Masimo Reports First Quarter 2008 Financi...(if-converted method under SFAS No. 128 t...)

share. Accordingly, for the three months ended March 29, 2008, the Company

calculated net income per share using the if-converted method for the

entire period while the two-class method was used for the entire period

ended March 31, 2007.

We believe that the following non-GAAP earnings per share information is

relevant and useful information that can be used by analysts, investors

and other interested parties to assess our performance on a comparable

basis to future reported earnings per share. Accordingly, we are

disclosing this information to permit additional analysis of our

performance (in thousands, except share data):

As Reported Non-GAAP

Three Three Three Three

months months months months

ended ended ended ended

March 31, March 29, March 31, March 29,

2007 2008 2007 2008

Net income attributable

to common stockholders:

Net income - two class

method $9,097 NA

Accretion of preferred

stock (1,956) NA

Income attributable to

preferred stockholders (4,828) NA

Net income attributable to

common stockholders $2,313 NA

Basic net income per

common share:

Weighted average common

shares outstanding - two

class method 16,592,163 NA

Basic earnings per share

for period during which

two classes of equity

securities were outstanding $0.14 NA

Net income for per
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