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BASKING RIDGE, N.J., Nov. 10 -- Hooper Holmes, Inc. (Amex: HH) today announced the results of its strategic review, including plans to implement a series of initiatives to reduce costs and improve revenues. The Company also announced that the Company and its auditors have not yet completed their review of the financial results for the third quarter and nine months ended September 30, 2006. Although the third quarter review is not yet completed, the Company indicated that the negative financial trends reported in prior quarters continued into the third quarter.
As a result of the Company's Strategic Review, management has developed plans which, when fully implemented, are expected to result in approximately $17.5 million of additional operating income on an annual basis. The Company identified four strategies to reduce costs and build for the future including:
-- Transforming the core Portamedic business by addressing changes in
customer distribution channels, eliminating geographical overlaps and
balancing local office volumes and running costs, with a focus on
retaining geographical coverage and revenue;
-- Better leveraging technology by introducing new imaging capabilities,
centralizing payroll, and leveraging our new branch ordering systems to
improve accuracy and client reporting;
-- Managing with discipline by focusing on expense management across the
business, while increasing the breadth of responsibility of company
managers, in turn improving productivity and efficiency nationwide;
-- Expanding the business through new opportunities in each segment,
including penetrating new markets, winning new customers and developing
new services for customers.
James Calver, Chief Executive Officer of Hooper Holmes, commented, "Our strategic review has identified a number of initiatives aimed at reducing our costs, restoring our core businesses, maximizing the use of our existing assets, and identifying new business opportunities. We are confident that we are taking the right steps to rebuild Hooper Holmes, to improve our financial performance and to position our business for long-term sustained growth."
Hooper Holmes will host a conference call on Friday, November 10, 2006 at 11:00 a.m. Eastern Time to discuss the results of the Review. The call is accessible by dialing (888) 791-2132 or (210) 234-0008, password: Hooper Holmes. Listeners may also access a telephone replay of the conference call, available through Friday, November 24, 2006, by dialing (866) 395-4269 or (203) 369-0481. The call will also be broadcast live over the Internet, and is accessible at the Company's website located at http://www.hooperholmes.com. In addition, an online archive of the broadcast will be available within two hours of the live call until the next quarterly conference call.
Hooper Holmes, Inc. provides outsourced risk assessment services, including underwriting and claims information to the life, health, automobile, and workers' compensation insurance industries. The Company provides these health information services through over 250 locations nationwide and in the United Kingdom.
Certain information contained herein includes information that is forward- looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involving the Company's business. These forward-looking statements are qualified in their entirety by cautionary statements contained in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to update these forward-looking statements.
Contacts:
James Calver
Chief Executive Officer
Hooper Holmes
+1-908-766-5000
Investors - Jonathan Birt
Media - Sean Leous
both of Financial Dynamics
+1-212-850-5600
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