4714 Gettysburg Road Mechanicsburg, PA 17055 NYSE Symbol: SEM Select Medical Holdings Corporation Announces Results For Its First Quarter Ended

Select Medical Holdings Corporation Announces

For Its First Quarter Ended March 31, 2025

MECHANICSBURG, PENNSYLVANIA

- May 1, 2025 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"

or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2025, and the declaration of a cash

For the first quarter ended

March 31, 2025, revenue increased 2.4% to $1,353.2 million, compared to $1,321.2 million for the same quarter, prior year. Income

from continuing operations before other income and expense was $112.7 million for the first quarter ended March 31, 2025, compared

to $118.5 million for the same quarter, prior year. Income from continuing operations, net of tax, increased 21.5% to $74.7 million

for the first quarter ended March 31, 2025, compared to $61.5 million for the same quarter, prior year. Adjusted EBITDA was $151.4

million for the first quarter ended March 31, 2025, compared to $165.8 million for the same quarter, prior year. Earnings per common

share from continuing operations increased 33.3% to $0.44 for the first quarter ended March 31, 2025, compared to $0.33 for the same

quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of income from continuing operations, net of tax, to Adjusted

EBITDA are presented in table VI of this release.

On November 25, 2024,

Select completed a tax-free distribution of 104,093,503 shares of common stock of Concentra Group Holdings Parent, Inc. ("Concentra")

to its stockholders. Following the completion of the distribution, the Company no longer owns any shares of Concentra common stock. The

results of Concentra are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment

results for the three months ended March 31, 2024.

Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, and outpatient rehabilitation

clinics in the United States based on number of facilities. Select Medical's reportable segments include the critical illness recovery

hospital segment, the rehabilitation hospital segment, and the outpatient rehabilitation segment. As of March 31, 2025, Select Medical

operated 104 critical illness recovery hospitals in 29 states, 35 rehabilitation hospitals in 14 states, and 1,911 outpatient rehabilitation

clinics in 39 states and the District of Columbia. At March 31, 2025, Select Medical had operations in 40 states and the District

of Columbia. Information about Select Medical is available at www.selectmedical.com.

Critical Illness Recovery Hospital Segment

For the first quarter ended

March 31, 2025, revenue for the critical illness recovery hospital segment was $637.0 million, compared to $655.9 million for the

same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $86.6 million for the first quarter ended

March 31, 2025, compared to $115.9 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical illness

recovery hospital segment was 13.6% for the first quarter ended March 31, 2025, compared to 17.7% for the same quarter, prior year.

Certain critical illness recovery hospital key statistics are presented in table V of this release for the first quarters ended March 31,

Rehabilitation Hospital Segment

For the first quarter ended

March 31, 2025, revenue for the rehabilitation hospital segment increased 15.7% to $307.4 million, compared to $265.7 million for

the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 14.7% to $70.4 million for the first quarter

ended March 31, 2025, compared to $61.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation

hospital segment was 22.9% for the first quarter ended March 31, 2025, compared to 23.1% for the same quarter, prior year. Certain

rehabilitation hospital key statistics are presented in table V of this release for the first quarters ended March 31, 2025 and 2024.

Outpatient Rehabilitation Segment

For the first quarter ended

March 31, 2025, revenue for the outpatient rehabilitation segment increased 1.4% to $307.3 million, compared to $303.2 million for

the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $24.3 million for the first quarter ended

March 31, 2025, compared to $24.9 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation

segment was 7.9% for the first quarter ended March 31, 2025, compared to 8.2% for the same quarter, prior year. Certain outpatient

rehabilitation key statistics are presented in table V of this release for the first quarters ended March 31, 2025 and 2024.

On April 30, 2025, Select

Medical's Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about May 29,

2025, to stockholders of record as of the close of business on May 15, 2025.

There is no assurance that

future dividends will be declared. The declaration and payment of dividends in the future are at the discretion of Select Medical's

Board of Directors after taking into account various factors, including, but not limited to, Select Medical's financial condition,

operating results, available cash and current and anticipated cash needs, the terms of Select Medical's indebtedness, and other

factors Select Medical's Board of Directors may deem to be relevant.

Stock Repurchase Program

The Board of Directors of

Select Medical has authorized a common stock repurchase program to repurchase up to $1.0 billion worth of shares of its common stock.

The common stock repurchase program will remain in effect until December 31, 2025, unless further extended or earlier terminated

by the Board of Directors. Stock repurchases under this program may be made in the open market or through privately negotiated transactions,

and at times and in such amounts as Select Medical deems appropriate. Select Medical funds this program with cash on hand and borrowings

under its revolving credit facility.

During the first quarter

ended March 31, 2025, Select Medical repurchased 649,804 shares at a cost of approximately $11.4 million, or $17.52 per share, which

includes transaction costs. From the inception of the common stock repurchase program through March 31, 2025, Select Medical has

repurchased 48,884,627 shares at a cost of approximately $611.7 million, or $12.51 per share, which includes transaction costs.

Select Medical is adjusting

its 2025 business outlook for revenue and Adjusted EBITDA and reaffirming its 2025 business outlook for fully diluted earnings per share,

which was provided most recently in its February 20, 2025, press release. For fiscal year 2025, Select Medical expects revenue to

be in the range of $5.3 billion to $5.5 billion, Adjusted EBITDA to be in the range of $510.0 million to $530.0 million, and fully diluted

earnings per share to be in the range of $1.09 to $1.19. Reconciliations of full year 2025 Adjusted EBITDA expectations to income from

operations, net of tax, is presented in table VII of this release.

Medical will host a conference call regarding its first quarter results and its business outlook on Friday, May 2, 2025, at 9:00am

ET. The conference call will be a live webcast and can be accessed at Select Medical Holdings Corporation's website at www.selectmedicalholdings.com.

A replay of the webcast will be available shortly after the call through the same link.

listeners wishing to dial-in via telephone, or participate in the question and answer session, you may pre-register for the call at Select

Medical Earnings Call Registration to obtain your dial-in number and unique passcode.

Certain statements contained

herein that are not descriptions of historical facts are "forward-looking" statements (as such term is defined in the Private

Securities Litigation Reform Act of 1995), including statements related to Select Medical's 2025 business outlook. Because such

statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking

statements due to factors including the following:

Except as required by applicable

law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly

update or revise any forward-looking statements, whether as a result of any new information, future events, or otherwise. You should not

place undue reliance on our forward-looking statements. Although we believe that the expectations reflected in forward-looking statements

are reasonable, we cannot guarantee future results or performance.

Senior Vice President and Treasurer

SOURCE: Select Medical Holdings Corporation

I. Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2024 and 2025

(In thousands, except per share amounts, unaudited)

II. Earnings per Share

For the Three Months Ended March 31, 2024 and 2025

(In thousands, except per share amounts, unaudited)

Select Medical's capital

structure includes common stock and unvested restricted stock awards. To compute earnings per share ("EPS"), Select Medical

applies the two-class method because its unvested restricted stock awards are participating securities which are entitled to participate

equally with its common stock in undistributed earnings.