----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | As of September 30, 2014 |
|                                             | Historical |   |   |   |   |   | Pro Forma Adjustments |   |   |
|                                             | HealthSouth |   | EHHI |   | Adjustments for Consistent Presentation |   | Adjustments for Non-Acquisition Related Debt Transactions |   | Acquisition Related Debt Transactions |   | Preliminary Allocation of Acquisition Consideration |   | Pro Forma Combined |
|                                             | (In Millions) |
| Assets                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                        | $ | 272.3 |  |   | $ | 11.7 |  |   | $ | — |  |   | $ | (232.0 | ) |   | $ | 708.0 |  |   | $ | (704.8 | ) |   | $ | 55.2 |  |
| Accounts receivable, net                         | 261.6 |  |   | 54.2 |  |   | (22.9 | ) |   | — |  |   | — |  |   | 4.0 |  |   | 296.9 |  |
| Deferred income tax assets                       | 138.9 |  |   | 1.6 |  |   | — |  |   | — |  |   | — |  |   | 0.5 |  |   | 141.0 |  |
| Other current assets                             | 110.2 |  |   | 2.6 |  |   | (1.7 | ) |   | — |  |   | — |  |   | — |  |   | 111.1 |  |
| Total current assets                             | 783.0 |  |   | 70.1 |  |   | (24.6 | ) |   | (232.0 | ) |   | 708.0 |  |   | (700.3 | ) |   | 604.2 |  |
| Property and equipment, net                      | 994.6 |  |   | 8.7 |  |   | (1.9 | ) |   | — |  |   | — |  |   | 2.0 |  |   | 1,003.4 |  |
| Goodwill                                         | 491.7 |  |   | 368.9 |  |   | — |  |   | — |  |   | — |  |   | 236.1 |  |   | 1,096.7 |  |
| Intangible assets, net                           | 99.9 |  |   | 21.2 |  |   | 1.9 |  |   | — |  |   | — |  |   | 178.6 |  |   | 301.6 |  |
| Deferred income tax assets                       | 255.3 |  |   | — |  |   | (16.6 | ) |   | — |  |   | — |  |   | (47.7 | ) |   | 191.0 |  |
| Other long-term assets                           | 169.5 |  |   | 1.6 |  |   | 0.8 |  |   | (3.6 | ) |   | — |  |   | (1.2 | ) |   | 167.1 |  |
| Total assets                                     | $ | 2,794.0 |  |   | $ | 470.5 |  |   | $ | (40.4 | ) |   | $ | (235.6 | ) |   | $ | 708.0 |  |   | $ | (332.5 | ) |   | $ | 3,364.0 |  |
| Liabilities and Shareholders’ Equity       |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current portion of long-term debt                | $ | 208.5 |  |   | $ | 7.6 |  |   | $ | (0.2 | ) |   | $ | (197.0 | ) |   | 6.3 |  |   | (0.6 | ) |   | $ | 24.6 |  |
| Accounts payable                                 | 54.8 |  |   | 1.5 |  |   | (0.9 | ) |   | — |  |   | — |  |   | — |  |   | 55.4 |  |
| Accrued expenses and other current liabilities   | 251.4 |  |   | 56.2 |  |   | (22.9 | ) |   | — |  |   | — |  |   | — |  |   | 284.7 |  |
| Total current liabilities                        | 514.7 |  |   | 65.3 |  |   | (24.0 | ) |   | (197.0 | ) |   | 6.3 |  |   | (0.6 | ) |   | 364.7 |  |
| Long-term debt, net of current portion           | 1,441.4 |  |   | 152.1 |  |   | 0.2 |  |   | (25.4 | ) |   | 701.7 |  |   | (150.6 | ) |   | 2,119.4 |  |
| Other long-term liabilities                      | 139.7 |  |   | 16.6 |  |   | (16.6 | ) |   | — |  |   | — |  |   | — |  |   | 139.7 |  |
|                                             | 2,095.8 |  |   | 234.0 |  |   | (40.4 | ) |   | (222.4 | ) |   | 708.0 |  |   | (151.2 | ) |   | 2,623.8 |  |
| Commitments and contingencies                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Convertible perpetual preferred stock            | 93.2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 93.2 |  |
| Redeemable noncontrolling interests              | 12.2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 64.5 |  |   | 76.7 |  |
| Shareholders’ equity:                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| HealthSouth shareholders’ equity           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock                                     | 1.0 |  |   | 139.6 |  |   | — |  |   | — |  |   | — |  |   | (139.6 | ) |   | 1.0 |  |
| Capital in excess of par value                   | 2,828.0 |  |   | 2.5 |  |   | — |  |   | — |  |   | — |  |   | (2.5 | ) |   | 2,828.0 |  |
| Accumulated deficit                              | (1,921.2 | ) |   | 96.9 |  |   | — |  |   | (13.2 | ) |   | — |  |   | (106.2 | ) |   | (1,943.7 | ) |
| Accumulated other comprehensive loss             | (0.1 | ) |   | (0.1 | ) |   | — |  |   | — |  |   | — |  |   | 0.1 |  |   | (0.1 | ) |
| Treasury stock, at cost                          | (458.1 | ) |   | (2.4 | ) |   | — |  |   | — |  |   | — |  |   | 2.4 |  |   | (458.1 | ) |
| Total HealthSouth shareholders’ equity     | 449.6 |  |   | 236.5 |  |   | — |  |   | (13.2 | ) |   | — |  |   | (245.8 | ) |   | 427.1 |  |
| Noncontrolling interests                         | 143.2 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 143.2 |  |
| Total shareholders’ equity                 | 592.8 |  |   | 236.5 |  |   | — |  |   | (13.2 | ) |   | — |  |   | (245.8 | ) |   | 570.3 |  |
| Total liabilities and shareholders’ equity | $ | 2,794.0 |  |   | $ | 470.5 |  |   | $ | (40.4 | ) |   | $ | (235.6 | ) |   | $ | 708.0 |  |   | $ | (332.5 | ) |   | $ | 3,364.0 |  |

