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MedCath Corporation Reports First Quarter Earnings
Date:2/7/2008

ncertainties are described in detail in "Risk Factors" in MedCath's Annual Report or Form 10-K for the year ended September 30, 2007 filed with the Securities and Exchange Commission on December 14, 2007. Copies of this form including exhibits are available on the internet site of the Securities and Exchange Commission at http://www.sec.gov.

MEDCATH CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

2007 2006

Net revenue $163,664 $175,549

Operating expenses:

Personnel expense 55,941 57,175

Medical supplies expense 43,656 48,170

Bad debt expense 12,173 13,831

Other operating expenses 32,110 36,465

Pre-opening expenses 248 -

Depreciation 7,960 8,869

Amortization 127 252

Loss on disposal of property,

equipment and other assets 28 57

Total operating expenses 152,243 164,819

Income from operations 11,421 10,730

Other income (expenses):

Interest expense (4,032) (7,458)

Loss on early extinguishment of debt - (4,480)

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

Equity in net earnings of

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SOURCE MedCath Corporation
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