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**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-Q**

**(Mark        One)**

**x   QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

**For        the quarterly period ended September 30, 2007**

**or**

**o   TRANSITION        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES        EXCHANGE ACT OF 1934**

**For        the transition period from _______________ to        _______________**

**Commission        file number  000-51596**

**ECHO        HEALTHCARE**

**ACQUISITION        CORP.**

**(Exact        name of Registrant as specified in its charter)**

| **Delaware**                                  | **56-2517815**                                                             |
|-----------------------------------------------|----------------------------------------------------------------------------|
| **(State                  of Incorporation)** | **(I.R.S.                  Employer Identification                  No.)** |

**8000        Towers Crescent Drive, Suite 1300, Vienna, VA 22182**

**(Address        of principal executive offices)**

**(703)        448-7688**

**(Telephone        number, including area code)**

**Indicate        by check mark whether the        registrant (1) has filed all reports required to be filed by Section 13 or        15(d)        of the Securities Exchange Act of 1934 during the preceding 12 months (or        for        such shorter period that the registrant was required to file such reports)        and        (2) has been subject to such filing requirements for the past 90        days.**

| **Yes x** | **No o** |
|----------------|---------------|

**Indicate        by check mark whether the        registrant is a large accelerated filer, an accelerated filer, or a        non-accelerated filer. See definition of  “accelerated filer and large        accelerated filer” in Rule 12b-2 of the Exchange Act. (Check        one):**

| **Large                  accelerated filer o** | **Accelerated                  filer o** | ** Non-accelerated                  filer x** |
|------------------------------------------------|------------------------------------------|----------------------------------------------------|

**Indicate        by check mark whether the        registrant is a shell company (as defined in Rule 12b-2 of the Exchange        Act).**

| **Yes x** | **No o** |
|----------------|---------------|

**Indicate        the number of shares        outstanding of each of the issuer's classes of common stock as of November●,        2007.**

| **Common                  Stock, $.0001 par value** | **8,750,000**                           |
|-----------------------------------------------------|-----------------------------------------|
| **(Class)**                                         | **(Number                  of shares)** |

----

**Part        I – Financial Information**

**Item        1.  Condensed Consolidated Financial Statements**

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Balance Sheets**

|                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **September                  30,****2007****(Unaudited)** |       |   | **December                  31,****2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|------------|--------|-------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |
| Current                  Assets:                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                      |       |   |                                      |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                                         | 49,852     |   |                                      | $      | 25,847 |   |
| Prepaid                  expenses                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                      | 13,544     |   |                                      |   | 41,104 |   |
| Total                  current                  assets                                                                                                                                                                                                                                                                                                                                                                              |   |                                                      | 63,396     |   |                                      |   | 66,951 |   |
| Investments                  held in Trust Fund                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                      | 57,999,440 |   |                                      |   | 56,403,718 |   |
| Deferred                  acquisition costs                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 379,527    |   |                                      |   | 284,878 |   |
| Total                  assets                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                                         | 58,442,363 |   |                                      | $      | 56,755,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                      |       |   |                                      |   |   |   |
| Accrued                  expenses                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                         | 1,849,431  |   |                                      | $      | 611,550 |   |
| Derivative                  liabilities                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                      | -          |   |                                      |   | 6,165,250 |   |
| Line                  of Credit from Founding                  Stockholders                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 608,700    |   |                                      |   | 240,300 |   |
| Accrued                  offering                  costs                                                                                                                                                                                                                                                                                                                                                                            |   |                                                      | 152,713    |   |                                      |   | 152,713 |   |
| Deferred                  underwriting and other                  offering costs                                                                                                                                                                                                                                                                                                                                                    |   |                                                      | 2,018,233  |   |                                      |   | 2,018,233 |   |
| Total                  current                  liabilities                                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 4,629,077  |   |                                      |   | 9,188,046 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| **COMMITMENTS                  AND CONTINGENCIES**                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| Common                  stock                  subject to possible conversion, 1,436,781 shares                  at a                  conversion values of approximately $8.03 and $7.84 per share, 040                  respectively, including accretion of allocated income of $560,040                  and                  $279,267,respectively, (net of $288,505 and $143,865 income taxes,                  respectively) |   |                                                      | 11,543,945 |   |                                      |   | 11,263,172 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| **STOCKHOLDERS’                  EQUITY**                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |       |   |                                      |   |   |   |
| Preferred                  stock—$.0001 par value; 1,000,000 shares authorized; 0 issued and                  outstanding                                                                                                                                                                                                                                                                                                     |   |                                                      | -          |   |                                      |   | - |   |
| Common                  stock—$.0001 par value, 25,000,000 shares authorized; 8,750,000 issued                  and                  outstanding (which includes 1,436,781                  shares subject to possible conversion)                                                                                                                                                                                            |   |                                                      | 875        |   |                                      |   | 875 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 42,850,452 |   |                                      |   | 36,195,054 |   |
| (Deficit)/                  Retained Earnings accumulated during the development stage                                                                                                                                                                                                                                                                                                                                              |   |                                                      | (581,986   | )      |                                      |   | 108,400 |   |
| Total                  stockholders’                  equity                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      | 42,269,341 |   |                                      |   | 36,304,329 |   |
| Total                  liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                   |   | $                                                         | 58,442,363 |   |                                      | $      | 56,755,547 |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Statements of Operations**

