Inverness Medical Innovations Announces Fourth Quarter 20...(8.9 million charge for the year ended De...)

2006 includes: $9.5 million charged to cost of sales, $2.9 million

charged to research and development and $0.8 million charged to

selling, general and administrative expense, offset by a $4.3

million net foreign currency gain resulting from the closure of our

CDIL operation in Ireland recorded to other income. These charges

have been excluded from net income or loss because they have a

significant impact on results yet do not occur on a consistent or

regular basis in the Company's business.

(c) Amortization expense of $62.2 million and $21.8 million for the year

2007 and 2006 GAAP results, respectively, including $24.1 million

and $11.2 million charged to cost of sales, $2.9 million and $3.3

million charged to research and development, $34.8 million and $7.1

million charged to selling, general and administrative expense, and

$0.4 million and $0.2 million charged to other expense in the

respective periods.

(d) Compensation costs of $57.4 million and $5.5 million associated with

stock-based compensation expense, including $0.6 million and $0.4

million charged to cost of sales, $2.2 million and $1.4 million

charged to research and development and $54.6 million and $3.7

million charged to selling, general and administrative. The $57.5

million charged to selling, general and administrative during the

year-ended December 31, 2007 includes $45.2 million of costs

associated with stock option acceleration and conversion in

connection with our recent acquisition of Biosite.

(e) A net loss of $3.5 million resulting from a loss of $4.9 million

associated with management's decision to dispose of our SMB research

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