Atlanta, Georgia (December 4, 2008) - SunLink Health Systems, Inc. (AMEX: SSY) today announced that it sold its medical office building in Jasper, Georgia, which was not currently in use in SunLink’s hospital operations, for approximately $575,000 resulting in net proceeds of approximately $522,000. The net proceeds are being used to pre-pay a portion of the term loan outstanding under SunLink’s credit facility. The sale is expected to result in a pre-tax gain of approximately $180,000 which will be reported in its second fiscal quarter ended December 31, 2008.

SunLink Health Systems, Inc. currently operates seven community hospitals and related nursing home and home care businesses in the Southeast and Midwest and its specialty pharmacy business in Louisiana. Each SunLink hospital is the only hospital in its community. SunLink’s operating strategy is to link patients’ needs with dedicated physicians and health professionals to deliver quality, efficient medical care and healthcare products and services in each area it serves. For additional information on SunLink Health Systems, Inc., please visit the company’s website at www.sunlinkhealth.com.

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements regarding the company’s business strategy. These forward-looking statements are subject to certain risks, uncertainties and other factors, which could cause actual results, performance and achievements to differ materially from those anticipated. Certain of those risks, uncertainties and other factors are disclosed in more detail in the company’s Annual Report on Form 10-K for the year ended June 30, 2008 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.

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