July 21, 2005

BIRMINGHAM, AL — The UAB Health System and HealthSouth Corporation (OTC Pinksheets: HLSH) have reached an agreement for UAB to purchase the HealthSouth Medical Center on the southside of Birmingham for $33 million. The purchase is contingent upon regulatory approval, which UAB hopes to obtain in the next few months.

In the interim, the UAB Health System and HealthSouth have agreed upon terms whereby the UAB Health System will undertake management of the hospital effective August 1.

“Through these agreements, we will be able to continue to provide high-quality care in this facility for our community,” said David Hoidal, CEO of the UAB Health System. “Additionally, this enables UAB Hospital to grow its physical plant to meet the expanding demand for patient services.”

“For years, HealthSouth Medical Center’s employees have provided the highest quality care possible,” said Jay Grinney, president and CEO of HealthSouth. “These steps help ensure that their great work will continue as HealthSouth focuses on its core business of inpatient and outpatient rehabilitation, ambulatory surgery and diagnostics.”

UAB still is determining which services will be available in the facility.