Exhibit 99.1

FOR IMMEDIATE RELEASE		4716 Old Gettysburg Road
		Mechanicsburg, PA 17055

Select Medical Corporation Announces

Results for Second Quarter and Six Months Ended June 30, 2005

     MECHANICSBURG, PENNSYLVANIA — — August 2, 2005 — — Select Medical Corporation today announced results for the second quarter and six months ended June 30, 2005.

     On February 24, 2005, Select Medical Corporation (“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 its 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 has 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 second quarter ended June 30, 2005, net operating revenues increased 18.4% to $491.6 million compared to $415.2 million for the same quarter, prior year. Income from operations increased 27.2% to $75.2 million compared to $59.1 million for the same quarter, prior year. Net income declined 5.0% to $29.4 million compared to $31.0 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 associated with the merger and minority interest (“Adjusted EBITDA”) increased 31.3% to $89.5 million compared to $68.2 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     For the six months ended June 30, 2005, net operating revenues increased 16.9% to $974.5 million compared to $833.7 million for the same period, prior year. Income from operations decreased 94.1% to $7.0 million compared to $118.4 million for the same period, prior year. Select recognized a net loss of $57.8 million for the six months ended June 30, 2005 compared to net income of $60.5 million for the same period, prior year. Additionally, Adjusted EBITDA increased 29.5% to $178.3 million compared to $137.7 million for the same period, prior year.

Exhibit 99.1

Specialty Hospitals

     At June 30, 2005, Select operated 98 long-term acute care hospitals and four acute medical rehabilitation hospitals. This compares to 82 long-term acute care hospitals and four acute medical rehabilitation hospitals operated at June 30, 2004. For the second quarter of 2005, net operating revenues for all Select’s hospitals increased 29.5% to $346.9 million compared to $267.9 million for the same quarter, prior year. Total patient days for the second quarter 2005 were 246,458, admissions were 9,995 and net revenue per patient day was $1,375. This compares to 204,525 days, 8,306 admissions and net revenue per patient day of $1,285 for the same quarter, prior year. For the hospitals opened before January 1, 2004 and operated by Select throughout both periods, patient days in the second quarter of 2005 were 209,079 and admissions in the second quarter were 8,619, compared to 201,754 days and 8,200 admissions in the same quarter, prior year. Adjusted EBITDA for the segment increased 35.1% to $78.5 million compared to $58.1 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 22.6% for the second quarter of 2005, compared to 21.7% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened before January 1, 2004 and operated by Select throughout both periods was 23.9% for the second quarter of 2005, compared to 22.3% for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     For the six months ended June 30, 2005, net operating revenues for all Select’s hospitals increased 28.1% to $688.4 million compared to $537.3 million for the same period, prior year. Total patient days for the six months ended June 30, 2005 were 497,297, admissions were 20,331 and net revenue per patient day was $1,352. This compares to 417,252 days, 17,044 admissions and net revenue per patient day of $1,264 for the same period, prior year. For the hospitals opened before January 1, 2004 and operated by Select throughout both periods, patient days for the six months ended June 30, 2005 were 422,516 and admissions were 17,505, compared to 410,819 days and 16,814 admissions in the same period, prior year. Adjusted EBITDA for the segment for the six months ended June 30, 2005 increased 35.8% to $157.5 million compared to $116.0 million for the same period, prior year. The Adjusted EBITDA margin for the segment for the six months ended June 30, 2005 was 22.9%, compared to 21.6% for the same period, prior year. The Adjusted EBITDA margin for the hospitals opened before January 1, 2004 and operated by Select throughout both periods was 24.2% for the six months ended June 30, 2005, compared to 22.1% for the same period, prior year.

Outpatient Rehabilitation

     At June 30, 2005, Select operated 740 outpatient clinics. For the second quarter of 2005, net operating revenues decreased 1.2% to $142.6 million compared to $144.3 million for the same quarter, prior year. Adjusted EBITDA for the second quarter decreased 7.1% to $22.5 million compared to $24.2 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 15.8% compared to 16.8% in the same quarter, prior year. U.S. based patient visits were 917,573 compared to 993,237 for the same quarter, prior year. Net revenue per visit was $89 in both quarterly periods.

