Exhibit 99.1

FOR IMMEDIATE RELEASE		4716 Old Gettysburg Road Mechanicsburg, PA 17055

Select Medical Corporation Announces Results for
Fourth Quarter and Year Ended December 31, 2006

     MECHANICSBURG, PENNSYLVANIA — March 28, 2007 — Select Medical Corporation (“Select”) today announced results for its fourth quarter and year ended December 31, 2006.

     On February 24, 2005, Select consummated a merger with a wholly-owned subsidiary of Select Medical Holdings Corporation (“Holdings”) pursuant to which Select became a wholly-owned subsidiary of Holdings. Holdings is owned by an investor group that includes Welsh, Carson, Anderson & Stowe IX, LP (“Welsh Carson”), Thoma Cressey Bravo (“Thoma Cressey”) and members of Select’s senior management. As a result of the merger, Select’s assets and liabilities have been adjusted to their fair value as of the closing. Select also experienced an increase in aggregate outstanding indebtedness as a result of financing transactions associated with the merger. Accordingly, amortization expense and interest expense are higher in periods following the merger. Additionally, certain costs associated with the merger are reflected in the 2005 income statement periods. As a result, the financial statements for the periods before and after the merger are not comparable in certain respects. For ease of comparison, the 2005 financial data presented represents the combination of the period before the Merger, January 1, 2005 through February 24, 2005 with the period subsequent to the Merger, February 25, 2005 through December 31, 2005.

     For the fourth quarter ended December 31, 2006, net operating revenues decreased 2.7% to $445.7 million compared to $458.0 million for the same quarter, prior year. Income from operations decreased 8.8% to $59.1 million compared to $64.8 million for the same quarter, prior year. Net income increased 29.7% to $32.8 million compared to $25.3 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, income from discontinued operations, loss on early retirement of debt, merger related charges, stock compensation expense, long-term incentive compensation, other income and minority interest (“Adjusted EBITDA”) for the fourth quarter decreased 7.3% to $71.8 million compared to $77.4 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     For the year ended December 31, 2006, net operating revenues decreased 0.4% to $1,851.5 million compared to $1,858.4 million for the prior year. Income from operations increased 116.5% to $257.9 million compared to $119.1 million for the prior year. Net income was $118.2 million compared to a net loss of $14.7 million for the prior year. Additionally, Adjusted EBITDA for the year ended December 31, 2006 decreased 6.5% to $308.3 million compared to $329.9 million for the prior year.

     On March 1, 2006, a subsidiary of Select sold all the issued and outstanding shares of Canadian Back Institute Limited (“CBIL”) for approximately C$89.8 million in cash (US $79.0 million). CBIL comprised Select’s entire Canadian operations. As a result of the sale, the operating results of CBIL have been reclassified and reported as discontinued operations for all reported periods, and its assets and liabilities have been reclassified as held for sale on Select’s December 31, 2005 balance sheet.

Specialty Hospitals

     At December 31, 2006, Select operated 92 long-term acute care hospitals and four acute medical rehabilitation hospitals. This compares to 97 long-term acute care hospitals and four acute medical rehabilitation hospitals operated at December 31, 2005. For the fourth quarter of 2006, net operating revenues for all of Select’s hospitals decreased 3.6% to $328.8 million compared to $341.1 million for the same quarter, prior year. Total patient days for the fourth quarter 2006 were 235,520, admissions were 9,546 and net revenue per patient day was $1,366. This compares to 245,165 days, 9,907 admissions and net revenue per patient day of $1,367 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2005 and operated by Select throughout both periods, patient days in the fourth quarter of 2006 were 233,852 and admissions were 9,487, compared to 238,068 days and 9,662 admissions in the same quarter, prior year. Adjusted EBITDA for the segment decreased 10.7% to $65.1 million compared to $72.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 19.8% for the fourth quarter of 2006, compared to 21.4% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2005 and operated by Select throughout both periods was 21.0% for the fourth quarter of 2006, compared to 21.5% for the same quarter, prior year.

