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Heska Announces Q4 and Annual 2008 Results

25,195 22,228 Long-term debt and capital leases 1,151 381 Stockholders' equity 42,883 42,523

Pro Forma Financial Information Statement of Utility

The following estimated pro forma financial information is presented assuming Heska had reduced its valuation allowance related to its domestic net operating loss on December 31, 2006 rather than December 31, 2007. In this circumstance, the Company would have recognized Net Operating Loss Usage as Income Tax Expense, as outlined below. The Company believes the pro forma information may be valuable to investors as an additional tool to benchmark future periods versus historical results on a consistently reported basis. The Company does not suggest that investors should consider such pro forma financial information in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

                                 Pro Forma Reconciliation to GAAP
                              Consolidated Statements of Operations
                             In Thousands, Except per Share Amounts

                              Three Months Ended       Twelve Months Ended
                                December 31, 2007       December 31, 2007
                            As                        As
                         Reported             Pro  Reported             Pro
                          (GAAP) Adjustments Forma  (GAAP) Adjustments Forma
    Revenue, net:
      Product revenue,
        Core companion
         animal health   $17,082     $-    $17,082  $65,910     $-   $65,910
        Other vaccines,
         and products      2,635      -      2,635   14,897      -    14,897
SOURCE Heska Corporation
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