|  Form      10-K/A       |
|------------------------------|
|  (Amendment      No. 1) |

|  (Mark      One)       [ X    ] |   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES      EXCHANGE ACT OF 1934 for the fiscal year ended December 31,      2007 |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|             [ X ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF      1934 for the transition period from            to        |
|-------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Commission      File No. 0-20619 |
|----------------------------------------|

|  MATRIA HEALTHCARE, INC.                                                            |
|------------------------------------------------------------------------------------------|
|   (Exact name of      registrant as specified in its charter)                  |
|  Delaware(State or other jurisdiction ofincorporation or      organization)         |  20-2091331(IRS Employer Identification      No.) |
|                                                                                     |   |
|  1850 Parkway PlaceMarietta, GA  (Address of principal executive      offices) |  30067(Zip Code) |
|                                                                                     |   |
|  (770) 767-4500Registrant's      telephone number, including area  code             |

|  Securities      registered pursuant to Section 12(b) of the Act:Common Stock, par value $0.01 per share(Title of each      class) |  Name of each      exchange on which registered:Nasdaq Global Select Market |
|-----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|

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| Years      ended December 31,             |   | 2002 |   |   | 2003   |   |   | 2004   |   |   | 2005   |   |   | 2006 |   |   | 2007   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|
| Matria      Healthcare, Inc.              |   | $    | 100.00 |   |   | $      | 243.15 |   |   | $      | 449.60 |   |   | $    | 669.04 |   |   | $      | 495.91 |   |   | $ | 410.30 |   |
| S&P      500 Index                    |   | $    | 100.00 |   |   | $      | 128.68 |   |   | $      | 142.69 |   |   | $    | 149.70 |   |   | $      | 173.34 |   |   | $ | 182.86 |   |
| S&P      500 Health Care Distributors |   | $    | 100.00 |   |   | $      | 108.18 |   |   | $      | 105.44 |   |   | $    | 136.29 |   |   | $      | 134.44 |   |   | $ | 140.02 |   |

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executive 
officers is 
incorporated herein by reference to the Company’s Annual Report onForm 10-K for the year ended December 31, 2007, included in Part I,Special Item, under the caption “Executive Officers of theCompany.”

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| Base Salary                      |  50th - 60th      Percentile |
|----------------------------------|-----------------------------------|
| Annual Cash      Incentives      |  60th - 75th      Percentile |
| Long-Term Equity      Incentives |  75th - 80th      Percentile |

| Base Salary                      |  40% |
|----------------------------------|-----------|
| Annual CashIncentives            |  20% |
| Long-Term Equity      Incentives |  40% |

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| ·   | no      payment of the base bonus allocated to operating earnings if operating      earnings from continuing operations were less than 100% of the target      or the      client retention goal was not met |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | payment      of up to 100% of the base bonus allocated to earnings per share      performance if and to the extent that operating earnings from continuing      operations exceeded 100% of the target and the client      retention goal was met |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | no      payment of the base bonus allocated to individual performance objectives      if operating earnings from continuing operations were less than 85% of the      target or      none of the individual performance objectives was  achieved |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | payment      of 100% of the portion of the base bonus allocated to individual      performance objectives if operating earnings from continuing      operations  were at least 85% of the target and all of the      individual performance objectives weremet |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | if      at least 85% of the operating earnings from continuing operating target      was achieved and some, but not all, of the individual performance      objectives were attained, a partial amount of the base bonus allocated to      individual performance objectives was payable on a proportionate      basis |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | individuals      who served as Chief Executive Officer or Chief Financial Officer during      fiscal year 2007; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | the      three other most highly compensated executive officers during fiscal year      2007. |
|--------------------|-----------------------------------------------------------------------------------------------|

|    Name      and Principal Position                             |   |    Year |   | Salary                       |   | Bonus (1)                                                                     |   | Stock      Awards (2)                   |   | Option      Awards(3)                                                                 |   | Non-Equity      Incentive Plan Compensa-tion(4)                                    |   | Change      in Pension Value and Nonqualified Deferred Compensation Earnings      (5) |   | All      Other Compensation(6)         |   | Total                                    |
|--------------------------------------------------------------------------------|--------|------------------------|--------|------------------------------|--------|------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|----------------------------------------|--------|------------------------------------------|
|                                                                           |   |                   |   |                         |   |                                                                               |   |                                    |   |                                                                                  |   |                                                                               |   |                                                                                  |   |                                   |   |                                     |
| Parker      H. PetitChairman      of the Board and Chief Executive Officer     |   | 20072006          |   | $      572,423$      544,576 |   |       --$      315,000                               |   | $639,905$244,659                        |   | $      1,336,240$      1,336,240                                                      |   | $  80,850      --                     |   |       --      --     |   | $  58,748$  36,763 |   | $2,688,166$2,477,238                     |
|                                                                           |   |                   |   |                         |   |                                                                               |   |                                    |   |                                                                                  |   |                                                                               |   |                                                                                  |   |                                   |   |                                     |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer   |   | 20072006          |   | $      283,969$      211,538 |   |       --      --  |   | $178,170$  81,553             |   | $     15,020$       3,755 |   | $      38,610$      27,844                                                         |   |       --      --     |   | $  34,418$105,411            |   | $  550,187$  430,101 |
|                                                                           |   |                   |   |                         |   |                                                                               |   |                                    |   |                                                                                  |   |                                                                               |   |                                                                                  |   |                                   |   |                                     |
| Richard      M. Hassett, M.D. (7)President      and Chief Operating Officer    |   | 20072006          |   | $      407,490$      384,577 |   |       --$      105,000                               |   | $317,923$  97,864             |   | $      1,043,387$      1,041,584                                                      |   |       --      --  |   |       --      --     |   | $  31,896$  26,100 |   | $1,800,696$1,655,125                     |
|                                                                           |   |                   |   |                         |   |                                                                               |   |                                    |   |                                                                                  |   |                                                                               |   |                                                                                  |   |                                   |   |                                     |
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | 20072006          |   | $      269,010$      256,569 |   |       --$   30,000                    |   | $131,874$  32,621             |   | $   162,862$   162,862                                  |   | $      32,526$      31,200                                                         |   | $      80,321$      60,756                                                            |   | $  29,242$  24,092 |   | $  705,835$  598,100 |
|                                                                           |   |                   |   |                         |   |                                                                               |   |                                    |   |                                                                                  |   |                                                                               |   |                                                                                  |   |                                   |   |                                     |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | 20072006          |   | $      269,010$      256,194 |   |       --$   30,000                    |   | $      131,874$   32,621 |   | $   251,      881$   251,160                            |   | $      32,526$      31,200                                                         |   |       --      --     |   | $  41,685$  31,499 |   | $  726,976$  632,674 |

