|                                |
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| Media Contact                  | April 28, 2014 |
| Casey Lassiter, 205-410-2777   | For Immediate Release |
| casey.lassiter@healthsouth.com |   |
|                           |   |
| Investor Relations Contact     |   |
| Mary Ann Arico, 205-969-6175   |   |
| maryann.arico@healthsouth.com  |   |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Consolidated net operating revenues were $591.2 million for the first quarter of 2014 compared to $572.6 million for the first quarter of 2013, or an increase of 3.2%. Discharge growth of 2.4% was negatively impacted by approximately 100 basis points due to winter storms, all of which occurred in same-store markets where discharge growth was 0.4%. Net patient revenue per discharge, which increased by 1.5%, was negatively impacted in the first quarter of 2014 by approximately $9 million for sequestration. Excluding the impact of sequestration, net patient revenue per discharge would have increased by 3.2%. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Income from continuing operations attributable to HealthSouth for the first quarter of 2014 was $0.48 per diluted share compared to $0.48 per basic share for the same period of 2013. Earnings per share for the first quarter of 2014 reflected the impact of sequestration and lower volumes resulting from the winter storms, as well as higher depreciation and amortization related to recent capital expenditures. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Cash flows provided by operating activities were $107.1 million for the three months ended March 31, 2014 compared to $121.4 million for the same period of 2013, reflective of anticipated increases in working capital during the first quarter of 2014. Specifically, payroll tax withholdings related to the vesting of employee restricted stock awards and timing differences in accounts payable caused the increase in working capital. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adjusted EBITDA (see attached supplemental information) for the first quarter of 2014 was $144.1 million compared to $139.3 million for the same period of 2013, or an increase of 3.4%. This improvement was due primarily to continued revenue growth and disciplined expense management offset by the negative impacts of approximately $8 million due to sequestration, as well as the lower volumes resulting from winter storms. Adjusted EBITDA for the first quarter of 2014 included approximately $2 million from the sale of two investments. |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| • | Adjusted free cash flow (see attached supplemental information) for the first quarter of 2014 was $65.1 million compared to $85.7 million for the same period of 2013. Adjusted free cash flow in the first quarter of 2014 benefited from higher Adjusted EBITDA offset by increases in working capital, as discussed above, and maintenance capital expenditures, including approximately $12 million of equipment purchases that were invoiced in 2013 and paid in early 2014. |

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|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |
|                                                         | Three Months Ended March 31, |
|                                                         | 2014 |   | 2013 |
|                                                         | (In Millions) |
| Net operating revenues                                       | $ | 591.2 |  |   | $ | 572.6 |  |
| Less: Provision for doubtful accounts                        | (7.5 | ) |   | (7.4 | ) |
| Net operating revenues less provision for doubtful accounts  | 583.7 |  |   | 565.2 |  |
| Operating expenses:                                          |   |  |   |   |  |
| Salaries and benefits                                        | 286.1 |  |   | 274.6 |  |
| Other operating expenses                                     | 84.5 |  |   | 78.1 |  |
| Occupancy costs                                              | 10.5 |  |   | 12.2 |  |
| Supplies                                                     | 27.6 |  |   | 26.2 |  |
| General and administrative expenses                          | 30.7 |  |   | 30.2 |  |
| Depreciation and amortization                                | 26.4 |  |   | 22.1 |  |
| Professional fees—accounting, tax, and legal           | 1.6 |  |   | 1.4 |  |
| Total operating expenses                                     | 467.4 |  |   | 444.8 |  |
| Interest expense and amortization of debt discounts and fees | 27.9 |  |   | 24.2 |  |
| Other income                                                 | (1.7 | ) |   | (0.7 | ) |
| Equity in net income of nonconsolidated affiliates           | (4.3 | ) |   | (2.9 | ) |
| Income from continuing operations before income tax expense  | 94.4 |  |   | 99.8 |  |
| Provision for income tax expense                             | 32.8 |  |   | 33.5 |  |
| Income from continuing operations                            | 61.6 |  |   | 66.3 |  |
| Loss from discontinued operations, net of tax                | (0.1 | ) |   | (0.4 | ) |
| Net income                                                   | 61.5 |  |   | 65.9 |  |
| Less: Net income attributable to noncontrolling interests    | (14.8 | ) |   | (14.6 | ) |
| Net income attributable to HealthSouth                       | 46.7 |  |   | 51.3 |  |
| Less: Convertible perpetual preferred stock dividends        | (1.6 | ) |   | (5.7 | ) |
| Net income attributable to HealthSouth common shareholders   | $ | 45.1 |  |   | $ | 45.6 |  |

