HealthSouth ERISA Litigation

The In re HealthSouth et al., ERISA Litigation Complaint was filed in the United States District Court for the Northern District of Alabama Southern Division on behalf of Plaintiffs and a class (the "Class") of all persons who were participants in or beneficiaries of the HealthSouth Rehabilitation Corporation and Subsidiaries Employee Stock Benefit Plan (the "Plan"), for whose individual accounts the Plan held shares of HealthSouth stock, at any time between January 1, 1998 and the present (the "Class Period").

The Complaint alleges that during the Class Period, the Defendants breached their fiduciary duties to Plaintiffs and the Class members by:

• failing to loyally and prudently manage and administer the Plan and Plan assets; and,
• failing to properly monitor plan fiduciaries and provide fiduciary appointees with material information in order to prudently manage the plan and the plan assets

Settlement Update

For inquiries on the settlement or to update your address, please e-mail: HealthSouth@kellerrohrback.com or call 1-800-315-0177.

June 29, 2006 - Keller Rohrback announces final court approval of the $28.85M cash settlement with all Named Defendants in the HealthSouth Corp. ERISA litigation. For details regarding the final approval of the settlement, please refer to the Case Documents below.