----

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | For the Year Ended December 31, 2013 |
|                                                                                                            | Historical |   |   |   | Pro Forma Adjustments |   |   |
|                                                                                                            | HealthSouth |   | EHHI |   | Adjustments for Consistent Presentation |   | Acquisition Related Debt Transactions |   | Allocation of Acquisition Consideration |   | Pro Forma Combined |
|                                                                                                            | (In Millions, Except Per Share Data) |
| Net operating revenues                                                                                          | $ | 2,273.2 |  |   | $ | 302.2 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 2,575.4 |  |
| Less: Provision for doubtful accounts                                                                           | (26.0 | ) |   | — |  |   | (1.1 | ) |   | — |  |   | — |  |   | (27.1 | ) |
| Net operating revenues less provision for doubtful accounts                                                     | 2,247.2 |  |   | 302.2 |  |   | (1.1 | ) |   | — |  |   | — |  |   | 2,548.3 |  |
| Operating expenses:                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                                                                           | 1,089.7 |  |   | — |  |   | 214.3 |  |   | — |  |   | — |  |   | 1,304.0 |  |
| General and administrative salaries                                                                             | — |  |   | 56.7 |  |   | (56.7 | ) |   | — |  |   | — |  |   | — |  |
| Cost of sales                                                                                                   | — |  |   | 142.5 |  |   | (142.5 | ) |   | — |  |   | — |  |   | — |  |
| Other operating expenses                                                                                        | 323.0 |  |   | 53.5 |  |   | (25.8 | ) |   | — |  |   | (0.4 | ) |   | 350.3 |  |
| Occupancy costs                                                                                                 | 47.0 |  |   | — |  |   | 5.8 |  |   | — |  |   | — |  |   | 52.8 |  |
| Supplies                                                                                                        | 105.4 |  |   | — |  |   | 4.2 |  |   | — |  |   | — |  |   | 109.6 |  |
| General and administrative expenses                                                                             | 119.1 |  |   | — |  |   | 0.2 |  |   | — |  |   | 3.3 |  |   | 122.6 |  |
| Depreciation and amortization                                                                                   | 94.7 |  |   | 5.8 |  |   | 1.4 |  |   | — |  |   | 5.4 |  |   | 107.3 |  |
| Government, class action, and related settlements                                                               | (23.5 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (23.5 | ) |
| Professional fees - accounting, tax, and legal                                                                  | 9.5 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9.5 |  |
| Total operating expenses                                                                                        | 1,764.9 |  |   | 258.5 |  |   | 0.9 |  |   | — |  |   | 8.3 |  |   | 2,032.6 |  |
| Loss on early extinguishment of debt                                                                            | 2.4 |  |   | — |  |   | 0.6 |  |   | — |  |   | (0.6 | ) |   | 2.4 |  |
| Interest expense and amortization of debt discounts and fees                                                    | 100.4 |  |   | 9.6 |  |   | (0.6 | ) |   | 20.4 |  |   | — |  |   | 129.8 |  |
| Other income                                                                                                    | (4.5 | ) |   | (0.7 | ) |   | (0.6 | ) |   | — |  |   | — |  |   | (5.8 | ) |
| Equity in net income of nonconsolidated affiliates                                                              | (11.2 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (11.2 | ) |
| Income from continuing operations before income tax expense                                                     | 395.2 |  |   | 34.8 |  |   | (1.4 | ) |   | (20.4 | ) |   | (7.7 | ) |   | 400.5 |  |
| Provision for income tax expense                                                                                | 12.7 |  |   | 12.9 |  |   | (0.5 | ) |   | (8.2 | ) |   | (3.1 | ) |   | 13.8 |  |
| Income from continuing operations                                                                               | 382.5 |  |   | 21.9 |  |   | (0.9 | ) |   | (12.2 | ) |   | (4.6 | ) |   | 386.7 |  |
| Less: Net income attributable to noncontrolling interest                                                        | (57.8 | ) |   | — |  |   | — |  |   | — |  |   | (2.9 | ) |   | (60.7 | ) |
| Net income from continuing operations attributable to HealthSouth                                               | 324.7 |  |   | 21.9 |  |   | (0.9 | ) |   | (12.2 | ) |   | (7.5 | ) |   | 326.0 |  |
| Less: Convertible perpetual preferred stock dividends                                                           | (21.0 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (21.0 | ) |
| Less: Repurchase of convertible perpetual preferred stock                                                       | (71.6 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (71.6 | ) |
| Net income from continuing operations attributable to HealthSouth common shareholders                           | $ | 232.1 |  |   | $ | 21.9 |  |   | $ | (0.9 | ) |   | (12.2 | ) |   | (7.5 | ) |   | $ | 233.4 |  |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                           | 88.1 |  |   |   |   |   |   |   |   |   |   | 88.1 |  |
| Diluted                                                                                                         | 102.1 |  |   |   |   |   |   |   |   |   |   | 102.1 |  |
|                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings per share from continuing operations attributable to HealthSouth common shareholders | $ | 2.59 |  |   |   |   |   |   |   |   |   |   | $ | 2.61 |  |

