FOR IMMEDIATE RELEASE		4716 Old Gettysburg Road Mechanicsburg, PA 17055

Select Medical Corporation Announces Results for
Third Quarter and Nine Months Ended September 30, 2006

     MECHANICSBURG, PENNSYLVANIA — November 10, 2006 — Select Medical Corporation (“Select”) today announced results for its third quarter and nine months ended September 30, 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 Equity Partners, Inc. (“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 the third quarter ended September 30, 2006, net operating revenues decreased 3.6% to $443.9 million compared to $460.7 million for the same quarter, prior year. Income from operations was $54.3 million compared to $53.8 million for the same quarter, prior year. Net income was $16.1 million compared to $17.8 million for the same quarter, prior year. Net income before interest, income taxes, depreciation and amortization, other income, income from discontinued operations, loss on early retirement of debt, merger related charges, stock compensation expense, long-term incentive compensation and minority interest (“Adjusted EBITDA”) for the third quarter ended September 30, 2006 decreased 16.9% to $67.7 million compared to $81.5 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     For the nine months ended September 30, 2006, net operating revenues increased 0.4% to $1,405.8 million compared to $1,400.5 million for the same period, prior year. Income from operations was $198.8 million compared to $54.3 million for the same period, prior year. Net income was $85.4 million compared to a loss of $39.9 million for the same period, prior year. As a result of the merger, Select incurred substantial costs related to stock compensation expense, loss on early retirement of debt and merger related charges that contributed to the lower income from operations and net loss experienced for the combined nine months ended September 30, 2005. Adjusted EBITDA for the nine months ended September 30, 2006 declined 6.3% to $236.5 million compared to $252.5 million for the same period, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     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 September 30, 2006, Select operated 93 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 September 30, 2005. For the third quarter of 2006, net operating revenues for all of Select’s hospitals decreased 3.7% to $329.3 million compared to $341.8 million for the same quarter, prior year. Total patient days for the third quarter of 2006 were 236,094, admissions were 9,485 and net revenue per patient day was $1,361. This compares to 242,850 patient days, 9,725 admissions and net revenue per patient day of $1,385 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 third quarter of 2006 were 231,818 and admissions were 9,354, compared to 234,808 patient days and 9,453 admissions in the same quarter, prior year. Adjusted EBITDA for the segment for the third quarter decreased 21.6% to $60.8 million compared to $77.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 18.5% for the third quarter of 2006, compared to 22.7% 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 19.7% for the third quarter of 2006, compared to 23.1% for the same quarter, prior year. The decline in the Specialty Hospitals’ net operating revenues and Adjusted EBITDA is primarily a result of a decrease in Medicare net revenues due to LTACH regulatory changes that have reduced the payment rates and a decline in Medicare volume. See “LTACH Regulations” below for a description of these regulatory changes.

     For the nine months ended September 30, 2006, net operating revenues for all of Select’s hospitals increased 1.8% to $1,049.8 million compared to $1,031.4 million for the same period, prior year. Total patient days for the nine months ended September 30, 2006 were 734,070, admissions were 30,122 and net revenue per patient day was $1,401. This compares to 739,860 patient days, 30,056 admissions and net revenue per patient day of $1,371 for the same period, prior year. For the hospitals opened or acquired as of January 1, 2005 and operated by Select throughout both periods, patient days for the nine months ended September 30, 2006 were 718,020 and admissions were 29,539, compared to 710,848 patient days and 29,045 admissions in the same period, prior year. Adjusted EBITDA for the segment decreased 7.3% to $218.2 million compared to $235.3 million for the same period, prior year. The Adjusted EBITDA margin for the segment was 20.8% for the nine months ended September 30, 2006, compared to 22.8% for the same period, 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 21.8% for the nine months ended September 30, 2006, compared to 23.3% for the same period, prior year. The decline in Adjusted EBITDA for the nine months ended September 30, 2006 is primarily the result of the decrease in the Adjusted EBITDA that occurred in the third quarter as described above.

