----

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                  | For the Year Ended December 31, 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                                                                                | $ | 2,405.9 |  |   | $ | 368.9 |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 2,774.8 |  |
| Less: Provision for doubtful accounts                                                                 | (31.6 | ) |   | — |  |   | (1.6 | ) |   | — |  |   | — |  |   | (33.2 | ) |
| Net operating revenues less provision for doubtful accounts                                           | 2,374.3 |  |   | 368.9 |  |   | (1.6 | ) |   | — |  |   | — |  |   | 2,741.6 |  |
| Operating expenses:                                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                                                                 | 1,161.7 |  |   | — |  |   | 272.6 |  |   | — |  |   | (14.3 | ) |   | 1,420.0 |  |
| General and administrative salaries                                                                   | — |  |   | 81.3 |  |   | (81.3 | ) |   | — |  |   | — |  |   | — |  |
| Cost of sales                                                                                         | — |  |   | 175.0 |  |   | (175.0 | ) |   | — |  |   | — |  |   | — |  |
| Other operating expenses                                                                              | 351.6 |  |   | 73.0 |  |   | (29.4 | ) |   | — |  |   | (11.7 | ) |   | 383.5 |  |
| Occupancy costs                                                                                       | 41.6 |  |   | — |  |   | 6.1 |  |   | — |  |   | — |  |   | 47.7 |  |
| Supplies                                                                                              | 111.9 |  |   | — |  |   | 5.7 |  |   | — |  |   | — |  |   | 117.6 |  |
| General and administrative expenses                                                                   | 124.8 |  |   | — |  |   | 0.2 |  |   | — |  |   | (2.9 | ) |   | 122.1 |  |
| Depreciation and amortization                                                                         | 107.7 |  |   | 5.4 |  |   | 1.8 |  |   | — |  |   | 5.4 |  |   | 120.3 |  |
| Government, class action, and related settlements                                                     | (1.7 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (1.7 | ) |
| Professional fees - accounting, tax, and legal                                                        | 9.3 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9.3 |  |
| Total operating expenses                                                                              | 1,906.9 |  |   | 334.7 |  |   | 0.7 |  |   | — |  |   | (23.5 | ) |   | 2,218.8 |  |
| Loss on early extinguishment of debt                                                                  | 13.2 |  |   | 2.8 |  |   | — |  |   | (2.8 | ) |   | — |  |   | 13.2 |  |
| Interest expense and amortization of debt discounts and fees                                          | 109.2 |  |   | 8.7 |  |   | — |  |   | 17.6 |  |   | — |  |   | 135.5 |  |
| Other income                                                                                          | (31.2 | ) |   | 0.5 |  |   | (0.5 | ) |   | — |  |   | — |  |   | (31.2 | ) |
| Equity in net income of nonconsolidated affiliates                                                    | (10.7 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (10.7 | ) |
| Income from continuing operations before income tax expense                                           | 386.9 |  |   | 22.2 |  |   | (1.8 | ) |   | (14.8 | ) |   | 23.5 |  |   | 416.0 |  |
| Provision for income tax expense                                                                      | 110.7 |  |   | 9.2 |  |   | (0.7 | ) |   | (5.9 | ) |   | 9.4 |  |   | 122.7 |  |
| Income from continuing operations                                                                     | 276.2 |  |   | 13.0 |  |   | (1.1 | ) |   | (8.9 | ) |   | 14.1 |  |   | 293.3 |  |
| Less: Net income attributable to noncontrolling interest                                              | (59.7 | ) |   | — |  |   | — |  |   | — |  |   | (4.7 | ) |   | (64.4 | ) |
| Net income from continuing operations attributable to HealthSouth                                     | 216.5 |  |   | 13.0 |  |   | (1.1 | ) |   | (8.9 | ) |   | 9.4 |  |   | 228.9 |  |
| Less: Convertible perpetual preferred stock dividends                                                 | (6.3 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (6.3 | ) |
| Net income from continuing operations attributable to HealthSouth common shareholders                 | $ | 210.2 |  |   | $ | 13.0 |  |   | $ | (1.1 | ) |   | (8.9 | ) |   | 9.4 |  |   | $ | 222.6 |  |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding:                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                 | 86.8 |  |   |   |   |   |   |   |   |   |   | 86.8 |  |
| Diluted                                                                                               | 100.7 |  |   |   |   |   |   |   |   |   |   | 100.7 |  |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share from continuing operations attributable to HealthSouth common shareholders: |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                                 | $ | 2.40 |  |   |   |   |   |   |   |   |   |   | $ | 2.53 |  |
| Diluted                                                                                               | $ | 2.24 |  |   |   |   |   |   |   |   |   |   | $ | 2.37 |  |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | Cost of Sales |   | General and Administrative Salaries |   | Other Operating Expenses |   | Other |   | Total Adjustments for Consistent Presentation |
| Net operating revenues                                      | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Less: Provision for doubtful accounts                       | — |  |   | — |  |   | — |  |   | (1.6 | ) |   | (1.6 | ) |
| Net operating revenues less provision for doubtful accounts | — |  |   | — |  |   | — |  |   | (1.6 | ) |   | (1.6 | ) |
| Operating expenses:                                         |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                       | 158.7 |  |   | 79.9 |  |   | 34.0 |  |   | — |  |   | 272.6 |  |
| General and administrative salaries                         | — |  |   | (81.3 | ) |   | — |  |   | — |  |   | (81.3 | ) |
| Cost of sales                                               | (175.0 | ) |   | — |  |   | — |  |   | — |  |   | (175.0 | ) |
| Other operating expenses                                    | 10.6 |  |   | 1.2 |  |   | (40.1 | ) |   | (1.1 | ) |   | (29.4 | ) |
| Occupancy costs                                             | — |  |   | — |  |   | 6.1 |  |   | — |  |   | 6.1 |  |
| Supplies                                                    | 5.7 |  |   | — |  |   | — |  |   | — |  |   | 5.7 |  |
| General and administrative expenses                         | — |  |   | 0.2 |  |   | — |  |   | — |  |   | 0.2 |  |
| Depreciation and amortization                               | — |  |   | — |  |   | — |  |   | 1.8 |  |   | 1.8 |  |
| Total operating expenses                                    | — |  |   | — |  |   | — |  |   | 0.7 |  |   | 0.7 |  |
| Other income                                                | — |  |   | — |  |   | — |  |   | (0.5 | ) |   | (0.5 | ) |
| Income from continuing operations before income tax expense | — |  |   | — |  |   | — |  |   | (1.8 | ) |   | (1.8 | ) |
| Provision for income tax expense                            | — |  |   | — |  |   | — |  |   | (0.7 | ) |   | (0.7 | ) |
| Income from continuing operations                           | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (1.1 | ) |   | $ | (1.1 | ) |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | 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 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 |  |   | $ | 19.7 |  |   | $ | (8.4 | ) |   | $ | 17.6 |  |

