Exhibit 99.1


     Dynacq Healthcare, Inc. - Hurricanes Katrina and Rita

    HOUSTON--(BUSINESS WIRE)--Sept. 27, 2005--Dynacq Healthcare, Inc.
(Nasdaq Capital Markets: DYII - News; "Dynacq") announced today that
none of its facilities in Texas or Louisiana were adversely affected
by either Hurricane Katrina or Hurricane Rita. Dynacq's Pasadena
Facility and West Houston Facility were closed from Thursday through
Sunday, but reopened on Monday, September 26, 2005, having less than
$10,000 in damage as a result of Hurricane Rita. Dynacq's Baton Rouge
Facility in Louisiana had no damage from either hurricane but
experienced minor telephone disruption during Hurricane Katrina. The
Garland Facility had no damage and has been in continuous operations
throughout both Hurricanes Katrina and Rita.
    Dynacq Healthcare, Inc. (www.dynacq.com) is a holding company. Its
subsidiaries provide surgical healthcare services and related
ancillary services through hospital facilities and outpatient surgical
centers.
    Certain statements included in this press release, which are not
historical facts, are forward-looking statements. Such forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements represent our expectations or beliefs and
involve certain risks and uncertainties, including those described in
our public filings with the United States Securities and Exchange
Commission; also including, but not limited to, changes in interest
rates, competitive pressures, changes in customer mix, changes in
third party reimbursement rates financial stability of major
customers, changes in government regulation or the interpretation of
these regulations, changes in supplier relationships, growth
opportunities, cost savings, revenue enhancements, synergies and other
benefits anticipated from acquisition transactions, difficulties
relative to integrating acquired businesses, the accounting and tax
treatment of acquisitions and asserted and unasserted claims, which
could cause actual results to differ from those in the forward-looking
statements. The forward-looking statements, by their nature, involve
substantial risks and uncertainties, certain of which are beyond our
control, and actual results may differ materially, depending on a
variety of important factors. You are cautioned not to place undue
reliance on these forward-looking statement that speak only as of the
date herein.


    CONTACT: Dynacq Healthcare, Inc., Houston
             Holly Hubenak, 713-378-2000