Outpatient Rehabilitation

     At September 30, 2006, Select operated 605 outpatient clinics. This compares to 621 outpatient clinics at September 30, 2005. Patient visits for the third quarter were 714,064 compared to 805,018 for the same quarter, prior year. For the third quarter of 2006, net operating revenues decreased 3.6% to $114.0 million compared to $118.3 million for the same quarter, prior year. The decline in net operating revenues and patient visits was principally related to a decline in the number of clinics we own and operate and a decline in the volume of visits per clinic. We are continuing to experience declines in our patient visits in a number of markets that result from physicians opening competing physical therapy

practices. Adjusted EBITDA for the third quarter of 2006 increased 2.8% to $15.7 million compared to $15.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 13.8% compared to 12.9% in the same quarter, prior year. Net revenue per visit was $95 for the third quarter of 2006 compared to $89 for the same quarter, prior year.

     Patient visits for the nine months ended September 30, 2006 were 2,261,080 compared to 2,532,157 for the same period, prior year. For the nine months ended September 30, 2006, net operating revenues declined 2.9% to $354.0 million compared to $364.4 million for the same period, prior year. Adjusted EBITDA for the nine months ended September 30, 2006 declined 6.7% to $48.9 million compared to $52.4 million for the same period, prior year. The Adjusted EBITDA margin for the nine months ended September 30, 2006 was 13.8% compared to 14.4% in the same period, prior year. Net revenue per visit was $93 for the nine months ended September 30, 2006 compared to $89 for the same period, prior year.

LTACH Regulations

     On May 2, 2006, CMS released its final annual payment rate updates for the 2007 LTCH-PPS rate year (affecting discharges and cost reporting periods beginning on or after July 1, 2006 and before July 1, 2007). The May 2006 final rule made several changes to LTCH-PPS payment methodologies and amounts.

     For discharges occurring on or after July 1, 2006, the rule changes the payment methodology for Medicare patients with a length of stay less than or equal to five-sixths of the geometric average length of stay for each LTC-DRG (referred to as “short-stay outlier” or “SSO” cases). Previously, payment for these patients was based on the lesser of (1) 120 percent of the cost of the case; (2) 120 percent of the LTC-DRG specific per diem amount multiplied by the patient’s length of stay; or (3) the full LTC-DRG payment. The final rule modifies the limitation in clause (1) above to reduce payment for SSO cases to 100 percent (rather than 120 percent) of the cost of the case. The final rule also adds a fourth limitation, capping payment for SSO cases at a per diem rate derived from blending 120 percent of the LTC-DRG specific per diem amount with a per diem rate based on the general acute care hospital inpatient prospective payment system (“IPPS”). Under this methodology, as a patient’s length of stay increases, the percentage of the per diem amount based upon the IPPS component will decrease and the percentage based on the LTC-DRG component will increase.

     In addition, for discharges occurring on or after July 1, 2006, the final rule provides for (i) a zero-percent update for the 2007 LTCH-PPS rate year to the LTCH-PPS standard federal rate used as a basis for LTCH-PPS payments; (ii) the elimination of the surgical case exception to the three-day or less interruption of stay policy, under which surgical exception Medicare reimburses a general acute care hospital directly for surgical services furnished to a long-term acute care hospital patient during a brief interruption of stay from the long-term acute care hospital, rather than requiring the long-term acute care hospital to bear responsibility for such surgical services; and (iii) increasing the costs that a long-term acute care hospital must bear before Medicare will make additional payments for a case under its high-cost outlier policy for the 2007 LTCH-PPS rate year.

     CMS estimates that the changes in the May 2006 final rule will result in an approximately 3.7 percent decrease in LTCH Medicare payments-per-discharge as compared to the 2006 rate year, largely attributable to the revised SSO payment methodology. Based upon Select’s historical Medicare patient volumes and revenues, Select expects that the May 2006 final rule will reduce Medicare revenues associated with SSO cases and high cost outlier cases to its long-term acute care hospitals by approximately $30.0 million on an annual basis. For the three months ended September 30, 2006, Select estimates the reduction in Medicare payments for discharges occurring during this period related to the rule change approximated $7.2 million.