**(Unaudited)**

|                                                                           |   | **Nine                    Months****ended****Sept                    30,****2007** |       |   | **Nine****Months****ended                    Sept****30,                    2006** |   |      | **Three                    Months****ended                    Sept 30,****2007** |   |   | **Three                    Months****ended****Sept                    30,****2006** |   |   | **June                    10, 2005****(Date                    of****Inception)****through                    Sept****2007** |      |
|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------|--------|------------------------------------------------------------------------------------|--------|-----------|---------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|-----------|
|                                                                           |   |                                                                               |       |   |                                                                               |   |      |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         |      |
| Revenue                                                                        |   | $                                                                                  | 0          |   |                                                                               | $      | 0         |                                                                                  |   | $      | 0                                                                                   |   |   | $                                                                                                                            | 0         |   |   | $ | 0 |   |
| Operating                  expenses                                            |   |                                                                               | (1,304,512 | )      |                                                                               |   | (379,220  | )                                                                                     |   |   | (815,761                                                                            | )      |   |                                                                                                                         | (225,145  | ) |   |   | (1,853,187 | ) |
| Organization                  costs                                            |   |                                                                               | 0          |   |                                                                               |   | 0         |                                                                                  |   |   | 0                                                                                   |   |   |                                                                                                                         | 0         |   |   |   | (137,120 | ) |
| Operating                  loss                                                |   |                                                                               | (1,304,512 | )      |                                                                               |   | (379,220  | )                                                                                     |   |   | (815,761                                                                            | )      |   |                                                                                                                         | (225,145  | ) |   |   | (1,990,307 | ) |
| Gain/(Loss)                  on derivative liabilities                         |   |                                                                               | (490,148   | )      |                                                                               |   | 572,270   |                                                                                  |   |   | 0                                                                                   |   |   |                                                                                                                         | 356,645   |   |   |   | (856,924 | ) |
| Interest                  income                                               |   |                                                                               | 2,128,130  |   |                                                                               |   | 1,405,357 |                                                                                  |   |   | 711,818                                                                             |   |   |                                                                                                                         | 701,550   |   |   |   | 4,244,848 |   |
| Income                  before provision for income taxes                      |   |                                                                               | 333,470    |   |                                                                               |   | 1,598,407 |                                                                                  |   |   | (103,943                                                                            | )      |   |                                                                                                                         | 833,050   |   |   |   | 1,397,617 |   |
| Provision                  for income taxes                                    |   |                                                                               | (743,084   | )      |                                                                               |   | (302,395  | )                                                                                     |   |   | (242,018                                                                            | )      |   |                                                                                                                         | (162,447  | ) |   |   | (1,419,564 | ) |
| Net                  (loss)/ income                                            |   | $                                                                                  | (409,614   | )      |                                                                               | $      | 1,296,012 |                                                                                  |   | $      | (345,961                                                                            | )      |   | $                                                                                                                            | 670,603   |   |   | $ | (21,947 | ) |
|                                                                           |   |                                                                               |       |   |                                                                               |   |      |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         |      |   |   |   |   |   |
| Weighted                  average number of shares outstanding—basic     |   |                                                                               | 7,968,750  |   |                                                                               |   | 6,074,290 |                                                                                  |   |   | 7,968,750                                                                           |   |   |                                                                                                                         | 7,968,750 |   |   |   |   |   |
|  Net                  income per share—basic                        |   | $                                                                                  | (0.05      | )      |                                                                               | $      | 0.21      |                                                                                  |   | $      | (0.04                                                                               | )      |   | $                                                                                                                            | 0.08      |   |   |   |   |   |
| Net                  Income                                                    |   |                                                                               |       |   |                                                                               | $      | 1,296,012 |                                                                                  |   |   |                                                                                |   |   | $                                                                                                                            | 670,603   |   |   |   |   |   |
| Gain                  on derivative liabilities attributed to warrants         |   |                                                                               |       |   |                                                                               |   | (572,270  | )                                                                                     |   |   |                                                                                |   |   |                                                                                                                         | (356,645  | ) |   |   |   |   |
| Adjusted                  net income – for diluted earnings              |   |                                                                               |       |   |                                                                               |   | 723,742   |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         | 313,958   |   |   |   |   |   |
| Weighted                  average shares outstanding                           |   |                                                                               |       |   |                                                                               |   | 6,074,290 |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         | 7,968,750 |   |   |   |   |   |
| Shares                  from assumed conversion of warrants                    |   |                                                                               |       |   |                                                                               |   | 924,663   |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         | 1,383,569 |   |   |   |   |   |
| Weighted                  average number of shares outstanding – diluted |   |                                                                               |       |   |                                                                               |   | 6,998,953 |                                                                                  |   |   |                                                                                |   |   |                                                                                                                         | 9,352,319 |   |   |   |   |   |
| Net                  income per share – diluted                          |   |                                                                               |       |   |                                                                               | $      | 0.10      |                                                                                  |   |   |                                                                                |   |   | $                                                                                                                            | 0.03      |   |   |   |   |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed  Consolidated        Statements of Stockholders’ Equity**