----

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                  | For the Nine Months Ended September 30, 2014 |
|                                                                                                  | Historical |   |   |   | Pro Forma Adjustments |   |   |
|                                                                                                  | HealthSouth |   | EHHI |   | Adjustments for Consistent Presentation |   | Acquisition Related Debt Transactions |   | Allocation of Acquisition Consideration |   | Pro Forma Combined |
|                                                                                                  | (In Millions, Except Per Share Data) |
| Net operating revenues                                                                                | $ | 1,792.5 |  |   | $ | 267.7 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 2,060.2 |  |
| Less: Provision for doubtful accounts                                                                 | (25.0 | ) |   | — |  |   | (1.1 | ) |   | — |  |   | — |  |   | (26.1 | ) |
| Net operating revenues less provision for doubtful accounts                                           | 1,767.5 |  |   | 267.7 |  |   | (1.1 | ) |   | — |  |   | — |  |   | 2,034.1 |  |
| Operating expenses:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                                                                 | 861.4 |  |   | — |  |   | 188.0 |  |   | — |  |   | — |  |   | 1,049.4 |  |
| General and administrative salaries                                                                   | — |  |   | 49.6 |  |   | (49.6 | ) |   | — |  |   | — |  |   | — |  |
| Cost of sales                                                                                         | — |  |   | 126.4 |  |   | (126.4 | ) |   | — |  |   | — |  |   | — |  |
| Other operating expenses                                                                              | 260.2 |  |   | 45.1 |  |   | (21.4 | ) |   | — |  |   | (0.3 | ) |   | 283.6 |  |
| Occupancy costs                                                                                       | 31.1 |  |   | — |  |   | 4.5 |  |   | — |  |   | — |  |   | 35.6 |  |
| Supplies                                                                                              | 82.0 |  |   | — |  |   | 4.1 |  |   | — |  |   | — |  |   | 86.1 |  |
| General and administrative expenses                                                                   | 88.4 |  |   | — |  |   | 0.1 |  |   | — |  |   | 3.3 |  |   | 91.8 |  |
| Depreciation and amortization                                                                         | 80.2 |  |   | 3.9 |  |   | 1.3 |  |   | — |  |   | 4.1 |  |   | 89.5 |  |
| Government, class action, and related settlements                                                     | (0.8 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (0.8 | ) |
| Professional fees - accounting, tax, and legal                                                        | 7.6 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 7.6 |  |
| Total operating expenses                                                                              | 1,410.1 |  |   | 225.0 |  |   | 0.6 |  |   | — |  |   | 7.1 |  |   | 1,642.8 |  |
| Loss on early extinguishment of debt                                                                  | — |  |   | — |  |   | 0.4 |  |   | — |  |   | (0.4 | ) |   | — |  |
| Interest expense and amortization of debt discounts and fees                                          | 83.5 |  |   | 6.6 |  |   | (0.4 | ) |   | 15.2 |  |   | — |  |   | 104.9 |  |
| Other income                                                                                          | (30.1 | ) |   | 0.4 |  |   | (0.4 | ) |   | — |  |   | — |  |   | (30.1 | ) |
| Equity in net income of nonconsolidated affiliates                                                    | (8.8 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (8.8 | ) |
| Income from continuing operations before income tax expense                                           | 312.8 |  |   | 35.7 |  |   | (1.3 | ) |   | (15.2 | ) |   | (6.7 | ) |   | 325.3 |  |
| Provision for income tax expense                                                                      | 91.4 |  |   | 13.5 |  |   | (0.5 | ) |   | (6.1 | ) |   | (2.7 | ) |   | 95.6 |  |
| Income from continuing operations                                                                     | 221.4 |  |   | 22.2 |  |   | (0.8 | ) |   | (9.1 | ) |   | (4.0 | ) |   | 229.7 |  |
| Less: Net income attributable to noncontrolling interest                                              | (44.3 | ) |   | — |  |   | — |  |   | — |  |   | (2.9 | ) |   | (47.2 | ) |
| Net income from continuing operations attributable to HealthSouth                                     | 177.1 |  |   | 22.2 |  |   | (0.8 | ) |   | (9.1 | ) |   | (6.9 | ) |   | 182.5 |  |
| Less: Convertible perpetual preferred stock dividends                                                 | (4.7 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (4.7 | ) |
| Net income from continuing operations attributable to HealthSouth common shareholders                 | $ | 172.4 |  |   | $ | 22.2 |  |   | $ | (0.8 | ) |   | (9.1 | ) |   | (6.9 | ) |   | $ | 177.8 |  |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                 | 86.8 |  |   |   |   |   |   |   |   |   |   | 86.8 |  |
| Diluted                                                                                               | 100.7 |  |   |   |   |   |   |   |   |   |   | 100.7 |  |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share from continuing operations attributable to HealthSouth common shareholders   | $ | 1.96 |  |   |   |   |   |   |   |   |   |   | $ | 2.03 |  |
| Diluted earnings per share from continuing operations attributable to HealthSouth common shareholders | $ | 1.82 |  |   |   |   |   |   |   |   |   |   | $ | 1.88 |  |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |
| Fair value of assets acquired, net of $11.7 million of cash acquired | $ | 250.0 |  |
| Goodwill                                                             | 605.0 |  |
| Fair value of liabilities assumed                                    | (106.7 | ) |
| Redeemable noncontrolling interests                                  | (64.5 | ) |
| Net cash paid for acquisition                                        | $ | 683.8 |  |