| (1)   | In      the case of Ms. McCaw and Ms. Scoggins, the amounts set forth in the Bonus      column represent discretionary bonuses paid in 2006 for their efforts in      successfully completing the divestitures of Facet Technologies, LLC and      the Company’s German operations.  For Mr. Petit and Dr. Hassett,      the amounts set forth in the Bonus column represent discretionary bonuses      of $200,000 and $30,000, respectively, paid in 2006 in connection with      such divestitures and $115,000 and $75,000, respectively, paid in      recognition of their contribution to the strategic transformation of the      Company in 2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      amounts set forth in the Stock Awards column represent the value of      restricted stock awards recognized for financial statement purposes in      2006 and 2007 as computed in accordance with SFAS 123R, disregarding      estimates of forfeitures related to service-based      conditions.  The amounts were calculated based on the closing      market price of the common stock on the grant date.  For      additional information regarding such awards, see “Compensation Discussion      and Analysis – Long-Term EquityIncentives.” |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      amounts set forth in the Option Awards column represent the compensation      expense recorded by the Company in 2007 and 2006 for current and prior      year grants as computed in accordance with SFAS 123R, disregarding      estimates of forfeitures related to service-based vesting      conditions.  For additional information about the assumptions      used in these calculations, see Note 9 to the Notes to Consolidated      Financial Statements included in the Company’s Form 10-K for the year      ended December 31, 2007. For additional information regarding such      awards, see “Compensation Discussion and Analysis– Long-Term Equity      Incentives.” |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      amounts set forth in the Non-Equity Incentive Plan Compensation column      represent the amounts paid pursuant to the Company’s management incentive      bonus plan (the “MIP Plan”).  The performance metrics were set      by the Compensation Committee in the first quarter of each respective      year.  For additional information regarding the Compensation      Committee’s determinations with respect to the bonus payments, see      “Compensation Discussion and Analysis – Cash  Bonuses.” |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5)   | The      amounts set forth in the Change in Pension Value and Nonqualified Deferred      Compensation Earnings column represent the aggregate change in the      actuarial present value of the benefits under the Supplemental Executive      Retirement Plan (the “SERP”).  See “Compensation Discussion and      Analysis –Pension Benefits.” |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Details      of amounts reported in “All Other Compensation” column are provided in the      table below and represent the perquisites and personal benefits and other      compensation not reportable elsewhere.  See “Compensation and      Discussion and Analysis –Perquisites.” |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Dr.      Hassett’s employment with the Company terminated on January 29,      2008. |
|-----------------|-------------------------------------------------------------------------------------------|

|    Name      and Principal Position                             |   | Year           |   | OfficerTerm      Life Insurance Premium      |   | Relocation      Expenses Reimbursed                                          |   | 401KMatchingContribution |   | ExecutiveDisabilityInsurance      Premiums |   | Executive      MedicalReimbursementPlan |   | BusinessClubDues                                   |   | AutoAllowance  |   | Executive      Financial Services                        |   | Total                      |
|--------------------------------------------------------------------------------|--------|----------------|--------|----------------------------------------------|--------|------------------------------------------------------------------------------|--------|--------------------------|--------|--------------------------------------------|--------|-----------------------------------------|--------|----------------------------------------------------|--------|----------------|--------|----------------------------------------------------------|--------|----------------------------|
|                                                                           |   |           |   |                                         |   |                                                                         |   |                     |   |                                       |   |                                    |   |                                               |   |           |   |                                                     |   |                       |
| Parker      H. PetitChairman      of the Board and Chief Executive Officer     |   | 20072006       |   | $6,276$5,745                                 |   | ----                                                                         |   | ----                     |   | $4,124$3,950                               |   | $5,000$5,000                            |   | $1,500$1,500                                       |   | $20,568$20,568 |   | $21,280       --      |   | $      58,748$      36,763 |
|                                                                           |   |           |   |                                         |   |                                                                         |   |                     |   |                                       |   |                                    |   |                                               |   |           |   |                                                     |   |                       |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer   |   | 20072006  |   | ----                                         |   | $   6,550$      92,286                                        |   | $6,750--                 |   | ----                                       |   | ----                                    |   | $1,500$1,125                                       |   | $15,600$12,000 |   | $      4,018       -- |   | $      34,418$105,411      |
|                                                                           |   |           |   |                                         |   |                                                                         |   |                     |   |                                       |   |                                    |   |                                               |   |           |   |                                                     |   |                       |
| Richard      M. Hassett, M.D.President      and Chief Operating Officer        |   | 20072006       |   | ----                                         |   |       --      -- |   | $6,750$6,600             |   | ----                                       |   | ----                                    |   |        --$1,500 |   | $18,000$18,000 |   | $      7,146       -- |   | $      31,896$      26,100 |
|                                                                           |   |           |   |                                         |   |                                                                         |   |                     |   |                                       |   |                                    |   |                                               |   |           |   |                                                     |   |                       |
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | 20072006       |   | ----                                         |   |       --      -- |   | $6,750$6,600             |   | ----                                       |   | ----                                    |   | ----                                               |   | $17,492$17,492 |   | $      5,000       -- |   | $      29,242$      24,092 |
|                                                                           |   |           |   |                                         |   |                                                                         |   |                     |   |                                       |   |                                    |   |                                               |   |           |   |                                                     |   |                       |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | 20072006       |   | $   822$   786 |   |       --      -- |   | $6,750$6,600             |   | $1,621$1,621                               |   | $5,000$5,000                            |   | ----                                               |   | $17,492$17,492 |   | $10,000       --      |   | $      41,685$      31,499 |

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| Name                                                                           |   | Plan      Name |   | Number      ofYears      ofCreditedService |   | Present      ValueofAccumulatedBenefit                                           |   | PaymentsDuring      LastFiscal      Year           |
|--------------------------------------------------------------------------------|--------|----------------|--------|--------------------------------------------|--------|----------------------------------------------------------------------------------|--------|----------------------------------------------------|
|                                                                           |   |           |   |                                       |   |                                                                             |   |                                               |
| Parker      H. PetitChairman      of the Board and Chief Executive Officer     |   | --             |   | --                                         |   |             --  |   |         -- |
|                                                                           |   |           |   |                                       |   |                                                                             |   |                                               |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer   |   | --             |   | --                                         |   |             --       |   |         -- |
|                                                                           |   |           |   |                                       |   |                                                                             |   |                                               |
| Richard      M. Hassett, M.D.President      and Chief Operating Officer        |   | --             |   | --                                         |   |             --       |   |         -- |
|                                                                           |   |           |   |                                       |   |                                                                             |   |                                               |
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | SERP           |   | 10                                         |   | $    876,424                                                 |   |         -- |
|                                                                           |   |           |   |                                       |   |                                                                             |   |                                               |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | --             |   | --                                         |   |             --       |   |         -- |

