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

stockholders $2,206,968 $2,490,772 $4,697,740

Earnings per share:

Basic $0.07 $0.16

Diluted $0.07 $0.15

Weighted average shares

outstanding:

Basic 29,912,134 29,912,134

Diluted 30,817,311 30,817,311

NIGHTHAWK RADIOLOGY HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

RECONCILIATION BETWEEN GAAP AND ADJUSTED NET INCOME (LOSS)

Year Ended

December 31, 2007

GAAP Adjustments As Adjusted

Service revenue $151,662,042 $151,662,042

Operating costs and expenses:

Professional services

(includes stock compensation

expense of $4,429,358 and

$4,886,678 and IBNR reserve

of $1,038,000 and $2,000,000) 63,617,406 (5,467,358) 58,150,048

Sales, general, and

administrative (includes

stock compensation expense

of $10,601,004 and

$1,073,455 and one time

legal cost of $477,862

and $0) 54,018,090 (11,078,866) 42,939,224

Depreciation and amortization 7,899,256 (5,029,754) 2,869,502

Total operating

costs and expenses 125,534,752 (21,575,978) 103,958,774

Operating income 26,127,290 21,575,978 47,703,268

Other income (expense):

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

Interest income 3,130,335 3,130,335

Other, net
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