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|                                                                             |  |  |  |  |  |  |  |
|                                                                        | Three Months Ended March 31, |
|                                                                        | 2014 |   | 2013 |
|                                                                        | (In Millions, Except Per Share Data) |
| Weighted average common shares outstanding:                                 |   |  |   |   |  |
| Basic                                                                       | 87.3 |  |   | 94.0 |  |
| Diluted                                                                     | 100.9 |  |   | 107.1 |  |
|                                                                        |   |   |   |
| Earnings per common share:                                                  |   |   |   |
| Basic earnings per share attributable to HealthSouth common shareholders:   |   |   |   |  |
| Continuing operations                                                       | $ | 0.51 |  |   | $ | 0.48 |  |
| Discontinued operations                                                     | — |  |   | — |  |
| Net income                                                                  | $ | 0.51 |  |   | $ | 0.48 |  |
| Diluted earnings per share attributable to HealthSouth common shareholders: |   |   |   |
| Continuing operations                                                       | $ | 0.48 |  |   | $ | 0.48 |  |
| Discontinued operations                                                     | — |  |   | — |  |
| Net income                                                                  | $ | 0.48 |  |   | $ | 0.48 |  |
|                                                                        |   |   |   |
| Cash dividends per common share                                             | $ | 0.18 |  |   | $ | — |  |
|                                                                        |   |   |   |
| Amounts attributable to HealthSouth common shareholders:                    |   |   |   |  |
| Income from continuing operations                                           | $ | 46.8 |  |   | $ | 51.7 |  |
| Loss from discontinued operations, net of tax                               | (0.1 | ) |   | (0.4 | ) |
| Net income attributable to HealthSouth                                      | $ | 46.7 |  |   | $ | 51.3 |  |

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|                                                                                             |
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|                                                                                             |  |  |  |  |  |  |  |
|                                                                                        | March 31, 2014 |   | December 31, 2013 |
|                                                                                        | (In Millions) |
| Assets                                                                                      |   |   |   |
| Current assets:                                                                             |   |   |   |
| Cash and cash equivalents                                                                   | $ | 53.1 |  |   | $ | 64.5 |  |
| Accounts receivable, net of allowance for doubtful accounts of $23.9 in 2014; $23.1 in 2013 | 272.7 |  |   | 261.8 |  |
| Deferred income tax assets                                                                  | 138.9 |  |   | 139.0 |  |
| Other current assets                                                                        | 120.5 |  |   | 115.1 |  |
| Total current assets                                                                        | 585.2 |  |   | 580.4 |  |
| Property and equipment, net                                                                 | 930.7 |  |   | 910.5 |  |
| Goodwill                                                                                    | 456.9 |  |   | 456.9 |  |
| Intangible assets, net                                                                      | 89.6 |  |   | 88.2 |  |
| Deferred income tax assets                                                                  | 325.3 |  |   | 354.3 |  |
| Other long-term assets                                                                      | 151.4 |  |   | 144.1 |  |
| Total assets                                                                                | $ | 2,539.1 |  |   | $ | 2,534.4 |  |
| Liabilities and Shareholders’ Equity                                                  |   |   |   |
| Current liabilities:                                                                        |   |   |   |
| Accounts payable                                                                            | $ | 48.5 |  |   | $ | 61.9 |  |
| Accrued expenses and other current liabilities                                              | 253.5 |  |   | 249.7 |  |
| Total current liabilities                                                                   | 302.0 |  |   | 311.6 |  |
| Long-term debt, net of current portion                                                      | 1,503.1 |  |   | 1,505.2 |  |
| Other long-term liabilities                                                                 | 145.6 |  |   | 142.2 |  |
|                                                                                        | 1,950.7 |  |   | 1,959.0 |  |
| Commitments and contingencies                                                               |  |  |   |  |  |
| Convertible perpetual preferred stock                                                       | 93.2 |  |   | 93.2 |  |
| Redeemable noncontrolling interests                                                         | 13.0 |  |   | 13.5 |  |
| Shareholders’ equity:                                                                 |   |  |   |   |  |
| HealthSouth shareholders’ equity                                                      | 355.6 |  |   | 344.6 |  |
| Noncontrolling interests                                                                    | 126.6 |  |   | 124.1 |  |
| Total shareholders’ equity                                                            | 482.2 |  |   | 468.7 |  |
| Total liabilities and shareholders’ equity                                            | $ | 2,539.1 |  |   | $ | 2,534.4 |  |

