NMHC Reports Fourth Quarter and Fiscal Year 2007 Financi...(d 2007 NMHC paid $1.4 million ofdividend...),Health

Net loss available to common stockholders for the 2007 fiscal fourth quarter was $4.8 million, or ($0.87) per basic and diluted share, as compared to net income available to common stockholders of $369,000, or $0.07 per basic share and diluted share, for the same period last year. For the 2007 fiscal fourth quarter, the Company's weighted-average number of diluted shares outstanding approximated 5.5 million shares, as compared to 5.4 million shares for the same period last year. Both the 2006 and 2007 fiscal fourth quarter calculations do not assume the conversion of approximately 7.0 million shares of redeemable convertible preferred stock as they are anti-dilutive.

"We continue to be engaged in an on-going review of our infrastructure, service offerings and customer base to determine the most appropriate strategic focus for the Company," said Thomas W. Erickson, NMHC's Interim President and CEO. "We expect that this review will enable us to put in place a more cost effective infrastructure capable of delivering superior service to our customers and improved financial performance for our stockholders. More precisely, this process is focused on streamlining our operations, enhancing our product and service offerings and restoring growth in both revenue and operating profitability to the Company. We believe that PBM industry is poised for continued growth and that NMHC's assets and core capabilities provide us with a platform for success in this market."

Fiscal 2007 Financial Review

During the fiscal year ended June 30, 2007, we identified various errors which resulted in a reduction of our operating income of approximately $211,000. These various errors consisted of the following:

-- Rebate errors that resulted in an approximately $1.5 million decrease

in operating income (the "Rebate Error");

-- Claims payable errors that resulted in a $692,000
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