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WebMD Announces First Quarter Financial Results
Date:5/6/2008

formance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules.

The following is an explanation of the items excluded by WebMD from Adjusted EBITDA but included in income (loss) from continuing operations:

-- Depreciation and Amortization. Depreciation and amortization expense

is a non-cash expense relating to capital expenditures and intangible

assets arising from acquisitions that are expensed on a straight-line

basis over the estimated useful life of the related assets. WebMD

excludes depreciation and amortization expense from Adjusted EBITDA

because it believes (i) the amount of such expenses in any specific

period may not directly correlate to the underlying performance of

WebMD's business operations and (ii) such expenses can vary

significantly between periods as a result of new acquisitions and full

amortization of previously acquired tangible and intangible assets.

Accordingly, WebMD believes this exclusion assists management and

investors in making period-to-period comparisons of operating

performance. Investors should note that use of tangible and intangible

assets contributed to revenue in the periods presented and will

contribute to future revenue generation and should also note that such

expenses will recur in future periods.

-- Stock-Based Compensation Expense. Stock-based compensation expense is

a non-cash expense arising from the grant of stock-based awards to

employees. WebMD believes that excluding the effect of stock-based

compensation from Adjusted EBITDA assists management and investors in

making period-to-period comparisons in its operating performance

because it believes (i) the am
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SOURCE WebMD Health Corp.
Copyright©2008 PR Newswire.
All rights reserved

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