Exhibit 99.1

FOR IMMEDIATE RELEASE		4716 Old Gettysburg Road Mechanicsburg, PA 17055

Select Medical Corporation Announces Results for
First Quarter Ended March 31, 2007

     MECHANICSBURG, PENNSYLVANIA — — May 15, 2007 — — Select Medical Corporation (“Select”) today announced results for its first quarter ended March 31, 2007.

     For the first quarter ended March 31, 2007, net operating revenues decreased 2.7% to $466.8 million compared to $479.7 million for the same quarter, prior year. Income from operations decreased 9.2% to $60.3 million compared to $66.5 million for the same quarter, prior year. Net income decreased 37.3% to $22.2 million compared to $35.4 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 (expense) and minority interest (“Adjusted EBITDA”) for the first quarter decreased 6.8% to $73.0 million compared to $78.3 million for the same quarter, prior year. A reconciliation of net income to Adjusted EBITDA is attached to this release.

Specialty Hospitals

     At March 31, 2007, Select operated 89 long-term acute care hospitals and three acute medical rehabilitation hospitals. This compares to 97 long-term acute care hospitals and four acute medical rehabilitation hospitals operated at March 31, 2006. For the first quarter of 2007, net operating revenues for all of Select’s hospitals decreased 1.5% to $354.2 million compared to $359.7 million for the same quarter, prior year. Total patient days for the first quarter of 2007 were 252,476, admissions were 10,416 and net revenue per patient day was $1,378. This compares to 251,701 days, 10,483 admissions and net revenue per patient day of $1,405 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 first quarter of 2007 were 249,535 and admissions were 10,307, compared to 243,474 days and 10,156 admissions in the same quarter, prior year. Adjusted EBITDA for the segment decreased 11.6% to $66.0 million compared to $74.7 million for the same quarter, prior year. The Adjusted EBITDA margin for the segment was 18.6% for the first quarter of 2007, compared to 20.8% 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 19.7% for the first quarter of 2007, compared to 21.2% for the same quarter, prior year.

Outpatient Rehabilitation

     At March 31, 2007, Select operated 545 outpatient clinics. This compares to 613 outpatient clinics at March 31, 2006. For the first quarter of 2007, net operating revenues were $112.4 million compared to $119.3 million for the same quarter, prior year. Adjusted EBITDA for the first quarter increased 19.4% to $17.6 million compared to $14.8 million for the same quarter, prior year. The Adjusted EBITDA margin for the quarter was 15.7% compared to 12.4% in the same quarter, prior year. Patient visits for the quarter were 646,651 compared to 784,839 for the same quarter, prior year. Net revenue per visit was $101 for the first quarter of 2007 compared to $91 for the same quarter, 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 three months ended March 31, 2006. We recognized a gain on sale (net of tax) of $9.1 million in the first quarter ended March 31, 2006 .

Agreement to Purchase 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. The closing of the sale of certain of the outpatient rehabilitation clinics has been deferred pending certain state regulatory approvals. The purchase price for the entire division is approximately $245.0 million, and is subject to future adjustment based on the division’s net working capital on the closing date.

Agreement to Purchase Nexus Health Systems, Inc.

     On March 26, 2007, Select entered into a Stock Purchase Agreement with Nexus Health Systems, Inc. (“Nexus”), Neurobehavioral Management Services L.L.C., Nexus Health Inc. and the stockholders of Nexus Health Systems, Inc. to acquire substantially all of the assets of Nexus for approximately $49.0 million in cash plus the assumption of a capital lease. The purchase price is subject to adjustment based on Nexus’s net working capital, cash and indebtedness on the closing date.

     The Nexus transaction, which is expected to close in the second quarter of 2007, is subject to a number of closing conditions, including receipt of regulatory approvals.

Conference Call

     Select will host a conference call regarding its first quarter results on Wednesday, May 16, 2007, at 11:00 am EDT. The domestic dial in number for the call is 1-866-847-7861. The international dial in number is 1-703-639-1428.

* * * * *

     Select Medical Corporation is a leading operator of specialty hospitals in the United States. Select operates 89 long-term acute care hospitals in 26 states. Select operates three acute medical rehabilitation hospitals in New Jersey. Select is also a leading operator of outpatient rehabilitation clinics in the United States, with more than 1,100 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

I. Condensed Consolidated Statements of Operations
(In thousands)
(unaudited)
For the Three Months Ended March 31, 2006 and 2007