     For the year ended December 31, 2006, net operating revenues for all of Select’s hospitals increased 0.4% to $1,378.5 million compared to $1,372.5 million for the prior year. Total patient days for the year ended December 31, 2006 were 969,590, admissions were 39,668 and net revenue per patient day was $1,392. This compares to 985,025 days, 39,963 admissions and net revenue per patient day of $1,370 for the prior year. For the hospitals opened or acquired as of January 1, 2005 and operated by Select throughout both periods, patient days for the year ended December 31, 2006 were 951,872 and admissions were 39,026, compared to 948,916 days and 38,707 admissions in the prior year. Adjusted EBITDA for the segment for the year ended December 31, 2006 decreased 8.1% to $283.3 million compared to $308.1 million for the prior year. The Adjusted EBITDA margin for the segment for the year ended December 31, 2006 was 20.5%, compared to 22.5% for the prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2005 and operated by Select throughout both periods was 21.6% for the year ended December 31, 2006, compared to 22.9% for the prior year.

Outpatient Rehabilitation

     At December 31, 2006, Select operated 544 outpatient clinics. This compares to 608 outpatient clinics at December 31, 2005. For the fourth quarter of 2006, net operating revenues were $116.4 million compared to $116.3 million for the same quarter, prior year. Adjusted EBITDA for the fourth quarter increased 17.4% to $15.9 million compared to $13.5 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 13.7% compared to 11.6% in the same quarter, prior year. Patient visits for the quarter were 711,163 compared to 776,463 for the same quarter, prior year. Net revenue per visit was $98 for the fourth quarter of 2006 compared to $90 for the same quarter, prior year.

     For the year ended December 31, 2006, net operating revenues declined 2.2% to $470.3 million compared to $480.7 million for the prior year. Adjusted EBITDA for the year ended December 31, 2006 declined 1.7% to $64.8 million compared to $66.0 million for the prior year. The Adjusted EBITDA margin for the year ended December 31, 2006 was 13.8% compared to 13.7% in the prior year. Patient

visits for the year ended December 31, 2006 were 2,972,243 compared to 3,308,620 for the prior year. Net revenue per visit was $94 for the year ended December 31, 2006 compared $89 for the prior year.

Agreement to Purchase HealthSouth Corporation Outpatient Rehabilitation Division

     On January 27, 2007, Select and HealthSouth Corporation (“HealthSouth”) entered into a Stock Purchase Agreement, pursuant to which Select agreed to acquire the outpatient rehabilitation division of HealthSouth for approximately $245.0 million. The purchase price is subject to adjustment based on the division’s net working capital on the closing date.

     The HealthSouth transaction, which is expected to close in the second quarter of 2007, is subject to a number of closing conditions, including receipt of regulatory approvals.

Agreement to Purchase Nexus Health Systems, Inc.

     On March 26, 2007, Select entered into a Stock Purchase Agreement with Nexus Health Systems, Inc. (“Nexus”), Neurobehavioral Management Services L.L.C., Nexus Health Inc. and the stockholders of Nexus Health Systems, Inc. to acquire substantially all of the assets of Nexus for approximately $49.0 million in cash plus the assumption of a capital lease. The purchase price is subject to adjustment based on Nexus’s net working capital, cash and indebtedness on the closing date.

     The Nexus transaction, which is expected to close in the second quarter of 2007, is subject to a number of closing conditions, including receipt of regulatory approvals.

Conference Call

     Select will host a conference call regarding its fourth quarter and full year results on Thursday, March 29, 2007, at 11:00 am EDT. The domestic dial in number for the call is 1-866-793-1343. The international dial in number is 1-703-639-1314.

