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Business Description
HEALTHSOUTH Corporation is a provider of outpatient surgery, outpatient diagnostic and rehabilitative healthcare services. The Company provides these services through its national network of inpatient and outpatient healthcare facilities, including inpatient and outpatient rehabilitation facilities, outpatient surgery centers, diagnostic centers, medical centers and other healthcare facilities. The Company operates in two business segments: inpatient and other clinical services and outpatient services. At December 31, 2001, HEALTHSOUTH operated approximately 1,900 locations in all 50 states, Puerto Rico, the United Kingdom, Canada and Australia.

Financial Information
HEALTHSOUTH provides comprehensive rehabilitative, clinical, diagnostic and surgical healthcare services on an inpatient and outpatient basis. For the six months ended 6/30/02, revenues increased 5% to $2.29 billion. Net income before accounting change totalled $165.3 million, up from $55.4 million. Revenues reflect increased patient volume and increased fees from patients under the Medicare and Medicaid programs. Earnings also reflect decreased loss on asset sales.