Dynacq Continues Growth -- EPS Increase 225%.

Business Editors/Health & Medical Writers

HOUSTON--(BW HealthWire)--Jan. 14, 2000

Dynacq International Inc. (Nasdaq:DYII) reported record setting earnings for the first quarter of its fiscal year 2000. Net earnings of $0.13 per share (after 100% stock dividend) were recorded for the quarter ended Nov. 30, 1999 as compared to $0.04 per share for the same quarter of the prior year. Earnings per share for the previous year have been restated to include the effect of the 2 for 1 stock split effected in the form of a 100% stock dividend.

                                 First Quarter
                              2000            1999         % Increase

Gross Revenue              $5,243,612      $2,417,625         117%

Net Revenue                $  869,212      $  291,212         198%

E/P                        $     0.13      $     0.04         225%

"The company is on track," said Chiu M. Chan, president and CEO of Dynacq. Chan further stated, "We are on the Ninth quarter of consecutive record earnings."

Management is actively pursuing plans to continue the expansion of their successful concept for the delivery of medical services in both the Texas as well as National markets.

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 statements in this release are forward-looking. Although the company believes its expectations are based on reasonable assumptions within the bounds of its 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 actual results to differ materially from expectations and underlying assumptions, see reports by the Company filed with the Securities and Exchange Commission.