|                                                                                                                                                                                                                                               |   | **Common                  Stock** |      |   |       |   |   |                                                                 |   |   |                                                                           |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|------------|--------|--------|----------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                               |   | **Shares**                        |      |   | **Amount** |   |   | **Additional                  Paid-****In                  Capital** |   |   | **Deficit****Accumulated****During                  the Development****Stage** |   |   | **Total                  Stockholders’ Equity (Capital Deficit)** |   |
| **Balance                  – June 10, 2005 (date of inception)**                                                                                                                                                                             |   |                              | -0-       |   |       | $      | -0-    |                                                                 |   | $      | -0-                                                                            |   |   | $ | -0- |   |   | $ | -0- |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Contributions                  from Founding Stockholders                                                                                                                                                                                          |   |                              | 1,562,500 |   |       |   | 156    |                                                                 |   |   | 24,844                                                                         |   |   |   |   |   |   |   | 25,000 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  loss for the period ended December 31, 2005                                                                                                                                                                              |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   | $ | (138,120 | ) |   |   | (138,120 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| **Balance                  – December 31, 2005**                                                                                                                                                                                             |   |                              | 1,562,500 |   |       | $      | 156    |                                                                 |   | $      | 24,844                                                                         |   |   | $ | (138,120 | ) |   | $ | (113,120 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Sale                  of 7,187,500 Units, net of underwriter’s discount and offering expenses                  (includes 1,436,781                  shares subject to possible conversion, excludes Derivative                  Liabilities) |   |                              | 7,187,500 |   |       |   | 719    |                                                                 |   |   | 52,402,489                                                                     |   |   |   |   |   |   |   | 52,403,208 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Proceeds                  subject to possible conversion of 1,436,781                  shares                                                                                                                                                      |   |                              |      |   |       |   |   |                                                                 |   |   | (10,983,905                                                                    | )      |   |   |   |   |   |   | (10,983,905 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Proceeds                  from issuance of underwriter’s purchase option                                                                                                                                                                     |   |                              |      |   |       |   |   |                                                                 |   |   | 100                                                                            |   |   |   |   |   |   |   | 100 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Reclassification                  of proceeds allocated to warrants – derivatives liability                                                                                                                                                  |   |                              |      |   |       |   |   |                                                                 |   |   | (5,798,474                                                                     | )      |   |   |   |   |   |   | (5,798,474 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Proceeds                  from sale of warrants to Founding Stockholders                                                                                                                                                                           |   |                              |      |   |       |   |   |                                                                 |   |   | 550,000                                                                        |   |   |   |   |   |   |   | 550,000 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Accretion                  of trust fund income for the period relating to common stock subject                  to                  redemption, net of tax                                                                                        |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   | (279,267 | ) |   |   | (279,267 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  income for the year                                                                                                                                                                                                           |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   | 525,787 |   |   |   | 525,787 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| **Balance                  – December 31, 2006**                                                                                                                                                                                             |   |                              | 8,750,000 |   |       | $      | 875    |                                                                 |   | $      | 36,195,054                                                                     |   |   | $ | 108,400 |   |   | $ | 36,304,329 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Accretion                  of trust fund income for the period relating to common stock subject                  to                  redemption, net of tax                                                                                        |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   | (280,772 | ) |   |   | (280,772 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Reclassification                  of proceeds allocated to warrants – derivatives liability upon adoption of                  Warrant Clarification Agreement                                                                                |   |                              |      |   |       |   |   |                                                                 |   |   | 6,655,398                                                                      |   |   |   |   |   |   |   | 6,655,398 |   |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| Net                  loss for the period                                                                                                                                                                                                           |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   | (409,614 | ) |   |   | (409,614 | ) |
|                                                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| **Balance                  –**                                                                                                                                                                                                               |   |                              |      |   |       |   |   |                                                                 |   |   |                                                                           |   |   |   |   |   |   |   |   |   |
| **September                  30, 2007                  (unaudited)**                                                                                                                                                                               |   |                              | 8,750,000 |   |       | $      | 875    |                                                                 |   | $      | 42,850,452                                                                     |   |   | $ | (581,986 | ) |   | $ | 42,269,341 |   |

