inVentiv Health Reports Record Financial Results for Fourth Quarter and Full...(heir respective periods. -- Derivativ...),Health

-- Derivative Interest: In October 2005, the Company engaged in an

interest rate hedge of its $175 million term loan facility, which the

Company did not designate for hedge accounting until July 2006. In

July 2006, the Company employed a hypothetical derivative model to

assess ineffectiveness. For the three-months ended December 31, 2007

and 2006, the Company recorded $0.3 million of interest expense ($0.2

million net of taxes) relating to the ineffectiveness of the hedge for

each quarter. For the twelve-months ended December 31, 2007 and 2006,

the Company recorded $1.2 million and $2.1 million of interest expense

and interest income ($0.7 million of interest expense and $1.2 million

of interest income, net of taxes), respectively, relating to the

ineffectiveness of the hedge for each period. Net interest expense was

adjusted to exclude these adjustments in their respective periods.

-- Tax benefits: The Company recorded federal tax benefits of $1.0

million in the first quarter of 2007 attributable to related state and

local tax exposure and $9.1 million in the second quarter of 2006

related to the utilization of net operating losses of divested

entities. Tax expense was adjusted to exclude these benefits for full

year 2007 and 2006.

In addition, this press release contains non-GAAP financial measures related to the pro-forma organic net revenue growth rate for 2007. This growth rate is calculated as if all companies acquired by the Company as of December 31, 2007 were owned by it as of January 1, 2006.

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive se
'/>"/>