $496.9 million for the second quarter of 2010 compared to $481.6 million for the second quarter of 2009, or an increase of 3.2%. This increase was attributable to higher net patient revenue per discharge and a 2.2% increase in patient discharges. Net patient revenue per discharge increased 2.1% quarter over quarter due primarily to the Medicare pricing changes that became effective October 1, 2009. Same store discharges were 1.3% higher quarter over quarter. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reported net income per diluted share for the second quarter of 2010 was $0.44 per share compared to a $0.14 loss per diluted share for the second quarter of 2009, which included a net charge of $48.7 million, or $0.48 per diluted share, associated with government, class action, and related settlements. Furthermore, there was a 6.6% quarter-over-quarter increase in diluted weighted average common shares outstanding in the second quarter of 2010 due primarily to the five million shares issued on September 30, 2009 in full satisfaction of the Company’s obligation to do so under the 2006 securities litigation settlement. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted income from continuing operations (see attached supplemental information) per diluted share grew 12.8% from $0.39 per diluted share for the second quarter of 2009 to $0.44 per diluted share for the second quarter of 2010. The Company experienced quarter-over-quarter growth due primarily to increased revenues and effective expense management offset partially by the increased share count discussed above. Adjusted income from continuing operations for the second quarter of 2010 included a $4.6 million increase in professional liability reserves. Adjusted income from continuing operations for the second quarter of 2009 included a $4.9 million charge related to equity in net income of nonconsolidated affiliates. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Cash flows provided by operating activities were $172.7 million for the six months ended June 30, 2010 compared to $229.2 million for the same period of 2009, which included approximately $128 million related to the Company’s settlement with UBS and the receipt of income tax refunds related to prior periods. Cash flows provided by operating activities for the six months ended June 30, 2010 included $9.7 million of state income tax refunds associated with prior periods. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted Consolidated EBITDA (see attached supplemental information) for the second quarter of 2010 was $103.7 million compared to $94.0 million in the second quarter of 2009, or an increase of 10.3%. Adjusted Consolidated EBITDA for the second quarter of 2010 included the same $4.6 million increase in professional liability reserves noted above. Adjusted Consolidated EBITDA for the second quarter of 2009 included the same $4.9 million charge noted above for equity in net income of nonconsolidated affiliates. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                         |   | Three Months Ended                   |   |   | Six Months Ended |   |
|--------------------------------------------------------------|--------|--------------------------------------|--------|--------|------------------|--------|
|                                                         |   | June 30,                             |   |   | June 30,         |   |
|                                                         |   | 2010                                 |   |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                         |   | (In Millions, Except Per Share Data) |   |
|                                                         |   |                                 |   |   |             |   |   |   |   |   |   |   |
| Net operating revenues                                       |   | $                                    | 496.9  |   |             | $      | 481.6 |   |   | $ | 987.9 |   |   | $ | 954.5 |   |
| Operating expenses:                                          |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                        |   |                                 | 241.6  |   |             |   | 237.8 |   |   |   | 483.5 |   |   |   | 471.1 |   |
| Other operating expenses                                     |   |                                 | 76.6   |   |             |   | 67.0 |   |   |   | 143.5 |   |   |   | 133.9 |   |
| General and administrative expenses                          |   |                                 | 26.7   |   |             |   | 24.9 |   |   |   | 53.0 |   |   |   | 50.4 |   |
| Supplies                                                     |   |                                 | 28.8   |   |             |   | 28.6 |   |   |   | 57.1 |   |   |   | 56.0 |   |
| Depreciation and amortization                                |   |                                 | 18.7   |   |             |   | 17.6 |   |   |   | 37.0 |   |   |   | 35.0 |   |
| Occupancy costs                                              |   |                                 | 11.4   |   |             |   | 12.0 |   |   |   | 23.0 |   |   |   | 24.0 |   |
| Provision for doubtful accounts                              |   |                                 | 5.9    |   |             |   | 9.7 |   |   |   | 12.8 |   |   |   | 17.5 |   |
| Loss on disposal of assets                                   |   |                                 | 0.4    |   |             |   | 1.3 |   |   |   | 0.4 |   |   |   | 2.3 |   |
| Government, class action, and related settlements            |   |                                 | -      |   |             |   | 48.7 |   |   |   | - |   |   |   | 32.8 |   |
| Professional fees—accounting, tax, and legal           |   |                                 | 5.7    |   |             |   | (3.3 | ) |   |   | 8.6 |   |   |   | 1.5 |   |
