|
BASKING RIDGE, N.J., Jan 6, 2004 -- Hooper Holmes, Inc. (Amex: HH) today announced that it has completed the acquisition of privately held Allegiance Health Services, Inc. (Allegiance Health), a provider of independent medical examinations (IME) and related services to the healthcare and insurance industries and self-insured companies. This transaction is the second strategic acquisition for Hooper Holmes' Diversified Business Unit (DBU) in New York state, providing Hooper Holmes greater scale in the IME market in New York.
Based in Lake Success, New York, Allegiance Health operates 19 exam locations in New York state and has approximately 90 employees. The company performs a variety of services including independent medical examinations, peer reviews, radiology reviews, and medical record photocopying. Allegiance Health has a proven track record of revenue growth and profitability and with 2003 revenue of approximately $12 million, the acquisition is expected to be accretive to Hooper Holmes in FY'2004. The company will continue to be led by its current Chief Executive Officer, Dan Ross, and his management team.
Commenting on the transaction, Mr. Jim McNamee, President and Chief Executive Officer of Hooper Holmes stated, "We have been extremely pleased with the success of our overall acquisition strategy. Today's acquisition of Allegiance Health underscores our commitment to continue expanding our claims management business. We expect to garner many benefits in the New York state IME market as a result of the synergies generated from the combination of Allegiance Health's significant workers' compensation business with D&D Associates' automobile no-fault business. In addition, Allegiance Health has highly sophisticated operating systems that we plan to leverage across all of Hooper Holmes' businesses."
About Hooper Holmes, Inc.:
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.
About Allegiance Health Services, Inc.:
Allegiance Health Services, Inc., headquartered in Lake Success, New York, has, since 1996, provided administrative and processing services to the healthcare industry, insurance industry, and self-insured companies. These services include independent medical examinations (IMEs), peer reviews, radiology reviews, medical record photocopying and other related services. The Company serves a number of institutional clients, predominately in the Workers' Compensation, No-Fault Automobile, and Liability insurance industries.
Contact:
Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
Investors - Tiernan Cavanna or Lanie Fladell
Media - Sean Leous, all of Financial Dynamics
+1-212-850-5600
|