Triumph HealthCare Announces Merger With RehabCare Group, Inc.

(Houston, Texas/November 3, 2009) Houston based Triumph HealthCare; the nation’s third largest provider of long-term acute care (LTAC), today announced a definitive agreement for a merger with RehabCare Group, Inc. (NYSE: RHB) In 2005, RehabCare launched its Hospital Division, which owns and operates rehabilitation and LTAC hospitals. The combined organization will operate 29 LTAC hospitals and six inpatient rehabilitation facilities in 13 states.

Established in 1982, RehabCare is a publicly traded (NYSE: RHB), leading provider of rehabilitation management services across the post-acute continuum of care. They currently partner with over 1,250 hospitals, skilled nursing facilities and other long-term care facilities throughout the United States in building programs that achieve the company’s mission of helping people regain their lives.

John, H. Short, PhD, RehabCare President and Chief Executive Officer, relayed, “Our long-stated strategy has been to accelerate the growth of our hospital operations through acquisitions. This will give us immediate scale and allow us to integrate the best practices of Triumph, an industry leader in the management of long-term acute care hospitals. By melding the strengths of our two companies, we also build a more diverse company with the potential to deliver the post-acute continuum of care in more markets, offer additional career options for clinicians and reach more patients in need of specialized long-term acute care services.”

The combined LTAC Hospital business will be managed by Brock Hardaway, Triumph’s President and Chief Operating Officer. Both Triumph and RehabCare are committed to ensuring a smooth transition for all Triumph employees, with very little impact expected at the corporate offices and no impact at the hospitals. “Over the last several years, we have been exploring a number of strategic alternatives to fund the company’s continued growth,” explained Hardaway. He added, “RehabCare Group was clearly the best choice for continuing our mission of a financially strong and growing organization. The resources for growth and expansion will be increased, and career opportunities for our employees will be expanded.”

The deal is expected to close on or about December 1, 2009 subject to the customary closing conditions, including receipt of certain regulatory approvals.