| Total operating expenses                                     |   |                                 | 415.8  |   |             |   | 444.3 |   |   |   | 818.9 |   |   |   | 824.5 |   |
| Loss (gain) on early extinguishment of debt                  |   |                                 | 0.1    |   |             |   | (1.3 | ) |   |   | 0.4 |   |   |   | (3.1 | ) |
| Interest expense and amortization of debt discounts and fees |   |                                 | 30.1   |   |             |   | 31.1 |   |   |   | 60.6 |   |   |   | 65.5 |   |
| Other income                                                 |   |                                 | (1.4   | )      |             |   | (1.0 | ) |   |   | (2.1 | ) |   |   | (0.8 | ) |
| (Gain) loss on interest rate swaps                           |   |                                 | (0.3   | )      |             |   | 3.8 |   |   |   | 4.0 |   |   |   | 8.8 |   |
| Equity in net (income) loss of nonconsolidated affiliates    |   |                                 | (2.6   | )      |             |   | 2.7 |   |   |   | (5.2 | ) |   |   | 0.2 |   |
| Income from continuing operations before income tax          |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| (benefit) expense                                            |   |                                 | 55.2   |   |             |   | 2.0 |   |   |   | 111.3 |   |   |   | 59.4 |   |
| Provision for income tax (benefit) expense                   |   |                                 | (2.2   | )      |             |   | (0.3 | ) |   |   | 0.3 |   |   |   | 0.9 |   |
| Income from continuing operations                            |   |                                 | 57.4   |   |             |   | 2.3 |   |   |   | 111.0 |   |   |   | 58.5 |   |
| Income (loss) from discontinued operations, net of tax       |   |                                 | 0.1    |   |             |   | 1.3 |   |   |   | (3.0 | ) |   |   | (1.4 | ) |
| Net income                                                   |   |                                 | 57.5   |   |             |   | 3.6 |   |   |   | 108.0 |   |   |   | 57.1 |   |
| Less: Net income attributable to noncontrolling interests    |   |                                 | (10.2  | )      |             |   | (9.1 | ) |   |   | (20.0 | ) |   |   | (17.7 | ) |
| Net income (loss) attributable to HealthSouth                |   |                                 | 47.3   |   |             |   | (5.5 | ) |   |   | 88.0 |   |   |   | 39.4 |   |
| Less: Convertible perpetual preferred stock dividends        |   |                                 | (6.5   | )      |             |   | (6.5 | ) |   |   | (13.0 | ) |   |   | (13.0 | ) |
| Net income (loss) attributable to HealthSouth                |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| common shareholders                                          |   | $                                    | 40.8   |   |             | $      | (12.0 | ) |   | $ | 75.0 |   |   | $ | 26.4 |   |
|                                                         |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                  |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |                                 | 92.8   |   |             |   | 87.6 |   |   |   | 92.7 |   |   |   | 87.5 |   |
| Diluted                                                      |   |                                 | 108.2  |   |             |   | 101.5 |   |   |   | 108.2 |   |   |   | 101.2 |   |
|                                                         |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings per common share:                 |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                     |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| attributable to HealthSouth common shareholders              |   | $                                    | 0.44   |   |             | $      | (0.15 | ) |   | $ | 0.84 |   |   | $ | 0.32 |   |
| Income (loss) from discontinued operations, net of tax,      |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| attributable to HealthSouth common shareholders              |   |                                 | 0.00   |   |             |   | 0.01 |   |   |   | (0.03 | ) |   |   | (0.02 | ) |
| Net income (loss) attributable to HealthSouth                |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| common shareholders                                          |   | $                                    | 0.44   |   |             | $      | (0.14 | ) |   | $ | 0.81 |   |   | $ | 0.30 |   |
|                                                         |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Amounts attributable to HealthSouth common shareholders:     |   |                                 |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                     |   | $                                    | 47.2   |   |             | $      | (6.6 | ) |   | $ | 91.0 |   |   | $ | 41.3 |   |
| Income (loss) from discontinued operations, net of tax       |   |                                 | 0.1    |   |             |   | 1.1 |   |   |   | (3.0 | ) |   |   | (1.9 | ) |
| Net income (loss) attributable to HealthSouth                |   | $                                    | 47.3   |   |             | $      | (5.5 | ) |   | $ | 88.0 |   |   | $ | 39.4 |   |

----

|                                                                                   |   | June 30,2010                     |    |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-------------------|--------|
|                                                                                   |   | (In Millions, Except Share Data) |    |
| Assets                                                                                 |   |                             |    |   |              |   |