     Additionally, had CMS updated the LTCH-PPS standard federal rate by the 2007 estimated market basket index of 3.4 percent rather than applying the zero-percent update, Select estimates that it would have received approximately $31.0 million in additional annual Medicare revenues, based on Select’s historical Medicare patient volumes and revenues (such revenues would have been paid to Select’s hospitals for discharges beginning on or after July 1, 2006).

Conference Call

     Select will host a conference call regarding the third quarter results on Monday, November 13, 2006, at 11:00am EST. The domestic dial in number for the call is 1-866-261-2650. The international dial in number is 1-703-639-1221.

     For those unable to participate in the conference call, a replay will be available at Select Medical Corporation’s website, http://www.selectmedicalcorp.com.

* * * * *

     Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select currently operates 93 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 605 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 September 30, 2005 and 2006

		2005				2006				% Change
Net operating revenues		$	460,658			$	443,872				(3.6	)%
Costs and expenses:
Cost of services			363,480				362,070				(0.4	)%
General and administrative			27,221				9,762				(64.1	)%
Bad debt expense			4,378				5,333				21.8	%
Depreciation and amortization			11,828				12,394				4.8	%
Income from operations			53,751				54,313				1.0	%
Other income (expense)			247				(3,124	)			N/M
Interest income			241				319				32.4	%
Interest expense			(25,467	)			(24,348	)			(4.4	)%
Income from continuing operations before minority interests and income taxes			28,772				27,160				(5.6	)%
Minority interests			494				369				(25.3	)%
Income from continuing operations before income taxes			28,278				26,791				(5.3	)%
Income tax expense			11,523				10,652				(7.6	)%
Income from continuing operations			16,755				16,139				(3.7	)%
Income from discontinued operations, net of tax			1,061				—				(100.0	)%
Net income		$	17,816			$	16,139				(9.4	)%

II. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Nine Months Ended September 30, 2005 and 2006

		Predecessor (1)					Successor (1)
		Period from					Period from				Combined (2)				Successor (1)
		January 1					February 25				Nine Months				Nine Months
		through					through				Ended				Ended
		February 24,					September 30,				September 30,				September 30,
		2005					2005				2005				2006				% Change
Net operating revenues		$	277,736				$	1,122,748			$	1,400,484			$	1,405,756				0.4	%
Costs and expenses:
Cost of services			244,321					875,566				1,119,887				1,119,767				(0.0	)%
General and administrative			122,509					48,960				171,469				33,511				(80.5	)%
Bad debt expense			6,588					14,244				20,832				18,766				(9.9	)%
Depreciation and amortization			5,933					28,110				34,043				34,955				2.7	%
Income (loss) from operations			(101,615	)				155,868				54,253				198,757				266.4	%
Loss on early retirement of debt			(42,736	)				—				(42,736	)			—				N/M
Merger related charges			(12,025	)				—				(12,025	)			—				N/M
Other income			267					658				925				918				(0.8	)%
Interest income			523					511				1,034				738				(28.6	)%
Interest expense			(4,651	)				(60,121	)			(64,772	)			(72,615	)			12.1	%
Income (loss) from continuing operations before minority interests, and income taxes			(160,237	)				96,916				(63,321	)			127,798				N/M
Minority interests			330					1,350				1,680				1,095				(34.8	)%
Income (loss) from continuing operations before income taxes			(160,567	)				95,566				(65,001	)			126,703				N/M
Income tax expense (benefit)			(59,794	)				38,623				(21,171	)			51,278				342.2	%
Income (loss) from continuing operations			(100,773	)				56,943				(43,830	)			75,425				N/M
Income from discontinued operations, net of tax (includes pretax gain of $13,950 in 2006)			522					3,367				3,889				10,018				157.6	%
Net income (loss)		$	(100,251	)			$	60,310			$	(39,941	)		$	85,443				N/M

