HealthFitness Announces 2008 Second Quart...( High...),Health

Highlights

- Total revenue increased 11 percent

- Health management segment revenue grew 28 percent

- Health management segment revenue represented 44 percent of total

revenue, compared to 38 percent of total revenue a year ago

- Gross margin rose to 29.4 percent from 28 percent

- Company completed share repurchase plan

MINNEAPOLIS, Aug. 4 /PRNewswire-FirstCall/ -- Health Fitness Corporation (OTC Bulletin Board: HFIT), a leading provider of integrated employee health and productivity management solutions, today announced financial results for the second quarter ended June 30, 2008.

For the second quarter, revenue increased 10.8 percent to $18.8 million, from $17.0 million for the same period in 2007. Gross profit during the quarter rose to $5.5 million, from $4.8 million during the prior-year period. Operating income totaled $0.64 million for the quarter compared to $0.38 million for the same period in 2007. Net earnings were $0.36 million, or $0.02 per diluted share, versus $0.17 million, or $0.01 per diluted share, in the prior-year period.

"For the third quarter in a row, we reported double-digit revenue gains. We are also pleased with the improvement in gross margins during the second quarter. While revenue from our fitness management segment was essentially flat, we were able to replace the revenue lost from contract cancellations that occurred during the first six months of 2007. Our health management segment continued to experience double-digit growth, with the second quarter resulting in new customer commitments and expansion of existing customers," said Gregg Lehman, Ph.D., president and chief executive officer. "At the same time, we have not been immune from the challenging economy, which has lengthened sales cycles and delayed some customer commitments."

Operating expenses as a percent of revenue were 26 perc
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