| Current assets:                                                                        |   |                             |    |   |              |   |
| Cash and cash equivalents                                                              |   | $                                | 172.6   |   |              | $      | 80.9 |   |
| Restricted cash                                                                        |   |                             | 49.7    |   |              |   | 67.8 |   |
| Accounts receivable, net of allowance for doubtful accounts of $32.0 in 2010;          |   |                             |    |   |              |   |   |   |
|              $33.1 in 2009 |   |                             | 224.8   |   |              |   | 219.7 |   |
| Other current assets                                                                   |   |                             | 56.8    |   |              |   | 57.6 |   |
| Total current assets                                                                   |   |                             | 503.9   |   |              |   | 426.0 |   |
| Property and equipment, net                                                            |   |                             | 664.5   |   |              |   | 664.8 |   |
| Goodwill                                                                               |   |                             | 423.7   |   |              |   | 416.4 |   |
| Intangible assets, net                                                                 |   |                             | 35.5    |   |              |   | 37.4 |   |
| Investments in and advances to nonconsolidated affiliates                              |   |                             | 31.0    |   |              |   | 29.3 |   |
| Other long-term assets                                                                 |   |                             | 97.5    |   |              |   | 107.6 |   |
| Total assets                                                                           |   | $                                | 1,756.1 |   |              | $      | 1,681.5 |   |
| Liabilities and Shareholders’ Deficit                                            |   |                             |    |   |              |   |   |   |
| Current liabilities:                                                                   |   |                             |    |   |              |   |   |   |
| Current portion of long-term debt                                                      |   | $                                | 21.5    |   |              | $      | 21.5 |   |
| Accounts payable                                                                       |   |                             | 47.3    |   |              |   | 50.2 |   |
| Accrued expenses and other current liabilities                                         |   |                             | 322.6   |   |              |   | 319.5 |   |
| Total current liabilities                                                              |   |                             | 391.4   |   |              |   | 391.2 |   |
| Long-term debt, net of current portion                                                 |   |                             | 1,633.0 |   |              |   | 1,641.0 |   |
| Other long-term liabilities                                                            |   |                             | 161.6   |   |              |   | 159.5 |   |
|                                                                                   |   |                             | 2,186.0 |   |              |   | 2,191.7 |   |
| Commitments and contingencies                                                          |   |                             |    |   |              |   |   |   |
| Convertible perpetual preferred stock                                                  |   |                             | 387.4   |   |              |   | 387.4 |   |
| Shareholders’ deficit:                                                           |   |                             |    |   |              |   |   |   |
| HealthSouth shareholders' deficit                                                      |   |                             | (896.3  | )      |              |   | (974.0 | ) |
| Noncontrolling interests                                                               |   |                             | 79.0    |   |              |   | 76.4 |   |
| Total shareholders' deficit                                                            |   |                             | (817.3  | )      |              |   | (897.6 | ) |
| Total liabilities and shareholders’ deficit                                      |   | $                                | 1,756.1 |   |              | $      | 1,681.5 |   |

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|                                                              |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------|--------|---------------------------|--------|
|                                                              |   | 2010                      |   |   | 2009 |   |
|                                                              |   | (In Millions)             |   |
| Cash flows from operating activities:                             |   |                      |   |   |   |   |
| Net income                                                        |   | $                         | 108.0  |   |   | $ | 57.1 |   |
| Loss from discontinued operations                                 |   |                      | 3.0    |   |   |   | 1.4 |   |
| Adjustments to reconcile net income to net cash provided by       |   |                      |   |   |   |   |   |   |
| operating activities—                                       |   |                      |   |   |   |   |   |   |
