Hooper Holmes to Restate Series of Financial Results

//February 23, 2006//

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The restatements are primarily attributed to recognizing revenue for the wrong periods.Hooper Holmes (Amex: HH) announced today that it plans to restate its retained earnings balance as of Dec. 31, 2002; its audited consolidated financial statements for the year ended Dec. 31, 2004; and its unaudited consolidated financial statements for each of the four quarterly periods in 2004 and the first three quarters of 2005. The restatements are primarily attributed to recognizing revenue for the wrong periods.

The Basking Ridge-based company, which provides outsourced risk-assessment services to the life, automobile and other insurance industries, says the restatements will likely increase retained earnings by about $200,000 as of Dec. 31, 2002; and reduce net income by about $700,000 for calendar year 2004. Hooper Holmes anticipates no significant effects from the restatement for the nine months ended September 30. Company shares sank $0.07 to $3.06 in late morning trades.