|                                                      |
|------------------------------------------------------|
|                                                      |  |  |  |
| Sources of funds:                                    |   |
| January 2015 issuance of 5.75% Senior Notes due 2024 | $ | 408.0 |  |
| Term loan facilities                                 | 125.0 |  |
| Revolving credit facilities                          | 175.0 |  |
| Total sources                                        | $ | 708.0 |  |
|                                                 |   |
| Uses of funds:                                       |   |
| Net assets acquired, including $11.7 million of cash | $ | 695.5 |  |
| Transaction costs                                    | 9.3 |  |
| Total uses                                           | $ | 704.8 |  |

----

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |
| Cash and cash equivalents                           | $ | 11.7 |  |
| Accounts receivable, net                            | 35.3 |  |
| Prepaid expenses and other current assets           | 3.0 |  |
| Property and equipment, net                         | 8.8 |  |
| Identifiable intangible assets:                     |   |  |
| Noncompete agreements (useful life of 2 to 5 years) | 5.9 |  |
| Trade name (indefinite life)                        | 135.2 |  |
| Licenses (useful life of 10 years)                  | 58.2 |  |
| Internal-use software (useful life of 3 years)      | 2.4 |  |
| Goodwill                                            | 605.0 |  |
| Other long-term assets                              | 1.2 |  |
| Total assets acquired                               | 866.7 |  |
| Current portion of long-term debt                   | 6.8 |  |
| Accounts payable                                    | 0.6 |  |
| Other current liabilities                           | 33.3 |  |
| Long-term debt, net of current portion              | 1.7 |  |
| Deferred tax liabilities                            | 64.3 |  |
| Total liabilities assumed                           | 106.7 |  |
| Redeemable noncontrolling interests                 | 64.5 |  |
| Net assets acquired                                 | $ | 695.5 |  |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           | Accounts Receivable |   | Deferred Income Taxes |   | Other |   | Total Adjustments for Consistent Presentation |
| Assets                                         |   |   |   |   |   |   |   |
| Cash and cash equivalents                      | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Accounts receivable, net                       | (22.9 | ) |   | — |  |   |   |   | (22.9 | ) |
| Deferred income tax assets                     | — |  |   | — |  |   |   |   | — |  |
| Other current assets                           | — |  |   | — |  |   | (1.7 | ) |   | (1.7 | ) |
| Total current assets                           | (22.9 | ) |   | — |  |   | (1.7 | ) |   | (24.6 | ) |
| Property and equipment, net                    | — |  |   | — |  |   | (1.9 | ) |   | (1.9 | ) |
| Goodwill                                       | — |  |   | — |  |   | — |  |   | — |  |
| Intangible assets, net                         | — |  |   | — |  |   | 1.9 |  |   | 1.9 |  |
| Deferred income tax assets                     | — |  |   | (16.6 | ) |   | — |  |   | (16.6 | ) |
| Other long-term assets                         | — |  |   | — |  |   | 0.8 |  |   | 0.8 |  |
|                                           | $ | (22.9 | ) |   | $ | (16.6 | ) |   | $ | (0.9 | ) |   | $ | (40.4 | ) |
| Liabilities                                    |   |   |   |   |   |   |   |
| Current portion of long-term debt              | $ | — |  |   | $ | — |  |   | $ | (0.2 | ) |   | $ | (0.2 | ) |
| Accounts payable                               | — |  |   | — |  |   | (0.9 | ) |   | (0.9 | ) |
| Accrued expenses and other current liabilities | (22.9 | ) |   | — |  |   | — |  |   | (22.9 | ) |
| Total current liabilities                      | (22.9 | ) |   | — |  |   | (1.1 | ) |   | (24.0 | ) |
| Long-term debt, net of current portion         | — |  |   | — |  |   | 0.2 |  |   | 0.2 |  |
| Other long-term liabilities                    | — |  |   | (16.6 | ) |   | — |  |   | (16.6 | ) |
|                                           | $ | (22.9 | ) |   | $ | (16.6 | ) |   | $ | (0.9 | ) |   | $ | (40.4 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Accounts receivable - This adjustment was made in order to reflect the net amounts due from third-party payors in the combined balance sheet. It includes a $27.2 million reclassification of unearned revenue from incomplete episodes at period end against gross patient receivables offset by a $4.3 million reclassification of net patient credit balances to current liabilities.  |

