NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 200...(23398928 Other income (expense): ...),Health

Other income

(expense):

Interest expense (5,885,511) (562,221)

Interest income 3,130,335 3,027,917

Other, net (62,916) (34,258)

Change in fair value of

redeemable preferred

stock conversion

feature (44,183,770)

Total other income

(expense) (2,818,092) (41,752,332)

Income (loss) before

income taxes 23,309,198 (18,353,404)

Income tax expense 8,615,352 10,047,713

Net income (loss) 14,693,846 (28,401,117)

Redeemable preferred stock

accretion (117,534)

Income (loss) applicable to

common stockholders $14,693,846 $(28,518,651)

Earnings (loss) per common

share:

Basic $0.49 $(1.00)

Diluted $0.47 $(1.00)

Weighted averages of common shares

outstanding:

Basic 30,083,080 28,528,079

Diluted 31,083,971 28,528,079

NIGHTHAWK RADIOLOGY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

RECONCILIATION BETWEEN GAAP AND ADJUSTED NET INCOME

Three Months Ended

December 31, 2007

GAAP Adjustments As Adjusted

Service revenue $42,706,085 $42,706,085

Operating costs and expenses:

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