MedCath Corporation Reports First Quarte...(erization labs during the period. (l)...),Health

(l) Inpatient surgical procedures represent the number of surgical

procedures performed on inpatients during the period.

MEDCATH CORPORATION

SUPPLEMENTAL FINANCIAL DISCLOSURE -- RECONCILIATION OF GAAP FINANCIAL

MEASURES TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

The following table reconciles Adjusted EBITDA with MedCath's income from continuing operations as derived directly from MedCath's consolidated financial statements for the three months ended December 31, 2007 and 2006.

Three Months Ended December 31,

2007 2006

(in thousands)

Income from continuing operations $3,255 $254

Add:

Income tax expense 2,595 221

Minority interest share of earnings

of consolidated subsidiaries 4,736 2,480

Equity in net earnings of

unconsolidated affiliates (2,025) (1,438)

Interest and other income, net (1,172) (2,725)

Loss on early extinguishment of debt - 4,480

Interest expense 4,032 7,458

Loss on disposal of property,

equipment and other assets 28 57

Amortization 127 252

Depreciation 7,960 8,869

Pre-opening expenses 248 -

Share-based compensation expense 3,709 1,026

Adjusted EBITDA $23,493 $20,934

The following table presents MedCath's condensed statement of operations data fo
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