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BASKING RIDGE, N.J., May 3, 2004 -- Hooper Holmes, Inc. (HH) today announced that it has acquired privately held Mid-America Agency Services, Inc. (MAAS). MAAS is a full-service insurance services organization that provides risk selection services to the insurance underwriting industry. In addition to a full range of complementary underwriting services and an expanded geographic presence, this transaction provides Hooper Holmes' industry-leading Health Information Business Unit (HIBU) with high quality outsourced underwriting capabilities and the ability to provide these services on a national basis. Terms of the transaction were not disclosed.
Based in Omaha, Nebraska, MAAS operates three strategic sites in Nebraska and Iowa with approximately 200 employees, including over 60 underwriters with MIB approval capability. MAAS is currently operating at a level of completing in excess of 200,000 underwriting units per year. With approximately $11 million in annual revenue in 2003, this acquisition is expected to be accretive to Hooper Holmes in fiscal year 2004. MAAS will continue to be led by its current Chairman and Chief Executive Officer, Thomas E. Gracey, and his management team.
Commenting on the transaction, Mr. Jim McNamee, President and Chief Executive Officer of Hooper Holmes stated, "This acquisition provides our HIBU with immediate expertise in outsourced underwriting. As we've said before, our strategy for the HIBU is to expand into outsourced underwriting, because, as the industry evolves, life insurance companies continue to look for ways to reduce costs and improve operating efficiency. This dynamic has fueled demand for outsourced underwriting services. Led by Tom Gracey, MAAS has one of the nation's most highly regarded outsourced underwriting franchises. The combination of Hooper's industry leading market position and Tom's expertise, reputation and success in outsourced underwriting, provides our HIBU with an unparalleled competitive advantage and enables us to further expand our core competencies in insurance information services."
Mr. McNamee continued, "This acquisition further demonstrates our strategy of continuing to enhance and expand our service offering to meet and anticipate the needs of our life insurance customers and brings us closer to our goal of establishing the HIBU as the premier 'one-stop shop' in outsourced life insurance services."
Mr. Tom Gracey, Chairman and Chief Executive Officer of MAAS, added, "This is a tremendous opportunity for MAAS and I believe that this agreement will allow our company to broaden its quality-oriented outsourced underwriting services. I am very impressed with the personnel and the comprehensive service offering of Hooper Holmes and I look forward to expanding our services under the Hooper Holmes operating umbrella."
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 Mid-America Agency Services, Inc.:
Founded in 1987 and headquartered in Omaha, Nebraska, Mid-America Agency Services, Inc., is a full service Insurance Services Organization with approximately 200 employees strategically located in Omaha, Nebraska, Harlan, Iowa, and Des Moines, Iowa. The Company provides risk selection services to the life, health, disability and long term care industries on a national basis using medical professionals who are trained in medical, non-medical, and financial aspects of underwriting.
Contact:
Hooper Holmes, Inc.
Fred Lash, Chief Financial Officer
+1-908-766-5000
Investors, Tiernan Cavanna or Lanie Marcus
Media, Sean Leous, all of Financial Dynamics
+1-212-850-5600
http://www.hooperholmes.com
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