| Provision for doubtful accounts                                   |   |                      | 12.8   |   |   |   | 17.5 |   |
| Provision for government, class action, and related settlements   |   |                      | -      |   |   |   | 32.8 |   |
| UBS Settlement proceeds, gross                                    |   |                      | -      |   |   |   | 100.0 |   |
| Depreciation and amortization                                     |   |                      | 37.0   |   |   |   | 35.0 |   |
| Loss on interest rate swaps                                       |   |                      | 4.0    |   |   |   | 8.8 |   |
| Equity in net (income) loss of nonconsolidated affiliates         |   |                      | (5.2   | ) |   |   | 0.2 |   |
| Distributions from nonconsolidated affiliates                     |   |                      | 3.3    |   |   |   | 3.9 |   |
| Stock-based compensation                                          |   |                      | 7.8    |   |   |   | 6.6 |   |
| Deferred tax provision                                            |   |                      | 2.1    |   |   |   | 1.9 |   |
| Other                                                             |   |                      | 2.7    |   |   |   | 3.1 |   |
| (Increase) decrease in assets—                              |   |                      |   |   |   |   |   |   |
| Accounts receivable                                               |   |                      | (17.9  | ) |   |   | (25.8 | ) |
| Other assets                                                      |   |                      | (5.8   | ) |   |   | (0.7 | ) |
| Income tax refund receivable                                      |   |                      | 4.3    |   |   |   | 45.4 |   |
| (Decrease) increase in liabilities—                         |   |                      |   |   |   |   |   |   |
| Accounts payable                                                  |   |                      | (2.8   | ) |   |   | 2.2 |   |
| Accrued fees and expenses for derivative plaintiffs' attorneys in |   |                      |   |   |   |   |   |   |
| UBS Settlement                                                    |   |                      | -      |   |   |   | (26.2 | ) |
| Other liabilities                                                 |   |                      | 24.4   |   |   |   | (18.3 | ) |
| Government, class action, and related settlements                 |   |                      | (0.8   | ) |   |   | (8.7 | ) |
| Net cash used in operating activities of discontinued operations  |   |                      | (4.2   | ) |   |   | (7.0 | ) |
| Total adjustments                                                 |   |                      | 61.7   |   |   |   | 170.7 |   |
| Net cash provided by operating activities                         |   |                      | 172.7  |   |   |   | 229.2 |   |

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|                                                                 |   | Six Months Ended June 30, |   |
|----------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                 |   | 2010                      |   |   | 2009 |   |
|                                                                 |   | (In Millions)             |   |
| Cash flows from investing activities:                                |   |                      |   |   |   |   |
| Capital expenditures                                                 |   |                      | (29.9  | ) |   |   | (34.4 | ) |
| Acquisition of a business, net of cash acquired                      |   |                      | (9.9   | ) |   |   | - |   |
| Proceeds from sale of restricted investments                         |   |                      | 10.0   |   |   |   | 1.6 |   |
| Purchase of restricted investments                                   |   |                      | (13.3  | ) |   |   | (1.6 | ) |
| Net change in restricted cash                                        |   |                      | 18.1   |   |   |   | (15.7 | ) |
| Net settlements on interest rate swaps                               |   |                      | (23.1  | ) |   |   | (19.1 | ) |
| Net investment in interest rate swap                                 |   |                      | -      |   |   |   | (6.4 | ) |
| Other                                                                |   |                      | (0.1   | ) |   |   | (0.8 | ) |
| Net cash provided by (used in) investing activities of discontinued  |   |                      |   |   |   |   |   |   |
| operations                                                           |   |                      | 8.5    |   |   |   | (1.4 | ) |
| Net cash used in investing activities                                |   |                      | (39.7  | ) |   |   | (77.8 | ) |
|                                                                 |   |                      |   |   |   |   |   |   |
| Cash flows from financing activities:                                |   |                      |   |   |   |   |   |   |
| Principal payments on debt, including pre-payments                   |   |                      | (3.8   | ) |   |   | (60.9 | ) |
| Borrowings on revolving credit facility                              |   |                      | -      |   |   |   | 10.0 |   |
| Payments on revolving credit facility                                |   |                      | -      |   |   |   | (50.0 | ) |
| Principal payments under capital lease obligations                   |   |                      | (7.2   | ) |   |   | (6.6 | ) |
| Dividends paid on convertible perpetual preferred stock              |   |                      | (13.0  | ) |   |   | (13.0 | ) |
| Distributions paid to noncontrolling interests of                    |   |                      |   |   |   |   |   |   |