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|                                                                           |   |                 |   | Estimated      Future Payouts Under Non-Equity Incentive Plan      Awards  (1) |   |               |   |         |
|--------------------------------------------------------------------------------|--------|----------------------|--------|------------------------------------------------------------------------------------------|--------|--------------------|--------|--------------|
| Name                                                                           |   | Grant      Date      |   | Threshold                                                                                |   | Target             |   | Maximum      |   | Estimated      Future Payouts Under Equity Incentive Plan Awards(#)      (2) |   | Grant      Date Fair Value of Stock and Option Awards (3) |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |
| Parker      H. PetitChairman      of the Board and Chief Executive Officer     |   | N/A2/23/20076/5/2007 |   | $80,850----                                                                              |   | $404,250----       |   | $808,500---- |   | --33,80010,000 |   | --$      877,786$      314,100 |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer   |   | N/A2/23/20076/5/2007 |   | $38,610----                                                                              |   | $      128,700---- |   | $257,400---- |   | --6,0002,000 |   | --$  155,820$    62,820 |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |
| Richard      M. Hassett, M.D.President      and Chief Operating Officer        |   | N/A2/23/20076/5/2007 |   | $49,374----                                                                              |   | $246,870----       |   | $493,740---- |   | --16,500  9,000 |   | --$  428,505$  282,690 |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | N/A2/23/20076/5/2007 |   | $32,526----                                                                              |   | $108,420----       |   | $216,840---- |   | --6,0003,000 |   | --$  155,820$    94,230 |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | N/A2/23/20076/5/2007 |   | $32,526----                                                                              |   | $108,420----       |   | $216,840---- |   | --6,0003,000 |   | --$  155,820$    94,230 |
|                                                                           |   |                 |   |                                                                                     |   |               |   |         |   |   |   |   |

|   | (1)This      column reflects the threshold, target and maximum payout opportunity under      the MIP set by the Compensation Committee in the first quarter of      2007.  See the “Non-Equity Incentive Plan Compensation” column      of the Summary Compensation Table for the non-equity incentive plan awards      actually earned by the named executive officers in 2007.  The      performance goals and base salary multiples for determining the payout are      described in “Compensation Discussion and Analysis – Cash      Bonuses.” |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)This      column shows the number of shares of restricted stock granted to the named      executive officers in 2007.  For the 2007 grants, one-third of      the awards vest over a period of three years from the date of grant      (“time-based”).  The remaining two-thirds of the 2007 awards      also vest over three years, but are subject to additional vesting criteria      based on the Company’s operating earnings from continuing operations      (excluding share-based compensation expense) during the fiscal year      immediately preceding each of the first three anniversaries of the grant      date (“performance-based”).  The performance criteria are      described in “Compensation Discussion and Analysis – Long-Term Equity      Incentives.” |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)This      column shows the full grant date fair value under SFAS 123R of the      restricted stock and stock options granted to the named executive      officers.  Generally, the grant date fair value is the amount      that the Company would expense in its financial statements over the      award’s vesting schedule.  For restricted stock, fair value is      calculated using the closing price of the Company’s common stock on the      grant date.  For stock options, fair value is calculated using      the Black Scholes value on the grant date.  The fair value shown      for stock awards is accounted for in accordance with SFAS      123R.  For additional information on the valuation assumptions,      refer to Note 9 of the Company’s financial statements in the Form      10-K of the year ended December 31, 2007, as filed with the      SEC.  These amounts reflect the Company’s accounting expense,      and do not correspond to the actual value that will be recognized by the      named executive officers.  For example, the restricted shares      are subject to performance vesting criteria.  If the performance      vesting criteria are not met, the grant date value will be      $0.00. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                            |   |                                          |   | Option      Awards (1)                                                      |   | Stock      Awards (2)                                                         |
|---------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
| Name                                                                            |   |      Grant      Date |   | Number      of Securities Underlying Unexercised Options (#)    Exercisable |   | Number      of Securities Underlying Unexercised Options (#)    Unexercisable |   | Option      Exercise Price ($) |   | Option      Expiration Date |   | Equity      Incentive Plan Awards:  Number of Unearned Shares, Units or      Other Rights That Have Not Vested(#)      (3) |   | Equity      Incentive Plan Awards:  Market or Payout Value of Unearned      Shares, Units or Other Rights That Have Not Vested  ($)(4) |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
| Parker      H. PetitChairman      of the Board and Chief Executive      Officer |   | 04/21/2006                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   | 37,500 |   | $      891,375 |
|                                                                            |   | 02/23/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   | 33,800 |   | $      803,426 |
|                                                                            |   | 06/05/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   | 10,000 |   | $      237,700 |
|                                                                            |   | 02/24/1998                                    |   | 22,500                                                                      |   | --                                                                            |   | $14.00 |   | 02/24/2008 |   | -- |   | -- |
|                                                                            |   | 05/18/1998                                    |   | 3,750                                                                       |   | --                                                                            |   | $12.16 |   | 05/18/2008 |   | -- |   | -- |
|                                                                            |   | 01/19/1999                                    |   | 22,500                                                                      |   | --                                                                            |   | $11.00 |   | 01/19/2009 |   | -- |   | -- |
|                                                                            |   | 07/23/1999                                    |   | 3,750                                                                       |   | --                                                                            |   | $16.00 |   | 07/23/2009 |   | -- |   | -- |
|                                                                            |   | 05/18/2000                                    |   | 3,750                                                                       |   | --                                                                            |   | $12.00 |   | 05/18/2010 |   | -- |   | -- |
|                                                                            |   | 10/04/2000                                    |   | 27,011                                                                      |   | --                                                                            |   | $  9.33 |   | 10/04/2010 |   | -- |   | -- |
|                                                                            |   | 02/16/2001                                    |   | 46,892                                                                      |   | --                                                                            |   | $  9.75 |   | 02/16/2011 |   | -- |   | -- |
|                                                                            |   | 05/24/2001                                    |   | 300,000                                                                     |   | --                                                                            |   | $10.57 |   | 05/24/2011 |   | -- |   | -- |
|                                                                            |   | 02/19/2002                                    |   | 36,503                                                                      |   | --                                                                            |   | $12.37 |   | 02/19/2012 |   | -- |   | -- |
|                                                                            |   | 03/12/2003                                    |   | 55,201                                                                      |   | 13,800                                                                        |   | $  5.84 |   | 03/12/2013 |   | -- |   | -- |
|                                                                            |   | 12/18/2003                                    |   | 46,603                                                                      |   | 11,650                                                                        |   | $13.58 |   | 12/18/2013 |   | -- |   | -- |
|                                                                            |   | 08/11/2004                                    |   | 34,876                                                                      |   | 23,250                                                                        |   | $16.79 |   | 08/11/2014 |   | -- |   | -- |
|                                                                            |   | 06/08/2005                                    |   | 23,400                                                                      |   | 35,100                                                                        |   | $29.97 |   | 06/08/2015 |   | -- |   | -- |
|                                                                            |   | 11/08/2005                                    |   | 99,991                                                                      |   | 50,009                                                                        |   | $34.67 |   | 11/08/2015 |   | -- |   | -- |
|                                                                            |   |                                          |   | 726,727                                                                     |   | 133,809                                                                       |   |   |   |   |   | 81,300 |   | $1,932,501 |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer    |   | 04/21/2006                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   |   8,334 |   |      $      198,099 |
|                                                                            |   | 02/23/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   |   6,000 |   | $      142,620 |
|                                                                            |   | 06/05/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   |   2,000 |   | $   47,540 |
|                                                                            |   | 10/25/2006                                    |   | 1,667                                                                       |   |     3,333                                                 |   | $28.03 |   | 10/25/2016 |   | -- |   | -- |
|                                                                            |   |                                          |   | 1,667                                                                       |   | 3,333                                                                         |   |   |   |   |   |  16,334 |   | $      388,259 |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
|                                                                            |   |                                          |   |                                                                        |   |                                                                          |   |   |   |   |   |   |   |   |
| Richard      M. Hassett, M.D.President      and Chief Operating Officer         |   | 04/21/2006                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   | 15,000 |   | $  356,550 |
|                                                                            |   | 02/23/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   |  16,500 |   | $  392,205 |
|                                                                            |   | 06/05/2007                                    |   | --                                                                          |   | --                                                                            |   | N/A |   | N/A |   |   9,000 |   | $    213,930 |
|                                                                            |   | 11/15/2004                                    |   | 45,000                                                                      |   | 30,000                                                                        |   | $23.81 |   | 11/15/2014 |   | -- |   | -- |
|                                                                            |   | 02/22/2005                                    |   | 30,000                                                                      |   | 45,000                                                                        |   | $28.48 |   | 02/22/2015 |   | -- |   | -- |
|                                                                            |   | 06/08/2005                                    |   | 9,000                                                                       |   | 13,500                                                                        |   | $29.97 |   | 06/08/2015 |   | -- |   | -- |
|                                                                            |   | 07/20/2005                                    |   | 4,000                                                                       |   | 6,000                                                                         |   | $34.47 |   | 07/20/2015 |   | -- |   | -- |
|                                                                            |   | 11/07/2005                                    |   | 33,332                                                                      |   | 16,668                                                                        |   | $34.11 |   | 11/07/2015 |   | -- |   | -- |
|                                                                            |   | 01/04/2006                                    |   | 8,333                                                                       |   | 16,667                                                                        |   | $40.33 |   | 01/04/2016 |   | -- |   | -- |
|                                                                            |   |                                          |   | 129,665                                                                     |   | 127,835                                                                       |   |   |   |   |   | 40,500 |   | $  962,685 |

