Gentiva Reports Strong Second Quarter led by Home Heal...(nses depreciation amortization and inter...)

2) EBITDA, a non-GAAP financial measure, is defined as income before interest expense (net of interest income), income taxes, depreciation and amortization. Management uses EBITDA to evaluate overall performance and compare current operating results with other companies in the healthcare industry. EBITDA should not be considered in isolation or as a substitute for net income, operating income or cash flow statement data determined in accordance with accounting principles generally accepted in the United States. Because EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States and is susceptible to varying calculations, it may not be comparable to similarly titled measures in other companies.

3) Operating contribution and EBITDA for the second quarter and first half of 2008 included restructuring and integration costs of $0.4 million and $0.7 million, respectively. For the second quarter and first half of 2007, operating contribution and EBITDA included restructuring and integration costs of $0.6 million and $1.6 million, respectively. The restructuring and integration costs were reflected as follows for segment reporting (dollars in millions):

2nd Quarter Six Months

2008 2007 2008 2007

Home Health $0.1 $0.1 $0.2 $0.4

Other Related Services - 0.1 - 0.1

Corporate 0.3 0.4 0.5 1.1

Total $0.4 $0.6 $0.7 $1.6

4) Commercial insurance and other revenues included revenues from Medicare Advantage business paid on an episodic basis of $13.4 million and $
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