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Madison Heights, Michigan—March 2, 2010 – InfuSystem Holdings,  Inc. (OTCBB: INHI; INHIW; INHIU), the leading provider of ambulatory infusion pumps and associated clinical services, today announced financial results and provided a business update for the fourth  quarter and full year ended December 31, 2009.

Revenue for the fourth quarter ended December 31, 2009 was $10.7 million, a 17% improvement compared to $9.1 million for the same period in 2008.  For the full year 2009, the Company reported revenue of $39.0 million, a 10% increase compared to 2008 revenues of $35.4 million. 

Mr. Sean McDevitt, Chief Executive Officer, commented, “InfuSystem continues to build sales momentum with the addition of new oncology clinic customers as demonstrated by our solid financial results.  We continue to realize benefits from the refocusing of our sales force and the back-office efficiency tools that we implemented this past summer. With the continued steady growth of our core business, strategic initiatives to broaden our product and service offering and the announcement of the warrant exchange offer, we are more confident than ever in the long-term outlook for the company and industry.”

Financial Results for the Fourth Quarter 2009

Revenue for the fourth quarter ended December 31, 2009 was $10.7 million, a 17% improvement compared to $9.1 million for the same period in 2008.  The increase in revenues is primarily due to obtaining business at new customer facilities, timing of documentation collection and related billings, improved operational efficiency tools, as well as increased reimbursement.  Operating income for the fourth quarter of 2009 was $1.4 million versus operating income of $1.5 million for the same period in 2008. The decrease in operating income was due, primarily, to an increase in the provision for doubtful accounts and pump maintenance costs, partially offset by higher revenues and lower stock-based compensation expense.  The increase in the provision for doubtful accounts is directly related to a slight increase in the mix of billings directly to patients, as compared to billings to third-party payors.  The net income for the fourth quarter of 2009 was $966,000, or $0.05 per diluted share, compared to net income of $1.3 million or $0.07 per diluted share, for the same period in 2008. 

Adjusted EBITDA for the fourth quarter ended December 31, 2009 was $3.2 million, compared to $3.3 million for the same period in 2008. The decrease in adjusted EBITDA for the fourth quarter of 2009 was primarily the result of an increase in the provision for doubtful accounts and pump maintenance costs, partially offset by higher revenues.  The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and excludes gain (loss) on derivative financial instruments and stock-based compensation, and other non-recurring charges. Adjusted EBITDA is not a measure of performance calculated in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company believes the presentation of Adjusted EBITDA is a relevant and useful measure to assist a reader’s ability to understand the Company’s operating performance. The Company’s management likewise utilizes Adjusted EBITDA as a means to measure its operating performance. Reconciliation from Adjusted EBITDA, a non-GAAP measure, to net income can be found in the appendix.

Financial Results for the Full Year Ended December 31, 2009

Revenue for the full year ended December 31, 2009 was $39.0 million, a 10% improvement compared to $35.4 million for the same period in 2008.  Operating income for the full year ended December 31, 2009 was $5.3 million versus operating income of $4.8 million for the same period in 2008. The increase in operating income for the full year ended December 31, 2009 was a result of an increase in revenue, lower freight costs, partially offset by management transition expenses and provision for doubtful accounts.

The net income for the full year ended December 31, 2009 was $774,000, or $0.04 per diluted share, compared to net income of $10.0 million or $0.53 per diluted share, for the same period in 2008.  The net income for the full year ended December 31, 2009 included a ($78,000) loss on derivative financial instruments, which was predominantly attributable to the increase in the publicly traded value of the Company’s warrants during 2009, compared to a $9.8 million gain on derivative financial instruments in the comparable period in 2008.

Adjusted EBITDA for the full year ended December 31, 2009 was $12.9 million, compared to $12.1 million for the same period in 2008.

Total cash and cash equivalents were $7.8 million at the year end 2009, compared to $11.5 million at the end of 2008. As of December 31, 2009, InfuSystem had $24.1 million of debt outstanding, compared to $30.7 million at year end 2008.

Conference Call

The company will host an investor conference call today at 5:00 p.m. ET to discuss its financial results for the fourth quarter and year end 2009. The investor conference call will be available via live webcast on InfuSystem’s website at www.infusystem.com in the Investors section. To participate by telephone, the dial-in number is (888) 677-8769. The access code is 3740095. Investors are advised to dial into the call at least ten minutes prior to the call to register. A replay of the call can be accessed by dialing (888) 203-1112, confirmation number 3740095. An online archive of the conference call will remain on the Company’s website for at least 90 days after the call.

About InfuSystem Holdings, Inc.

InfuSystem is the leading supplier of infusion services to oncologists and other outpatient treatment settings. The Company provides pole mounted and ambulatory pumps, supplies and related clinical, biomedical and billing services to practices and patients, nationwide. The Company's unique suite of services appeals to practices, patients and payors by improving access to clinically necessary medical equipment, while driving down costs and maximizing clinical outcomes.

Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include general economic conditions, as well as other risks detailed from time to time in InfuSystem’s publicly filed documents.

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