Exhibit 99.1

FOR IMMEDIATE RELEASE		4716 Old Gettysburg Road Mechanicsburg, PA 17055

Select Medical Corporation Announces Results for
Second Quarter Ended June 30, 2007

     MECHANICSBURG, PENNSYLVANIA — August 13, 2007 — Select Medical Corporation (“Select”) today announced results for its second quarter ended June 30, 2007.

     For the second quarter ended June 30, 2007, net operating revenues increased 5.0% to $506.5 million compared to $482.1 million for the same quarter, prior year. Income from operations decreased 22.3% to $60.6 million compared to $78.0 million for the same quarter, prior year. Net income decreased 38.0% to $21.0 million compared to $33.9 million for the same quarter, prior year. Additionally, net income before interest, income taxes, depreciation and amortization, income from discontinued operations, stock compensation expense, other income and minority interest (“Adjusted EBITDA”) for the second quarter decreased 16.7% to $75.5 million compared to $90.6 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

     For the six months ended June 30, 2007, net operating revenues increased 1.2% to $973.3 million compared to $961.9 million for the same period, prior year. Income from operations decreased 16.3% to $120.9 million compared to $144.4 million for the same period, prior year. Net income decreased 37.6% to $43.2 million compared to $69.3 million for the same period, prior year. Additionally, Adjusted EBITDA for the six months ended June 30, 2007 decreased 12.1% to $148.4 million compared to $168.9 million for the same period, prior year.

Specialty Hospitals

     At June 30, 2007, Select operated 89 long-term acute care hospitals and three acute medical rehabilitation hospitals. This compares to 96 long-term acute care hospitals and four acute medical rehabilitation hospitals operated at June 30, 2006. For the second quarter of 2007, net operating revenues for all of Select’s hospitals decreased 4.3% to $345.3 million compared to $360.8 million for the same quarter, prior year. Total patient days for the second quarter of 2007 were 247,368, admissions were 9,666 and net revenue per patient day was $1,370. This compares to 246,275 days, 10,154 admissions and net revenue per patient day of $1,435 for the same quarter, prior year. For the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods, patient days in the second quarter of 2007 were 243,081 and admissions were 9,512, compared to 239,439 days and 9,906 admissions in the same quarter, prior year. Adjusted EBITDA for the segment decreased 26.6% to $60.7 million compared to $82.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 17.6% for the second quarter of 2007, compared to 22.9% for the same quarter, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods was 18.7% for the second quarter of 2007, compared to 24.1% for the

Exhibit 99.1

same quarter, prior year.

     For the six months ended June 30, 2007, net operating revenues for all of Select’s hospitals decreased 2.9% to $699.5 million compared to $720.4 million for the same period, prior year. Total patient days for the six months ended June 30, 2007 were 499,844, admissions were 20,082 and net revenue per patient day was $1,374. This compares to 497,976 days, 20,637 admissions and net revenue per patient day of $1,419 for the same period, prior year. For the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods, patient days for the six months ended June 30, 2007 were 492,616 and admissions were 19,819, compared to 482,913 days and 20,062 admissions in the same period, prior year. Adjusted EBITDA for the segment for the six months ended June 30, 2007 decreased 19.5% to $126.7 million compared to $157.4 million for the same period, prior year. The Adjusted EBITDA margin for the segment for the six months ended June 30, 2007 was 18.1%, compared to 21.8% for the same period, prior year. The Adjusted EBITDA margin for the hospitals opened or acquired as of January 1, 2006 and operated by Select throughout both periods was 19.2% for the six months ended June 30, 2007, compared to 22.6% for the same period, prior year.

Outpatient Rehabilitation

     At June 30, 2007, Select operated 1,106 outpatient clinics. This compares to 610 outpatient clinics at June 30, 2006. The increase in the number of clinics is primarily due to Select’s acquisition, in the second quarter of 2007, of substantially all of the outpatient rehabilitation division of HealthSouth Corporation, as described below. For the second quarter of 2007, net operating revenues were $159.7 million compared to $120.6 million for the same quarter, prior year. Adjusted EBITDA for the second quarter increased 33.3% to $24.6 million compared to $18.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 15.4% compared to 15.3% in the same quarter, prior year. Patient visits for the quarter were 1,079,613 compared to 762,177 for the same quarter, prior year. Net revenue per visit was $99 for the second quarter of 2007 compared to $94 for the same quarter, prior year.

