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Cumberland Pharmaceuticals Reports 24% Increase in Net Revenue With Full Year 2009 Financial Results
Date:3/10/2010

Amount calculated based on the Company's effective tax rate at December 31, 2009.

The following table presents a reconciliation of Cumberland's net income to EBITDA and adjusted EBITDA. The Company defines EBITDA as net income plus interest, income tax, depreciation and amortization, and presents these measures to assist investors in evaluating Cumberland's operating performance and comparing the Company's results with those of other companies. EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for net income.

    
    
                                             Year ended
                                           December 31, 2009
                                           -----------------
    Net income                                 3,091,415
    Income tax expense                         2,024,192
    Depreciation & amortization                  816,499
    Interest (income) expense, net               693,564
                                                 -------
    EBITDA                                     6,625,670
    Adjustments:
      Non-cash stock compensation                708,196
      Payroll taxes from stock option
       exercises                               1,093,464
      Caldolor milestone expenses              1,950,362
                                               ---------
    Adjusted EBITDA                           10,377,692
                                              ==========
    
    
                                               Year ended
                                           December 31, 2008
                                           -----------------
    Net income                 
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SOURCE Cumberland Pharmaceuticals Inc.
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