Scott + Scott, LLC Announces Final Days to Move Against Dynacq Healthcare, Inc. as Texas Attorney General Investigates; Suit Filed on December 29, 2003 Its Auditor, Ernst & Young, resigned as the SEC began an informal probe while its Chief Operating Officer Resigns SAN DIEGO, Feb. 16 /PRNewswire/ -- Scott + Scott, LLC announces that any member of the purported class in the securities action against Dynacq and certain of its officers and directors must move the Court for appointment as "Lead Plaintiff" no later than February 24, 2004. A class action was commenced on December 29, 2003, in the United States District Court for the Southern District of Texas (H 03-5868) on behalf of all persons who purchased the securities of Dynacq Healthcare, Inc.or ("Dynacq") between January 14, 2003 and December 16, 2003 inclusive (the "Class Period"). Plaintiff seeks to pursue all remedies available under the United States securities laws. On February 13, 2004, Dynacq announced that Executive Vice President and Chief Operating Officer Sarah C. Garvin resigned from these positions with the Company. The Company is on notice from the Texas Attorney General's Office that it is under investigation for possible violations of state statutes governing patientsolicitations and it has previously received requests from the Texas Attorney General's Office for documentation related to instances of death in the last five years. Dynacq develops and operates hospitals focusing on certain surgical specialties. The complaint charges certain of its officers and directors with violations of the federal securities laws (Securities Exchange Act of 1934). On December 2, 2003, the company announced that, as part of the SEC's routine review of public companies, a division of the SEC had "commented upon" the company's public filings. As a result, Dynacq asked for an automatic 15-day extension to file its 10-K for its fiscal year which ended August 31, 2003. Two weeks later, Dynacq announced it would further postponeits filing. Ten days later, its auditor, Ernst & Young, resigned and the SEC began an informal inquiry of the company's accounting. Also that day, Dynacq revealed that it would be delisted from NASDAQ due to untimely filed yearly reports. The stock collapsed from $8.95 on December 18 to $4.09 the next day. If you would like to discuss this matter, or any related matter with an attorney, you can contact Neil Rothstein, Esq. at (619) 251-0887 or e-mail him at . You can reach our firm in California at (800) 332-2259 or in Connecticut at (800) 404-7770. A copy of this complaint can be obtained from the Court or can be obtained by calling Scott + Scott, LLC. This complaint can also be viewed at the firm's website at http://www.scott-scott.com/ and clicking on "IN THE NEWS." Scott + Scott, LLC is engaged in the representation of funds, foundations, endowments, institutions, pension funds, corporations and individuals throughout the world in securities, antitrust and other complex class and non- class action litigation. The firm maintains the highest standards for client satisfaction and communication and its attorneys litigate cases in both state and federal courts throughout the nation. It has recovered hundreds of millions of dollars for itsclients and absent class members in numerous cases. It has been appointed "Lead Counsel" in many prominent class action cases. Scott + Scott, LLC issues this release in accordance with the applicable federal securities laws. If you wish to discuss this action with an attorney, the information contained in this notice or any other securities fraud matter, please contact Neil Rothstein at () or call 800/332-2259. You can write Scott + Scott at 108 Norwich Avenue, Colchester, CT 06415 or fax at 860/537-4432. Scott + Scott can be directly called at 619/233-0076 in CA or 860/537-3818 in CT. DATASOURCE: Scott + Scott, LLC CONTACT: Neil Rothstein of Scott + Scott, LLC, +1-800-332-2259,

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