Dynacq Clarifies Reclassification in Accounting Reporting of Net Revenues Instead of Gross Revenues for Fiscal Year Ended August 31, 2000.

Business Editors/Health & Medical Writers

HOUSTON--(BW HealthWire)--Dec. 1, 2000

Has No Effect On Net Income, Earnings Per Share, Nor the Very Sound

and Strong Business Fundamentals of Dynacq International Inc.

Dynacq International Inc. (Nasdaq:DYII) announces the reclassification in accounting reporting of net revenues net of contractual adjustments by insurance payers instead of gross revenues for fiscal year ended August 31, 2000 was to comply with the American Institute of Certified Public Accountants' (AICPA) healthcare industry guide under the advisement of the Company's independent auditor, KenWood & Associates, P.C., which has been the Company's independent auditor since fiscal 1996. These contractual adjustments have been reported in the provision for uncollectible accounts line item as an expense deduction from gross revenues to arrive at the net income in the previous fiscal years. Therefore the accounting reclassification of deducting the contractual adjustments from gross revenue in fiscal 2000 instead of deducting it as provision for uncollectible accounts as an expense line item does not increase or decrease the net income nor earnings per share. In other words, the reclassification has no effect on the bottom line net income nor earnings per share. This accounting reclassification started with gross revenues of $39,165,582 less contractual adjustments of $13,133,141 to arrive at net revenue of $26,032,441 in fiscal 2000 and started with gross revenues of $22,415,531 less contractual adjustment of $6,202,875 to arrive at net revenue of $16,212,656 in fiscal 1999. The reporting of net revenues instead of gross revenues is an accounting reclassification and not an accounting change to reduce net income, earnings per share, and has no bearing on the operations, profitability and growth of the company. The Vista medical complex has been a great success for the company and will serve as a winning formula to replicate it in both the Texas as well as the national markets.

During the past year, the success of the company was recognized both by the Houston Chronicle newspaper as one of the top ten fastest growing public companies in Houston, and by the Wallstreet.com as one of the top 15% fastest growing public companies in America.

Dynacq International Inc. specializes in creating quality and efficient community based, one-stop health care resource centers designed to meet the needs of physicians and their patients.

Certain statement in this release are forward-looking. Although the company believes its expectations are based on reasonable assumptions within the bounds of knowledge of its business and operations. There can be no assurance that actual results will not differ materially from its expectations. For factors that may cause results to differ, please refer to the statements filed by the company with the Securities and Exchange Commission.