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|                                                                                         |
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|                                                                                         |  |  |  |  |  |  |  |
|                                                                                    | Three Months Ended March 31, |
|                                                                                    | 2014 |   | 2013 |
|                                                                                    | (In Millions) |
| Cash flows from operating activities:                                                   |   |   |   |
| Net income                                                                              | $ | 61.5 |  |   | $ | 65.9 |  |
| Loss from discontinued operations                                                       | 0.1 |  |   | 0.4 |  |
| Adjustments to reconcile net income to net cash provided by operating activities— |   |  |   |   |  |
| Provision for doubtful accounts                                                         | 7.5 |  |   | 7.4 |  |
| Depreciation and amortization                                                           | 26.4 |  |   | 22.1 |  |
| Equity in net income of nonconsolidated affiliates                                      | (4.3 | ) |   | (2.9 | ) |
| Distributions from nonconsolidated affiliates                                           | 3.4 |  |   | 3.4 |  |
| Stock-based compensation                                                                | 7.3 |  |   | 6.3 |  |
| Deferred tax expense                                                                    | 29.2 |  |   | 31.7 |  |
| Other                                                                                   | 3.1 |  |   | 0.8 |  |
| (Increase) decrease in assets—                                                    |   |   |   |  |
| Accounts receivable                                                                     | (24.7 | ) |   | (24.3 | ) |
| Other assets                                                                            | (4.7 | ) |   | 1.4 |  |
| Increase (decrease) in liabilities—                                               |   |   |   |  |
| Accounts payable                                                                        | 2.6 |  |   | 12.1 |  |
| Other liabilities                                                                       | (0.1 | ) |   | (2.2 | ) |
| Net cash used in operating activities of discontinued operations                        | (0.2 | ) |   | (0.7 | ) |
| Total adjustments                                                                       | 45.5 |  |   | 55.1 |  |
| Net cash provided by operating activities                                               | 107.1 |  |   | 121.4 |  |
| Cash flows from investing activities:                                                   |   |   |   |
| Purchases of property and equipment                                                     | (56.6 | ) |   | (30.1 | ) |
| Capitalized software costs                                                              | (7.0 | ) |   | (8.1 | ) |
| Escrow deposit — acquisition of business                                          | — |  |   | (11.0 | ) |
| Other                                                                                   | (4.2 | ) |   | 1.3 |  |
| Net cash used in investing activities                                                   | (67.8 | ) |   | (47.9 | ) |
| Cash flows from financing activities:                                                   |   |   |   |
| Borrowings on revolving credit facility                                                 | 40.0 |  |   | 122.0 |  |
| Payments on revolving credit facility                                                   | (42.0 | ) |   | — |  |
| Repurchase of common stock, including fees and expenses                                 | (26.3 | ) |   | (232.6 | ) |
| Dividends paid on common stock                                                          | (15.8 | ) |   | — |  |
| Dividends paid on convertible perpetual preferred stock                                 | (1.6 | ) |   | (5.7 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates               | (12.0 | ) |   | (13.2 | ) |
| Proceeds from exercise of stock warrants                                                | 6.3 |  |   | — |  |
| Other                                                                                   | 0.7 |  |   | 3.3 |  |
| Net cash used in financing activities                                                   | (50.7 | ) |   | (126.2 | ) |
| Decrease in cash and cash equivalents                                                   | (11.4 | ) |   | (52.7 | ) |
| Cash and cash equivalents at beginning of period                                        | 64.5 |  |   | 132.8 |  |
| Cash and cash equivalents at end of period                                              | $ | 53.1 |  |   | $ | 80.1 |  |

