Dynacq Healthcare Inc. Subsidiary Files Voluntary Petition For Bankruptcy Reorganization Under Chapter 11

Dynacq Healthcare Inc. (Pink Sheets:DYII) (“Dynacq”) announced today that Vista Hospital of Baton Rouge, LLC (“VHBR”), an indirect majority-owned subsidiary of Dynacq, filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. VHBR will continue to operate its business and manage its property as a “debtor in possession” under the jurisdiction of the bankruptcy court. VHBR operates Vista Surgical Hospital of Baton Rouge (the “Baton Rouge Facility”), a 35-bed facility with four surgical suites. The Baton Rouge Facility’s primary areas of practice include bariatric surgery, orthopedic surgery, general surgery, pain management and cosmetic surgery.