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InfuSystem Holdings Provides Business Update and Comments on First Quarter 2008 Financial Results
Date:5/12/2008

to traditional bolus treatment."

"Protocols involving continuous infusion therapy are widely recognized as the standard of care for treatment of advanced or metastatic colorectal cancer (CRC). One of the primary focuses of our sales force is educating oncologists and nurses about the benefits of treating patients with CRC in the adjuvant setting, as well as treating patients with other cancers where continuous infusion protocols have been approved. In addition to the economic advantages to patients and payors, ambulatory infusion provides patients greater freedom and mobility than continuous infusion delivered in an in-patient setting. In the outpatient setting, there are over 1,500 facilities across the United States already using our services. We believe that expansion of continuous infusion chemotherapy regimens into additional tumor types will result in the opportunity to extend our services into additional markets at low-cost."

"In addition to resuming our organic growth, we also generated very strong cash flow and now have over $6 million of cash and cash equivalents as of March 31, 2008. We achieved approximately $2 million of Adjusted EBITDA for the quarter, which excludes a $5.2 million gain on derivative financial instruments. We also incurred unusually high auditing, legal and other expenses related to the filing of our first post-acquisition 10-K. We expect these expenses to normalize heading into the second quarter, resulting in improved operating results going forward. At the same time, we expect our margins to improve as we drive top-line growth and leverage our existing infrastructure."

Financial Results

Revenue for the first quarter ended March 31, 2008 was $8.5 million, versus $0 for the same period in 2007, which reflects the revenues recognized by InfuSystem Holdings, Inc. following the acquisition of InfuSystem, Inc. from I-Flow Corporation.

Operating income for the first quarter of 2008 was $521,000 versus an
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SOURCE InfuSystem Holdings, Inc.
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