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

available for investment.

WebMD excludes interest income from Adjusted EBITDA (i) because it is

not directly attributable to the performance of WebMD's business

operations and, accordingly, its exclusion assists management and

investors in making period-to-period comparisons of operating

performance and (ii) to assist management and investors in making

comparisons to companies with different capital structures. Investors

should note that interest income will recur in future periods.

-- Income Tax Provision. WebMD had a net operating loss (NOL)

carryforward of approximately $270,000 as of the year ended December

31, 2007. WebMD maintained a full valuation allowance on these NOL

carryforwards until the fourth quarter of 2007, at which time a portion

of the valuation allowance was reversed after consideration of the

relevant factors. The related valuation allowances are either reversed

through the income statement, additional paid-in capital, or reversed

to goodwill, to the extent those tax benefits were acquired through

business combinations. The timing of such reversals has not been

consistent and as a result, WebMD's income tax expense can fluctuate

significantly from period to period in a manner not directly related to

WebMD's operating performance. WebMD excludes the income tax provision

from Adjusted EBITDA (i) because it believes that the income tax

provision is not directly attributable to the underlying performance of

WebMD's business operations and, accordingly, its exclusion assists

management and investors in making period-to-period comparisons of

operating performance and (ii) to assist management and investors in

making comparisons to companies with different tax attributes.

Investors should note that income tax provision
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SOURCE WebMD Health Corp.
Copyright©2008 PR Newswire.
All rights reserved

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