----

**Echo        Healthcare Acquisition Corp.**

**(a        development stage company)**

**Condensed        Consolidated Statements of Cash Flows**

**(Unaudited)**

|                                                                                                                               |   | **January                    1, 2007****through****September                    30,****2007** |       |   | **January                    1, 2006 through September 30, 2006** |   |        | **June                    10, 2005****(Date                    of Inception) through****September 30,****2007** |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|------------|--------|-------------------------------------------------------------------|--------|-------------|----------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                  flows from operating activities:**                                                                         |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |
| Net                  (loss)/ income                                                                                                |   | $                                                                                             | (409,614   | )      |                                                              | $      | 1,296,012   |                                                                                                                 |   | $ | (21,947 | ) |
|   Adjustments                  to reconcile net income (loss) to net cash used by operating                  activities: |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| (Gain)/                  Loss on derivative liabilities                                                                            |   |                                                                                          | 490,148    |   |                                                              |   | (572,270    | )                                                                                                                    |   |   | 856,924 |   |
|   Changes                  in:                                                                                           |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
|   Prepaid                  expenses                                                                                      |   |                                                                                          | 27,560     |   |                                                              |   | (55,270     | )                                                                                                                    |   |   | (13,544 | ) |
|   Accrued                  expenses                                                                                      |   |                                                                                          | 1,143,233  |   |                                                              |   | 396,486     |                                                                                                                 |   |   | 1,469,904 |   |
|   Net                  cash provided by operating activities                                                             |   |                                                                                          | 1,251,327  |   |                                                              |   | 1,064,958   |                                                                                                                 |   |   | 2,291,337 |   |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| **Cash                  flows from investing activities:**                                                                         |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| **  **Increase                  in Investments held in Trust Fund                                                        |   |                                                                                          | (1,595,722 | )      |                                                              |   | (56,352,357 | )                                                                                                                    |   |   | (57,999,440 | ) |
| **        **Net                  cash used in investing activities                         |   |                                                                                          | (1,595,722 | )      |                                                              |   | (56,352,357 | )                                                                                                                    |   |   | (57,999,440 | ) |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| **Cash                  flows from financing activities:**                                                                         |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
|   Proceeds                  from notes payable to Founding Stockholders                                                  |   |                                                                                          | --         |   |                                                              |   | 50,000      |                                                                                                                 |   |   | 200,000 |   |
|   Proceeds                  from Line of Credit from Founding Stockholders                                               |   |                                                                                          | 368,400    |   |                                                              |   | 153,600     |                                                                                                                 |   |   | 608,700 |   |
|   Payments                  on notes payable to Founding Stockholders                                                    |   |                                                                                          | --         |   |                                                              |   | (200,000    | )                                                                                                                    |   |   | (200,000 | ) |
|   Proceeds                  from sale of common stock to Founding Stockholders                                           |   |                                                                                          | --         |   |                                                              |   | --          |                                                                                                                 |   |   | 25,000 |   |
|   Gross                  proceeds from public offering                                                                   |   |                                                                                          | --         |   |                                                              |   | 57,500,000  |                                                                                                                 |   |   | 57,500,000 |   |
|   Proceeds                  from issuance of underwriter’s purchase option                                         |   |                                                                                          | --         |   |                                                              |   | 100         |                                                                                                                 |   |   | 100 |   |
|   Proceeds                  from sale of warrants to Founding Stockholders                                               |   |                                                                                          | --         |   |                                                              |   | 550,000     |                                                                                                                 |   |   | 550,000 |   |
|   Costs                  of offering                                                                                     |   |                                                                                          | --         |   |                                                              |   | (2,767,721  | )                                                                                                                    |   |   | (2,925,845 | ) |
|         Net                  cash provided by financing activities                         |   |                                                                                          | 368,400    |   |                                                              |   | 55,285,979  |                                                                                                                 |   |   | 55,757,955 |   |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| **Net                  increase (decrease) in cash**                                                                               |   |                                                                                          | 24,005     |   |                                                              |   | (1,420      | )                                                                                                                    |   |   | 49,852 |   |
| Cash—beginning                  of period                                                                                    |   |                                                                                          | 25,847     |   |                                                              |   | 14,807      |                                                                                                                 |   |   | -- |   |
| **Cash—end                  of period**                                                                                      |   | **$**                                                                                         | 49,852     |   |                                                              | **$**  | 13,387      |                                                                                                                 |   | **$** | 49,852 |   |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| Supplemental                  disclosure of cash paid for:                                                                         |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
|        Income                  taxes paid                                                       |   | $                                                                                             | 532,408    |   |                                                              |   | -           |                                                                                                                 |   | $ | 1,228,408 |   |
|                                                                                                                               |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| Supplemental                  schedule of non-cash financing activities                                                            |   |                                                                                          |       |   |                                                              |   |        |                                                                                                                 |   |   |   |   |
| (Payment                  of accrued) Accrual                  of deferred offering costs                                          |   |                                                                                          | -          |   |                                                              | $      | (290,575    | )                                                                                                                    |   | $ | 152,713 |   |
| Accrual                  of deferred                  underwriting and other offering costs                                        |   |                                                                                          | -          |   |                                                              | $      | 2,018,233   |                                                                                                                 |   | $ | 2,018,233 |   |
| Accrual                  of deferred acquisition                  costs                                                            |   | $                                                                                             | 94,649     |   |                                                              | $      | 244,728     |                                                                                                                 |   | $ | 379,527 |   |
| Warrant                  obligation in                  connection with sale of units in offering                                  |   | $                                                                                             | -          |   |                                                              | $      | 5,226,204   |                                                                                                                 |   |   | - |   |
| Reclassification                  of warrants                  liability to equity                                                 |   | $                                                                                             | 6,655,398  |   |                                                              |   |        |                                                                                                                 |   | $ | 6,655,398 |   |

