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BASKING RIDGE, N.J., July 24, 2002 -- Hooper Holmes, Inc. (Amex: HH) today announced that it has agreed to acquire Medicals Direct Group plc (OFEX: MDL), pursuant to an offer to purchase all of the outstanding common shares and options of Medicals Direct Group for approximately $9 million. The transaction is expected to close in August of 2002 and to be moderately accretive on an annual basis, pending completion of the share solicitation process to Medicals Direct Group shareholders. The transaction is supported by the Board of Directors of Medicals Direct Group.
Headquartered in Stanmore, England, Medicals Direct Group is the market leader in the United Kingdom in providing paramedical examinations and underwriting services to the life insurance industry, medical services through company operated clinics and medical reports to the legal profession. Medicals Direct Group reported revenue of US $4.6 million for the first nine months of their fiscal year 2002. Michael Benton, Chief Executive Officer, will continue as the head of Medicals Direct Group reporting to Hooper Holmes' corporate offices.
Jim McNamee, Chairman and Chief Executive Officer of Hooper Holmes, stated, "The agreement to acquire Medicals Direct Group fits well with our strategy of making accretive acquisitions and expanding into key insurance markets. The proposed acquisition marks Hooper Holmes' entry into the United Kingdom. Moreover, Hooper Holmes intends to leverage Medicals Direct to explore expanding into insurance markets throughout Europe."
Michael Benton, Chief Executive Officer of Medicals Direct Group, commented, "We are very excited to join Hooper Holmes and to add to its geographic presence in offering insurance paramedical examinations and underwriting services."
Hooper Holmes, Inc. provides health information services on insurance policy applicants to the life insurance industry. The Company provides these health information services through over 300 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 involving 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. The Company disclaims any obligation to update these forward-looking statements.
This announcement, for which Hooper Holmes, Inc. is responsible, has been approved by ARM Corporate Finance Limited, for the purposes of section 21 of the Financial Services and Markets Act 2000. ARM Corporate Finance Limited is regulated by the Financial Services Authority.
Contact:
Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
FD Morgen-Walke
Investors - Lauren Levine/Lanie Fladell
Media - Dan Budwick
+1-212-850-5600
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