Dynacq Healthcare, Inc. Announces Termination of Agreement to Sell Its Baton Rouge Hospital Assets

HOUSTON--(BUSINESS WIRE)--March 8, 2006--Dynacq Healthcare, Inc. (Nasdaq:DYII - News) announced today the termination of its agreement to sell the assets of its Baton Rouge Hospital to Physicians Medical Centre of Baton Rouge, through no fault of the seller. The Purchase Agreement was entered into on February 22, 2006 and terminated on March 7, 2006.

Dynacq Healthcare, Inc. ("www.dynacq.com") is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities and an outpatient surgical center. Contact: Dynacq Healthcare, Inc., Houston Philip Chan, 713-378-2000 info@dynacq.com Source: Dynacq Healthcare, Inc.