8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 2, 2003

DYNACQ INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

NEVADA

(State or other jurisdiction of incorporation)

000-20554	76-0375477
(Commission File Number)	(I.R.S. Employer Identification No.)

10304 Interstate 10 East, Suite 369, Houston, Texas 77029

(Address of principal executive offices, including zip code)

(713) 673-6432

(Registrant’s telephone number, including area code)

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(c) Exhibits. The following are filed as Exhibits to this Report:

99.1 Dynacq International, Inc. Press Release dated October 1, 2003.

Item 9. Regulation FD Disclosure.

On October 1, 2003, Dynacq International, Inc. issued a press release providing an update on pending litigation against the Company the text of which is attached as Exhibit 99.1.

Limitation on Incorporation by Reference: In accordance with general instruction B.2 of Form 8-K, the information in this report is furnished under Item 9 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DYNACQ INTERNATIONAL, INC.
By:	/s/    PHILIP S. CHAN
	Philip S. Chan, Chief Financial Officer

DATE: October 2, 2003

INDEX OF EXHIBITS

Exhibit Number	Exhibit Description
99.1	Press Release dated October 1, 2003

EX-99.1

Exhibit 99.1

Dynacq Provides Litigation Update

HOUSTON—(BUSINESS WIRE)—October 1, 2003—Dynacq International Inc. (Nasdaq/NM:DYII ) today provided an update on three pending securities lawsuits. “I am pleased with the progress we have made in resolving the pending securities litigation,” said Chiu M. Chan, Dynacq CEO. “We are focusing on what we expect will be a bright future for Dynacq.”

On August 26, 2003 the U.S. District Court for the Southern District of Texas dismissed with prejudice Hamilton v. Dynacq International Inc., et al., Master Case No. H-02-0377, a class action against Dynacq International Inc. and certain of its officers alleging securities fraud. Plaintiffs filed a notice of appeal on September 22, 2003. The suit was brought in early 2002 following a sharp high volume increase in short sales of Dynacq stock. Dynacq continues to believe that the suit is without merit.

Shortly after the class action was filed, two purported shareholder derivative suits, including almost verbatim the same allegations as the class action, were filed against the Company and certain of its officers.

Flory v. Chan et al., H-02-3123, in U.S. District Court for the Southern District of Texas, is a shareholder derivative action which was stayed on November 12, 2002 by the District Court pending the outcome of the Hamilton case. Dynacq moved to dismiss this case on September 10, 2003 following the dismissal of the Hamilton case.

In Brill v. Chan et al., (2002-07135 in the 295^th Judicial District Court of Harris County, Texas), the second shareholder derivative case, a Stipulation of Settlement was executed by both parties and filed with the Court on September 11, 2003. The Settlement provides that (1) the suit will be dismissed and (2) defendants will pay a portion of plaintiffs’ legal fees and expenses, subject to the approval of the Court at a Final Settlement Hearing scheduled for November 10, 2003.

Mr. Chan added, “Despite the distraction of these lawsuits, Dynacq has continued to prosper and grow. We are proceeding with renovations at the new Dallas area hospital and the new hospital in Baton Rouge continues to succeed. The Pasadena, Texas hospital remains our foundation.”

Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Such

forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More detailed information about factors that may cause actual results to materially differ is contained in the Company’s filings with the Securities and Exchange Commission. The words “looking forward,” “believe,” “expect,” “likely,” “will be,” “bright future,” “succeed,” “continue,” “prosper and grow” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date that such statements were made. The Company undertakes no obligation to update any forward-looking statements contained in this press release.

Source: Dynacq International, Inc.