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BASKING RIDGE, N.J., May 6, 2003 -- Hooper Holmes, Inc. (Amex:HH) today announced that it has completed the acquisition of the 45% minority interest in Heritage Labs ("the Division") previously owned by the Division's senior management.
Hooper Holmes purchased the remaining interest in Heritage Labs with all cash consideration, the majority of which will be paid over the next several years. The purchase price for this acquisition was not disclosed.
For the first quarter 2003, Heritage Labs grew revenues 36% to $3.5 million over the prior year period and 19% over the fourth quarter of 2002. 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, "We are pleased to have completed this transaction and look forward to realizing the full financial benefits of Heritage Labs. The combination of Hooper's paramedical expertise together with Heritage's broad testing portfolio positions us as a unique market leader offering a packaged solution."
As previously announced, Heritage Labs will continue to run under the leadership of Ron Levesque, Senior Vice President, and its current senior management team, as part of the Health Information Business Unit.
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 275 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: Hooper Homes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
FD Morgen-Walke
Investors:
Lauren Levine/Lanie Fladell
Media:
Sean Leous
+1-212-850-5600
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