Spheris Reports Fourth Quarter and Year-End 20...(cash equivalents at beginning of per...),Health

at beginning of period 6,323 7,339

Unrestricted cash and cash equivalents,

at end of period $7,195 $6,323

SPHERIS INC.

Supplemental Financial Information

(Amounts in Thousands)

(Unaudited)

Three Months ended December 31, Year ended December 31,

2007 2006 2007 2006

Net loss $(3,833) $(3,382) $(11,361) $(12,150)

Depreciation and

amortization 6,101 6,840 24,273 26,553

Loss on refinance of debt - - 1,828 -

Interest expense, net 5,038 5,487 21,171 21,136

Other expense (income) 1,240 (261) 1,570 (401)

Benefit from income taxes (1,218) (587) (5,856) (4,483)

EBITDA $7,328 $8,097 $31,625 $30,655

Note to Supplemental Financial Information

Earnings before interest expense, income taxes, depreciation and amortization, or EBITDA, is a financial measure not computed in accordance with United States generally accepted accounting principles, or GAAP. The Company believes that this non-GAAP measure, when presented in conjunction with the comparable GAAP measure, is useful to both management and investors in analyzing the Company's ongoing business and operating performance. The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the Company's financial results in the way management and the Company's senior lenders view the Company's operating results. Management believes EBITDA is useful as a supplemental
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