     For the six months ended June 30, 2005, net operating revenues declined 3.1% to $280.8 million compared to $289.9 million for the same period, prior year. Adjusted EBITDA for the period declined 5.9% to $44.3 million compared to $47.1 million for the same period, prior year. The Adjusted EBITDA margin for the period was 15.8% compared to 16.2% in the same period, prior year. U.S. based patient visits were 1,833,395 compared to 1,997,343 for the same period, prior year. Net revenue per visit was $90 in both six month periods.

Exhibit 99.1

SemperCare Acquisition

     On January 1, 2005, Select acquired SemperCare, Inc. (“SemperCare”), which operated 17 long-term acute care hospitals in 11 states, for approximately $100 million in cash. Six of the SemperCare facilities are in markets that overlap with other Select hospital markets. All of the SemperCare facilities operate as “hospitals within hospitals” or “HIHs”, and Select expects to transition these facilities to adapt to the new HIH regulations within a similar time frame and using strategies similar to those that Select will use to transition its other HIHs.

* * * * *

     Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 98 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 and Canada, with approximately 740 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, the possibility that the merger may not occur due to the failure to satisfy the conditions in the merger agreement, such as the inability of the purchaser to obtain financing, the failure of Select to obtain stockholder approval, the failure of a majority of notes issued by Select to be tendered and accepted and the failure to successfully complete the consent solicitation regarding amendments to the indentures underlying the notes issued by Select, or the occurrence of events that would have a material adverse effect on Select as defined in the merger agreement. Additional risks and uncertainties 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
ir@selectmedicalcorp.com

Exhibit 99.1

I. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Three Months Ended June 30, 2005 and 2004

		Predecessor				Successor
		(1)				(1)				%
		2004				2005				Change
Net operating revenues		$	415,237			$	491,640				18.4	%
Costs and expenses:
Cost of services			321,562				385,417				19.9	%
Stock compensation associated with merger			—				1,817				N/M
Bad debt expense			11,560				5,415				(53.2	)%
General and administrative			13,932				11,311				(18.8	)%
Depreciation and amortization			9,072				12,489				37.7	%
Income from operations			59,111				75,191				27.2	%
Interest income			(486	)			(204	)			(58.0	)%
Interest expense			7,335				25,166				243.1	%
Income from continuing operations before minority interests and income taxes			52,262				50,229				(3.9	)%
Minority interests			1,146				1,030				(10.1	)%
Income from continuing operations before income taxes			51,116				49,199				(3.8	)%
Income tax expense			20,654				19,778				(4.2	)%
Income from continuing operations			30,462				29,421				(3.4	)%
Income from discontinued operations, net of tax			509				—				(100.0	)%
Net income		$	30,971			$	29,421				(5.0	)%

Exhibit 99.1

II. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Six Months Ended June 30, 2005 and 2004

		Predecessor (1)								Successor (1)				Combined (2)
						Period				Period
						from				from
		For the Six				January 1				February
		Months				through				25 through				Six Months
		Ended June				February				June 30,				Ended June
		30, 2004				24, 2005				2005				30, 2005				% Change
Net operating revenues		$	833,706			$	287,787			$	686,752			$	974,539				16.9	%
Costs and expenses:
Cost of services			647,307				225,428				531,025				756,453				16.9	%
Stock compensation associated with merger			—				142,213				6,143				148,356				N/M
Bad debt expense			23,199				6,661				10,024				16,685				(28.1	)%
General and administrative			25,545				7,484				15,667				23,151				(9.4	)%
Depreciation and amortization			19,269				6,177				16,737				22,914				18.9	%
Income (loss) from operations			118,386				(100,176	)			107,156				6,980				(94.1	)%
Loss on early retirement of debt			—				42,736				—				42,736				N/M
Merger related charges			—				12,025				—				12,025				N/M
Interest income			(851	)			(523	)			(281	)			(804	)			(5.5	)%
Interest expense			16,753				4,734				34,802				39,536				136.0	%
Income (loss) from continuing operations before minority interests, and income taxes			102,484				(159,148	)			72,635				(86,513	)			(184.4	)%
Minority interests			2,152				469				1,492				1,961				(8.9	)%
Income (loss) from continuing operations before income taxes			100,332				(159,617	)			71,143				(88,474	)			(188.2	)%
Income tax expense (benefit)			40,447				(59,366	)			28,649				(30,717	)			(175.9	)%
Income (loss) from continuing operations			59,885				(100,251	)			42,494				(57,757	)			(196.4	)%
Income from discontinued operations, net of tax			656				—				—				—				(100.0	)%
Net income (loss)		$	60,541			$	(100,251	)		$	42,494			$	(57,757	)			(195.4	)%