----

|   |   |                                          |   | Option      Awards (1)                                                      |   | Stock      Awards (2)                                                         |
|--------|--------|-----------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|
| Name   |   |      Grant      Date |   | Number      of Securities Underlying Unexercised Options (#)    Exercisable |   | Number      of Securities Underlying Unexercised Options (#)    Unexercisable |   | Option      Exercise Price ($) |   | Option      Expiration Date |   | Equity      Incentive Plan Awards:  Number of Unearned Shares, Units or      Other Rights That Have Not Vested(#)      (3) |   | Equity      Incentive Plan Awards:  Market or Payout Value of Unearned      Shares, Units or Other Rights That Have Not Vested  ($)(4) |

|                                                                           |   |       |   |   |   |   |   |              |   |       |   |              |   |                            |
|--------------------------------------------------------------------------------|--------|------------|--------|--------|--------|--------|--------|-------------------|--------|------------|--------|-------------------|--------|---------------------------------|
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | 04/21/2006 |   | --     |   | --     |   | N/A               |   | N/A        |   | 5,000             |   | $  118,850            |
|                                                                           |   | 02/23/2007 |   | --     |   | --     |   | N/A               |   | N/A        |   |  6,000       |   | $  142,620            |
|                                                                           |   | 06/05/2007 |   | --     |   | --     |   | N/A               |   | N/A        |   |   3,000 |   | $    71,310 |
|                                                                           |   | 02/19/2002 |   | 2,356  |   | --     |   | $12.37            |   | 02/19/2012 |   | --                |   | --                              |
|                                                                           |   | 03/12/2003 |   | 4,142  |   | 2,070  |   | $  5.84 |   | 03/12/2013 |   | --                |   | --                              |
|                                                                           |   | 12/18/2003 |   | 10,780 |   | 4,405  |   | $13.58            |   | 12/18/2013 |   | --                |   | --                              |
|                                                                           |   | 08/11/2004 |   | 3,600  |   | 3,599  |   | $16.79            |   | 08/11/2014 |   | --                |   | --                              |
|                                                                           |   | 06/08/2005 |   | 3,600  |   | 5,400  |   | $29.97            |   | 06/08/2015 |   | --                |   | --                              |
|                                                                           |   | 11/08/2005 |   | 9,999  |   | 5,001  |   | $34.67            |   | 11/08/2015 |   | --                |   | --                              |
|                                                                           |   |       |   | 34,477 |   | 20,475 |   |              |   |       |   | 14,000            |   | $  332,780            |
|                                                                           |   |       |   |   |   |   |   |              |   |       |   |              |   |                            |
|                                                                           |   |       |   |   |   |   |   |              |   |       |   |              |   |                            |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | 04/21/2006 |   | --     |   | --     |   | N/A               |   | N/A        |   | 5,000             |   | $  118,850            |
|                                                                           |   | 02/23/2007 |   | --     |   | --     |   | N/A               |   | N/A        |   |  6,000       |   | $  142,620            |
|                                                                           |   | 06/05/2007 |   | --     |   | --     |   | N/A               |   | N/A        |   |   3,000 |   | $    71,310 |
|                                                                           |   | 02/19/2002 |   | 2,144  |   | --     |   | $12.37            |   | 02/19/2012 |   | --                |   | --                              |
|                                                                           |   | 03/12/2003 |   | 3,734  |   | 1,725  |   | $  5.84 |   | 03/12/2013 |   | --                |   | --                              |
|                                                                           |   | 04/22/2003 |   | 1,200  |   | 600    |   | $  7.15 |   | 04/22/2013 |   | --                |   | --                              |
|                                                                           |   | 09/29/2003 |   | 4,500  |   | 1,500  |   | $11.97            |   | 09/29/2013 |   | --                |   | --                              |
|                                                                           |   | 12/18/2003 |   | 12,605 |   | 4,201  |   | $13.58            |   | 12/18/2013 |   | --                |   | --                              |
|                                                                           |   | 08/11/2004 |   | 5,401  |   | 3,599  |   | $16.79            |   | 08/11/2014 |   | --                |   | --                              |
|                                                                           |   | 06/08/2005 |   | 3,000  |   | 4,500  |   | $29.97            |   | 06/08/2015 |   | --                |   | --                              |
|                                                                           |   | 07/20/2005 |   | 4,000  |   | 6,000  |   | $34.47            |   | 07/20/2015 |   | --                |   | --                              |
|                                                                           |   | 11/08/2005 |   | 6,666  |   | 3,334  |   | $34.67            |   | 11/08/2015 |   | --                |   | --                              |
|                                                                           |   | 01/04/2006 |   | 3,333  |   | 6,667  |   | $40.33            |   | 01/04/2016 |   | --                |   | --                              |
|                                                                           |   |       |   | 46,583 |   | 32,126 |   |              |   |       |   | 14,000            |   | $  332,780            |
|                                                                           |   |       |   |   |   |   |   |              |   |       |   |              |   |                            |
|                                                                           |   |       |   |   |   |   |   |              |   |       |   |              |   |                            |

