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

of which is attributable to new 2007 contracts.

Gross margin for the health management segment decreased 340 basis points to 29.8 percent, from 33.2 percent for the prior-year period. This stems from lower gross margins for program and consulting services, which were 35.2 percent, versus 49.0 percent last year, offset by a gross margin increase in staffing services, which was 24.2 percent compared to 20.7 percent last year. Gross margin in program and consulting services was constrained by a seasonally higher mix of less-profitable services, most notably flu shots, and the addition during the quarter of full-time screening and health-coaching personnel tied to future revenue streams.

Conference Call

Health Fitness Corporation will host a conference call today, March 5, 2008, at 2:00 p.m. Pacific (5:00 p.m. Eastern). Participating in the call will be Gregg Lehman, Ph.D., president and chief executive officer, and Wes Winnekins, chief financial officer. To listen to the call from the U.S., dial 1-877-857-6161; internationally, dial 1-719-325-4804. A replay of the call will be available until Wednesday, March 19, 2008, 8:00 p.m. EST. To access the replay from the U.S., dial 1-888-203-1112 and enter passcode 9254603, from outside the U.S., dial 1-719-457-0820 and enter passcode 9254603. The call will also be broadcast live over the Internet and accessible through the Investor Relations section of the company's Website at http://www.hfit.com, where the call will be archived for 30 days.

About Health Fitness Corporation

Health Fitness Corporation is a leading provider of integrated employee health and productivity management solutions to Fortune 500 companies, the health care industry and individual consumers. Serving clients for more than 30 years, Health Fitness Corporation partners with employers to effectively manage their health care and productivity costs by improving individual heal
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SOURCE Health Fitness Corporation
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