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HealthFitness Announces 2007 Fourth Quarter and Full-Year Results

nts to grow revenue and expand margins."

On February 4, 2008, the company announced two strategic hires in line with its goal to further improve operating efficiencies and bolster the clinical basis for its health management platform. John Griffin has joined HealthFitness as chief operations officer. Griffin oversees the company's operations, information technology and account services functions. Griffin brings more than 20 years' experience in executive leadership of health management and health information technology organizations. And Jim Reynolds, M.D., has joined the company as chief medical officer. Reynolds oversees all clinical aspects of programs and services, including establishment of best-practice standards and use of evidence-based guidelines. He comes to

HealthFitness with an accomplished track record in employer-focused health management strategy development, program design and implementation.

Balance Sheet

The company ended 2007 with $1.9 million in cash, nearly double the cash balance at the end of 2006. Working capital at December 31, 2007, totaled $8.5 million, a $2.7 million gain compared to December 31, 2006. At the end of 2007, the company carried no long-term debt and stockholders' equity totaled $26.5 million.

2007 Fourth Quarter Business Segment Information

Revenue and gross profit information by segment is as follows:

Fitness Management

(in thousands)

REVENUE Q4 2007 Q4 2006

Staffing Services $9,903 $9,889

Program and Consulting Services 778 781

Total Fitness Mgt $10,682 $10,670

GROSS PROFIT Q4 2007 Q4 2006

Staffing Services $2,365 $2,187

Program a

SOURCE Health Fitness Corporation
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