EXHIBIT 99.1

     U.S. Physical Therapy Selects New Audit Firm and Strengthens
                            Management Team

    HOUSTON--(BUSINESS WIRE)--Aug. 27, 2004--U.S. Physical Therapy,
Inc. (Nasdaq:USPH) today announced that it has appointed Grant
Thornton LLP as the Company's new independent audit firm and that it
has recruited two new executives for its development group.
    Prior to the selection of Grant Thornton, KPMG LLP had served as
the Company's independent auditor. The change of independent auditor
was approved by the Company's Audit Committee with the concurrence of
the Board of Directors. This decision was not the result of any
disagreement between the Company and KPMG on any matter of accounting
principles or practices, financial statement disclosure or auditing
scope or procedures.
    Grant Thornton International is one of the world's leading
accounting, tax and business advisory organizations dedicated to
mid-size companies. Its network includes 585 offices in 110 countries
including 48 offices in the United States.
    In addition, the Company announced that Michael Lang will rejoin
U.S. Physical Therapy effective September 1, 2004 as Senior Vice
President of Development. He will oversee all new clinic development
activities including partner recruitment and will report directly to
Chris Reading, the Company's Chief Operating Officer.
    Mr. Lang worked at U.S. Physical Therapy from 1994 to 2001 in
various capacities of increasing responsibility. Chris Reading, COO,
said, "We are very pleased to have Mike back with USPH. Mike was
instrumental in recruitment and the development of many of our most
successful partnerships; he knows our culture and should hit the
ground running."
    Lester Keizer has joined U.S. Physical Therapy as Vice President
of Contract Development reporting to the COO. His prior experience
includes development positions at U.S. Health Services and Vencor. Mr.
Keizer's focus will be to grow the number of facilities U.S. Physical
Therapy manages for third parties, including hospital outpatient and
inpatient facilities, as well as physician and other privately owned
physical and occupational therapy practices. "Management contracts are
a natural extension of our business and could be a significant profit
center in the future," noted Mr. Reading.
    Founded in 1990, U.S. Physical Therapy, Inc. operates 254
outpatient physical and/or occupational therapy clinics in 35 states.
The Company's clinics provide pre- and 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 physical therapy facilities for
third parties. 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 www.usph.com.
    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.

    CONTACT: U.S. Physical Therapy, Houston
             Larry McAfee, 713-297-7000
             or
             J. Livingston Kosberg, 713-297-7000
             or
             Investors Relations:
             DRG&E
             Jack Lascar, 713-529-6600