| consolidated affiliates                                              |   |                      | (18.3  | ) |   |   | (15.8 | ) |
| Other                                                                |   |                      | 0.9    |   |   |   | 0.7 |   |
| Net cash provided by financing activities of discontinued operations |   |                      | -      |   |   |   | 1.8 |   |
| Net cash used in financing activities                                |   |                      | (41.4  | ) |   |   | (133.8 | ) |
|                                                                 |   |                      |   |   |   |   |   |   |
| Increase in cash and cash equivalents                                |   |                      | 91.6   |   |   |   | 17.6 |   |
| Cash and cash equivalents at beginning of period                     |   |                      | 80.9   |   |   |   | 32.1 |   |
| Cash and cash equivalents of facilities held for sale                |   |                      |   |   |   |   |   |   |
| at beginning of period                                               |   |                      | 0.1    |   |   |   | 0.1 |   |
| Less: Cash and cash equivalents of facilities held for               |   |                      |   |   |   |   |   |   |
| sale at end of period                                                |   |                      | -      |   |   |   | - |   |
| Cash and cash equivalents at end of period                           |   | $                         | 172.6  |   |   | $ | 49.8 |   |

----

|                                                         |   |                                 |   |   |          |   |   |   |   |   |         |   |
|--------------------------------------------------------------|--------|--------------------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------------|--------|
|                                                         |   | Three Months Ended June 30,          |   |
|                                                         |   | 2010                                 |   |   | Per Share (2) |   |   | 2009   |   |   | Per Share(2) |   |
|                                                         |   | (In Millions, Except per Share Data) |   |
| Net income                                                   |   | $                                    | 57.5   |   |          | $      | 0.62   |   |   | $      | 3.6          |   |   | $ | 0.04 |   |
| Income from discontinued operations, net of tax,             |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| attributable to HealthSouth                                  |   |                                 | (0.1   | )      |          |   | (0.00  | )      |   |   | (1.1         | )      |   |   | (0.01 | ) |
| Net income attributable to noncontrolling interests          |   |                                 | (10.2  | )      |          |   | (0.11  | )      |   |   | (9.1         | )      |   |   | (0.10 | ) |
| Income (loss) from continuing operations                     |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| attributable to HealthSouth                                  |   |                                 | 47.2   |   |          |   | 0.51   |   |   |   | (6.6         | )      |   |   | (0.08 | ) |
| Government, class action, and related settlements            |   |                                 | -      |   |          |   | -      |   |   |   | 48.7         |   |   |   | 0.56 |   |
| Professional fees – accounting, tax, and legal         |   |                                 | 5.7    |   |          |   | 0.06   |   |   |   | (3.3         | )      |   |   | (0.04 | ) |
| Gain on early extinguishment of debt                         |   |                                 | -      |   |          |   | -      |   |   |   | (1.3         | )      |   |   | (0.01 | ) |
| (Gain) loss on interest rate swaps                           |   |                                 | (0.3   | )      |          |   | (0.00  | )      |   |   | 3.8          |   |   |   | 0.04 |   |
| Adjustment for prior period amounts in tax provision         |   |                                 | (5.2   | )      |          |   | (0.06  | )      |   |   | (1.4         | )      |   |   | (0.02 | ) |
| Adjusted income from continuing operations (1) (3)           |   |                                 | 47.4   |   |          |   | 0.51   |   |   |   | 39.9         |   |   |   | 0.46 |   |
| Adjustment for dilution (2)                                  |   |                                 |   |   |          |   | (0.07  | )      |   |   |         |   |   |   | (0.07 | ) |
| Adjusted income from continuing operations                   |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| per diluted share (2) (3)                                    |   |                                 |   |   |          | $      | 0.44   |   |   |   |         |   |   | $ | 0.39 |   |
| Current period amounts in tax provision                      |   |                                 | 3.0    |   |          |   |   |   |   |   | 1.1          |   |   |   |   |   |
| Interest expense and amortization of debt discounts and fees |   |                                 | 30.1   |   |          |   |   |   |   |   | 31.1         |   |   |   |   |   |
| Depreciation and amortization                                |   |                                 | 18.7   |   |          |   |   |   |   |   | 17.6         |   |   |   |   |   |
|                                                         |   |                                 | 99.2   |   |          |   |   |   |   |   | 89.7         |   |   |   |   |   |
| Other adjustments per the Company's                          |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Credit Agreement:                                            |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Impairment charges, including investments                    |   |                                 | -      |   |          |   |   |   |   |   | 0.1          |   |   |   |   |   |