|         |                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deferred income taxes - EHHI’s net noncurrent deferred income tax liabilities were reclassified against HealthSouth’s net noncurrent deferred income tax assets. |

|         |                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other - Amounts in the other column include a $1.9 million reclassification of internal-use software from property and equipment to intangible assets as well as other immaterial reclassification adjustments to conform EHHI’s balance sheet to HealthSouth’s presentation. |

----

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                 | Term Loan Facilities |   | 7.25% Senior Notes due 2018 |   | 7.75% Senior Notes due 2022 |   | Total Adjustments for Non-Acquisition Related Debt Transactions |
| Assets                                                               |   |   |   |   |   |   |   |
| Cash and cash equivalents                                            | $ | 75.0 |  |   | $ | (281.1 | ) |   | $ | (25.9 | ) |   | $ | (232.0 | ) |
| Deferred financing costs included in other long-term assets          | — |  |   | (3.2 | ) |   | (0.4 | ) |   | (3.6 | ) |
|                                                                 | $ | 75.0 |  |   | $ | (284.3 | ) |   | $ | (26.3 | ) |   | $ | (235.6 | ) |
| Liabilities and Shareholders’ Equity                           |   |   |   |   |   |   |   |
| Current portion of long-term debt                                    | $ | 2.8 |  |   | $ | (199.8 | ) |   | $ | — |  |   | $ | (197.0 | ) |
| Long-term debt, net of current portion                               | 72.2 |  |   | (72.4 | ) |   | (25.2 | ) |   | (25.4 | ) |
| Total debt adjustments                                               | 75.0 |  |   | (272.2 | ) |   | (25.2 | ) |   | (222.4 | ) |
| Loss on early extinguishment of debt included in accumulated deficit | — |  |   | (12.1 | ) |   | (1.1 | ) |   | (13.2 | ) |
|                                                                 | $ | 75.0 |  |   | $ | (284.3 | ) |   | $ | (26.3 | ) |   | $ | (235.6 | ) |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   | Term Loan Facilities |   | Revolving Credit Facility |   | 5.75% Senior Notes due 2024 |   | Total Adjustments for Acquisition Related Debt Transactions |
| Assets                                 |   |   |   |   |   |   |   |
| Cash and cash equivalents              | $ | 125.0 |  |   | $ | 175.0 |  |   | $ | 408.0 |  |   | $ | 708.0 |  |
| Liabilities                            |   |   |   |   |   |   |   |
| Current portion of long-term debt      | $ | 6.3 |  |   | $ | — |  |   | $ | — |  |   | $ | 6.3 |  |
| Long-term debt, net of current portion | 118.7 |  |   | 175.0 |  |   | 408.0 |  |   | 701.7 |  |
| Total debt                             | $ | 125.0 |  |   | $ | 175.0 |  |   | $ | 408.0 |  |   | $ | 708.0 |  |

