Volcano Reports 24 Percent Increase in First Quarter Revenues; IVUS Disposable Revenues Increase ...(210 Net income (loss) ...)

Net income (loss) $(2,326) $1,674

Net income (loss) per share - basic $(0.05) $0.04

Net income (loss) per share - diluted $(0.05) $0.04

Weighted-average shares outstanding - basic 47,030 37,964

Weighted-average shares outstanding - diluted 47,030 41,685

VOLCANO CORPORATION

RECONCILIATION OF GAAP AND NON-GAAP OPERATING RESULTS

(in thousands, except per share data)

(Unaudited)

Three Months Ended March 31, 2008

In-process Acquisition

Stock-based research due

GAAP compensation and diligence Non-GAAP

results expense development costs results

Revenues $36,647 $- $- $- $36,647

Cost of revenues 13,629 (191) - - 13,438

Gross profit 23,018 191 - - 23,209

Operating expenses:

Selling, general

and

administrative 22,059 (1,501) - (2,878) 17,680

Research and

development 5,637 (369) - - 5,268

In-process

research and

development 175 - (175) - -

Amortization of

intangibles 773 - - - 773

Total operating

expenses 28,644 (1,870) (175) (2,878) 23,721

Operating loss (5,626) 2,061 175 2,878 (512)

Interest income 1,833 - - - 1,833<
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