     For the six months ended June 30, 2007, net operating revenues increased 13.4% to $272.1 million compared to $239.9 million for the same period, prior year. Adjusted EBITDA for the six months ended June 30, 2007 increased 27.1% to $42.2 million compared to $33.2 million for the same period, prior year. The Adjusted EBITDA margin for the six months ended June 30, 2007 was 15.5% compared to 13.8% in the same period, prior year. Patient visits for the six months ended June 30, 2007 were 1,726,264 compared to 1,547,016 for the same period, prior year. Net revenue per visit was $100 for the six months ended June 30, 2007 compared $93 for the same period, prior year.

     On March 1, 2006, we sold our wholly-owned subsidiary, Canadian Back Institute Limited (“CBIL”), for approximately C$89.8 million in cash (US$79.0 million). We conducted all of our Canadian operations through CBIL. The financial results of CBIL have been classified as discontinued operations for the six months ended June 30, 2006. We recognized a gain on sale (net of tax) of $9.1 million in the first quarter ended March 31, 2006.

Acquisition of HealthSouth Corporation’s Outpatient Rehabilitation Division

     On May 1, 2007, Select completed the acquisition of substantially all of the outpatient rehabilitation division of HealthSouth Corporation. At the closing, Select acquired 540 outpatient rehabilitation clinics. The closing of the purchase of approximately 30 additional outpatient rehabilitation clinics has been deferred pending certain state regulatory approvals. Approximately $24.0 million of the approximately $245.0 million purchase price was withheld pending receipt of these approvals and the transfer of the remaining clinics. The purchase price was reduced by approximately $7.0 million at the closing and is subject to further adjustment based on the division’s net working capital on the closing date.

Exhibit 99.1

Conference Call

     Select will host a conference call regarding its second quarter results on Tuesday, August 14, 2007, at 11:00 am EDT. The domestic dial in number for the call is 1-866-802-4290. The international dial in number is 1-703-639-1316.

*   *   *   *   *

     Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 89 long-term acute care hospitals and four acute medical rehabilitation hospitals in 26 states. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with approximately 1,106 locations in 37 states and the District of Columbia. Select also provides medical rehabilitation services on a contract basis at nursing homes, hospitals, assisted living and senior care centers, schools and worksites. Information about Select is available at http://www.selectmedicalcorp.com/

     Certain statements contained herein that are not descriptions of historical facts are “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to those discussed in filings made by Select with the Securities and Exchange Commission. Many of the factors that will determine Select’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. Select undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Investor inquiries:

Joel Veit, 717/972-1100

Exhibit 99.1

I. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Three Months Ended June 30, 2006 and 2007

										%
		2006				2007				Change
Net operating revenues		$	482,141			$	506,484				5.0	%
Costs and expenses:
Cost of services			372,500				410,952				10.3	%
General and administrative			11,549				12,182				5.5	%
Bad debt expense			8,433				8,835				4.8	%
Depreciation and amortization			11,666				13,939				19.5	%
Income from operations			77,993				60,576				(22.3	)%
Other income			1,608				1,660				3.2	%
Interest income			197				869				341.1	%
Interest expense			(23,995	)			(27,067	)			12.8	%
Income from continuing operations before minority interests and income taxes			55,803				36,038				(35.4	)%
Minority interests			335				813				142.7	%
Income from continuing operations before income taxes			55,468				35,225				(36.5	)%
Income tax expense			21,531				14,188				(34.1	)%
Net income		$	33,937			$	21,037				(38.0	)%

Exhibit 99.1

II. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Six Months Ended June 30, 2006 and 2007

										%
		2006				2007				Change
Net operating revenues		$	961,884			$	973,313				1.2	%
Costs and expenses:
Cost of services			757,697				788,579				4.1	%
General and administrative			23,749				23,766				0.1	%
Bad debt expense			13,433				14,424				7.4	%
Depreciation and amortization			22,561				25,643				13.7	%
Income from operations			144,444				120,901				(16.3	)%
Other income			4,042				1,517				(62.5	)%
Interest income			419				1,798				329.1	%
Interest expense			(48,267	)			(50,705	)			5.1	%
Income from continuing operations before minority interests and income taxes			100,638				73,511				(27.0	)%
Minority interests			726				1,136				56.5	%
Income from continuing operations before income taxes			99,912				72,375				(27.6	)%
Income tax expense			40,626				29,155				(28.2	)%
Income from continuing operations			59,286				43,220				(27.1	)%
Income from discontinued operations, net of tax (includes pretax gain of $13,950 in 2006)			10,018				—				N/M
Net income		$	69,304			$	43,220				(37.6	)%

