EXHIBIT 99.1




                         GREENBRIAR RECEIVES IRS LETTER


FOR IMMEDIATE RELEASE
                                                         Contact: Gene Bertcher
                                                                  Oscar Smith
                                                         Phone:   (972) 407-8400

Dallas, Texas, (Business Wire) January 10, 2004...Greenbriar  Corporation (AMEX:
GBR)  announced  today that the Company  was  notified on January 8, 2004 by the
Internal Revenue Service that it was considering assessing penalties against the
Company  under  Section  6700  of  the  Internal  Revenue  Code.  The  potential
assessment grows out of a series of tax-free revenue bond transactions  relating
to the  purchase  and sale of four  Georgia  nursing  homes.  Such  transactions
occurred in 1991-1992. The IRS has proceeded against certain parties involved in
tax-free bond  transactions via the Section 6700 penalty  procedures.  Such Code
section was adopted as a remedy to prosecute  abusive tax  shelters,  but it has
recently been employed as an enforcement technique in municipal bond disputes.

The Company disputes the IRS' assertions and believes it has available a variety
of defensive  positions  and third party claims  against the  professionals  who
structured the transactions. The Company intends to defend the action vigorously
or alternatively seek an amicable settlement.  If the IRS were to prevail on all
fronts, the amount of penalties could be substantial.