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HealthFitness Announces 2008 Second Quarter Results
Date:8/4/2008

(in thousands)

REVENUE Q2 2008 Q2 2007

Staffing Services $4,569 $3,921

Program and Consulting Services 3,760 2,609

Total Health Mgt $8,329 $6,530

GROSS PROFIT Q2 2008 Q2 2007

Staffing Services $1,238 $1,010

Program and Consulting Services 1,713 1,522

Total Health Mgt $2,951 $2,532

During the 2008 second quarter, health management segment revenue grew 27.5 percent compared to the same period in 2007. Within the segment, staffing services revenue increased 16.5 percent, which is attributable to new customers and the expansion of services to existing customers. Program and consulting services revenue grew 44.1 percent compared to the 2007 second quarter. This increase is driven by new and existing customers and the resulting increase in biometric screening and health coaching and advising services.

Gross margin for the health management segment was 35.4 percent for the quarter, compared to 38.8 percent for the prior-year period. This decrease is due in part to lower pricing for new business won in 2007, and the cost of additional screening and health coaching staff hired in late 2007 to meet forecasted future demand for these services.

Fitness Management

(in thousands)

REVENUE Q2 2008 Q2 2007

Staffing Services $9,837 $9,821

Program and Consulting Services 650 628

Total Fitness Mgt $ 10,487 $ 10,449

GROSS PROFIT
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SOURCE Health Fitness Corporation
Copyright©2008 PR Newswire.
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