----

**NOTE        A—BASIS OF PRESENTATION**

**NOTE        B—ORGANIZATION AND BUSINESS OPERATIONS**

**NOTE        C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**[1]    Use        of        estimates:**

**[2]    Income/(Loss)        per common share:**

----

|                                                                                                                                                                                                                                        |   | **Nine                    months****ended****September                    30,****2007** |      |   | **Nine                    months****ended****September                    30,****2006** |   |      | **Three                    months****ended****September                    30,****2007** |   |   | **Three                    months****ended****September                    30,****2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|-----------|--------|-----------------------------------------------------------------------------------------|--------|-----------|------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------|--------|
| Net                  income (Loss)                                                                                                                                                                                                          |   | $                                                                                       | (409,614  | )      |                                                                                    | $      | 1,296,012 |                                                                                     |   | $      | (345,961                                                                                 | )      |   | $ | 670,603 |   |
| Interest                  income attributable to common stock subject to possible conversion,                  net of                  income taxes                                                                                         |   | $                                                                                       | (280,772  | )      |                                                                                    | $      | (185,414  | )                                                                                        |   | $      | (92,407                                                                                  | )      |   | $ | (92,558 | ) |
| Pro                  forma net income attributable to common stockholders not subject                  to                  possible conversion                                                                                              |   | $                                                                                       | (690,386  | )      |                                                                                    | $      | 1,110,598 |                                                                                     |   | $      | (438,368                                                                                 | )      |   | $ | 578,045 |   |
| Pro                  forma weighted average number of shares outstanding, excluding                  shares                  subject to possible conversion – basic                                                                   |   |                                                                                    | 6,531,969 |   |                                                                                    |   | 4,314,798 |                                                                                     |   |   | 6,531,969                                                                                |   |   |   | 6,531,969 |   |
| Pro                  forma net income per share, excluding shares subject to possible                  conversion – basic                                                                                                             |   | $                                                                                       | (0.11     | )      |                                                                                    | $      | 0.25      |                                                                                     |   | $      | (0.07                                                                                    | )      |   | $ | 0.08 |   |
|                                                                                                                                                                                                                                        |   |                                                                                    |      |   |                                                                                    |   |      |                                                                                     |   |   |                                                                                     |   |   |   |   |   |
| Net                  income                                                                                                                                                                                                                 |   |                                                                                    |      |   |                                                                                    | $      | 1,296,012 |                                                                                     |   |   |                                                                                     |   |   | $ | 670,603 |   |
| Interest                  income attributable to common stock subject to possible                  conversion                                                                                                                               |   |                                                                                    |      |   |                                                                                    |   | (185,414  | )                                                                                        |   |   |                                                                                     |   |   |   | (92,558 | ) |
| Gain                  on derivative liabilities attributed to warrants                                                                                                                                                                      |   |                                                                                    |      |   |                                                                                    |   | (572,270  | )                                                                                        |   |   |                                                                                     |   |   |   | (356,645 | ) |
| Pro                  forma net income attributable to common stockholders not subject                  to                  possible conversion less gain on derivative liabilities attributed                  to                  warrants |   |                                                                                    |      |   |                                                                                    | $      | 538,328   |                                                                                     |   |   |                                                                                     |   |   | $ | 221,400 |   |
| Pro                  forma weighted average number of shares outstanding excluding shares                  subject to possible conversion – basic                                                                                     |   |                                                                                    |      |   |                                                                                    |   | 4,314,798 |                                                                                     |   |   |                                                                                     |   |   |   | 6,531,969 |   |
| Shares                  from assumed conversion on warrants                                                                                                                                                                                 |   |                                                                                    |      |   |                                                                                    |   | 924,663   |                                                                                     |   |   |                                                                                     |   |   |   | 1,383,569 |   |
| Pro                  forma weighted average number of shares outstanding, excluding                  shares                  subject to possible conversion – diluted                                                                 |   |                                                                                    |      |   |                                                                                    |   | 5,239,461 |                                                                                     |   |   |                                                                                     |   |   |   | 7,915,538 |   |
| Pro                  forma net income per share, excluding shares subject to possible                  conversion – diluted                                                                                                           |   |                                                                                    |      |   |                                                                                    | $      | 0.10      |                                                                                     |   |   |                                                                                     |   |   | $ | 0.02 |   |