----

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                             | Fair Value Adjustments and Elimination of Equity |   | Payoff of EHHI Debt at Closing |   | HealthSouth’s Transaction Costs |   | Preliminary Allocation of Acquisition Consideration |
| Assets                                           |   |   |   |   |   |   |   |
| Cash and cash equivalents                        | $ | (544.3 | ) |   | $ | (151.2 | ) |   | $ | (9.3 | ) |   | $ | (704.8 | ) |
| Accounts receivable, net                         | 4.0 |  |   | — |  |   | — |  |   | 4.0 |  |
| Deferred income tax assets                       | 0.5 |  |   | — |  |   | — |  |   | 0.5 |  |
| Other current assets                             | — |  |   | — |  |   | — |  |   | — |  |
| Total current assets                             | (539.8 | ) |   | (151.2 | ) |   | (9.3 | ) |   | (700.3 | ) |
| Property and equipment, net                      | 2.0 |  |   | — |  |   | — |  |   | 2.0 |  |
| Goodwill                                         | 236.1 |  |   | — |  |   | — |  |   | 236.1 |  |
| Intangible assets, net                           | 178.6 |  |   | — |  |   | — |  |   | 178.6 |  |
| Deferred income tax assets                       | (47.7 | ) |   | — |  |   | — |  |   | (47.7 | ) |
| Other long-term assets                           | (1.2 | ) |   | — |  |   | — |  |   | (1.2 | ) |
| Total assets                                     | $ | (172.0 | ) |   | $ | (151.2 | ) |   | $ | (9.3 | ) |   | $ | (332.5 | ) |
| Liabilities and Shareholders’ Equity       |   |   |   |   |   |   |   |
| Current portion of long-term debt                | $ | — |  |   | $ | (0.6 | ) |   | $ | — |  |   | $ | (0.6 | ) |
| Accounts payable                                 | — |  |   | — |  |   | — |  |   | — |  |
| Accrued expenses and other current liabilities   | — |  |   | — |  |   | — |  |   | — |  |
| Total current liabilities                        | — |  |   | (0.6 | ) |   | — |  |   | (0.6 | ) |
| Long-term debt, net of current portion           | — |  |   | (150.6 | ) |   | — |  |   | (150.6 | ) |
| Other long-term liabilities                      | — |  |   | — |  |   | — |  |   | — |  |
|                                             | — |  |   | (151.2 | ) |   | — |  |   | (151.2 | ) |
|                                             |   |   |   |   |   |   |   |
| Convertible perpetual preferred stock            | — |  |   | — |  |   | — |  |   | — |  |
| Redeemable noncontrolling interests              | 64.5 |  |   | — |  |   | — |  |   | 64.5 |  |
| Shareholders’ equity                       |   |   |   |   |   |   |   |
| HealthSouth shareholders’ equity           |   |   |   |   |   |   |   |
| Common stock                                     | (139.6 | ) |   | — |  |   | — |  |   | (139.6 | ) |
| Capital in excess of par value                   | (2.5 | ) |   | — |  |   | — |  |   | (2.5 | ) |
| Accumulated deficit                              | (96.9 | ) |   | — |  |   | (9.3 | ) |   | (106.2 | ) |
| Accumulated other comprehensive loss             | 0.1 |  |   | — |  |   | — |  |   | 0.1 |  |
| Treasury stock, at cost                          | 2.4 |  |   | — |  |   | — |  |   | 2.4 |  |
| Total HealthSouth shareholders’ equity     | (236.5 | ) |   | — |  |   | (9.3 | ) |   | (245.8 | ) |
| Noncontrolling interests                         | — |  |   | — |  |   | — |  |   | — |  |
| Total shareholders’ equity                 | (236.5 | ) |   | — |  |   | (9.3 | ) |   | (245.8 | ) |
| Total liabilities and shareholders’ equity | $ | (172.0 | ) |   | $ | (151.2 | ) |   | $ | (9.3 | ) |   | $ | (332.5 | ) |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Cost of Sales |   | General and Administrative Salaries |   | Other Operating Expenses |   | Other |   | Total Adjustments for Consistent Presentation |
| Net operating revenues                                       | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Less: Provision for doubtful accounts                        | — |  |   | — |  |   | — |  |   | (1.1 | ) |   | (1.1 | ) |
| Net operating revenues less provision for doubtful accounts  | — |  |   | — |  |   | — |  |   | (1.1 | ) |   | (1.1 | ) |
| Operating expenses:                                          |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                        | 131.0 |  |   | 55.6 |  |   | 27.7 |  |   | — |  |   | 214.3 |  |
| General and administrative salaries                          | — |  |   | (56.7 | ) |   | — |  |   | — |  |   | (56.7 | ) |
| Cost of sales                                                | (142.5 | ) |   | — |  |   | — |  |   | — |  |   | (142.5 | ) |
| Other operating expenses                                     | 7.3 |  |   | 0.9 |  |   | (33.5 | ) |   | (0.5 | ) |   | (25.8 | ) |
| Occupancy costs                                              | — |  |   | — |  |   | 5.8 |  |   | — |  |   | 5.8 |  |
| Supplies                                                     | 4.2 |  |   | — |  |   | — |  |   | — |  |   | 4.2 |  |
| General and administrative expenses                          | — |  |   | 0.2 |  |   | — |  |   | — |  |   | 0.2 |  |
| Depreciation and amortization                                | — |  |   | — |  |   | — |  |   | 1.4 |  |   | 1.4 |  |
| Total operating expenses                                     | — |  |   | — |  |   | — |  |   | 0.9 |  |   | 0.9 |  |
| Loss on early extinguishment of debt                         | — |  |   | — |  |   | — |  |   | 0.6 |  |   | 0.6 |  |
| Interest expense and amortization of debt discounts and fees | — |  |   | — |  |   | — |  |   | (0.6 | ) |   | (0.6 | ) |
| Other income                                                 | — |  |   | — |  |   | — |  |   | (0.6 | ) |   | (0.6 | ) |
| Income from continuing operations before income tax expense  | — |  |   | — |  |   | — |  |   | (1.4 | ) |   | (1.4 | ) |
| Provision for income tax expense                             | — |  |   | — |  |   | — |  |   | (0.5 | ) |   | (0.5 | ) |
| Income from continuing operations                            | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (0.9 | ) |   | $ | (0.9 | ) |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Cost of Sales |   | General and Administrative Salaries |   | Other Operating Expenses |   | Other |   | Total Adjustments for Consistent Presentation |
| Net operating revenues                                       | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Less: Provision for doubtful accounts                        | — |  |   | — |  |   | — |  |   | (1.1 | ) |   | (1.1 | ) |
| Net operating revenues less provision for doubtful accounts  | — |  |   | — |  |   | — |  |   | (1.1 | ) |   | (1.1 | ) |
| Operating expenses:                                          |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                        | 114.7 |  |   | 48.6 |  |   | 24.7 |  |   | — |  |   | 188.0 |  |
| General and administrative salaries                          | — |  |   | (49.6 | ) |   | — |  |   | — |  |   | (49.6 | ) |
| Cost of sales                                                | (126.4 | ) |   | — |  |   | — |  |   | — |  |   | (126.4 | ) |
| Other operating expenses                                     | 7.6 |  |   | 0.9 |  |   | (29.2 | ) |   | (0.7 | ) |   | (21.4 | ) |
| Occupancy costs                                              | — |  |   | — |  |   | 4.5 |  |   | — |  |   | 4.5 |  |
| Supplies                                                     | 4.1 |  |   | — |  |   | — |  |   | — |  |   | 4.1 |  |
| General and administrative expenses                          | — |  |   | 0.1 |  |   | — |  |   | — |  |   | 0.1 |  |
| Depreciation and amortization                                | — |  |   | — |  |   | — |  |   | 1.3 |  |   | 1.3 |  |
| Total operating expenses                                     | — |  |   | — |  |   | — |  |   | 0.6 |  |   | 0.6 |  |
| Loss on early extinguishment of debt                         | — |  |   | — |  |   | — |  |   | 0.4 |  |   | 0.4 |  |
| Interest expense and amortization of debt discounts and fees | — |  |   | — |  |   | — |  |   | (0.4 | ) |   | (0.4 | ) |
| Other income                                                 | — |  |   | — |  |   | — |  |   | (0.4 | ) |   | (0.4 | ) |
| Income from continuing operations before income tax expense  | — |  |   | — |  |   | — |  |   | (1.3 | ) |   | (1.3 | ) |
| Provision for income tax expense                             | — |  |   | — |  |   | — |  |   | (0.5 | ) |   | (0.5 | ) |
| Income from continuing operations                            | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (0.8 | ) |   | $ | (0.8 | ) |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | reclassify the provision for doubtful accounts from other operating expenses to a reduction from net operating revenues; |

