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, 2026

MECHANICSBURG, PENNSYLVANIA

- April 30, 2026 - Select Medical Holdings Corporation ("Select Medical," "we," "us,"

or "our") (NYSE: SEM) today announced results for its first quarter ended March 31, 2026, and the declaration of a cash

For the first quarter ended

March 31, 2026, revenue increased 5.0% to $1,421.5 million, compared to $1,353.2 million for the same quarter, prior year. Income

from operations was $98.4 million for the first quarter ended March 31, 2026, compared to $112.7 million for the same quarter,

prior year. Net income was $63.8 million for the first quarter ended March 31, 2026, compared to $74.7 million for the same quarter,

prior year. Adjusted EBITDA was $141.6 million for the first quarter ended March 31, 2026, compared to $151.4 million for the same

quarter, prior year. Earnings per common share was $0.35 for the first quarter ended March 31, 2026, compared to $0.44 for the same

quarter, prior year. Adjusted earnings per common share was $0.36 for the first quarter ended March 31, 2026, compared to $0.44 for

the same quarter, prior year. The definition of Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA are presented in

table VI of this release. A reconciliation of earnings per common share to adjusted earnings per common share is presented in table VII

On March 2, 2026, the Company entered into an agreement and plan of merger with wholly owned subsidiaries of WCAS XIV, L.P., an investment

fund affiliated with Welsh, Carson, Anderson & Stowe and a member of a consortium led by Robert A. Ortenzio, our Executive Chairman,

Co-Founder and Director and Martin F. Jackson, our Senior Executive Vice President of Strategic Finance and Operations,

pursuant to which, subject to the terms and conditions of the merger agreement, a wholly-owned subsidiary of the buyer will merge with

and into the Company, with the Company surviving as a wholly-owned subsidiary of the buyer (the "Merger"). Upon completion

of the Merger, each issued and outstanding share of Company common stock (subject to certain exceptions) will be converted into the right

to receive $16.50 per share in cash, without interest. Immediately prior to the Merger, each share of common stock that is subject to

forfeiture conditions (other than any Rollover Shares as defined in the merger agreement) will vest in full and be treated the same as

all other shares of common stock.

The completion of the Merger

is subject to the receipt of required regulatory approvals, including certain healthcare regulatory approvals, the approval of the Company's

stockholders (including the approval of a majority of shares not held by the buyer group or their affiliates), and other customary closing

conditions. The applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired on April 27,

2026. The merger agreement does not contain any financing condition. The Company currently expects to complete the Merger in the middle

of 2026, although there can be no assurance that the Merger will occur in accordance with the expected plans or anticipated timeline,

or at all. If the Merger is consummated, the shares of common stock will be delisted from the New York Stock Exchange and deregistered

under the Exchange Act.

Select 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, 2026, Select Medical operated

103 critical illness recovery hospitals in 28 states, 41 rehabilitation hospitals in 15 states, and 1,912 outpatient rehabilitation clinics

in 37 states and the District of Columbia. At March 31, 2026, Select Medical had operations in 38 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, 2026, revenue for the critical illness recovery hospital segment increased 0.3% to $638.8 million, compared to $637.0 million

for the same quarter, prior year. Adjusted EBITDA for the critical illness recovery hospital segment was $73.4 million for the first quarter

ended March 31, 2026, compared to $86.6 million for the same quarter, prior year. The Adjusted EBITDA margin for the critical illness

recovery hospital segment was 11.5% for the first quarter ended March 31, 2026, compared to 13.6% 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, 2026, revenue for the rehabilitation hospital segment increased 14.5% to $351.9 million, compared to $307.4 million for

the same quarter, prior year. Adjusted EBITDA for the rehabilitation hospital segment increased 15.1% to $81.1 million for the first quarter

ended March 31, 2026, compared to $70.4 million for the same quarter, prior year. The Adjusted EBITDA margin for the rehabilitation

hospital segment was 23.0% for the first quarter ended March 31, 2026, compared to 22.9% 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, 2026 and 2025.

Outpatient Rehabilitation Segment

For the first quarter ended

March 31, 2026, revenue for the outpatient rehabilitation segment increased 4.5% to $321.3 million, compared to $307.3 million for

the same quarter, prior year. Adjusted EBITDA for the outpatient rehabilitation segment was $22.0 million for the first quarter ended

March 31, 2026, compared to $24.3 million for the same quarter, prior year. The Adjusted EBITDA margin for the outpatient rehabilitation

segment was 6.8% for the first quarter ended March 31, 2026, compared to 7.9% 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, 2026 and 2025.

On April 29, 2026, Select

Medical's Board of Directors declared a cash dividend of $0.0625 per share. The dividend will be payable on or about May 28,

2026, to stockholders of record as of the close of business on May 14, 2026.

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.

Select Medical is maintaining

its 2026 business outlook, which was provided most recently in its February 19, 2026 press release. For fiscal year 2026, Select

Medical expects revenue to be in the range of $5.6 billion to $5.8 billion, Adjusted EBITDA to be in the range of $520.0 million to $540.0

million, and fully diluted earnings per share to be in the range of $1.22 to $1.32. Reconciliations of full year 2026 Adjusted EBITDA

expectations to net income, is presented in table VIII of this release.

Select Medical will host

a conference call regarding its first quarter results and its business outlook on Friday, May 1, 2026, 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.

For 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 2026 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, 2025 and 2026

(In thousands, except per share amounts, unaudited)

to table II for calculation of earnings per common share.

II. Earnings per Share

For the Three Months Ended March 31,

(In thousands, except per share amounts, unaudited)