DYNACQ International Dynacq Healthcare Inc. - The Surgical Model of the Future

Bankruptcy Court Confirms Plan of Reorganization of Dynacq Healthcare, Inc. Subsidiary
HOUSTON--(BUSINESS WIRE)--April 7, 2005--Dynacq Healthcare Inc. (OTCBB:DYII - News) announced today that the United States Bankruptcy Court for the Southern District of Texas on April 7, 2005, confirmed the plan of reorganization of Vista Hospital of Baton Rouge, LLC ("VHBR"), an indirect majority-owned subsidiary of Dynacq. VHBR had filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on October 8, 2004. The plan of reorganization provides that VHBR will pay all of its creditors in full. VHBR expects to emerge from bankruptcy on or about April 18, 2005. VHBR operates Vista Surgical Hospital of Baton Rouge, a 35-bed facility with four surgical suites. The Baton Rouge Facility's primary areas of practice include bariatric surgery, general surgery, pain management and cosmetic surgery.

Dynacq Healthcare, Inc. (www.dynacq.com) is a holding company. Its subsidiaries provide surgical healthcare services and related ancillary services through hospital facilities and outpatient surgical centers.

Certain statements included in this press release, which are not historical facts, are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our expectations or beliefs and involve certain risks and uncertainties, including those described in our public filings with the United States Securities and Exchange Commission; also including, but not limited to, changes in interest rates, competitive pressures, changes in customer mix, changes in third party reimbursement rates, financial stability of major customers, changes in government regulations or the interpretation of these regulations, changes in supplier relationships, growth opportunities, cost savings, revenue enhancements, synergies and other benefits anticipated from acquisition transactions, difficulties relative to integrating acquired businesses, the accounting and tax treatment of acquisitions, and asserted and unasserted claims, which could cause actual results to differ from those in the forward-looking statements. The forward-looking statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein.

     Dynacq Healthcare, Inc., Houston
     Christina L. Gutel-Williams, 713-378-2000

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