Dynacq Reports Net Income Increase of 111%.

Business Editors

HOUSTON--(BW HealthWire)--April 16, 2001

Dynacq International Inc. (Nasdaq:DYII) announced today a record-setting net income increase of 111% for the first six months of fiscal year 2001 over the corresponding six-month period of fiscal year 2000. Basic earnings per share increased 100% over the same period. For the second quarter of its fiscal year, ending Feb. 28, 2001, net income increased by 72% to $2,416,219 from $1,400,814 the previous year. Net income per common share was $0.17 as compared to $0.10 for the second quarter last year.

                Three Months    Three Months           % Increase
              Ending 02/28/01  Ending 02/29/00

Net Revenue      $9,787,411     $5,804,327                69%

Net Income       $2,416,219     $1,400,814                72%

Basic Earnings
 Per Share            $0.17          $0.10                70%


                 Six Months      Six Months           % Increase
              Ending 02/28/01   Ending 02/29/00

Net Revenue     $18,691,939    $11,060,039                69%

Net Income       $4,788,338     $2,270,026               111%

Basic Earnings
 Per Share            $0.34          $0.17               100%

Chiu M. Chan, president and CEO of Dynacq, stated, "Now, for the 15th consecutive quarter, our management team has met the formidable challenge placed before them. They have again demonstrated the success that comes from their commitment to working our plan of controlled growth while maintaining the integrity of our remarkable model for the delivery of affordable healthcare. The continued support from our medical staff and patients has been the catalyst for our recent acquisitions, all of which are structured to be accretive to our bottom line. Consequently, with the current expansion projects at both Vista Medical Center Hospital and Vista Healthcare's ASC, and future acquisitions now under serious consideration, we fully expect more earnings records to be broken in the near future."

During the past fiscal year, Dynacq International Inc. has been recognized by the Houston Chronicle newspaper as one of the top ten fastest growing public companies in Houston and by Individual Investor 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 healthcare 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 the 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 materially from expectations and underlying assumptions, see reports filed with the Securities and Exchange Commission.