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US Oncology Reports First Quarter 2008 Results
Date:5/7/2008

ussard, chief executive officer stated, "We continue to focus our efforts on generating and increasing cash flow. We generated $50.9 million in cash flow during the first quarter of 2008, and currently have approximately $148 million of cash on hand and over $130 million in availability under our revolving line of credit. We continue to believe our financial position provides the flexibility to make long-term investments that allow the company to take advantage of opportunities in the cancer care system and implement our strategies.

We have made nearly $400 million in capital investments since our merger in 2004 that have broadened our revenue sources. At that time, radiation oncology, diagnostics and pharmaceutical services generated 30 percent of our cash flow, while today those services, along with new service offerings, represent approximately 75 percent of our cash flow. These investments have provided a stronger financial base while advancing our integrated care model.

'Advancing Cancer Care in America' continues to be our mission. Over the past several years, we have broadened our scope of services to better support practices in their delivery of patient-focused care, including the physician-led development of our Cancer Care Management program and Clinical Pathways initiatives. We have also made investments in information technology (including our electronic medical record, iKnowMed), our centralized reimbursement services, our pharmaceutical distribution system and our research program.

We anticipate increased cash flow from the above investments due to:

-- Improving existing operations through expanded capacity and improving

the patient experience, while lowering operating costs through our

practice quality and efficiency program.

-- Growing market share through affiliation with new practices in both

existing and new markets.

-- Expanding targeted offerings from pharmaceutical-only
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SOURCE US Oncology Holdings, Inc.
Copyright©2008 PR Newswire.
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