|   | (1)  The      dates of grant of each named executive officer’s stock option awards      outstanding as of December 31, 2007, are set forth in the table      above, and the vesting dates for each award can be determined based on the      vesting schedules described in this footnote.  For the awards of      stock options granted between December 15, 1997 and March 11, 2003, full      vesting shall not occur before two years and not later than four years      from the date of grant, based on performance vesting thresholds. The      awards of stock options granted between March 12, 2003 and October 31,      2005 vest in installments of 20% on the first five anniversaries of the      date of grant.  Stock options granted subsequent to October 31,      2005 vest in installments of 331/3% on the first three anniversaries of      the date of grant. All stock options granted under our long-term incentive      programs will fully vest upon a change in control of the      Company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)  The      awards presented in these columns consist of unearned performance-based      and time-based awards granted in 2006 and 2007, and the value is based on      the closing market price of $23.77 of the Company’s common stock on      December 31, 2007.  The performance periods for these      awards are January 1, 2006, through December 31, 2008, for the      awards granted in 2006, and January 1, 2007, through December 31, 2009,      for the awards granted in 2007.  Based on the Company’s 2007 and      2006 business results, no unrestricted shares were issued to the named      executive officers pursuant to the plans, except for 4,166 shares for      awards issued to Mr. Hinton on April 21, 2006.  Mr. Hinton’s      grant was negotiated in connection with his hire, and contains different      performance vesting criteria than the criteria applicable to grants to the      other executive officers.  See “Compensation Discussion and      Analysis--Long-Term Equity Incentives.”  All outstanding equity      awards granted under our long-term incentive programs will fully vest upon      a change in control of the Company. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | See      “Compensation Discussion and Analysis – Long-term Equity      Incentives.” |
|--------|-----|-------------------------------------------------------------------------------------------------------|

|   | (4) | Based      on $23.77, the last sale price of the Company’s Common Stock on      December 31, 2007. |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

----

|   | Option      Exercises and Stock Vested in Fiscal Year2007 |
|--------|-----------------------------------------------------------|

|                                                                           |   | Option      Awards                             |   | Stock      Awards                   |
|--------------------------------------------------------------------------------|--------|------------------------------------------------|--------|-------------------------------------|
| Name                                                                           |   | Number      of Shares Acquired on Exercise (#) |   | Value      Realized on Exercise ($) |   | Number      of Shares Acquired on Vesting (#) |   | Value      Realized on Vesting ($) |
|                                                                           |   |                                           |   |                                |   |   |   |   |
| Parker      H. PetitChairman      of the Board and Chief Executive Officer     |   | 1,875                                          |   | $   13,706           |   | -- |   | -- |
|                                                                           |   |                                           |   |                                |   |   |   |   |
| Jeffrey      L. HintonSenior      Vice President and Chief Financial Officer   |   | --                                             |   | --                                  |   | 4,166 |   | $      111,273 |
|                                                                           |   |                                           |   |                                |   |   |   |   |
| Richard      M. Hassett, M.D.President      and Chief Operating Officer        |   | --                                             |   | --                                  |   | -- |   | -- |
|                                                                           |   |                                           |   |                                |   |   |   |   |
| Roberta      L. McCawSenior      Vice President, General Counsel and Secretary |   | --                                             |   | --                                  |   | -- |   | -- |
|                                                                           |   |                                           |   |                                |   |   |   |   |
| Yvonne      V. ScogginsSenior      Vice President Business Analysis            |   | --                                             |   | --                                  |   | -- |   | -- |

----

| Termination      Reason |   | Cash      Severance |      |   | Bonus  |   |      | Benefits |   |   | Value      of Accelerated Equity Awards |   |   | TaxGross-Ups |      |   | Retirement      Plans |   |
|-------------------------|--------|---------------------|-----------|--------|--------|--------|-----------|----------|--------|--------|-----------------------------------------|--------|--------|--------------|-----------|--------|-----------------------|--------|
| Without      Cause      |   | $                   | 1,155,000 |   |   | $      | 808,500   |     |   | $      | 157,984                                 |   |   |         | --        |   |                  |   | -- |   |   |   | -- |   |
| With      Cause         |   |                | --        |   |   |   | --        |     |   |   | --                                      |   |   |         | --        |   |                  |   | -- |   |   |   | -- |   |
| Change      in Control  |   | $                   | 1,732,000 |   |   | $      | 1,212,750 |     |   | $      | 236,976                                 |   |   | $            | 2,460,934 |   |                  | $      | 1,977,885 |   |   |   | -- |   |
| Death                   |   |                | --        |   |   |   | --        |     |   |   | --                                      |   |   |         | --        |   |                  |   | -- |   |   |   | -- |   |
| Disability              |   |                | --        |   |   |   | --        |     |   |   | --                                      |   |   |         | --        |   |                  |   | -- |   |   |   | -- |   |

