Kensey Nash Reports Second Quarter EPS of $0.21 and Revenue of $19...(Reported $0.21 $0.13 ...),Health

Supplemental Information Related to Equity

Compensation Expense:

Total Equity Compensation Expense $0.7 $0.9 (24%)

Equity Compensation Expense Per Share (net

of tax) $0.04 $0.05 (20%)

Six Month Results

Revenues, Sales and Royalties. Total revenues were $37.2 million for the six months ended December 31, 2007, an increase of 11% from $33.6 million in the prior year six-month period.

Net sales increased 13% to $24.7 million for the first six months of fiscal 2008 from $21.8 recorded in the comparable prior year period. Net sales of biomaterials products increased 9% to $21.7 million from $19.8 million driven by orthopaedic product sales, which increased 54% to $13.4 million from $8.7 million. Spine product sales increased 123% from the prior year, including approximately $1.2 million of new product sales resulting from the Company's MacroPore Biosurgery asset acquisition, and 83% excluding these new product sales. Additionally, sales of sports medicine products increased 19% over the prior year period. Sales of vascular closure product components to St. Jude Medical decreased $3.0 million, or 30%, from the prior year period, as anticipated and previously disclosed.

Sales of endovascular products for the quarter increased 56% to $3.0 million from $1.9 million in the prior year period. International endovascular sales were very strong, more than tripling year over year. U.S. sales increased 23% year over year although the growth was hampered by the size of the sales force, which was smaller than projected by approximately 35%.

Royalty income increased 6% to $12.6 million in the first six months of fiscal 2008 compared to $11.8 million in the comparable prior fiscal year period. Royalty income included $10.4 million in Angio-Seal royalties, a 4% increase from $10.0 million in the comparab
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