Exhibit 99.1


            Dynacq Healthcare, Inc. Announces Consummation
                   of Sale of Baton Rouge Hospital


    HOUSTON--(BUSINESS WIRE)--Dec. 18, 2007--Dynacq Healthcare, Inc.
(DYII) announced today the completion of the sale of the land,
buildings and tangible assets of Vista Surgical Hospital of Baton
Rouge, Louisiana to the State of Louisiana. The closing of the sale
was delayed and the sales price was reduced as a result of the receipt
by the State of Louisiana of an appraisal of the real property and
other assets in an amount less than the $20 million purchase price
agreed to between the parties in the Purchase and Sale Agreement
entered into on November 8, 2007. The gross sale price for the assets
was reduced to $17.6 million in cash, which amount was paid to Dynacq
at the closing on December 18, 2007.

    Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company.
Its subsidiaries provide surgical healthcare services and related
ancillary services through hospital facilities and an outpatient
surgical center.

    CONTACT: Dynacq Healthcare, Inc., Houston
             Philip S. Chan, 713-378-2000
             info@dynacq.com