NightHawk Radiology Holdings, Inc. Releases Record Third Quarter 20...(250807 (3219020) 2031787 ...),Health

Total operating

costs and expenses 88,955,679 (14,077,771) 74,877,908

Operating income 20,000,278 14,077,771 34,078,049

Other income (expense):

Interest expense (3,664,742) (3,664,742)

Interest income 2,468,150 2,468,150

Other, net (59,595) (59,595)

Change in fair value of

redeemable preferred stock

conversion feature

Total other income

(expense) (1,256,187) (1,256,187)

Income (loss) before

income taxes 18,744,091 14,077,771 32,821,862

Income tax expense 7,110,594 5,490,331 12,600,925

Net income (loss) 11,633,497 8,587,440 20,220,937

Redeemable preferred stock

accretion

Income (loss) applicable to

common stockholders $11,633,497 $8,587,440 $20,220,937

Earnings (loss) per share:

Basic $0.39 $0.67

Diluted $0.38 $0.65

Weighted average shares

outstanding:

Basic 30,023,122 30,023,122

Diluted 31,012,036 31,012,036

NIGHTHAWK RADIOLOGY HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

RECONCILIATION BETWEEN GAAP AND ADJUSTED NET INCOME (LOSS)

Nine Months Ended

September 30, 2006

GAAP Adjustments As Adjusted

Service revenue
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