| Termination      Reason |   | Cash      Severance |    |   | Bonus  |   |    | Benefits |   |   | Value      of Accelerated Equity Awards |   |   | TaxGross-Ups |    |   | Retirement      Plans |   |
|-------------------------|--------|---------------------|---------|--------|--------|--------|---------|----------|--------|--------|-----------------------------------------|--------|--------|--------------|---------|--------|-----------------------|--------|
| Without      Cause      |   | $                   | 286,000 |   |   |   | --      |     |   | $      | 19,653                                  |   |   |         | --      |   |                  |   | -- |   |   |   | -- |   |
| With      Cause         |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  |   | -- |   |   |   | -- |   |
| Change      in Control  |   | $                   | 572,000 |   |   | $      | 257,400 |     |   | $      | 92,506                                  |   |   | $            | 388,259 |   |                  | $      | 455,545 |   |   |   | -- |   |
| Death                   |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  |   | -- |   |   |   | -- |   |
| Disability              |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  |   | -- |   |   |   | -- |   |

----

| Termination      Reason |   | Cash      Severance |    |   | Bonus  |   |    | Benefits |   |   | Value      of Accelerated Equity Awards |   |   | TaxGross-Ups |    |   | Retirement      Plans |   |
|-------------------------|--------|---------------------|---------|--------|--------|--------|---------|----------|--------|--------|-----------------------------------------|--------|--------|--------------|---------|--------|-----------------------|--------|
| Without      Cause      |   | $                   | 271,050 |   |   | $      | 108,420 |     |   | $      | 39,107                                  |   |   |         | --      |   |                  | $      | 235,846 |   |   | $ | 262,927 |   |
| With      Cause         |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  | $      | 235,846 |   |   | $ | 262,927 |   |
| Change      in Control  |   | $                   | 542,100 |   |   | $      | 216,840 |     |   | $      | 78,214                                  |   |   | $            | 439,903 |   |                  | $      | 235,846 |   |   | $ | 876,424 |   |
| Death                   |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  | $      | 235,846 |   |   | $ | 876,424 |   |
| Disability              |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |         | --      |   |                  | $      | 235,846 |   |   | $ | 587,204 |   |

| Termination      Reason |   | Cash      Severance |    |   | Bonus  |   |    | Benefits |   |   | Value      of Accelerated Equity Awards |   |   | Tax      Gross-Ups |    |   | Retirement      Plans |   |
|-------------------------|--------|---------------------|---------|--------|--------|--------|---------|----------|--------|--------|-----------------------------------------|--------|--------|--------------------|---------|--------|-----------------------|--------|
| Without      Cause      |   | $                   | 542,100 |   |   | $      | 216,840 |     |   | $      | 89,502                                  |   |   |               | --      |   |                  |   | -- |   |   |   | -- |   |
| With      Cause         |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |               | --      |   |                  |   | -- |   |   |   | -- |   |
| Change      in Control  |   | $                   | 813,150 |   |   | $      | 325,260 |     |   | $      | 134,253                                 |   |   | $                  | 459,310 |   |                  |   | -- |   |   |   | -- |   |
| Death                   |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |               | --      |   |                  |   | -- |   |   |   | -- |   |
| Disability              |   |                | --      |   |   |   | --      |     |   |   | --                                      |   |   |               | --      |   |                  |   | -- |   |   |   | -- |   |

| Name      (1)          |   | Fees      Earned or Paid in Cash ($) |   |   | Stock      Awards ($) |   |   | Option      Awards ($)(2) |   |   | Non-Equity      Incentive Plan Compensation ($) |   |   | Change      in Pension Value and Nonqualified Deferred Compensation      Earnings |   |   | All      Other Compensation ($) |   |   | Total      ($) |   |
|------------------------|--------|--------------------------------------|--------|--------|-----------------------|--------|--------|---------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|---------------------------------|--------|--------|----------------|--------|
| Joseph      G. Bleser  |   | $                                    | 64,000 |   |                  |   | -      |                      |   | $      | 79,102                                          |   |   |                                                                              | -      |   |                            |   | -      |           |   |   | - |   |   | $ | 143,102 |   |
| J.      Terry Dewberry |   | $                                    | 51,500 |   |                  |   | -      |                      |   | $      | 79,102                                          |   |   |                                                                              | -      |   |                            |   | -      |           |   |   | - |   |   | $ | 130,602 |   |

----

| Name      (1) |   | Fees      Earned or Paid in Cash ($) |   | Stock      Awards ($) |   | Option      Awards ($)(2) |   | Non-Equity      Incentive Plan Compensation ($) |   | Change      in Pension Value and Nonqualified Deferred Compensation      Earnings |   | All      Other Compensation ($) |   | Total      ($) |
|---------------|--------|--------------------------------------|--------|-----------------------|--------|---------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|---------------------------------|--------|----------------|

| Donald      J. Lothrop   |   | $ | 48,500 |   |   |   | - |   |   | $ | 79,102 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 127,602 |   |
|--------------------------|--------|---|--------|--------|--------|--------|---|--------|--------|---|--------|--------|--------|--------|---|--------|--------|--------|---|--------|--------|--------|---|--------|--------|---|---------|--------|
| Myldred      H. Mangum   |   | $ | 41,000 |   |   |   | - |   |   | $ | 57,036 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 98,036  |   |
| Guy      W. Millner      |   | $ | 47,000 |   |   |   | - |   |   | $ | 79,102 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 126,102 |   |
| Kaaren      J. Street    |   | $ | 50,000 |   |   |   | - |   |   | $ | 79,102 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 129,102 |   |
| Thomas      S. Stribling |   | $ | 57,500 |   |   |   | - |   |   | $ | 79,102 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 136,602 |   |
| Wayne      P. Yetter     |   | $ | 60,750 |   |   |   | - |   |   | $ | 79,102 |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 139,852 |   |

