For more information, please contact either listing below:

Prospect Medical Holdings, Inc.
Linda Hodges,
Executive Vice President
(310) 337.4170
linda.hodges@prospectmedical.com

Investor Relations Counsel:
The Equity Group Inc.
Devin Sullivan
(212) 836-9608
dsullivan@equityny.com

Supplemental Information Related to Fiscal 2007 Second Quarter Conference Call

In response to a shareholder inquiry during Prospect Medical’s Fiscal 2007 Second Quarter Financial Results conference call, which took place on Tuesday, May 15, 2007, management addressed projected future financial performance using EBITDA. In addition to the exchange below, Prospect Medical is also providing supplemental information related to its use of EBITDA as a measure of the Company’s projected operating performance. This conference call is archived and can be accessed for approximately 90 days from the date of the original call at http://audioevent.mshow.com/332040/.

<Q – Bobby Melnick>: Question for Mike please. In your prefatory comments you cited in response to a question perhaps that the target or what the objective of the corporation after this investment strategy period was that you’d return to sort of where you were previously and then that that might provide you with a platform off of which 20% organic, 20% growth might seem reasonable pre-acquisition. The question is very simple. For the trailing 12 months ending March of ‘06 the company reported $10.6 million of EBITDA. Mike, is that the sort of number that you have in mind when you make the statement that you made in answer to the question?

<A – Mike Heather>: Yes, it is. It is, Bobby.

<Q – Bobby Melnick>: Okay. So if things progress as the company is planning, budgeting, hoping and expecting, before acquisitions that’s the kind of EBITDA run rate that owners could look for starting some time in calendar ‘08 before acquisitions?

<A – Mike Heather>: That’s right, Bobby, in our internal projections, which factors all of those things in, we’re looking to right around a $10 million EBITDA in our fiscal ‘09 actually. I’ve got an $8 million in our fiscal ‘08 EBITDA number, and you can see by the delta between those two that it’s a growth rate just north of 20%. But yes, I think we’re in the same ballpark what you just said.(¹)

<Q – Bobby Melnick>: Okay, and that again does not include any contribution from any contemplated or pending acquisitions.

<A>: Correct.

<Q – Bobby Melnick>: Okay, thanks.

(¹) EBITDA, which is a measure equivalent to operating income before deduction for depreciation and amortization, is a supplemental measure of performance that is not required by, or presented in accordance with, U.S. GAAP. We consider EBITDA an important supplemental measure of our operations and financial performance and believe it may enhance period-to-period comparability of our operations and financial performance. However, EBITDA should not be considered in isolation from, as an alternative to, or as more meaningful than, financial measures calculated and reported in accordance with U.S. GAAP. Operating income is the financial measure most directly comparable to EBITDA that is calculated and reported in accordance with U.S. GAAP. Our EBITDA estimates for fiscal 2008 and 2009 may be reconciled to operating income by subtracting estimated depreciation and amortization, as follows: For fiscal 2008, EBITDA of $8 million minus depreciation and amortization of approximately $1 million would equal estimated operating income of approximately $7 million. For fiscal 2009, EBITDA of $10 million minus depreciation and amortization of approximately $1 million would equal estimated operating income of approximately $9 million.