| Net noncash loss on disposal of assets                       |   |                                 | 0.4    |   |          |   |   |   |   |   | 1.3          |   |   |   |   |   |
| Loss on early extinguishment of debt                         |   |                                 | 0.1    |   |          |   |   |   |   |   | -            |   |   |   |   |   |
| Stock-based compensation expense                             |   |                                 | 4.0    |   |          |   |   |   |   |   | 2.9          |   |   |   |   |   |
| Adjusted Consolidated EBITDA (1) (3) (4)                     |   | $                                    | 103.7  |   |          |   |   |   |   | $      | 94.0         |   |   |   |   |   |
|                                                         |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Weighted average common shares outstanding:                  |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Basic                                                        |   |                                 |   |   |          |   | 92.8   |   |   |   |         |   |   |   | 87.6 |   |
| Diluted                                                      |   |                                 |   |   |          |   | 108.2  |   |   |   |         |   |   |   | 101.5 |   |

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|                                                         |   |                                 |   |   |          |   |   |   |   |   |         |   |
|--------------------------------------------------------------|--------|--------------------------------------|--------|--------|---------------|--------|--------|--------|--------|--------|--------------|--------|
|                                                         |   | Six Months Ended June 30,            |   |
|                                                         |   | 2010                                 |   |   | Per Share (2) |   |   | 2009   |   |   | Per Share(2) |   |
|                                                         |   | (In Millions, Except per Share Data) |   |
| Net income                                                   |   | $                                    | 108.0  |   |          | $      | 1.17   |   |   | $      | 57.1         |   |   | $ | 0.65 |   |
| Loss from discontinued operations, net of tax,               |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| attributable to HealthSouth                                  |   |                                 | 3.0    |   |          |   | 0.03   |   |   |   | 1.9          |   |   |   | 0.02 |   |
| Net income attributable to noncontrolling interests          |   |                                 | (20.0  | )      |          |   | (0.22  | )      |   |   | (17.7        | )      |   |   | (0.20 | ) |
| Income from continuing operations                            |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| attributable to HealthSouth                                  |   |                                 | 91.0   |   |          |   | 0.98   |   |   |   | 41.3         |   |   |   | 0.47 |   |
| Government, class action, and related settlements            |   |                                 | -      |   |          |   | -      |   |   |   | 32.8         |   |   |   | 0.37 |   |
| Professional fees – accounting, tax, and legal         |   |                                 | 8.6    |   |          |   | 0.09   |   |   |   | 1.5          |   |   |   | 0.02 |   |
| Gain on early extinguishment of debt                         |   |                                 | -      |   |          |   | -      |   |   |   | (3.1         | )      |   |   | (0.04 | ) |
| Loss on interest rate swaps                                  |   |                                 | 4.0    |   |          |   | 0.04   |   |   |   | 8.8          |   |   |   | 0.10 |   |
| Adjustment for prior period amounts in tax provision         |   |                                 | (4.3   | )      |          |   | (0.05  | )      |   |   | (1.7         | )      |   |   | (0.02 | ) |
| Adjusted income from continuing operations (1) (3)           |   |                                 | 99.3   |   |          |   | 1.07   |   |   |   | 79.6         |   |   |   | 0.91 |   |
| Adjustment for dilution (2)                                  |   |                                 |   |   |          |   | (0.15  | )      |   |   |         |   |   |   | (0.12 | ) |
| Adjusted income from continuing operations                   |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| per diluted share (2) (3)                                    |   |                                 |   |   |          | $      | 0.92   |   |   |   |         |   |   | $ | 0.79 |   |
| Current period amounts in tax provision                      |   |                                 | 4.6    |   |          |   |   |   |   |   | 2.6          |   |   |   |   |   |
| Interest expense and amortization of debt discounts and fees |   |                                 | 60.6   |   |          |   |   |   |   |   | 65.5         |   |   |   |   |   |
| Depreciation and amortization                                |   |                                 | 37.0   |   |          |   |   |   |   |   | 35.0         |   |   |   |   |   |
|                                                         |   |                                 | 201.5  |   |          |   |   |   |   |   | 182.7        |   |   |   |   |   |
| Other adjustments per the Company's                          |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Credit Agreement:                                            |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Impairment charges, including investments                    |   |                                 | -      |   |          |   |   |   |   |   | 0.8          |   |   |   |   |   |
