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

costs and expenses 68,769,318 (8,469,008) 60,300,310

Operating income 23,398,928 8,469,008 31,867,936

Other income (expense):

Interest expense (562,221) (562,221)

Interest income 3,027,917 3,027,917

Other, net (34,258) (34,258)

Change in fair value of

redeemable preferred stock

conversion feature (44,183,770) 44,183,770

Total other income

(expense) (41,752,332) 44,183,770 2,431,438

Income (loss) before

income taxes (18,353,404) 52,652,778 34,299,374

Income tax expense 10,047,713 3,302,913 13,350,626

Net income (loss) (28,401,117) 49,349,865 20,948,748

Redeemable preferred stock

accretion (117,534) 117,534

Income (loss) applicable to

common stockholders $(28,518,651) $49,467,399 $20,948,748

Earnings (loss) per share:

Basic $(1.00) $0.73

Diluted $(1.00) $0.70

Weighted average shares

outstanding:

Basic 28,528,079 28,528,079

Diluted 28,528,079 29,988,558

NIGHTHAWK RADIOLOGY HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION BETWEEN NET INCOME AND ADJUSTED EBITDA

Three Months Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

Net income (loss) $3,060,350 $2,206,968
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