NightHawk Radiology Holdings, Inc. Announces Fourth Quarter and Full-Year 2007 Results; Updates 200...(d 31319605 ...),Health

Three Months Ended

December 31, 2006

GAAP Adjustments As Adjusted

Service revenue $24,093,585 $24,093,585

Operating costs and expenses:

Professional services (includes

stock compensation expense of

$862,328 and $1,553,248 and

IBNR reserve $12,462,455

of ($410,924) and $2,000,000) $12,462,455 (3,553,248) 8,909,207

Sales, general, and

administrative (includes stock

compensation expense of

$4,758,207 and $412,943

and one time legal cost of

$477,862, and $0) 8,382,875 (412,943) 7,969,932

Depreciation and amortization 618,275 (117,042) 501,233

Total operating costs

and expenses 21,463,605 (4,083,233) 17,380,372

Operating income 2,629,980 4,083,233 6,713,213

Other income (expense):

Interest expense (1,950) (1,950)

Interest income 1,001,241 1,001,241

Other, net 29,878 29,878

Change in fair value of

redeemable preferred stock

conversion feature

Total other income

(expense) 1,029,169 1,029,169

Income before income

taxes 3,659,149 4,083,233 7,742,382

Income tax expense 1,452,181 1,592,461 3,044,642

Net income 2,206,968 2,490,772 4,697,740

Redeemable preferred stock accretion

Income applicable to common'/>"/>