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

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

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

|                           |
|---------------------------|
|                           |  |  |  |
|                      | Year EndedDecember 31, 2014 |
| Term loan facilities      | $ | 0.2 |  |
| Revolving credit facility | 0.2 |  |
|                      | $ | 0.4 |  |

----

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                              | Stock Compensation |   | Depreciation and Amortization |   | Transaction Costs |   | Other |   | Total Adjustments for Allocation of Acquisition Consideration |
| Operating expenses:                                               |   |   |   |   |   |   |   |   |   |
| Salaries and benefits                                             | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (14.3 | ) |   | $ | (14.3 | ) |
| Other operating expenses                                          | — |  |   | — |  |   | (11.3 | ) |   | (0.4 | ) |   | (11.7 | ) |
| General and administrative expenses                               | 6.4 |  |   | — |  |   | (9.3 | ) |   | — |  |   | (2.9 | ) |
| Depreciation and amortization                                     | — |  |   | 5.4 |  |   |   |   | — |  |   | 5.4 |  |
| Total operating expenses                                          | 6.4 |  |   | 5.4 |  |   | (20.6 | ) |   | (14.7 | ) |   | (23.5 | ) |
| Other income                                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Income from continuing operations before income tax expense       | (6.4 | ) |   | (5.4 | ) |   | 20.6 |  |   | 14.7 |  |   | 23.5 |  |
| Provision for income tax expense                                  | (2.5 | ) |   | (2.2 | ) |   | 8.2 |  |   | 5.9 |  |   | 9.4 |  |
| Income from continuing operations                                 | (3.9 | ) |   | (3.2 | ) |   | 12.4 |  |   | 8.8 |  |   | 14.1 |  |
| Less: Net income attributable to noncontrolling interest          | — |  |   | — |  |   | — |  |   | (4.7 | ) |   | (4.7 | ) |
| Net income from continuing operations attributable to HealthSouth | $ | (3.9 | ) |   | $ | (3.2 | ) |   | $ | 12.4 |  |   | $ | 4.1 |  |   | $ | 9.4 |  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 target 2017 specified performance measure. In general terms, half of the SARs of each type will vest on December 31, 2018 with the remainder vesting on December 31, 2019. The SARs that ultimately vest will expire on the tenth anniversary of the grant date or within a specified period following any earlier termination of employment. Upon exercise, each SAR must be settled for cash in the amount by which the per share fair value of Holdings’ common stock on the exercise date exceeds the agreed upon per share fair value on the acquisition date. The fair value of Holdings’ common stock is determined using the product of the trailing 12-month specified performance measure for Holdings and a specified median market price multiple based on a basket of public home health companies. Amounts in the above table include HealthSouth’s estimate of expense expected to be recorded for these awards. This estimate includes many assumptions related to pricing and volume, operating expenses, discount factors, tax rates, etc. Changes in economic and operating conditions impacting these assumptions could result in a different amount recorded in the future, and such differences could be material. |

|         |                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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. |

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|         |                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Transaction costs - Amounts included in the above table represent the direct incremental costs of the acquisition that are reported in the historical statements of operations of HealthSouth and EHHI and must be eliminated from the pro forma statement of operations of the combined entity. |

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