EXHIBIT 99
News From
[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
May 13, 2004
HEALTHSOUTH ANNOUNCES SUCCESS OF CONSENT
SOLICITATION FOR 8.500% SENIOR NOTES DUE 2008
BIRMINGHAM, ALA. - HealthSouth Corp. (OTC Pink Sheets: HLSH) today announced
that a majority in principal amount of the holders of its 8.500% Senior Notes
due 2008 have delivered a sufficient number of consents to approve proposed
amendments to, and waivers under, the indenture governing such notes.
HealthSouth has delivered evidence of its receipt of the requisite consents to
the trustee which has made the consents irrevocable.
HealthSouth stated that it believes this represents another step forward in its
plan to strengthen the Company's balance sheet and put in place a sound capital
structure as it moves forward. HealthSouth thanks all of the noteholders who
have consented and is hopeful that it will be able to promptly complete
additional consent solicitations for the remaining series of Senior Notes and
Senior Subordinated Notes.
HealthSouth said that it is encouraged by the significant positive response
that it has received on its consent solicitations. The Company believes that,
as demonstrated by the success of the 8.500% consent solicitation, the market
is validating its offer as commercially reasonable.
HealthSouth emphasized that if the conditions to a consent solicitation are
satisfied, any noteholders who do not deliver valid consents prior to the
expiration date of such consent solicitation will not receive a consent fee.
The consent solicitations are currently scheduled to expire at 11:59 p.m., New
York City time on May 13, 2004.
TERMS OF CONSENT SOLICITATIONS
The Company has agreed to pay $13.75 per $1,000 principal amount to holders of
its 6.875% Senior Notes due 2005, 7.375% Senior Notes due 2006, 7.000% Senior
Notes due 2008, 8.500% Senior Notes due 2008 (which have now been accepted),
8.375% Senior Notes due 2011, 7.625% Senior Notes due 2012 and 10.750% Senior
Subordinated Notes due 2008 who deliver valid and unrevoked consents prior to
the expiration of the consent solicitations if the conditions to their consent
solicitation are satisfied or waived. This news release is not a solicitation
of consents with respect to any securities. The consent solicitations are being
made only pursuant to the terms and conditions of the consent solicitation
statements relating to each series of Notes and the accompanying documents.
These documents can be obtained from Innisfree M&A Incorporated, the
information agent, at 212-750-5833 (Banks and Brokers Call Collect) or
888-750-5834 (Noteholders Call Toll-Free). Questions regarding the
solicitations should be directed to Credit Suisse First Boston, the
solicitation agent, at 800-820-1653.
ABOUT HEALTHSOUTH
HealthSouth is the nation's largest provider of outpatient surgery, diagnostic
imaging and rehabilitative healthcare services, with nearly 1,700 locations
nationwide and abroad. HealthSouth can be found on the Web at
www.healthsouth.com.
Statements contained in this press release which are not historical facts are
forward-looking statements. In addition, HealthSouth, through its senior
management, may from time to time make forward-looking public statements
concerning the matters described herein. Such forward-looking statements are
necessarily estimates based upon current information, involve a number of risks
and uncertainties and are made pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. HealthSouth's actual results
may differ materially from the results anticipated in these forward-looking
statements as a result of a variety of factors. While it is impossible to
identify all such factors, factors which could cause actual results to differ
materially from those estimated by HealthSouth include, but are not limited to:
the investigations by the Department of Justice and the Securities Exchange
Commission into HealthSouth's financial reporting and related activity;
HealthSouth's statement that as a result of the investigations, the Company's
previously filed financial statements should no longer be relied upon and may
result in the Company restating its prior financial statements; the withdrawal
by HealthSouth's former accountants of their audit reports on all of the
Company's previously filed financial statements; the outcome of pending
litigation relating to these matters; significant changes in HealthSouth's
management team; HealthSouth's ability to successfully amend, restructure
and/or renegotiate its existing indebtedness or cure or receive a waiver of
alleged defaults under such agreements, the inability of which may result in
HealthSouth filing a voluntary petition for bankruptcy; HealthSouth's ability
to continue to operate in the ordinary course and manage its relationships with
its creditors, including its lenders, bondholders, vendors and suppliers,
employees and customers; changes, delays in or suspension of reimbursement for
HealthSouth's services by governmental or private payors; changes in the
regulation of the healthcare industry at either or both of the federal and
state levels; changes to the implementation of the prospective payment system
for inpatient rehabilitation services; competitive pressures in the healthcare
industry and HealthSouth's response thereto; HealthSouth's ability to obtain
and retain favorable arrangements with third-party payors; general conditions
in the economy and capital markets; and other factors which may be identified
from time to time in the Company's SEC filings and other public announcements.
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For more information contact Andy Brimmer at 205-410-2777.