										%
		2006				2007				Change
Net operating revenues		$	479,743			$	466,829				(2.7	)%
Costs and expenses:
Cost of services			385,197				377,627				(2.0	)%
General and administrative			12,200				11,584				(5.0	)%
Bad debt expense			5,000				5,589				11.8	%
Depreciation and amortization			10,895				11,704				7.4	%
Income from operations			66,451				60,325				(9.2	)%
Other income (expense)			2,434				(143	)			N/M
Interest income			222				929				318.5	%
Interest expense			(24,272	)			(23,638	)			(2.6	)%
Income from continuing operations before minority interests and income taxes			44,835				37,473				(16.4	)%
Minority interests			391				323				(17.4	)%
Income from continuing operations before income taxes			44,444				37,150				(16.4	)%
Income tax expense			19,095				14,967				(21.6	)%
Income from continuing operations			25,349				22,183				(12.5	)%
Income from discontinued operations, net of tax (includes pretax gain of $13,950 in 2006)			10,018				—				N/M
Net income		$	35,367			$	22,183				(37.3	)%

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

		December 31,				March 31,
		2006				2007
Assets
Cash		$	81,600			$	37,536
Restricted cash			4,335				4,389
Accounts receivable, net			199,927				227,549
Current deferred tax asset			42,613				41,804
Prepaid income taxes			—				2,570
Other current assets			16,762				17,479
Total Current Assets			345,237				331,327
Property and equipment, net			356,336				383,199
Goodwill			1,323,572				1,323,572
Other identifiable intangibles			79,230				77,541
Other assets held for sale			4,855				4,825
Other assets			68,412				67,000
Total Assets		$	2,177,642			$	2,187,464
Liabilities and Stockholder’s Equity Payables and accruals		$	297,698			$	287,579
Income taxes payable			1,937				—
Current portion of long term debt			6,209				7,184
Total Current Liabilities			305,844				294,763
Long term debt, net of current portion			1,224,509				1,221,972
Non-current deferred tax liability			30,721				24,388
Other non-current liabilities			—				23,410
Minority interests			2,566				2,091
Stockholder’s equity			614,002				620,840
Total Liabilities and Stockholder’s Equity		$	2,177,642			$	2,187,464

III. Key Statistics
(unaudited)
For the Three Months Ended March 31, 2006 and 2007

		2006				2007				% Change
Specialty Hospitals (a)
Number of hospitals — end of period			101				92				(8.9	)%
Net operating revenues (,000)		$	359,672			$	354,228				(1.5	)%
Number of patient days			251,701				252,476				0.3	%
Number of admissions			10,483				10,416				(0.6	)%
Net revenue per patient day (b)		$	1,405			$	1,378				(1.9	)%
Adjusted EBITDA (,000)		$	74,718			$	66,031				(11.6	)%
Adjusted EBITDA margin — all hospitals			20.8	%			18.6	%			(10.6	)%
Adjusted EBITDA margin — same store hospitals (c)			21.2	%			19.7	%			(7.1	)%
Outpatient Rehabilitation
Number of clinics — end of period			613				545				(11.1	)%
Net operating revenues (,000)		$	119,290			$	112,380				(5.8	)%
Number of visits			784,839				646,651				(17.6	)%
Revenue per visit (d)		$	91			$	101				11.0	%
Adjusted EBITDA (,000)		$	14,760			$	17,618				19.4	%
Adjusted EBITDA margin			12.4	%			15.7	%			26.6	%

IV. Net Income to Adjusted EBITDA Reconciliation
(In thousands)
(unaudited)
For the Three Months Ended March 31, 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 (expense) 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 March 31,
		2006				2007
Net income		$	35,367			$	22,183
Income from discontinued operations, net of tax			(10,018	)			—
Income tax expense			19,095				14,967
Minority interest			391				323
Interest expense, net			24,050				22,709
Other (income) expense			(2,434	)			143
Stock compensation expense
Included in general and administrative			888				888
Included in cost of services			58				39
Depreciation and amortization			10,895				11,704
Adjusted EBITDA		$	78,292			$	72,956
Specialty hospitals		$	74,718			$	66,031
Outpatient rehabilitation			14,760				17,618
Other (1)			(11,186	)			(10,693	)
Adjusted EBITDA		$	78,292			$	72,956

The following tables reconcile specialty hospital same store information.

		Three Months Ended
		March 31, 2006				March 31, 2007
Specialty hospitals net operating revenue		$	359,672			$	354,228
Less: Specialty hospitals in development, opened or closed after 1/1/06			11,894				4,260
Specialty hospitals same store net operating revenue		$	347,778			$	349,968
Specialty hospitals Adjusted EBITDA		$	74,718			$	66,031
Less: Specialty hospitals in development, opened or closed after 1/1/06			1,009				(3,020	)
Specialty hospitals same store Adjusted EBITDA		$	73,709			$	69,051
All specialty hospitals Adjusted EBITDA margin			20.8	%			18.6	%
Specialty hospitals same store Adjusted EBITDA margin			21.2	%			19.7	%