Exhibit 99.1

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

		Predecessor (1)				Successor			(1)
		December 31,				June 30,
		2004				2005
Assets
Cash		$	247,476			$	21,069
Restricted cash			7,031				6,851
Accounts receivable, net			216,852				315,142
Current deferred tax asset			59,239				71,013
Other current assets			18,737				20,442
Total current assets			549,335				434,517
Property and equipment, net			165,336				220,572
Goodwill			302,069				1,369,637
Other identifiable intangibles			78,304				89,858
Non-current deferred tax asset			—				8,137
Other assets			18,677				65,240
Total assets		$	1,113,721			$	2,187,961
Liabilities and Stockholders’ Equity
Payables and accruals		$	232,063			$	280,217
Current portion of long term debt			3,557				8,298
Total current liabilities			235,620				288,515
Long term debt, net of current portion			351,033				1,418,682
Non-current deferred tax liability			4,458				—
Minority interests			6,667				7,093
Stockholders’ equity			515,943				473,671
Total liabilities and stockholders’ equity		$	1,113,721			$	2,187,961

Exhibit 99.1

IV. Key Statistics
(unaudited)
For the Three Months Ended June 30, 2005 and 2004

										%
		2004				2005				Change
Specialty Hospitals (a)
Number of hospitals — end of period			86				102				18.6	%
Net operating revenues (,000)		$	267,918			$	346,874				29.5	%
Number of patient days			204,525				246,458				20.5	%
Number of admissions			8,306				9,995				20.3	%
Net revenue per patient day (b)		$	1,285			$	1,375				7.0	%
Adjusted EBITDA (,000)		$	58,114			$	78,493				35.1	%
Adjusted EBITDA margin – all hospitals			21.7	%			22.6	%			4.1	%
Adjusted EBITDA margin – same store hospitals (c)			22.3	%			23.9	%			7.2	%
Outpatient Rehabilitation
Number of clinics — end of period			761				740				(2.8	)%
Net operating revenues (,000)		$	144,279			$	142,582				(1.2	)%
Number of visits (US)			993,237				917,573				(7.6	)%
Revenue per visit (US) (d)		$	89			$	89				0.0	%
Adjusted EBITDA (,000)		$	24,170			$	22,466				(7.1	)%
Adjusted EBITDA margin			16.8	%			15.8	%			(6.0	)%

Exhibit 99.1

V. Key Statistics
(unaudited)
For the Six Months Ended June 30, 2005 and 2004

										%
		2004				2005				Change
Specialty Hospitals (a)
Number of hospitals — end of period			86				102				18.6	%
Net operating revenues (,000)		$	537,297			$	688,385				28.1	%
Number of patient days			417,252				497,297				19.2	%
Number of admissions			17,044				20,331				19.3	%
Net revenue per patient day (b)		$	1,264			$	1,352				7.0	%
Adjusted EBITDA (,000)		$	116,021			$	157,548				35.8	%
Adjusted EBITDA margin – all hospitals			21.6	%			22.9	%			6.0	%
Adjusted EBITDA margin – same store hospitals (c)			22.1	%			24.2	%			9.5	%
Outpatient Rehabilitation
Number of clinics — end of period			761				740				(2.8	)%
Net operating revenues (,000)		$	289,943			$	280,814				(3.1	)%
Number of visits (US)			1,997,343				1,833,395				(8.2	)%
Revenue per visit (US) (d)		$	90			$	90				0.0	%
Adjusted EBITDA (,000)		$	47,078			$	44,289				(5.9	)%
Adjusted EBITDA margin			16.2	%			15.8	%			(2.5	)%