| Net noncash loss on disposal of assets                       |   |                                 | 0.4    |   |          |   |   |   |   |   | 2.3          |   |   |   |   |   |
| Loss on early extinguishment of debt                         |   |                                 | 0.4    |   |          |   |   |   |   |   | -            |   |   |   |   |   |
| Stock-based compensation expense                             |   |                                 | 7.8    |   |          |   |   |   |   |   | 6.6          |   |   |   |   |   |
| Adjusted Consolidated EBITDA (1) (3) (4)                     |   | $                                    | 210.1  |   |          |   |   |   |   | $      | 192.4        |   |   |   |   |   |
|                                                         |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Weighted average common shares outstanding:                  |   |                                 |   |   |          |   |   |   |   |   |         |   |   |   |   |   |
| Basic                                                        |   |                                 |   |   |          |   | 92.7   |   |   |   |         |   |   |   | 87.5 |   |
| Diluted                                                      |   |                                 |   |   |          |   | 108.2  |   |   |   |         |   |   |   | 101.2 |   |

----

|                                                         |   | Year Ended December 31,              |   |
|--------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                         |   | 2009                                 |   |   | Per Share (2) |   |
|                                                         |   | (In Millions, Except per Share Data) |   |
| Net income                                                   |   | $                                    | 128.8  |   |   | $ | 1.45 |   |
| Income from discontinued operations, net of tax,             |   |                                 |   |   |   |   |   |   |
| attributable to HealthSouth                                  |   |                                 | (1.5   | ) |   |   | (0.02 | ) |
| Net income attributable to noncontrolling interests          |   |                                 | (34.0  | ) |   |   | (0.38 | ) |
| Income from continuing operations attributable               |   |                                 |   |   |   |   |   |   |
| to HealthSouth                                               |   |                                 | 93.3   |   |   |   | 1.05 |   |
| Government, class action, and related settlements            |   |                                 | 36.7   |   |   |   | 0.41 |   |
| Professional fees – accounting, tax, and legal         |   |                                 | 8.8    |   |   |   | 0.10 |   |
| Loss on interest rate swaps                                  |   |                                 | 19.6   |   |   |   | 0.22 |   |
| Adjustment for prior period amounts in tax provision         |   |                                 | (8.8   | ) |   |   | (0.10 | ) |
| Adjusted income from continuing operations (1) (3)           |   |                                 | 149.6  |   |   |   | 1.68 |   |
| Adjustment for dilution (2)                                  |   |                                 |   |   |   |   | (0.23 | ) |
| Adjusted income from continuing operations                   |   |                                 |   |   |   |   |   |   |
| per diluted share (2) (3)                                    |   |                                 |   |   |   | $ | 1.45 |   |
| Current period amounts in tax provision                      |   |                                 | 5.6    |   |   |   |   |   |
| Interest expense and amortization of debt discounts and fees |   |                                 | 125.8  |   |   |   |   |   |
| Depreciation and amortization                                |   |                                 | 70.9   |   |   |   |   |   |
|                                                         |   |                                 | 351.9  |   |   |   |   |   |
| Other adjustments per the Company's                          |   |                                 |   |   |   |   |   |   |
| Credit Agreement:                                            |   |                                 |   |   |   |   |   |   |
| Impairment charges, including investments                    |   |                                 | 1.4    |   |   |   |   |   |
| Net noncash loss on disposal of assets                       |   |                                 | 3.5    |   |   |   |   |   |
| Loss on early extinguishment of debt                         |   |                                 | 12.5   |   |   |   |   |   |
| Stock-based compensation expense                             |   |                                 | 13.4   |   |   |   |   |   |
| Other                                                        |   |                                 | 0.3    |   |   |   |   |   |
| Adjusted Consolidated EBITDA (1) (3) (4)                     |   | $                                    | 383.0  |   |   |   |   |   |
|                                                         |   |                                 |   |   |   |   |   |   |
| Weighted average common shares outstanding:                  |   |                                 |   |   |   |   |   |   |
| Basic                                                        |   |                                 |   |   |   |   | 88.8 |   |
| Diluted                                                      |   |                                 |   |   |   |   | 103.3 |   |

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