**[3]    Accounting        for Warrants and Derivative Instruments**

----

** **

----

**[4]    Income        Taxes**

**[5]    Adoption        of        New Accounting Pronouncement**

**[6]    New        Accounting Pronouncements**

**NOTE        D — LINE OF CREDIT FROM FOUNDING STOCKHOLDERS**

** **
** **
** **

----

**NOTE        E — RELATED PARTY TRANSACTION**

**NOTE        F —PROPOSED ACQUISITION**

|   | · | The                  formula for the aggregate merger consideration (“Aggregate Merger                  Consideration”) payable in the merger will include revenues attributable                  to hospitals or clinics that are acquired by XLNT on or before                  March 31,                  2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | · | Aggregate                  Merger Consideration shall be a number of shares of the Company’s common                  stock equal to the quotient obtained by dividing (1) the sum of                  (A) two                  times the lesser of (x) the consolidated gross revenues of XLNT                  for the                  year ended December 31, 2006, including the revenues for the year                  ended                  December 31, 2006 attributable to hospitals or clinics that are                  acquired                  by XLNT prior to the Closing Date (each an “Acquisition Candidate”), and                  (y) $60.0 million, but in no event less than $57.5 million (“Baseline                  Revenues”), and (B) the excess over $60.0 million of XLNT’s Baseline                  Revenues (“Incremental Revenues”), multiplied by 1.15 (the sum of Baseline                  Revenues and Incremental Revenues being hereinafter referred to                  as the                  “Adjusted Baseline Revenues”), plus (C) in the event the threshold                  requirements for the Management Performance Bonus Pool are met                  (as                  described below), an amount equal to (the “Operational Improvement                  Amount”) the excess of the consolidated gross revenues of XLNT for the                  annualized period beginning on January 1, 2007 and ending on the                  last day                  of the fiscal quarter (based on the 2007 calendar year) immediately                  preceding the Closing Date, determined on a pro forma basis to                  include the                  revenues for such period attributable to the Completed Acquisitions,                  over                  105% of the Adjusted Baseline Revenues multiplied by (i) 1.15 in                  the event                  XLNT’s 2007 Consolidated EBITDA margin for the period beginning on January                  1, 2007 and ending on the last day of the fiscal quarter (based                  on the                  calendar year) immediately preceding the Closing Date (the “2007                  Year-To-Date EBITDA Margin”) has increased by at least 100 basis points                  over the greater of (x) XLNT’s 2006 adjusted EBITDA margin for the                  trailing twelve month period ended December 31, 2006, determined                  on a pro                  forma basis to include the revenues for such period attributable                  to the                  Completed Acquisitions, and (y) 16.2% (the “2006 Pro Forma EBITDA Margin”)                  or (ii) 1.33 in the event that XLNT’s 2007 Year-To-Date EBITDA Margin has                  increased by at least 250 basis points over XLNT’s 2006 Pro Forma EBITDA                  Margin plus (D) the Net Cash Amount; by (2) the product of (a)                  the amount                  of cash in the Company’s trust fund at the Closing (without deduction for                  amounts paid in connection with obtaining a fairness opinion from                  a                  nationally recognized financial advisor and the conversion by the                  Company’s public stockholders voting against the Merger of up to 19.9%                  of                  the Company’s shares of common stock issued in the Offering into a pro                  rata share of the funds held in the Company’s trust fund established in                  connection with the Offering) divided by the number of shares of                  the                  Company’s common stock then issued and outstanding (excluding therefrom                  any shares of the Company’s common stock issuable upon the exercise or                  exchange of other Company securities which by their terms are convertible                  into or exercisable or exchangeable for the Company’s common stock)                  multiplied by (b) 1.25. However, the product determined in (2)                  above shall                  not exceed $7.20 (as adjusted for events set forth in the merger                  agreement). |

