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MedCath Corporation Reports Second Quarter Earnings
Date:5/6/2008

-- Same facility adjusted admissions up 4.6% in second quarter of fiscal

2008 compared to the second quarter of fiscal 2007 -- Cash flow from continuing operations up 17.6% in second quarter of

fiscal 2008 compared to second quarter of fiscal 2007

CHARLOTTE, N.C., May 6 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity healthcare services, predominately the diagnosis and treatment of cardiovascular disease, today announced its operating results for its second fiscal quarter, which ended March 31, 2008.

Second Quarter 2008 Results

On April 21, 2008 MedCath announced preliminary results for the second quarter of fiscal 2008. This press release presents the final results for the quarter on an actual and a same facility basis.

During its fourth quarter of fiscal 2007, MedCath completed the recapitalization of Harlingen Medical Center ("HMC"). As part of the recapitalization, MedCath's ownership in HMC was reduced from a majority ownership to a minority ownership. Due to this change in ownership, MedCath began accounting for HMC as an equity investment in the quarter ended September 30, 2007. As such, MedCath's consolidated operating results for the quarter ended March 31, 2008 exclude net revenue, income from operations and Adjusted EBITDA of HMC. In comparison, MedCath's consolidated actual results for the comparable quarter of the previous fiscal year include the consolidated financial results of HMC.

During its second quarter of fiscal 2008, MedCath announced that it had entered into a definitive agreement to sell substantially all of the assets of its Dayton Heart Hospital, located in Dayton, Ohio. As such, MedCath now
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SOURCE MedCath Corporation
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6. MedCath Enters Definitive Agreement to Sell Dayton Heart Hospital to Good Samaritan Hospital-Dayton
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