US Oncology Reports First Quarter 20...(emi-annual interestpayments on the indeb...),Health

As of May 6, 2008, the Company had $148.0 million of cash and investments, and availability under the revolving credit facility of $133.7 million.

Development

One of the Company's ongoing objectives is to expand our network by affiliating with practices in new or existing markets, recruiting physicians into existing affiliated practices and entering into joint ventures. In the first quarter of 2008, our network grew by 48 physicians, net of retirements and other separations. During the same period, agreements were signed with 35 physicians to begin practicing in our network. An additional 30 physicians signed either CSA or OPS agreements during April, 2008 to join the US Oncology network.

Contingencies and Risks

During the fourth quarter of 2005, we received a subpoena from the United States Department of Justice's Civil Litigation Division ("DOJ") requesting a broad range of information about us and our business, generally in relation to our contracts and relationships with pharmaceutical manufacturers. We are cooperating fully with the DOJ in responding to the subpoena. At the present time, the DOJ has not made any allegation of wrongdoing on the part of the Company. We cannot, however, provide assurance that such an allegation or litigation will not result from this investigation.

On April 18, 2006, the Company terminated its net revenue model comprehensive service agreement with a practice in Oklahoma, as a result of alleged breaches of that agreement by the practice. The practice accounted for 4.6 percent and 2.3 percent of the Company's revenue and Adjusted EBITDA, respectively, for the first quarter of 2006. The Company remains in litigation with this practice regarding termination of its service agreement. As a result of the practice's alleged breaches of that agreement and the litigation, we were unable to collect payments on receivables owned by us an
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