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|   | · | The                  exchange ratio pursuant to which shares of XLNT common stock will                  be                  exchanged for shares of Echo common stock will be equal to the                  quotient of                  (x) the Aggregate Merger Consideration, divided by the sum of (y)                  (i) the                  total number of outstanding shares of XLNT common stock (assuming                  that all                  shares of XLNT’s convertible preferred stock are converted into common                  stock prior to the closing) plus (ii) the number of shares of XLNT                  common                  stock issuable upon exercise of all vested and unvested options                  and                  warrants, determined using the treasury method of                  accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | The                  parties will calculate the final working capital and net cash amount                  within 30 days following the closing of the Merger. If the final                  working                  capital is positive, then the Company shall issue to the exchange                  agent                  such number of additional shares of the Company’s common stock as is equal                  to the quotient determined by dividing the net cash amount (which                  shall                  not exceed the amount by which XLNT’s final working capital is positive                  and shall be reduced dollar-for-dollar by the amount of cash in                  the                  Company’s trust fund in excess of $52.0 million (after payment of all                  transaction expenses, amounts payable to the Company stockholders                  requesting redemption and deferred Offering expenses)) by the Company’s                  common stock per share issue price. In addition, if the requirements                  for                  the Management Performance Bonus Pool are met, the Company shall                  issue to                  the exchange agent such number of additional shares of the Company’s                  common stock as is equal to the quotient determined by dividing                  the                  Operational Improvement Amount by the Company’s common stock per share                  issue price. If any additional amounts are determined to be owing                  following the delivery of a notice of disagreement in accordance                  with the                  Amended and Restated Merger Agreement, then certificates for the                  additional shares of the Company’s common stock (or any cash in lieu of                  fractional shares) shall be deposited with the exchange agent within                  30                  days of such determination. In each case discussed above, the number                  of                  shares of the Company’s common stock to be delivered to the exchange agent                  shall be reduced by the number of shares of the Company’s common stock                  required by the terms of the Amended and Restated Merger Agreement                  to be                  delivered to the escrow agent, for distribution by the exchange                  agent to                  XLNT’s stockholders in an amount equal to each such stockholder’s pro rata                  interest in such amount following the 18 month anniversary of the                  closing                  of the subject transaction. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | XLNT                  will be permitted to incur up to $15 million in principal amount                  of                  indebtedness that carries an interest rate not to exceed thirteen                  percent                  (13%).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | The                  expiration date of the merger agreement has been extended until                  March 21,                  2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | The                  companies agreed to delete the covenant in the merger agreement                  that                  restricted XLNT to 19,500,000 shares of common stock                  outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall not enter into any definitive acquisition                  agreement                  with a hospital or clinic it seeks to acquire (each, an                  “Acquisition** **Candidate”) unless such definitive                  acquisition agreement includes a termination right exercisable                  by the XLNT                  if XLNT and the Company determine that such Acquisition Candidate                  will not                  be able to provide its audited financial statements that will be                  required                  by the Company’s Form S-4 (“Significant Acquisition Audits”) on or before                  May 10, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall only consummate an acquisition with an Acquisition                  Candidate if XLNT and the Company determine that such Acquisition                  Candidate will be able to provide its audited financial statements                  that                  constitute Significant Acquisition Audits on or before May 10,                  2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | · | Subsequent                  to March 31, 2007, XLNT will not enter into any term sheet, letter                  of                  intent, definitive acquisition agreement or similar agreements                  with an                  Acquisition Candidate or consummate any acquisition with an Acquisition                  Candidate if the result of taking such action would be to require                  that any                  financial information, including, without limitation, any financial                  statements (whether or not audited), relating to such Acquisition                  Candidate be included in the proxy statement/prospectus to be filed                  by the                  Company or that any of the financial information or then existing                  disclosure contained or to be contained in the proxy statement/prospectus                  would be required by applicable requirements of the Securities                  and                  Exchange Commission (“SEC”) to be amended in any manner to include                  information and/or disclosure regarding such Acquisition                  Candidate.                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | · | XLNT                  will provide to the Company XLNT’s historical audits on or before March                  31, 2007. XLNT will provide to the Company any other audited financial                  statements that may be required by the SEC due to any acquisitions                  of                  Acquisition Candidates completed subsequent to December 31, 2006                  that                  either individually or in the aggregate meet any significance tests                  then                  prescribed by the SEC for determining financial statement disclosure                  requirements relevant to the Company’s proxy statement/prospectus                  (“Significant Acquisition Audits”) on or before May 10, 2007. For purposes                  of the Amended and Restated Merger Agreement, XLNT’s historical audits and                  the Significant Acquisition Audits are referred to collectively                  as the                  “Audited Financial Statements.” In addition, XLNT will provide the Company                  with XLNT’s unaudited interim financial statements for the quarter ended                  March 31, 2007 on or before May 10,                  2007. |

|   | · | The                  amount of XLNT indebtedness that Echo would assume at closing was                  increased from $16.5 million to $19.5 million.                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | The                  minimum amount of funds to be received at closing from Echo’s trust                  account was reduced from $52.0 million to $50.0                  million.                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | The                  termination right relating to the annualized consolidated hospital                  EBITDA                  for XLNT was deleted.                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | The                  size of the board of directors of Echo following the merger was                  expanded                  to nine directors to accommodate the inclusion of Steve Johnson,                  who is                  expected to be the president and chief operating officer following                  the                  closing, as an XLNT designee.                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | The                  definition of the phrase “to the knowledge of the Company”, which modifies                  various of the representations and warranties made by XLNT, was                  amended to                  impute only the knowledge of Robert Wallace as the knowledge of                  XLNT.                  Additionally, the requirement that such knowledge includes the                  knowledge                  that would have been obtained after making certain inquiries was                  deleted. |

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**NOTE        G — DEFERRED ACQUISTION COSTS**

** **

**Item        2.  Management’s Discussion and Analysis of Financial Condition and        Results of Operations**

**Overview**

** **

**Critical        Accounting Policies and Accounting Estimates**

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**Results        of Operations and Known Trends or Future Events**

**Developments        in Finding a Suitable Business Target**

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**Liquidity        and Capital Resources**

|   | · | We                  will use portions of the net proceeds discussed above to pay deferred                  and                  accrued transaction costs. The remaining funds held in the trust                  account                  will be used to fund the operations and growth of the target                  business. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately                  $20,000 for reimbursement of out-of-pocket expenses for the due                  diligence                  and investigation of a target business;                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | approximately                  $40,000 of expenses in legal and accounting fees relating to our                  reporting                  obligations to the SEC;                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | approximately                  $81,000 for general working capital that will be used for miscellaneous                  expenses and reserves, including expenses of structuring and negotiating                  a                  business combination, including the making of a down payment or                  the                  payment of exclusivity or similar fees and expenses;                  and                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | · | approximately                  $12,000 for administrative fees relating to office space for six                  months.  However, an additional $33,000 in the administrative                  fees will be deferred and shall be payable upon the consummation                  of a                  business combination.  In the event we must liquidate our                  company prior to such a business combination, these fees will not                  be paid                  with proceeds of our public offering held in                  trust. |