|   |  (1) | Parker      H. Petit, Chairman and Chief Executive Officer, and Richard M. Hassett,      M.D., President and Chief Operating Officer, are not included in this      table as they were employees of the Company in 2007 and received no      compensation as a director. |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Represents      the compensation expense recorded in 2007 for current and prior year      grants computed in accordance with SFAS 123R, disregarding estimates      of forfeitures related to service-based vesting      conditions.  Additional information about the assumptions used      in these calculations is available in Note 9 to the Company’s      Consolidated Financial Statements in the Company’s Form 10-K for the      year ended December 31, 2007. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name of Beneficial Owner                            |   | Amount      and Nature of Beneficial      Ownership(1) |      |   | Percent      of Class(2) |   |
|-----------------------------------------------------|--------|--------------------------------------------------------|-----------|--------|--------------------------|--------|
| Wellington      Management Company, LLP(3)          |   |                                                   | 1,932,114 |   |                     |   | 8.7 | % |
| EARNEST      Partners, LLC(4)                       |   |                                                   | 2,376,295 |   |                     |   | 10.7 | % |
| TimesSquare      Capital Management, LLC(5)         |   |                                                   | 1,198,500 |   |                     |   | 5.4 | % |
| UBS      Global Asset Management (Americas) Inc.(6) |   |                                                   | 1,073,591 |   |                     |   | 4.9 | % |
| HWP      Capital Partners II, L.P.(7)               |   |                                                   | 1,380,388 |   |                     |   | 6.2 | % |
| T.      Rowe Price Associates, Inc.(8)              |   |                                                   | 2,772,282 |   |                     |   | 12.5 | % |
| Parker      H. Petit(9)                             |   |                                                   | 1,784,291 |   |                     |   | 8.1 | % |
| Richard      M. Hassett, M.D.(l0)                   |   |                                                   | 199,536   |   |                     |   | --- |   |
| Jeffrey      L. Hinton(11)                          |   |                                                   | 22,225    |   |                     |   | --- |   |

----

| Name of Beneficial Owner |   | Amount      and Nature of Beneficial      Ownership(1) |   |   | Percent      ofClass(2) |
|--------------------------|--------|--------------------------------------------------------|--------|--------|-------------------------|

| Roberta      L. McCaw(12)                                                |   |   | 66,968    |   |   |   | ---  |   |
|--------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|------|--------|
| Yvonne      V. Scoggins(13)                                              |   |   | 65,641    |   |   |   | ---  |   |
| Joseph      G. Bleser(14)                                                |   |   | 17,507    |   |   |   | ---  |   |
| J.      Terry Dewberry(15)                                               |   |   | 12,500    |   |   |   | ---  |   |
| Donald      J. Lothrop(16)                                               |   |   | 11,500    |   |   |   | ---  |   |
| Myldred      H. Mangum(17)                                               |   |   | 6,000     |   |   |   | ---  |   |
| Guy      W. Millner(18)                                                  |   |   | 38,875    |   |   |   | ---  |   |
| Kaaren      J. Street(19)                                                |   |   | 17,500    |   |   |   | ---  |   |
| Thomas      S. Stribling(20)                                             |   |   | 48,280    |   |   |   | ---  |   |
| Wayne      P. Yetter(21)                                                 |   |   | 23,500    |   |   |   | ---  |   |
| All      executive officers and directors as a group (14    persons)(22) |   |   | 2,397,242 |   |   |   | 10.8 | %      |

|   | _______________________ |
|--------|-------------------------|

| (1)   | Under      the rules of the SEC, a person is deemed to be a beneficial owner of a      security if he or she has or shares the power to vote or to direct the      voting of such security ("voting power") or the power to dispose or to      direct the disposition of such security ("investment power").  A      person is also deemed to be a beneficial owner of any securities of which      that person has the right to acquire beneficial ownership within 60 days      as well as any securities owned by such person's spouse, children or      relatives living in the same house.  Accordingly, more than one      person may be deemed to be a beneficial owner of the same      securities. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Based      on 22,124,076 shares of Matria common stock outstanding on April 2,      2008.  With respect to each person or group in the table,      assumes that such person or group has exercised all options, warrants and      other rights to purchase Matria common stock which he or she beneficially      owns and which arc exercisable within 60 days and that no other person has      exercised any such rights. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The      number of shares owned is based on information contained in a report on      Schedule 13G/A (Amendment No. 10) filed with the SEC on February 14,      2008.  The address of Wellington Management Com­pany, LLP      ("WMC") is 75 State Street, Boston, Massachusetts      02109.  According to its Schedule 13G, WMC, in its capacity as      investment adviser, may be deemed to beneficially own 1,932,114 shares of      Matria common stock, which shares are held of record by clients of      WMC.  WMC reports that it has no power to vote or direct the      vote of such shares and shared power to dispose or direct the disposition      of such shares, while its clients have the right to receive, or direct the      receipt of, dividends from, or proceeds from the sale of, such      shares. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      number of shares owned is based on information contained in a report on      Schedule 13G/A (Amendment No. 5) filed with the SEC on January 31,      2008.  The address of EARNEST Partners, LLC ("EARNEST") is 75      14th Street, Suite 2300, Atlanta, Georgia 30309.  According to      its Schedule 13G/A, EARNEST, in its capacity as investment advisor, may be      deemed to beneficially own 2,376,295 shares of Matria common      stock. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The      number of shares is based on information contained in a report on Schedule      13G filed with the SEC on February 9, 2007.  The address of      TimesSquare Capital Management, LLC ("TimesSquare") is 1177 Avenue of the      Americas, 39th Floor, New York, New York 10036.  According to      its Schedule I3G, TimesSquare, in its capacity as investment advisor, may      be deemed to beneficially own 1,198,500 shares of Matria common      stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | The      number of shares is based on information contained in a report on Schedule      13G/A (Amendment No. 1) filed with the SEC on February 20,      2007.  The address of UBS Global Asset Management      (Ameri­cas) Inc. ("UBS") is One North Wacker, Chicago, Illinois      60606.  According to its Schedule I3G Amendment No. 1, UBS, in its capacity as      investment advisor, may be deemed to beneficially own 1,073,591 shares of      Matria common stock. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | The      number of shares is based on information contained in a report on      Schedule 13G filed with the SEC on August 3, 2007.  The address      of HWP Capital Partners II, L.P. is c/o Haas Wheat & Partners, L.P.,      300 Crescent Court, Suite 1700, Dallas, Texas 75201.  According      to its Schedule 13G, HWP      Capital Part­ners II, L.P., in its capacity as investment advisor, may      he deemed to beneficially own      1,380,388 shares of Matria commonstock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | The      number of shares is based on information contained in a report on Schedule      13G/A (Amendment No. 1) filed with the SEC on February 13,      2008.  The address of T. Rowe Price Associates, Inc. is 100 E.      Pratt Street, Baltimore, Maryland 21202.  According to its      Schedule 13G/A (Amendment No. 1) T. Rowe Price Associates, Inc., in its      capacity as investment advisor, may be deemed to beneficially own      2,772,282 shares of Matria common stock, 1,317,756 shares of which are      held by T. Rowe Price New Horizons Fund,Inc. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Represents      814,417 shares owned by Mr. Petit, 77,545 shares of restricted stock,      73,832 shares held by Petit Investments Limited Partnership, 90,000 shares      held by Cox Road Partners LLLP, 3,750 shares held by Petit Grantor Trust,      6,720 shares owned by his |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  spouse,      and 718,027 shares which are subject to pur­chase upon exercise of      options exercisable within 60 days.  Mr. Petit's address is 1850      Parkway Place, Marietta, Georgia 30067. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Represents      7,872 shares owned by Dr. Hassett, 38,667 shares of restricted stock, and      152,997 shares which are subject to purchase upon exercise of options      exercisable within 60 days.  Dr. Hassett resigned as President      and Chief Operating Officer effective January 29,  2008. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | Represents      4,890 shares owned by Mr. Hinton, 15,668 shares of restricted stock, and      1,667 shares subject to purchase upon exercise of  options. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   | Represents      17,087 shares owned by Ms. McCaw, 13,334 shares of restricted stock, and      36,547 shares which are subject to purchase upon exercise of options      exercisable within 60 days. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | Represents      666 shares owned by Ms. Scoggins, 13,334 shares of restricted stock, and      51,641 shares which are subject to purchase upon exercise of options      exercisable within 60 days. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14)   | Represents      7 shares owned by Mr. Bleser and 17,500 shares which are subject to      purchase upon exercise of options exercisable within 60    days. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | Represents      1,000 shares owned by Mr. Dewberry and 11,500 shares which are subject to      purchase upon exercise of options exercisable within 60    days. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16)   | Represents      shares which are subject to purchase upon exercise of options exercisable      within 60 days. |
|------------------|----------------------------------------------------------------------------------------------------------------|