Exhibit 99.1

III. Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)

		December 31,				June 30,
		2006				2007
Assets
Cash		$	81,600			$	25,610
Restricted cash			4,335				3,800
Accounts receivable, net			199,927				261,311
Current deferred tax asset			42,613				40,837
Other current assets			16,762				23,710
Total Current Assets			345,237				355,268
Property and equipment, net			356,336				460,227
Goodwill			1,323,572				1,468,086
Other identifiable intangibles			79,230				97,237
Other assets held for sale			4,855				—
Other assets			68,412				72,445
Total Assets		$	2,177,642			$	2,453,263
Liabilities and Stockholder’s Equity
Payables and accruals		$	297,698			$	352,693
Income taxes payable			1,937				3,431
Current portion of long term debt			6,209				8,239
Total Current Liabilities			305,844				364,363
Long term debt, net of current portion			1,224,509				1,401,118
Non-current deferred tax liability			30,721				26,330
Other non-current liabilities			—				24,648
Minority interests			2,566				3,873
Stockholder’s equity			614,002				632,931
Total Liabilities and Stockholder’s Equity		$	2,177,642			$	2,453,263

Exhibit 99.1

IV. Key Statistics
(unaudited)
For the Three Months Ended June 30, 2006 and 2007

										%
		2006				2007				Change
Specialty Hospitals (a)
Number of hospitals — end of period			100				92				(8.0	)%
Net operating revenues (,000)		$	360,772			$	345,282				(4.3	)%
Number of patient days			246,275				247,368				0.4	%
Number of admissions			10,154				9,666				(4.8	)%
Net revenue per patient day (b)		$	1,435			$	1,370				(4.5	)%
Adjusted EBITDA (,000)		$	82,673			$	60,690				(26.6	)%
Adjusted EBITDA margin — all hospitals			22.9	%			17.6	%			(23.1	)%
Adjusted EBITDA margin — same store hospitals (c)			24.1	%			18.7	%			(22.4	)%
Outpatient Rehabilitation
Number of clinics — end of period			610				1,106				81.3	%
Net operating revenues (,000)		$	120,641			$	159,686				32.4	%
Number of visits			762,177				1,079,613				41.6	%
Revenue per visit (d)		$	94			$	99				5.3	%
Adjusted EBITDA (,000)		$	18,423			$	24,553				33.3	%
Adjusted EBITDA margin			15.3	%			15.4	%			0.7	%

(a)		Specialty hospitals consist of long-term acute care hospitals and acute medical rehabilitation hospitals.
(b)		Net revenue per patient day is calculated by dividing specialty hospital patient service revenue by the total number of patient days.
(c)		Adjusted EBITDA margin — same store hospitals represents the Adjusted EBITDA margin for those hospitals opened or acquired before January 1, 2006 and operated throughout both periods.
(d)		Net revenue per visit is calculated by dividing outpatient rehabilitation clinic revenue by the total number of visits. For purposes of this computation, outpatient rehabilitation clinic revenue does not include managed clinics or contract services revenue.

Exhibit 99.1

V. Key Statistics
(unaudited)
For the Six Months Ended June 30, 2006 and 2007

										%
		2006				2007				Change
Specialty Hospitals (a)
Number of hospitals — end of period			100				92				(8.0	)%
Net operating revenues (,000)		$	720,444			$	699,510				(2.9	)%
Number of patient days			497,976				499,844				0.4	%
Number of admissions			20,637				20,082				(2.7	)%
Net revenue per patient day (b)		$	1,419			$	1,374				(3.2	)%
Adjusted EBITDA (,000)		$	157,391			$	126,721				(19.5	)%
Adjusted EBITDA margin — all hospitals			21.8	%			18.1	%			(17.0	)%
Adjusted EBITDA margin — same store hospitals (c)			22.6	%			19.2	%			(15.0	)%
Outpatient Rehabilitation
Number of clinics — end of period			610				1,106				81.3	%
Net operating revenues (,000)		$	239,931			$	272,066				13.4	%
Number of visits			1,547,016				1,726,264				11.6	%
Revenue per visit (d)		$	93			$	100				7.5	%
Adjusted EBITDA (,000)		$	33,183			$	42,171				27.1	%
Adjusted EBITDA margin			13.8	%			15.5	%			12.3	%

