Kendle Delivers Record Sales and Backlog and Strong Growth in Operating Margin for Third Qu...( outstanding ...),Health

outstanding 14,534 14,371 14,483 14,294

Diluted:

Net income per share $0.25 $0.27 $0.83 $0.89

Weighted average shares

outstanding 14,895 14,789 14,864 14,756

Reconciliation of adjusted income

from operations:

Income from operations 14,245 8,093 37,613 21,766

Amortization of acquired

intangibles 1,043 705 3,129 705

Adjusted income from operations (1) 15,288 8,798 40,742 22,471

Reconciliation of adjusted net income:

Net income 3,786 3,997 12,321 13,185

Amortization of acquired intangibles 662 447 1,986 447

Write-off of deferred financing costs 2,636 - 2,636 -

Adjusted net income (1) 7,084 4,444 16,943 13,632

Adjusted net income per share (1)

Basic $0.49 $0.31 $1.17 $0.95

Diluted $0.48 $0.30 $1.14 $0.92

(1) Each of the "adjusted income operations," "adjusted net income," and

"adjusted net income per share" (i) are measures of performance that

are not required by, or presented in accordance with, GAAP; (ii)

should not be considered as alternatives to net income or any other

performance measures derived in accordance with GAAP; and (iii) should

not be considered in isolation or as a substitute for analysis of GAAP

results.

Kendle International Inc.

Selected Balance Sheet Information

(In thousands)

(Unaudited)

September 30, 2007 December 31, 2006

Cash, c
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