WuXi PharmaTech Announces Fourth-Quarter and Full-Year 20...(medical device R&D process. WuXi Pha...)

Use of Non-GAAP and Pro-Forma Financial Measures

The Company has provided the fourth-quarter and full-year 2007 and 2008 gross profit, operating income, net income on a non-GAAP basis, which excludes share-based compensation expenses, impairments of goodwill and intangible assets, amortization of acquired intangible assets, and discontinued operations. In addition, total company(1) revenues for the full year include revenues from eleven months of continuing and discontinued AppTec operations. The pro-forma full-year revenues include the January 2008 revenues from continuing operations of the AppTec business. The Company believes both management and investors benefit from referring to these non-GAAP and pro-forma financial measures in assessing the Company's financial performance and liquidity and when planning and forecasting future periods. These non-GAAP operating measures are useful for understanding and assessing underlying business performance and operating trends. The Company expects to provide gross profit, operating income, net income on a non-GAAP basis using a consistent method on a quarterly basis going forward.

Readers should not view non-GAAP results on a stand-alone basis or as a substitute for results under GAAP, or as being comparable to results reported or forecasted by other companies, and should refer to the reconciliation of non-GAAP measures to GAAP measures for the indicated periods attached hereto.

Cautionary Note Regarding Forward-Looking Statements

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