(a)		Specialty hospitals consist of long-term acute care hospitals and acute medical rehabilitation hospitals.
(b)		Net revenue per patient day is calculated by dividing specialty hospital patient service revenue by the total number of patient days.
(c)		Adjusted EBITDA margin — same store hospitals represents the Adjusted EBITDA margin for those hospitals opened or acquired before January 1, 2006 and operated throughout both periods.
(d)		Net revenue per visit is calculated by dividing outpatient rehabilitation clinic revenue by the total number of visits. For purposes of this computation, outpatient rehabilitation clinic revenue does not include managed clinics or contract services revenue.

Exhibit 99.1

VI. Net Income to Adjusted EBITDA Reconciliation
(In thousands)
(unaudited)
For the Three and Six Months Ended June 30, 2006 and 2007

     The following table reconciles net income to Adjusted EBITDA for Select. Adjusted EBITDA is used by Select to report its segment performance in accordance with SFAS No. 131. Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization, income from discontinued operations, stock compensation expense, other income and minority interest. We believe that the presentation of Adjusted EBITDA is important to investors because Adjusted EBITDA is used by management to evaluate financial performance and determine resource allocation for each of our operating units.

     Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles. Items excluded from Adjusted EBITDA are significant components in understanding and assessing financial performance. Adjusted EBITDA should not be considered in isolation or as an alternative to, or substitute for, net income, cash flows generated by operations, investing or financing activities, or other financial statement data presented in the consolidated financial statements as indicators of financial performance or liquidity. Because Adjusted EBITDA is not a measurement determined in accordance with generally accepted accounting principles and is thus susceptible to varying calculations, Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies.

		Three Months Ended June 30,								Six Months Ended June 30,
		2006				2007				2006				2007
Net income		$	33,937			$	21,037			$	69,304			$	43,220
Income from discontinued operations, net of tax			—				—				(10,018	)			—
Income tax expense			21,531				14,188				40,626				29,155
Minority interest			335				813				726				1,136
Interest expense, net			23,798				26,198				47,848				48,907
Other income			(1,608	)			(1,660	)			(4,042	)			(1,517	)
Stock compensation expense
Included in general and administrative			887				891				1,775				1,779
Included in cost of services			58				60				116				99
Depreciation and amortization			11,666				13,939				22,561				25,643
Adjusted EBITDA		$	90,604			$	75,466			$	168,896			$	148,422
Specialty hospitals		$	82,673			$	60,690			$	157,391			$	126,721
Outpatient rehabilitation			18,423				24,553				33,183				42,171
Other (1)			(10,492	)			(9,777	)			(21,678	)			(20,470	)
Adjusted EBITDA		$	90,604			$	75,466			$	168,896			$	148,422

(1)		Other primarily includes Select’s general and administrative costs.

Exhibit 99.1

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		June 30, 2006				June 30, 2007
Specialty hospitals net operating revenue		$	360,772			$	345,282
Less: Specialty hospitals in development, opened or closed after 1/1/06			9,546				5,844
Specialty hospitals same store net operating revenue		$	351,226			$	339,438
Specialty hospitals Adjusted EBITDA		$	82,673			$	60,690
Less: Specialty hospitals in development, opened or closed after 1/1/06			(1,803	)			(2,926	)
Specialty hospitals same store Adjusted EBITDA		$	84,476			$	63,616
All specialty hospitals Adjusted EBITDA margin			22.9	%			17.6	%
Specialty hospitals same store Adjusted EBITDA margin			24.1	%			18.7	%

		Six Months Ended
		June 30, 2006				June 30, 2007
Specialty hospitals net operating revenue		$	720,444			$	699,510
Less: Specialty hospitals in development, opened or closed after 1/1/06			21,440				10,104
Specialty hospitals same store net operating revenue		$	699,004			$	689,406
Specialty hospitals Adjusted EBITDA		$	157,391			$	126,721
Less: Specialty hospitals in development, opened or closed after 1/1/06			(794	)			(5,946	)
Specialty hospitals same store Adjusted EBITDA		$	158,185			$	132,667
All specialty hospitals Adjusted EBITDA margin			21.8	%			18.1	%
Specialty hospitals same store Adjusted EBITDA margin			22.6	%			19.2	%