Gentiva(R) Health Services Announces Fourth Quarter and Fiscal 2007 Results, and Raises 20...(porate expenses depreciation amortizatio...),Health

interest expense (net), but include revenues and all other costs

directly attributable to the specific segment.

2) Fiscal 2006 results included approximately $1.9 million recorded and

received from the total settlement of $5.5 million relating to the

Company's appeal filed with the U.S. Provider Reimbursement Review

Board ("PRRB") on the reopening of all of its 1999 cost reports.

3) Corporate expenses for the fourth quarter and fiscal 2007 included a

credit of $0.8 million relating to an adjustment of remaining lease

obligations associated with a 2002 restructuring plan and a net charge

of $1.1 million relating to miscellaneous adjustments. Corporate

expenses for the fourth quarter and fiscal 2006 included a credit of

approximately $0.9 million relating to legal settlements.

4) 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.

5) EBITDA included equity-based compensation expense for the fourth

quarters of 2007 and 2006 of approximately $1.7 million and $1.3

million, r
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