KING OF PRUSSIA, Pa., July 28 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that it has signed a definitive agreement to purchase Fort Duncan Medical Center, a 77-bed, full service hospital located in Eagle Pass, Texas. UHS expects this transaction to become effective by September 1, 2000. Fort Duncan Medical Center is a sole community hospital providing comprehensive medical and surgical services. The hospital generates approximately $25 million of annual revenues. Subject to terms of the agreement, UHS expects to build, within five years, a replacement hospital to accommodate the expanding community.

Eagle Pass is located approximately 140 miles southwest of San Antonio on the Texas-Mexico border. UHS has current operations within the region in McAllen, Edinburg and Laredo, Texas. Eagle Pass is expected to continue to grow rapidly and be one of the fastest growing counties in the state over the next ten years. International trade has fueled economic expansion of the market. A six-lane international bridge was opened in September, 1999 further enhancing trade and commerce in the area.

Universal Health Services, Inc. is the nation's third largest hospital company, operating 70 facilities in 20 states, Washington, D.C. and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE: UHT).

Certain statements in this release may constitute forward-looking statements and are subject to various risks and uncertainties as discussed in the Company's filings with Securities and Exchange Commission. The Company is not obligated to update these forward-looking statements even if the Company's assessment of these risks and uncertainties changes.

For additional information on the Company, visit the web site: http://www.uhsinc.com. SOURCE Universal Health Services, Inc.

CONTACT: Kirk E. Gorman, Chief Financial Officer of Universal Health Services, 610-768-3300/