* * * * *

     Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 89 long-term acute care hospitals in 26 states. Select operates four acute medical rehabilitation hospitals in New Jersey. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 544 locations. Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. Information about Select is available at http://www.selectmedicalcorp.com/

     Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to those discussed in filings made by Select with the Securities and Exchange Commission. Many of the factors that will determine Select’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. Select undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Investor inquiries:

Joel Veit, 717/972-1100

I. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Three Months Ended December 31, 2005 and 2006

										%
		2005				2006				Change
Net operating revenues		$	457,958			$	445,742				(2.7	)%
Costs and expenses:
Cost of services			368,795				364,865				(1.1	)%
General and administrative			10,534				10,003				(5.0	)%
Bad debt expense			3,969				44				(98.9	)%
Depreciation and amortization			9,812				11,713				19.4	%
Income from operations			64,848				59,117				(8.8	)%
Other income			2,360				448				(81.0	)%
Interest income			256				555				116.8	%
Interest expense			(23,631	)			(24,673	)			4.4	%
Income from continuing operations before minority interests and income taxes			43,833				35,447				(19.1	)%
Minority interests			426				319				(25.1	)%
Income from continuing operations before income taxes			43,407				35,128				(19.1	)%
Income tax expense			17,847				4,811				(73.0	)%
Income from continuing operations			25,560				30,317				18.6	%
Income (loss) from discontinued operations, net of tax			(295	)			2,460				N/M
Net income		$	25,265			$	32,777				29.7	%

II. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Years Ended December 31, 2005 and 2006

		Predecessor(1)					Successor(1)				Combined (2)				Successor (1)
		Period from					Period from
		January 1					February 25
		through					through				Year Ended				Year Ended
		February 24,					December				December 31,				December 31,
		2005					31, 2005				2005				2006				% Change
Net operating revenues		$	277,736				$	1,580,706			$	1,858,442			$	1,851,498				(0.4	)%
Costs and expenses:
Cost of services			244,321					1,244,361				1,488,682				1,484,632				(0.3	)%
General and administrative			122,509					59,494				182,003				43,514				(76.1	)%
Bad debt expense			6,588					18,213				24,801				18,810				(24.2	)%
Depreciation and amortization			5,933					37,922				43,855				46,668				6.4	%
Income (loss) from operations			(101,615	)				220,716				119,101				257,874				116.5	%
Loss on early retirement of debt			(42,736	)				—				(42,736	)			—				N/M
Merger related charges			(12,025	)				—				(12,025	)			—				N/M
Other income			267					3,018				3,285				1,366				(58.4	)%
Interest income			523					767				1,290				1,293				0.2	%
Interest expense			(4,651	)				(83,752	)			(88,403	)			(97,288	)			10.1	%
Income (loss) from continuing operations before minority interests and income taxes			(160,237	)				140,749				(19,488	)			163,245				N/M
Minority interests			330					1,776				2,106				1,414				(32.9	)%
Income (loss) from continuing operations before income taxes			(160,567	)				138,973				(21,594	)			161,831				N/M
Income tax expense (benefit)			(59,794	)				56,470				(3,324	)			56,089				N/M
Income (loss) from continuing operations			(100,773	)				82,503				(18,270	)			105,742				N/M
Income from discontinued operations, net of tax (includes pretax gain of $13,950 in 2006)			522					3,072				3,594				12,478				247.2	%
Net income (loss)		$	(100,251	)			$	85,575			$	(14,676	)		$	118,220				N/M

III. Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)

		December 31,				December 31,
		2005				2006
Assets
Cash		$	35,861			$	81,600
Restricted cash			6,345				4,335
Accounts receivable, net			256,798				199,927
Current deferred tax asset			59,135				42,613
Prepaid taxes			4,110				—
Current assets held for sale			13,876				—
Other current assets			19,725				16,762
Total Current Assets			395,850				345,237
Property and equipment, net			248,541				356,336
Goodwill			1,305,210				1,323,572
Other identifiable intangibles			86,789				79,230
Other assets held for sale			61,388				4,855
Other assets			65,591				68,412
Total Assets		$	2,163,369			$	2,177,642
Liabilities and Stockholder’s Equity
Payables and accruals		$	296,765			$	297,698
Income taxes payable			—				1,937
Current liabilities held for sale			4,215				—
Current portion of long term debt			6,516				6,209
Total Current Liabilities			307,496				305,844
Long term debt, net of current portion			1,315,764				1,224,509
Non-current deferred tax liability			25,771				30,721
Non-current liabilities held for sale			3,817				—
Minority interests			4,356				2,566
Stockholder’s equity			506,165				614,002
Total Liabilities and Stockholder’s Equity		$	2,163,369			$	2,177,642

