U.S. Physical Therapy Announces Internal Promotions and Election to Board; Chris
Reading Named Chief Executive and Larry McAfee Executive Vice President

     HOUSTON--(BUSINESS   WIRE)--Oct.  14,  2004--U.S.  Physical  Therapy,  Inc.
(Nasdaq:USPH),   a  national  operator  of  physical  and  occupational  therapy
outpatient  clinics,  announced  today that Chris  Reading has been  promoted to
President  and Chief  Executive  Officer  and Larry  McAfee  to  Executive  Vice
President.  Mr. McAfee also remains Chief Financial  Officer.  Both appointments
will be effective November 1, 2004. Reading and McAfee have also been elected to
the Company's Board of Directors expanding the board from eight to ten members.
     Dan Arnold, Chairman, said, "After an extensive search process the Board of
Directors came to the conclusion that the two people most capable to effectively
lead U.S.  Physical Therapy are Chris and Larry.  Since joining the Company last
year they  have  each made an  invaluable  contribution.  Their  promotions  and
election  to the Board were  unanimously  and  enthusiastically  approved by the
Company's directors."
     McAfee joined the Company in  September,  2003 as Chief  Financial  Officer
while  Reading  came aboard in November as Chief  Operating  Officer.  Both have
extensive prior experience with major public and private companies.
     Livingston  Kosberg,  U.S. Physical  Therapy's  founder,  who has served as
interim  CEO since July,  stated,  "Chris  Reading and Larry  McAfee have highly
complementary  skill  sets and  make a great  team.  Having  worked  with  these
gentlemen for the past few months,  I have been  extremely  impressed with their
business  insight and management  styles.  Under their leadership I am confident
that the Company will continue on a course of profitable  growth  focused on our
core physical and occupational therapy business. I couldn't be more pleased with
today's announcement."
     As previously  announced,  U.S. Physical  Therapy's  management will host a
conference  call at 10:30 am Eastern  Time/9:30  am Central  Time on  Wednesday,
October 27th to discuss third quarter results and other corporate  developments.
To listen to the live call,  please go to  www.usph.com  and click on conference
calls under the Investor Relations section. Persons unable to listen to the live
conference call can access the replay for approximately 90 days at U.S. Physical
Therapy's website.
     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 preventative and post-operative care for a variety of orthopedic-related
disorders and  sports-related  injuries,  treatment  for  neurologically-related
injuries  and  rehabilitation  of injured  workers.  In  addition  to owning and
operating  clinics,  the Company manages physical  therapy  facilities for third
parties,  including hospitals and 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 www.usph.com.

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