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Select Medical Corporation Announces Results for Fourth Quarter and Year Ended December 31, 2007
Date:3/24/2008

e taxes, depreciation and amortization,

income from discontinued operations, stock compensation expense, other

expense (income) and minority interest. We believe that the presentation

of Adjusted EBITDA is important to investors because Adjusted EBITDA is

used by management to evaluate financial performance and determine

resource allocation for each of our operating units.

Adjusted EBITDA is not a measure of financial performance under

generally accepted accounting principles. Items excluded from Adjusted

EBITDA are significant components in understanding and assessing financial

performance. Adjusted EBITDA should not be considered in isolation or as

an alternative to, or substitute for, net income, cash flows generated by

operations, investing or financing activities, or other financial

statement data presented in the consolidated financial statements as

indicators of financial performance or liquidity. Because Adjusted EBITDA

is not a measurement determined in accordance with generally accepted

accounting principles and is thus susceptible to varying calculations,

Adjusted EBITDA as presented may not be comparable to other similarly

titled measures of other companies.

Three Months Ended

December 31, Year Ended December 31,

2006 2007 2006 2007

Net income $32,777 $11,201 $118,220 $55,145

Income from discontinued

operations, net of tax (2,460) - (12,478) -

Income tax expense 4,811 829 56,089 29,315

Minority interest 319 164 1,414 1,537

Interest expense, net 24,118 27,552 95,995 103,394

Other (income) expense (448) 1,946
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SOURCE Select Medical Corporation
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