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|                                                              |
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|                                                              |  |  |  |  |  |  |  |  |
|                                                         | Q1 2014 |   | Q1 2013 |   |
|                                                         | (In Millions, Except Per Share Data) |   |
| Adjusted EBITDA                                              | $ | 144.1 |  |   | $ | 139.3 |  |   |
| Interest expense and amortization of debt discounts and fees | (27.9 | ) |   | (24.2 | ) |   |
| Depreciation and amortization                                | (26.4 | ) |   | (22.1 | ) |   |
| Stock-based compensation expense                             | (7.3 | ) |   | (6.3 | ) |   |
| Noncash loss on disposal of assets                           | (1.3 | ) |   | (0.1 | ) |   |
|                                                         | 81.2 |  |   | 86.6 |  |   |
| Certain nonrecurring expenses:                               |   |   |   |   |
| Professional fees—accounting, tax, and legal           | (1.6 | ) |   | (1.4 | ) |   |
| Pre-tax income                                               | 79.6 |  |   | 85.2 |  |   |
| Income tax expense (1)                                       | (32.8 | ) |   | (33.5 | ) |   |
| Income from continuing operations (2)                        | $ | 46.8 |  |   | $ | 51.7 |  |   |
|                                                         |   |   |   |   |
| Basic shares                                                 | 87.3 |  |   | 94.0 |  |   |
| Diluted shares                                               | 100.9 |  |   | 107.1 |  |   |
|                                                         |   |   |   |   |
| Basic earnings per share (2)                                 | $ | 0.51 |  |   | $ | 0.48 |  | (3)  |
| Diluted earnings per share (2)                               | $ | 0.48 |  |   | $ | 0.48 |  | (3)  |

|           |                                                                                                                                             |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Current income tax expense for the three months ended March 31, 2014 and 2013 was $3.6 million and $1.8 million, respectively. |

|           |                                                                |
|-----------|----------------------------------------------------------------|
| (2)  | Income from continuing operations attributable to HealthSouth. |

|           |                                                                                                                                                                                                                                                                                                    |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)  | Adding back the dividends for the Convertible perpetual preferred stock to Income from continuing operations attributable to HealthSouth common shareholders causes a per share increase when calculating diluted earnings per common share resulting in an antidilutive per share amount. |

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|                                                                            |  |  |  |  |  |  |  |
|                                                                       | Three Months Ended March 31, |
|                                                                       | 2014 |   | 2013 |
|                                                                       | (In Millions) |
| Net income                                                                 | $ | 61.5 |  |   | $ | 65.9 |  |
| Loss from discontinued operations, net of tax, attributable to HealthSouth | 0.1 |  |   | 0.4 |  |
| Provision for income tax expense                                           | 32.8 |  |   | 33.5 |  |
| Interest expense and amortization of debt discounts and fees               | 27.9 |  |   | 24.2 |  |
| Professional fees—accounting, tax, and legal                         | 1.6 |  |   | 1.4 |  |
| Net noncash loss on disposal of assets                                     | 1.3 |  |   | 0.1 |  |
| Depreciation and amortization                                              | 26.4 |  |   | 22.1 |  |
| Stock-based compensation expense                                           | 7.3 |  |   | 6.3 |  |
| Net income attributable to noncontrolling interests                        | (14.8 | ) |   | (14.6 | ) |
| Adjusted EBITDA                                                            | $ | 144.1 |  |   | $ | 139.3 |  |

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|                                                                           |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      | Three Months Ended March 31, |   | Year Ended December 31, |
|                                                                      |   |
|                                                                      | 2014 |   | 2013 |   | 2013 |
|                                                                      | (In Millions) |
| Net cash provided by operating activities                                 | $ | 107.1 |  |   | $ | 121.4 |  |   | $ | 470.3 |  |
| Impact of discontinued operations                                         | 0.2 |  |   | 0.7 |  |   | 1.9 |  |
| Net cash provided by operating activities of continuing operations        | 107.3 |  |   | 122.1 |  |   | 472.2 |  |
| Capital expenditures for maintenance                                      | (30.2 | ) |   | (18.9 | ) |   | (74.8 | ) |
| Dividends paid on convertible perpetual preferred stock                   | (1.6 | ) |   | (5.7 | ) |   | (23.0 | ) |
| Distributions paid to noncontrolling interests of consolidated affiliates | (12.0 | ) |   | (13.2 | ) |   | (46.3 | ) |
| Nonrecurring items:                                                       |   |   |   |   |   |
| Premium paid on redemption of bonds                                       | — |  |   | — |  |   | 1.7 |  |
| Cash paid for:                                                            |   |   |   |   |   |
| Professional fees—accounting, tax, and legal                        | 1.6 |  |   | 1.4 |  |   | 7.0 |  |
| Government, class action, and related settlements                         | — |  |   | — |  |   | (5.9 | ) |
| Adjusted free cash flow                                                   | $ | 65.1 |  |   | $ | 85.7 |  |   | $ | 330.9 |  |

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