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BASKING RIDGE, N.J., April 2, 2003 -- Hooper Holmes, Inc. (Amex: HH) today announced that it has reached an agreement to acquire the 45% minority interest in Heritage Labs ("the Division") currently owned by the Division's senior management.
Hooper Holmes will purchase the remaining interest of Heritage Labs in an all-cash transaction, the majority of which will be paid out over 2005 and 2006. The purchase price for this acquisition was not disclosed. Upon completion of the transaction, which is expected to close by the end of April 2003, Hooper Holmes will own 100% of Heritage Labs.
For the twelve months ended December 31, 2002, Heritage Labs grew its revenues by 37% to $11.1 million, increased testing volumes by 36% and grew net profits significantly, compared to the same period of 2001, reflecting expanded sales to existing customers and a substantial number of new clients.
James McNamee, Chairman and Chief Executive Officer of Hooper Holmes, commented, "The increasing success of our partnership with Heritage Labs compelled us to reach this agreement to establish full ownership of the Division. In addition to garnering us 100% of Heritage Labs' profits, this acquisition will enable us to further leverage Heritage Labs' broad testing portfolio to capitalize on growth opportunities in the health information market."
Heritage Labs will continue to run under the leadership of its current senior management team as part of the Health Information Business Unit. In conjunction with the agreement, Hooper Holmes announced the promotion of Ron Levesque to Senior Vice President to oversee Heritage Labs and continue his management of the Company's Infolink, Teledex and APS centers nationwide. During his 25-year tenure with Hooper Holmes, Mr. Levesque has also served as manager of the Company's Southeast Zone, as well as held other positions within the Company.
Mr. McNamee concluded, "This is a well-earned promotion. In Ron's 25 years at Hooper he has proven a tremendous asset to our growth and promises to be a driving force in maximizing the opportunities presented by this exciting acquisition."
About Hooper Holmes
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 300 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 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.
Contact: Fred Lash, Chief Financial Officer
908-766-5000
FD Morgen-Walke
Investors - Lauren Levine or Lanie Fladell
Media - Sean Leous
212-850-5600
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