|         |                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | adjust the historical amortization of EHHI’s licenses; EHHI did not amortize these intangible assets while HealthSouth has assigned a 10-year life to them; |

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | reclassify EHHI’s loss on early extinguishment of debt from interest expense to loss on early extinguishment of debt; |

|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | reclassify management fees associated with EHHI’s former equity holders and non-income related tax amounts from other income to other operating expenses; and |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | provide for income taxes on these adjustments using HealthSouth’s historical effective income tax rate of 40%. |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Term Loan Facilities |   | Revolving Credit Facility |   | 5.75% Senior Notes due 2024 |   | Encompass Debt |   | Total Adjustments for Acquisition Related Debt |
| Interest expense and amortization of debt discounts and fees | $ | 3.5 |  |   | $ | 2.8 |  |   | $ | 23.0 |  |   | $ | (8.9 | ) |   | $ | 20.4 |  |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                         | Term Loan Facilities |   | Revolving Credit Facility |   | 5.75% Senior Notes due 2024 |   | Encompass Debt |   | Total Adjustments for Acquisition Related Debt |
| Interest expense and amortization of debt discounts and fees | $ | 2.7 |  |   | $ | 2.1 |  |   | $ | 16.4 |  |   | $ | (6.0 | ) |   | $ | 15.2 |  |

