February 1, 2010 - The Austin City Council approved economic incentives for Hanger Orthopedic Group, Inc. (NYSE: HGR) (“Hanger”) last week, which announced plans to relocate its corporate headquarters from Bethesda, MD to Austin, Texas. The relocation will result in the initial creation of 130 jobs for Central Texas increasing to 250 jobs. Mayor Leffingwell and City Council voted last week to approve a $500,000 economic development package to be distributed over the next 10 years.

The city agreement is part of an incentive package developed in partnership with the Texas Enterprise Fund. Governor Perry’s office had previously announced a $1.5 million award for the headquarter relocation to Austin. This marks the sixth time the city and State have joined forces to create jobs in Central Texas since the Enterprise Fund’s inception in 2003. The Texas Enterprise Fund was created to help ensure the growth of Texas businesses and create jobs throughout the state. Awards must be approved by the governor, lieutenant governor and speaker of the House. The TEF has become one of the state’s most competitive tools to recruit and bolster business.

“As the market leader of the orthotic and prosthetic profession in the United States, we promote creativity and innovation in our business operations. Our new location embodies this spirit and will serve as an ideal environment for us to continue our growth and disciplined diversification strategy,” said Tom Kirk, President and CEO Hanger Orthopedic Group. “Additionally, we are impressed with the professionalism and the support afforded to us by the state of Texas and the City of Austin in facilitating our decision-making process. Their outstanding assistance packages were a key element of this support. We would also like to recognize the helpful role played by the Austin Chamber of Commerce.”

Hanger is the world's premier provider of orthotic and prosthetic (O&P) services and products, offering the most advanced technology, clinically differentiated programs and unsurpassed customer service.

The Austin Chamber is actively collaborating with life science industry leaders on initiatives that will not only help attract the best life science companies to the Austin region, but also cultivate creative ideas, innovation and commercial success among existing companies.

“We’d like to thank Governor Perry, Lt. Governor Dewhurst, and Speaker Straus as well as Mayor Leffingwell and City Council for their leadership in making this relocation opportunity with Hanger Orthopedic a reality,” said Tim Crowley, 2010 Opportunity Austin Chair and President - Community Banking Group, Frost National Bank. “With solid opportunities for growth, Hanger will be an excellent addition to the Austin business community and we are pleased that they have chosen Austin for their headquarters.”

About Opportunity Austin
Opportunity Austin is the Austin Chamber of Commerce's five-year economic development initiative to foster sustainable growth through the creation of new jobs and increased payroll in the Central Texas region.