Asensio & Company, Inc.
PolyMedica Corporation
Calculation of normalized income before taxes in fiscal 2002
(amounts in millions, except per share data)
__
Year End
Q4
Q3
Q2
Q1
__
Fiscal 2002
3/31/02
12/31/01
9/30/01
6/30/01
Income before taxes
48.9
13.4
13.8
7.6
14.0
     C.O.L.A.1
(6.8)
(1.5)
(2.7)
(2.6)
-
     Billing adjustments2
5.8
-
-
5.8
-
     Unusual legal expenses2
4.9
1.3
1.4
2.2
-
Normalized income before taxes
52.8
13.2
12.6
13.0
14.0
1.  Cost of Living Adjustment in fourth quarter assumes the termination of the supplemental benefit of 3.28% and the continuation of the 3.7% benefit affecting approximately 70% of Chronic Care revenues.  During the fourth quarter conference call on May 16, 2002, management stated that if the supplemental COLA of 3.28% that was in effect in the third quarter of 2002 been in effect in the fourth quarter, EPS, diluted in the fourth quarter would have increased approximately 7 cents per share from the reported amount.
2.  Added back to eliminate change.

Prepared by: Asensio & Company, Inc.
Date: May 19, 2002