EXHIBIT 99.1


CONTACT:

Larry McAfee, CFO
J. Livingston Kosberg, Interim CEO
U.S. Physical Therapy
(713)297-7000

Roy Spradlin Resigns From U.S. Physical Therapy

Company Founder J. Livingston Kosberg to Serve as Interim CEO and Board Member
Daniel Arnold to Serve as Non-Executive Chairman

Houston, Texas July 6, 2004 -- U.S. Physical Therapy, Inc. (Nasdaq National
Market:  USPH) today  announced that Roy Spradlin,  President,  Chief  Executive
Officer and  Chairman  of the Board  resigned  from the Company to pursue  other
business and personal interests.  Company founder J. Livingston Kosberg has been
named interim CEO and has rejoined the Board of Directors. Daniel C. Arnold, who
has served on U.S. Physical  Therapy's Board since 1992, has been named Chairman
of the Board.  The Company  also  announced  that a CEO search  committee of the
Board had been  established  and that the  committee  had  retained an executive
recruiting firm to aid its efforts.  The Company also emphasized that it was not
aware of any material negative information, financial or otherwise.

Commenting,  Mr. Kosberg stated,  "All of us at U.S. Physical Therapy thank
Roy for his service.  During his tenure as CEO, U.S.  Physical Therapy grew from
less  than  60  physical  therapy  clinics  to 244  outpatient  physical  and/or
occupational  therapy  clinics.  In our search  for a new CEO,  we shall seek an
individual who is committed to the continued establishment of de novo outpatient
clinics  and who has the drive,  leadership  skills and  experience  to initiate
diversification  into related healthcare business  opportunities.  Chris Reading
will continue as the  Company's  chief  operating  officer and Larry McAfee will
continue  as chief  financial  officer.  The  Company  is in a strong  financial
position. We enjoy a cash balance in excess of $20 million, with no debt."

Mr.  Kosberg,  age 67,  served as CEO until August 1995 and Chairman of the
Board until May 2001, and remains one of the Company's largest shareholders.  In
establishing U.S. Physical Therapy,  Mr. Kosberg pioneered the development of an
original  healthcare  services  business model of forming business  partnerships
with the most capable physical therapists in their respective communities.

The Company will be reporting its second  quarter  operating  results on or
about July 29.

This press release contains  forward-looking  statements (often using words
such as  "believes,"  "expects,"  "intends,"  "plans,"  "appear,"  "should," and
similar  words),  which involve  numerous risks and  uncertainties.  Given these
uncertainties,  you should not place  undue  reliance on the  Company's  forward
looking   statements.   Management   undertakes  no  obligation  to  update  any
forward-looking  statement,  whether as the result of actual results, changes in
assumptions, new information, future events, or otherwise.

Founded in 1990,  U.S.  Physical  Therapy,  Inc.  operates  244  outpatient
physical  and/or  occupational  therapy  clinics  in 35 states  and  manages  PT
facilities for third parties. The Company's clinics



provide  post-operative care for a variety of orthopedic-related  disorders
and  sports-related  injuries,  treatment for  neurologically-related  injuries,
rehabilitation  of injured workers and preventative  care. In addition to owning
and operating clinics,  the Company manages five physical therapy facilities for
third parties,  including physician groups. U.S. Physical Therapy,  Inc has been
named for three  consecutive years in Forbes Magazine's Best 200 Small Companies
List. More information is available at http://www.usph.com .



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