|                                                 |   | **Payments                  due by period** |    |
|------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                 |   | **Total**                                   |    |   | **Less                  than****1                  year** |   |   | **1-3                  years** |   |   | **3-5                  years** |   |   | **More                  than****5                  years** |   |
|                                                 |   |                                        |    |
| Short                  Term debt (1)                 |   | $                                           | 608,700 |   |   | $ | 608,700 |   |   | $ |   |   |   | $ | - |   |   | $ | - |   |
| Administrative                  Fees Obligations (2) |   | $                                           | 22,500  |   |   | $ | 22,500 |   |   |   |   |   |   |   | - |   |   |   | - |   |
| Total                                                |   | $                                      | 631,200 |   |   | $ | 631,200 |   |   | $ |   |   |   | $ | - |   |   | $ | - |   |

| ·   | (1)    | As                  of September 30, 2007, we had drawn $608,700 on our Working Capital                  Line                  of Credit which will become due at the consummation of a business                  combination, which could occur in less than one year and may occur                  as late                  as March 21, 2008. |
|--------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |   |                                                                                                                                                                                                                                                                                                                                              |
| ·             | (2)    | The                  administrative fees obligations represent the full amount of rent                  payable                  to Windy City, Inc. for office space, utilities and personnel,                  $5,500 per                  month of which is deferred until the consummation of a business                  combination.        |

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**Risk        Factors that May Affect Future Results**

**Item        3.  Quantitative and Qualitative Disclosures about Market        Risk**

**Item        4.  Controls and Procedures**

*Evaluation        of Disclosure Controls and Procedures*

**PART        II – OTHER INFORMATION**

**Item        1.  Legal Proceedings**

**Item        1A.  Risk Factors**

**Item        2.  Unregistered Sales of Equity Securities and Use of        Proceeds**

**Item        3.  Defaults Upon Senior Securities**

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**Item        4.  Submission of Matters to a Vote of Security        Holders**

**Item        5.  Other Information**

**Item        6.  Exhibits**

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1   |   | Second                  Amended and Restated Agreement and Plan of Merger by and among                  Echo                  Healthcare Acquisition Corp., Pet DRx Acquisition Company, and                  XLNT                  Veterinary Care, Inc., dated October 23, 2007. (Incorporated by                  reference                  to Exhibit 2.1 of the Registrant’s Registration Statement on Form S-4, as                  amended, filed on November 7, 2007.)                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.2   |   | Executive                  Employment Agreement by and among XLNT Veterinary Care, Inc., Steven                  Johnson and Echo Healthcare Acquisition Corp. solely as to Sections                  1(a),                  1(b) and 4(c)(ii). (Incorporated                  by reference to Exhibit 10.30 of the Registrant’s Registration Statement                  on Form S-4, as amended, filed on November 7,                  2007.)                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.3   |   | Executive                  Employment Agreement by and among XLNT Veterinary Care, Inc. and                  Gregory                  Eisenhauer and Echo Healthcare Acquisition Corp. solely as to Sections                  1(a), 1(b) and 4(c)(ii). (Incorporated                  by reference to Exhibit 10.31 of the Registrant’s Registration Statement                  on Form S-4, as amended, filed on November 7,                  2007.)                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.4   |   | Executive                  Employment Agreement by and among XLNT Veterinary Care, Inc., George                  Villasana and Echo Healthcare Acquisition Corp. solely as to Sections                  1(a), 1(b) and 4(c)(ii). (Incorporated                  by reference to Exhibit 10.32 of the Registrant’s Registration Statement                  on Form S-4, as amended, filed on November 7,                  2007.)                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.5   |   | Second                  Amendment to Subordinated Revolving Line of Credit Agreement, dated                  as of                  November 2, 2007, by and between Echo Healthcare Acquisition Corp.,                  a                  Delaware corporation, and certain lenders set forth on Schedule                  A of the                  Subordinated Revolving Line of Credit Agreement. (Incorporated                  by                  reference to Exhibit 10.4.2 of the Registrant’s Registration Statement on                  Form S-4, as amended, filed on November 7, 2007.) |
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| 31.1   |   | Rule                  13a-14(a)/15d-14(a) Certification of the Chief Executive                  Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 31.2   |   | Rule                  13a-14(a)/15d-14(a) Certification of the Chief Financial                  Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 32.1   |   | Section                  1350 Certification of the Chief Executive Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 32.2   |   | Section                  1350 Certification of the Chief Financial                  Officer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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| ECHO                  HEALTHCARE ACQUISITION CORP.  |
|-----------------------------------------------------|
| Registrant                                          |
|                                                |   |   |
|                                                |   |   |
| Date:  November                  14, 2007 | By: | /S/                  GENE E. BURLESON |
|                                                |   | Gene                  E. Burleson |
|                                                |   | Chief                  Executive Officer |
|                                                |   |   |
|                                                |   |   |
| Date:  November                  14, 2007 | By: | /S/                  KEVIN PENDERGEST |
|                                                |   | Kevin                  Pendergest |
|                                                |   | Chief                  Financial Officer |