October 8, 2008

U.S. Physical Therapy Acquires Rehab Management Group

U.S. Physical Therapy, Inc. (NASDAQ:USPH), a national operator of physical and occupational therapy outpatient clinics, has acquired a 65% interest in Rehab Management Group ("RMG").

RMG's founders are partners with U.S. Physical Therapy in OsteoArthritis Centers of America. RMG provides physicians and their patients with clinical services including electro-diagnostic analysis ("EDX") as well as intra articular joint ("IAJP Direct") and lumbar osteoarthritis ("LOP Direct") programs. EDX produces real time physiologic data about nerve and muscle function. IAJP Direct involves viscosupplementation injections used in conjunction with specialized outpatient rehabilitation programs. LOP Direct is a unique procedure for the treatment of osteoarthritis of the spine. The purchase price for USPH's 65% interest in RMG was approximately $3.1 million. The business currently produces about $800,000 in earnings before interest, taxes, depreciation and amortization ("EBITDA").

Chris Reading, Chief Executive Officer, said, "The medical programs which Rehab Management Group has developed form the core of our OsteoArthritis Centers of America platform. RMG provides us with the opportunity to expand patient care and services in a variety of settings including within both our outpatient rehab facilities and osteoarthritis centers as well as with musculoskeletal-focused physicians in our many markets."

Forward-Looking Statements

This press release contains statements that are considered to be forward-looking within the meaning under Section 21E of the Securities Exchange Act of 1934. These statements contain forward-looking information relating to the financial condition, results of operations, plans, objectives, future performance and business of our Company. These statements (often using words such as "believes", "expects", "intends", "plans", "appear", "should" and similar words) involve risks and uncertainties that could cause actual results to differ materially from those we project. Included among such statements are those relating to opening new clinics, availability of personnel and the reimbursement environment. The forward-looking statements are based on our current views and assumptions and actual results could differ materially from those anticipated in such forward-looking statements as a result of certain risks, uncertainties, and factors, which include, but are not limited to:

-- revenue and earnings expectations;

-- general economic, business, and regulatory conditions including federal and state regulations;

-- availability and cost of qualified physical and occupational therapists;

-- personnel productivity;

-- changes in Medicare guidelines and reimbursement or failure of our clinics to maintain their Medicare certification status;

-- competitive and/or economic conditions in our markets which may require us to close certain clinics and thereby incur closure costs and losses including the possible write-down or write-off of goodwill;

-- changes in reimbursement rates or payment methods from third party payors including government agencies and deductibles and co-pays owed by patients;

-- maintaining adequate internal controls;

-- availability, terms, and use of capital;

-- acquisitions and the successful integration of the operations of the acquired businesses;

-- and weather and other seasonal factors.

Many factors are beyond our control. Given these uncertainties, you should not place undue reliance on our forward-looking statements. Please see periodic reports filed with the Securities and Exchange Commission (the "SEC") for more information on these factors. Our forward-looking statements represent our estimates and assumptions only as of the date of this report. Except as required by law, we are under no obligation to update any forward-looking statement, regardless of the reason the statement is no longer accurate.

About U.S. Physical Therapy, Inc.

Founded in 1990, U.S. Physical Therapy, Inc. operates 364 clinics in 42 states. The Company's clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, non-surgical treatment of osteoarthritis, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages physical therapy facilities for third parties, including hospitals and physician groups.

More information about U.S. Physical Therapy, Inc. is available at www.usph.com. The information included on that website is not incorporated into this press release.