Exhibit 99.1

VI. Net Income to Adjusted EBITDA Reconciliation
(in thousands)
(unaudited)
For the Three and Six Months Ended June 30, 2005 and 2004

     The following table reconciles net income to Adjusted EBITDA for the Company. Adjusted EBITDA is used by the Company to report its segment performance in accordance with SFAS No. 131. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, income from discontinued operations, loss on early retirement of debt, merger related charges, stock compensation associated with merger, 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)				Predecessor (1)								Successor (1)				Combined (2)
		Three Months Ended June 30,
														Period from				Period from
										For the Six				January 1				February 25				For the Six
										Months				through				through				Months
										Ended June				February 24,				June 30,				Ended June
		2004				2005				30, 2004				2005				2005				30, 2005
Net income (loss)		$	30,971			$	29,421			$	60,541			$	(100,251	)		$	42,494			$	(57,757	)
Income from discontinued operations, net of tax			(509	)			—				(656	)			—				—				—
Income tax expense (benefit)			20,654				19,778				40,447				(59,366	)			28,649				(30,717	)
Minority interest			1,146				1,030				2,152				469				1,492				1,961
Interest expense, net			6,849				24,962				15,902				4,211				34,521				38,732
Loss on early retirement of debt			—				—				—				42,736				—				42,736
Merger related charges			—				—				—				12,025				—				12,025
Stock compensation associated with merger			—				1,817				—				142,213				6,143				148,356
Depreciation and amortization			9,072				12,489				19,269				6,177				16,737				22,914
Adjusted EBITDA		$	68,183			$	89,497			$	137,655			$	48,214			$	130,036			$	178,250
Specialty hospitals		$	58,114				78,493			$	116,021			$	44,343			$	113,205			$	157,548
Outpatient rehabilitation			24,170				22,466				47,078				11,531				32,758				44,289
Other (3)			(14,101	)			(11,462	)			(25,444	)			(7,660	)			(15,927	)			(23,587	)
Adjusted EBITDA		$	68,183			$	89,497			$	137,655			$	48,214			$	130,036			$	178,250

Exhibit 99.1

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		June 30, 2004				June 30, 2005
Specialty hospitals net operating revenue		$	267,918			$	346,874
Less: Specialty hospitals opened, acquired or closed after 1/1/04			1,990				52,743
Specialty hospitals same store net operating revenue		$	265,928			$	294,131
Specialty hospitals Adjusted EBITDA		$	58,114			$	78,493
Less: Specialty hospitals opened, acquired or closed after 1/1/04			(1,175	)			8,232
Specialty hospitals same store Adjusted EBITDA		$	59,289			$	70,261
All specialty hospitals Adjusted EBITDA margin			21.7	%			22.6	%
Specialty hospitals same store Adjusted EBITDA margin			22.3	%			23.9	%

		Six Months Ended
		June 30, 2004				June 30, 2005
Specialty hospitals net operating revenue		$	537,297			$	688,385
Less: Specialty hospitals opened, acquired or closed after 1/1/04			3,975				101,417
Specialty hospitals same store net operating revenue		$	533,322			$	586,968
Specialty hospitals Adjusted EBITDA		$	116,021			$	157,548
Less: Specialty hospitals opened, acquired or closed after 1/1/04			(1,838	)			15,546
Specialty hospitals same store Adjusted EBITDA		$	117,859			$	142,002
All specialty hospitals Adjusted EBITDA margin			21.6	%			22.9	%
Specialty hospitals same store Adjusted EBITDA margin			22.1	%			24.2	%