On December 31, 2017, James E. Dalton, a director of Select Medical Holdings Corporation and Select Medical Corporation and a member of the Audit and Compliance Committee and the Nominating and Corporate Governance Committee of the company's Board of Directors, notified the company of his decision to resign as a director, effective December 31, 2017. Mr. Dalton's resignation was not the result of any disagreement with the company. Bryan C. Cressey, a director of the company whom the Board has determined to be independent as defined in the applicable listing standards of the New York Stock Exchange, will replace Mr. Dalton as a member of the Board's Audit and Compliance Committee, effective January 1, 2018. In addition, Russel L. Carson, a director of the Company whom the Board has determined to be independent as defined in the applicable listing standards of the New York Stock Exchange, has become a member of the Board's Compensation Committee, effective January 1, 2018.