April 20, 2007 - HealthSouth Corp. recently announced an agreement to sell its Diagnostic Division to The Gores Group for approximately $47.5 million; the transaction is expected to be completed by the end of June or early third quarter 2007.

HealthSouth's Diagnostic Division is currently comprised of a network of 54 freestanding diagnostic imaging centers in 19 states and the District of Columbia. While not all services are provided at all sites, 80 percent of the centers are multi-modality facilities offering a combination of outpatient diagnostic imaging services, including MRI, CT, X-ray, ultrasound, mammography, fluoroscopy and nuclear medicine services.

It is anticipated that the operations of the division will remain headquartered in Birmingham, Ala. HealthSouth will provide certain corporate support services to the new company for an interim period of time, under a Transition Services Agreement.

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