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

		December 31,				September 30,
		2005				2006
Assets
Cash		$	35,861			$	5,040
Restricted cash			6,345				5,247
Accounts receivable, net			256,798				247,972
Current deferred tax asset			59,135				57,892
Prepaid taxes			4,110				—
Other assets held for sale			13,876				—
Other current assets			19,725				16,847
Total Current Assets			395,850				332,998
Property and equipment, net			248,541				330,106
Goodwill			1,305,210				1,319,018
Other identifiable intangibles			86,789				81,456
Other assets held for sale			61,388				—
Other assets			65,591				62,518
Total Assets		$	2,163,369			$	2,126,096
Liabilities and Stockholder’s Equity
Payables and accruals		$	296,765			$	264,288
Income taxes payable			—				22,346
Current liabilities held for sale			4,215				—
Current portion of long term debt			6,516				6,309
Total Current Liabilities			307,496				292,943
Long term debt, net of current portion			1,315,764				1,231,039
Non-current deferred tax liability			25,771				39,198
Non-current liabilities held for sale			3,817				—
Minority interests			4,356				2,285
Stockholder’s equity			506,165				560,631
Total Liabilities and Stockholder’s Equity		$	2,163,369			$	2,126,096

IV. Key Statistics
(unaudited)
For the Three Months Ended September 30, 2005 and 2006

		2005				2006				% Change
Specialty Hospitals (a)
Number of hospitals — end of period			101				97				(4.0	)%
Net operating revenues (,000)		$	341,835			$	329,324				(3.7	)%
Number of patient days			242,850				236,094				(2.8	)%
Number of admissions			9,725				9,485				(2.5	)%
Net revenue per patient day (b)		$	1,385			$	1,361				(1.7	)%
Adjusted EBITDA (,000)		$	77,571			$	60,812				(21.6	)%
Adjusted EBITDA margin — all hospitals			22.7	%			18.5	%			(18.5	)%
Adjusted EBITDA margin — same store hospitals (c)			23.1	%			19.7	%			(14.7	)%
Outpatient Rehabilitation (d)
Number of clinics — end of period			621				605				(2.6	)%
Net operating revenues (,000)		$	118,263			$	114,043				(3.6	)%
Number of visits			805,018				714,064				(11.3	)%
Revenue per visit (e)		$	89			$	95				6.7	%
Adjusted EBITDA (,000)		$	15,302			$	15,737				2.8	%
Adjusted EBITDA margin			12.9	%			13.8	%			7.0	%

V. Key Statistics
(unaudited)
For the Nine Months Ended September 30, 2005 and 2006

		2005				2006				% Change
Specialty Hospitals (a)
Number of hospitals — end of period			101				97				(4.0	)%
Net operating revenues (,000)		$	1,031,387			$	1,049,768				1.8	%
Number of patient days			739,860				734,070				(0.8	)%
Number of admissions			30,056				30,122				0.2	%
Net revenue per patient day (b)		$	1,371			$	1,401				2.2	%
Adjusted EBITDA (,000)		$	235,311			$	218,203				(7.3	)%
Adjusted EBITDA margin — all hospitals			22.8	%			20.8	%			(8.8	)%
Adjusted EBITDA margin — same store hospitals (c)			23.3	%			21.8	%			(6.4	)%
Outpatient Rehabilitation (d)
Number of clinics — end of period			621				605				(2.6	)%
Net operating revenues (,000)		$	364,363			$	353,974				(2.9	)%
Number of visits			2,532,157				2,261,080				(10.7	)%
Revenue per visit (e)		$	89			$	93				4.5	%
Adjusted EBITDA (,000)		$	52,414			$	48,920				(6.7	)%
Adjusted EBITDA margin			14.4	%			13.8	%			(4.2	)%

VI. Net Income to Adjusted EBITDA Reconciliation
(In thousands)
(unaudited)
For the Three and Nine Months Ended September 30, 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, other income, income from discontinued operations, loss on early retirement of debt, merger related charges, stock compensation expense, long-term incentive compensation 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.