IV. Key Statistics
(unaudited)
For the Three Months Ended December 31, 2005 and 2006

										%
		2005				2006				Change
Specialty Hospitals (a)
Number of hospitals — end of period			101				96				(5.0	)%
Net operating revenues (,000)		$	341,096			$	328,775				(3.6	)%
Number of patient days			245,165				235,520				(3.9	)%
Number of admissions			9,907				9,546				(3.6	)%
Net revenue per patient day (b)		$	1,367			$	1,366				(0.1	)%
Adjusted EBITDA (,000)		$	72,833			$	65,067				(10.7	)%
Adjusted EBITDA margin — all hospitals			21.4	%			19.8	%			(7.5	)%
Adjusted EBITDA margin — same store hospitals (c)			21.5	%			21.0	%			(2.3	)%
Outpatient Rehabilitation (d)
Number of clinics — end of period			608				544				(10.5	)%
Net operating revenues (,000)		$	116,348			$	116,365				0.0	%
Number of visits			776,463				711,163				(8.4	)%
Revenue per visit (e)		$	90			$	98				8.9	%
Adjusted EBITDA (,000)		$	13,543			$	15,903				17.4	%
Adjusted EBITDA margin			11.6	%			13.7	%			18.1	%

V. Key Statistics
(unaudited)
For the Years Ended December 31, 2005 and 2006

										%
		2005				2006				Change
Specialty Hospitals (a)
Number of hospitals — end of period			101				96				(5.0	)%
Net operating revenues (,000)		$	1,372,483			$	1,378,543				0.4	%
Number of patient days			985,025				969,590				(1.6	)%
Number of admissions			39,963				39,668				(0.7	)%
Net revenue per patient day (b)		$	1,370			$	1,392				1.6	%
Adjusted EBITDA (,000)		$	308,144			$	283,270				(8.1	)%
Adjusted EBITDA margin — all hospitals			22.5	%			20.5	%			(8.9	)%
Adjusted EBITDA margin — same store hospitals (c)			22.9	%			21.6	%			(5.7	)%
Outpatient Rehabilitation (d)
Number of clinics — end of period			608				544				(10.5	)%
Net operating revenues (,000)		$	480,711			$	470,339				(2.2	)%
Number of visits			3,308,620				2,972,243				(10.2	)%
Revenue per visit (e)		$	89			$	94				5.6	%
Adjusted EBITDA (,000)		$	65,957			$	64,823				(1.7	)%
Adjusted EBITDA margin			13.7	%			13.8	%			0.7	%

VI. Net Income to Adjusted EBITDA Reconciliation
(In thousands)
(unaudited)
For the Three Months and Years Ended December 31, 2005 and 2006

     The following table reconciles net income (loss) to Adjusted EBITDA for Select. Adjusted EBITDA is used by Select to report its segment performance in accordance with SFAS No. 131. Adjusted EBITDA is defined as net income (loss) before interest, income taxes, depreciation and amortization, income from discontinued operations, loss on early retirement of debt, merger related charges, stock compensation expense, long-term incentive compensation, other income, and minority interest. We believe that the presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is used by management to evaluate financial performance and determine resource allocation for each of our operating units.

     Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.

