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BASKING RIDGE, N.J., Dec. 2, 1998 -- Hooper Holmes, Inc. (AMEX:
HH - news) the nation's leading provider of alternate-site health
information for the life and health insurance industry, announced
today that it had acquired a majority interest in Heritage Labs
International of Olathe, Kansas. Heritage Labs, which began
operations in early 1998, provides a wide range of laboratory
testing services, primarily to insurance companies for the purpose
of underwriting life and health insurance policies. Terms of the
transaction were not disclosed, however the Company expects the
acquisition to be a modestly accretive to earnings in 1999.
Jim McNamee, Chairman and Chief Executive Officer of Hooper
Holmes, Inc., commented, ''This acquisition enables Hooper Holmes
to offer its insurance company clients a unique one-stop advantage
for outsourcing these services. From a strategic standpoint, the
acquisition offers long term opportunities for Hooper Holmes to
expand the Company's existing relationships with life and health
insurance companies nationwide and, at the same time, capitalize on
the growth of the supplemental and alternative distribution
channels within the life and health insurance industry.''
The Company stated that Ken Stelzer, President of Heritage Labs
will remain the chief executive of the subsidiary. Earlier in his
career, Mr. Stelzer was Chief Executive Officer of LabOne, Inc.
(Nasdaq: LABS - news) of Overland Park, Kansas. Mr. Stelzer
commented, ''We are very pleased to be joining Hooper Holmes, Inc.
This combination with Hooper positions Heritage Labs to serve a
significantly broader client base in the insurance industry and,
longer term, in other health information/testing markets.''
Hooper Holmes, Inc. provides medical and other underwriting
information on insurance policy applicants to the major companies
in the health and life insurance industry. The Company provides
health information services through its 200 locations
nationwide.
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 involved
in the Company's business. These forward-looking statements are
qualified in the entirety by cautionary statements contained in the
Company's Securities and Exchange Commission filings.
"Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995: Statements in this press
release regarding Hooper Holmes Inc.'s business which are not
historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.
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