		Successor (1)
		Three Months Ended								Predecessor
		September 30,								(1)					Successor (1)				Combined (2)				Successor (1)
										Period from					Period from
										January 1					February 25				For the Nine				For the Nine
										through					through				Months Ended				Months Ended
										February 24,					September 30,				September 30,				September 30,
		2005				2006				2005					2005				2005				2006
Net income (loss)		$	17,816			$	16,139			$	(100,251	)			$	60,310			$	(39,941	)		$	85,443
Income from discontinued operations, net of tax			(1,061	)			—				(522	)				(3,367	)			(3,889	)			(10,018	)
Income tax expense (benefit)			11,523				10,652				(59,794	)				38,623				(21,171	)			51,278
Minority interest			494				369				330					1,350				1,680				1,095
Interest expense, net			25,226				24,029				4,128					59,610				63,738				71,877
Other expense (income)			(247	)			3,124				(267	)				(658	)			(925	)			(918	)
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			1,366				888				115,025					7,438				122,463				2,663
Included in cost of services			58				58				27,188					129				27,317				174
Long-term incentive compensation (3)			14,453				—				—					14,453				14,453				—
Depreciation and amortization			11,828				12,394				5,933					28,110				34,043				34,955
Adjusted EBITDA		$	81,456			$	67,653			$	46,531				$	205,998			$	252,529			$	236,549
Specialty hospitals		$	77,571			$	60,812			$	44,384				$	190,927			$	235,311			$	218,203
Outpatient rehabilitation			15,302				15,737				9,848					42,566				52,414				48,920
Other (4)			(11,417	)			(8,896	)			(7,701	)				(27,495	)			(35,196	)			(30,574	)
Adjusted EBITDA		$	81,456			$	67,653			$	46,531				$	205,998			$	252,529			$	236,549

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		September 30, 2005				September 30, 2006
Specialty hospitals net operating revenue		$	341,835			$	329,324
Less: Specialty hospitals in development, opened or closed after 1/1/05			10,210				5,195
Specialty hospitals same store net operating revenue		$	331,625			$	324,129
Specialty hospitals Adjusted EBITDA		$	77,571			$	60,812
Less: Specialty hospitals in development, opened or closed after 1/1/05			903				(3,193	)
Specialty hospitals same store Adjusted EBITDA		$	76,668			$	64,005
All specialty hospitals Adjusted EBITDA margin			22.7	%			18.5	%
Specialty hospitals same store Adjusted EBITDA margin			23.1	%			19.7	%

		Nine Months Ended
		September 30, 2005				September 30, 2006
Specialty hospitals net operating revenue		$	1,031,387			$	1,049,768
Less: Specialty hospitals in development, opened or closed after 1/1/05			39,064				21,947
Specialty hospitals same store net operating revenue		$	992,323			$	1,027,821
Specialty hospitals Adjusted EBITDA		$	235,311			$	218,203
Less: Specialty hospitals in development, opened or closed after 1/1/05			3,908				(5,671	)
Specialty hospitals same store Adjusted EBITDA		$	231,403			$	223,874
All specialty hospitals Adjusted EBITDA margin			22.8	%			20.8	%
Specialty hospitals same store Adjusted EBITDA margin			23.3	%			21.8	%

VII. Discontinued Operations Income Statement
(In thousands)
(unaudited)
For the Three and Nine Months Ended September 30, 2005 and the Two Months Ended February 28, 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
		For the Three									February 25				Nine Months				For the Two
		Months Ended				Period from					through				Ended				Months Ended
		September 30,				January 1 through					September 30,				September 30,				February 28,
		2005				February 24, 2005					2005				2005				2006
Net operating revenues		$	17,040			$	10,051				$	41,702			$	51,753			$	12,902
Costs and expenses:
Cost of services			14,289				8,295					33,299				41,594				10,733
Bad debt expense			23				73					181				254				87
Depreciation and amortization			333				244					788				1,032				176
Income from discontinued operations			2,395				1,439					7,434				8,873				1,906
Other expense			247				267					658				925				—
Gain on sale			—				—					—				—				(13,950	)
Interest expense (income)			91				83					228				311				(31	)
Income from discontinued operations before minority interests and income taxes			2,057				1,089					6,548				7,637				15,887
Minority interests			349				139					985				1,124				340
Income from discontinued operations before income taxes			1,708				950					5,563				6,513				15,547
Income tax expense			647				428					2,196				2,624				5,529
Income from discontinued operations, net of tax		$	1,061			$	522				$	3,367			$	3,889			$	10,018