Prospect Medical Holdings Reports Fiscal 2008 Fourth Quarter and Year-End Financial Results

Business Wire, Dec 29, 2008

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Adjusted EBITDA Reconciliation

(Unaudited)

A reconciliation of Adjusted EBITDA (also referred to as "Normalized EBITDA" in Management discussions) to the most directly comparable GAAP measure in accordance with SEC Regulation S-K follows, for each of the four quarters of fiscal 2008.

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(1) Operating income for all of fiscal 2008 is not intended to correspond to the sum of the quarterly operating income per prior earnings releases due primarily to classification of the results of discontinued operations.

(2) Comprised of amounts considered by management to be non-recurring, including certain legacy IPA costs, special investigation costs, restatement costs, lender charges, and a portion of the Q4 08 charge for equity grants.