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HealthFitness Announces 2007 Fourth Quarter and Full-Year Results
Date:3/5/2008

luted share of $0.02 for the same period last year.

"The 2007 fourth quarter capped an important transition year for our company and we are pleased with our progress. We witnessed solid revenue expansion -- especially in our health management segment -- ongoing recovery in sequential revenue levels in our fitness management segment, and significant growth in our new-business pipeline," said Gregg Lehman, Ph.D., president and chief executive officer. "Health care costs are one of the largest expenses facing employers today and we are committed to delivering solutions that help corporate America contain these costs through a 21st century health benefit design. To that end, we made additional strategic investments during the quarter in our infrastructure, our technology platform and our talent, which we believe are vital to capitalizing on this trend. We carry significant momentum into 2008 and are poised to expand revenue and margin levels this year and beyond."

Operating expenses as a percent of revenue were 25.1 percent, versus 23.3 percent for the same period last year. This increase is primarily due to higher salary and other operating expenses related to workforce additions, which were planned investments the company made to better manage current and forecasted future business growth.

Fourth Quarter Commitments and RFPs

During the quarter, the company secured six new health management commitments and one new fitness management commitment compared to four health management and five fitness management commitments in the fourth quarter of 2006. Additionally, during the quarter, the company received 24 new RFPs for health management services and six new RFPs for fitness management services, compared to 15 health management and nine fitness management RFPs during the fourth quarter of 2006. The potential annualized revenue that may be realized from Q4 2007 health and fitness management commitments is $1.3 million and $0.2 million, respectiv
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SOURCE Health Fitness Corporation
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