| (17)   | Represents      shares which are subject to purchase upon exercise of options exercisable      within 60 days. |
|------------------|----------------------------------------------------------------------------------------------------------------|

| (18)   | Represents      11,250 shares owned by Mr. Millner and 27,625 shares which are subject to      purchase upon exercise of options exercisable within 60    days. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (19)   | Represents      shares which are subject to purchase upon exercise of options exercisable      within 60 days. |
|------------------|----------------------------------------------------------------------------------------------------------------|

| (20)   | Represents      1,905 shares owned by Mr. Stribling and 46,375 shares which are subject to      purchase upon exercise of options exercisable within 60    days. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (21)   | Represents      shares which are subject to purchase upon exercise of options exercisable      within 60 days. |
|------------------|----------------------------------------------------------------------------------------------------------------|

| (22)   | Includes      1,178,574 shares which are subject to purchase upon      exercise of options exercisable within 60days. |
|------------------|----------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | 2007   |    |   | 2006   |   |
|-----------------------------------|--------|--------|---------|--------|--------|--------|
|                              |   |   |    |   |   |   |
| Audit      fees (1)               |   | $      | 855,000 |   |   | $      | 1,151,000 |   |
|                              |   |   |    |   |   |   |   |   |
| Audit-related      fees (2)       |   |   | 52,000  |   |   |   | 31,750 |   |
| Audit      and audit related fees |   |   | 907,000 |   |   |   | 1,182,750 |   |
|                              |   |   |    |   |   |   |   |   |
| Tax      fees (3)                 |   |   | 10,000  |   |   |   | 28,928 |   |
|                              |   |   |    |   |   |   |   |   |
| Total      fees                   |   | $      | 917,000 |   |   | $      | 1,211,678 |   |

| (1)   | Audit      fees included reviews and consents related to SEC registration      statements. |
|-----------------|--------------------------------------------------------------------------------------------|

| (2)   | Audit-related      fees in 2007 consisted of fees for audit of the Company's system      implementation.  Audit-related fees in 2006 consisted of fees for      audits of financial statements of certain employee benefit plans and      actuarial fees for the Company’s insurance  subsidiary. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Tax      fees consisted of fees for tax consultation  services. |
|-----------------|-----------------------------------------------------------------|

|   | (a)(2)  Financial Statement      Schedules |
|--------|------------------------------------------------------|

|   | None. |
|--------|-------|

|   | The      following exhibits are filed as part of this  Report: |
|--------|----------------------------------------------------------------|

| 31.1 | Rule      13a-14(a)/15d-14(a) Certification by Parker H.  Petit |
|------|-----------------------------------------------------------------|

| 31.2 | Rule      13a-14(a)/15d-14(a) Certification by Jeffrey L.  Hinton |
|------|-------------------------------------------------------------------|

----

| Signature                      |   | Title                                                           |   | Date                      |
|--------------------------------|--------|-----------------------------------------------------------------|--------|---------------------------|
|                           |   |                                                            |   |                      |
| /s/      Parker H. Petit       |   | Chairman      of the Board and Chief Executive Officer          |   | April      29, 2008       |
| name                           |   |                                                            |   |                      |
|                           |   |                                                            |   |                      |
| /s/      Jeffrey L. Hinton     |   |  Senior      Vice President and Chief Financial Officer    |   | April      29, 2008       |
| name                           |   |                                                            |   |                      |
|                           |   |                                                            |   |                      |
| /s/      Joseph A. Blankenship |   | Vice      President - Controller (Principal Accounting Officer) |   |  April      29, 2008 |
| name                           |   |                                                            |   |                      |

| Signature                                                                                         |                             |        Title          |                |        Date    |
|---------------------------------------------------------------------------------------------------|----------------------------------|----------------------------|---------------------|---------------------|
|                                                                                              |                             |                       |                |                |
|  /s/      Parker H. Petit                                                                    |                             | Chairman      of the Board | April      29, 2008 |
|      Parker      H. Petit                                                | and      Chief Executive Officer |                       |
|                                                                                              |                             |                       |                |                |
|                      * |                             | Director                   |                | April      29, 2008 |
|     Joseph      G. Bleser                                                     |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                 * |                             | Director                   |                | April      29, 2008 |
|     J.      Terry Dewberry                                                    |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                  *                         |                             | Director                   |                | April      29, 2008 |
|      Donald      J. Lothrop                                              |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                 * |                             | Director                   |                | April      29, 2008 |
|           Myldred H. Mangum                                                   |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                      *      |                             | Director                   |                | April      29, 2008 |
|      Guy      W. Millner                                                 |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|             *                         |                             | Director                   |                | April      29, 2008 |
|      Kaaren      J. Street                                               |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                      * |                             | Director                   |                | April      29, 2008 |
|      Thomas      S. Stribling                                            |                             |                       |                |
|                                                                                              |                             |                       |                |                |
|                      * |                             | Director                   |                | April      29, 2008 |
|      Wayne      P. Yetter                                                |                             |                       |                |
|                                                                                              |

----