SunLink Health Systems’ Subsidiary Reaches Agreement to Sell Medical Office Building Complex in Ellijay, Georgia

SunLink Health Systems, Inc. (NYSE MKT: SSY) today announced that a subsidiary has reached agreement to sell its medical office building complex, comprised of land and three buildings in Ellijay, GA for approximately $4,900,000. The company expects to recognize a pre-tax gain on the sale of approximately $2,400,000. The transaction is subject to buyer due diligence and other conditions and is anticipated to close in December 2016. After repayment of mortgage debt and expenses of approximately $2,300,000, the company expects net proceeds from the sale of approximately $2,600,000. The proceeds will be retained for working capital and general corporate purposes.

SunLink Health Systems, Inc. is the parent company of subsidiaries that own and operate healthcare facilities in the Southeast and a pharmacy company in Louisiana. Each of the company's healthcare facilities is operated locally with a strategy of linking patients' needs with dedicated physicians and healthcare professionals. 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, 2011 and other filings with the Securities and Exchange Commission which can be located at www.sec.gov.

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SunLink Health Systems, Inc.Robert M. Thornton, Jr., 770-933-7004Chief Executive Officer