										Predecessor (1)					Successor (1)				Combined (2)				Successor (1)
		Successor (1)								Period from					Period from
		Three Months Ended								January 1					February 25				For the				For the
		December 31,								through					through				Year Ended				Year Ended
		2005				2006				February 24, 2005					December 31, 2005				December 31, 2005				December 31, 2006
Net income (loss)		$	25,265			$	32,777			$	(100,251	)			$	85,575			$	(14,676	)		$	118,220
Income (loss) from discontinued operations, net of tax			295				(2,460	)			(522	)				(3,072	)			(3,594	)			(12,478	)
Income tax expense (benefit)			17,847				4,811				(59,794	)				56,470				(3,324	)			56,089
Minority interest			426				319				330					1,776				2,106				1,414
Interest expense, net			23,375				24,118				4,128					82,985				87,113				95,995
Other income			(2,360	)			(448	)			(267	)				(3,018	)			(3,285	)			(1,366	)
Loss on early retirement of debt			—				—				42,736					—				42,736				—
Merger related charges			—				—				12,025					—				12,025				—
Stock compensation expense
Included in general and administrative			2,696				888				115,025					10,134				125,159				3,551
Included in cost of services			49				57				27,188					178				27,366				231
Long-term incentive compensation (3)			—				—				—					14,453				14,453				—
Depreciation and amortization			9,812				11,713				5,933					37,922				43,855				46,668
Adjusted EBITDA		$	77,405			$	71,775			$	46,531				$	283,403			$	329,934			$	308,324
Specialty hospitals		$	72,833			$	65,067			$	44,384				$	263,760			$	308,144			$	283,270
Outpatient rehabilitation			13,543				15,903				9,848					56,109				65,957				64,823
Other (4)			(8,971	)			(9,195	)			(7,701	)				(36,466	)			(44,167	)			(39,769	)
Adjusted EBITDA		$	77,405			$	71,775			$	46,531				$	283,403			$	329,934			$	308,324

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		December 31, 2005				December 31, 2006
Specialty hospitals net operating revenue		$	341,096			$	328,775
Less: Specialty hospitals in development, opened or closed after 1/1/05			9,982				1,817
Specialty hospitals same store net operating revenue		$	331,114			$	326,958
Specialty hospitals Adjusted EBITDA		$	72,833			$	65,067
Less: Specialty hospitals in development, opened or closed after 1/1/05			1,496				(3,673	)
Specialty hospitals same store Adjusted EBITDA		$	71,337			$	68,740
All specialty hospitals Adjusted EBITDA margin			21.4	%			19.8	%
Specialty hospitals same store Adjusted EBITDA margin			21.5	%			21.0	%

		Year Ended
		December 31, 2005				December 31, 2006
Specialty hospitals net operating revenue		$	1,372,483			$	1,378,543
Less: Specialty hospitals in development, opened or closed after 1/1/05			49,046				23,764
Specialty hospitals same store net operating revenue		$	1,323,437			$	1,354,779
Specialty hospitals Adjusted EBITDA		$	308,144			$	283,270
Less: Specialty hospitals in development, opened or closed after 1/1/05			5,404				(9,344	)
Specialty hospitals same store Adjusted EBITDA		$	302,740			$	292,614
All specialty hospitals Adjusted EBITDA margin			22.5	%			20.5	%
Specialty hospitals same store Adjusted EBITDA margin			22.9	%			21.6	%

VII. Discontinued Operations Income Statement
(In thousands)
(unaudited)
For the Three Months and Years Ended December 31, 2005 and 2006

The following table summarizes the income statement information relating to our discontinued operations of CBIL sold on March 1, 2006:

		Successor (1)								Predecessor (1)				Successor (1)				Combined (2)				Successor (1)
										Period from				Period from
										January 1				February 25
		For the Three Months								through				through
		Ended December 31,								February 24,				December 31 ,				For the Year Ended December 31,
		2005				2006				2005				2005				2005				2006
Net operating revenues		$	18,459			$	—			$	10,051			$	60,161			$	70,212			$	12,902
Costs and expenses:
Cost of services			15,098				—				8,295				48,397				56,692				10,733
Bad debt expense			205				—				73				386				459				87
Depreciation and amortization			350				—				244				1,138				1,382				176
Income from discontinued operations			2,806				—				1,439				10,240				11,679				1,906
Other expense			434				—				267				1,092				1,359				—
Gain on sale			—				—				—				—				—				(13,950	)
Interest expense (income)			(452	)			—				83				(224	)			(141	)			(31	)
Income from discontinued operations before minority interests and income taxes			2,824				—				1,089				9,372				10,461				15,887
Minority interests			257				—				139				1,242				1,381				340
Income from discontinued operations before income taxes			2,567				—				950				8,130				9,080				15,547
Income tax expense (benefit)			2,862				(2,460	)			428				5,058				5,486				3,069
Income (loss) from discontinued operations, net of tax		$	(295	)		$	2,460			$	522			$	3,072			$	3,594			$	12,478