|         |                             |
|---------|-----------------------------|
| • | term loan facilities - 2.7% |

|         |                                  |
|---------|----------------------------------|
| • | revolving credit facility - 2.0% |

|         |                                                   |
|---------|---------------------------------------------------|
| • | senior notes - 5.8%, inclusive of financing costs |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
|                      | Year EndedDecember 31, 2013 |   | Nine Months Ended September 30, 2014 |
| Term loan facilities      | $ | 0.2 |  |   | $ | 0.1 |  |
| Revolving credit facility | 0.2 |  |   | 0.2 |  |
|                      | $ | 0.4 |  |   | $ | 0.3 |  |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Stock Compensation |   | Depreciation and Amortization |   | Other |   | Total Adjustments for Consistent Presentation |
| Operating expenses:                                               |   |   |   |   |   |   |   |
| Other operating expenses                                          | $ | — |  |   | $ | — |  |   | $ | (0.4 | ) |   | $ | (0.4 | ) |
| General and administrative expenses                               | 3.3 |  |   | — |  |   | — |  |   | 3.3 |  |
| Depreciation and amortization                                     | — |  |   | 5.4 |  |   | — |  |   | 5.4 |  |
| Total operating expenses                                          | 3.3 |  |   | 5.4 |  |   | (0.4 | ) |   | 8.3 |  |
| Loss on early extinguishment of debt                              | — |  |   | — |  |   | (0.6 | ) |   | (0.6 | ) |
| Income from continuing operations before income tax expense       | (3.3 | ) |   | (5.4 | ) |   | 1.0 |  |   | (7.7 | ) |
| Provision for income tax expense                                  | (1.3 | ) |   | (2.2 | ) |   | 0.4 |  |   | (3.1 | ) |
| Income from continuing operations                                 | (2.0 | ) |   | (3.2 | ) |   | 0.6 |  |   | (4.6 | ) |
| Less: Net income attributable to noncontrolling interest          | — |  |   | — |  |   | (2.9 | ) |   | (2.9 | ) |
| Net income from continuing operations attributable to HealthSouth | $ | (2.0 | ) |   | $ | (3.2 | ) |   | $ | (2.3 | ) |   | $ | (7.5 | ) |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Stock Compensation |   | Depreciation and Amortization |   | Other |   | Total Adjustments for Consistent Presentation |
| Operating expenses:                                               |   |   |   |   |   |   |   |
| Other operating expenses                                          | $ | — |  |   | $ | — |  |   | $ | (0.3 | ) |   | $ | (0.3 | ) |
| General and administrative expenes                                | 3.3 |  |   | — |  |   | — |  |   | 3.3 |  |
| Depreciation and amortization                                     | — |  |   | 4.1 |  |   | — |  |   | 4.1 |  |
| Total operating expenses                                          | 3.3 |  |   | 4.1 |  |   | (0.3 | ) |   | 7.1 |  |
| Loss on early extinguishment of debt                              | — |  |   | — |  |   | (0.4 | ) |   | (0.4 | ) |
| Income from continuing operations before income tax expense       | (3.3 | ) |   | (4.1 | ) |   | 0.7 |  |   | (6.7 | ) |
| Provision for income tax expense                                  | (1.4 | ) |   | (1.6 | ) |   | 0.3 |  |   | (2.7 | ) |
| Income from continuing operations                                 | (1.9 | ) |   | (2.5 | ) |   | 0.4 |  |   | (4.0 | ) |
| Less: Net income attributable to noncontrolling interest          | — |  |   | — |  |   | (2.9 | ) |   | (2.9 | ) |
| Net income from continuing operations attributable to HealthSouth | $ | (1.9 | ) |   | $ | (2.5 | ) |   | $ | (2.5 | ) |   | $ | (6.9 | ) |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Stock compensation - In conjunction with this acquisition, HealthSouth granted stock appreciation rights (“SARs”) based on Holdings’ common stock to certain members of Encompass management at closing on December 31, 2014. HealthSouth granted 122,976 SARs that vest based on continued employment and an additional 129,124 SARs that vest based on continued employment and the extent of Encompass’ attainment of a |

----

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Depreciation and amortization - Amounts included in the above table represent adjustments to depreciation and amortization expense based upon the estimated fair values of the property and equipment and definite-lived intangible assets acquired in the acquisition using their estimated remaining useful lives. |

|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other - Amounts included in the above table primarily include the elimination of management fees paid to EHHI’s former equity holders and the impact of noncontrolling interests. |