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| New York                                                       | 22-1659359                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 170 Mt. Airy Road, Basking Ridge, NJ     | 07920      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip code) |

|   | Yes   ý |   | No   o |   |
|--------|-----------------------------|--------|-----------------------|--------|

|   |  Yes o |   | No   o |   |
|--------|-------------|--------|-----------------------|--------|

| Large Accelerated Filer   o |   | Accelerated Filer  o |   | Non-accelerated Filer   o |   | Smaller Reporting Company  ý |
|--------------------------------------------|--------|--------------------------------|--------|------------------------------------------|--------|---------------------------------------------|

|   | Yes   o |   | No   ý |   |
|--------|------------------------|--------|----------------------------|--------|

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|            |                              |                                                                                            | Page No. |
|-----------------|-----------------------------------|-------------------------------------------------------------------------------------------------|----------|
| PART I –  | Financial Information (unaudited) |                                                                                            |
|            |                              |                                                                                            |     |
|            | ITEM 1 –                    | Financial Statements                                                                            |     |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008                           | 1        |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2009 and 2008 | 2        |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2009 and 2008           | 3        |
|            |                              |                                                                                            |     |
|            |                              | Notes to Unaudited Consolidated Financial Statements                                            | 4-15     |
|            |                              |                                                                                            |     |
|            | ITEM 2 –                    | Management's Discussion and Analysis of Financial Condition and Results of Operations           | 15-31    |
|            |                              |                                                                                            |     |
|            | ITEM 3 –                    | Quantitative and Qualitative Disclosures About Market Risk                                      | 31       |
|            |                              |                                                                                            |     |
|            | ITEM 4 –                    | Controls and Procedures                                                                         | 31       |
|            |                              |                                                                                            |     |
| PART II – | Other Information                 |                                                                                            |
|            |                              |                                                                                            |
|            | ITEM 1 –                    | Legal Proceedings                                                                               | 32       |
|            |                              |                                                                                            |     |
|            | ITEM 1A –                   | Risk Factors                                                                                    | 32       |
|            |                              |                                                                                            |     |
|            | ITEM 2 –                    | Unregistered Sales of Equity Securities and Use of Proceeds                                     | 33       |
|            |                              |                                                                                            |     |
|            | ITEM 3 –                    | Defaults upon Senior Securities                                                                 | 33       |
|            |                              |                                                                                            |     |
|            | ITEM 4 –                    | Submission of Matters to a Vote of Security Holders                                             | 33       |
|            |                              |                                                                                            |     |
|            | ITEM 5 –                    | Other Information                                                                               | 33       |
|            |                              |                                                                                            |     |
|            | ITEM 6 –                    | Exhibits                                                                                        | 34       |
|            |                              |                                                                                            |     |
|            |                              | Signatures                                                                                      | 35       |

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|                                                                                                                                                                                         |   |         |     |   |             |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|--------|------------------|--------|
|                                                                                                                                                                                         |   | June 30,2009 |     |   | December 31,2008 |   |
| ASSETS (Note 10)                                                                                                                                                                             |   |         |     |   |             |   |
| Current assets:                                                                                                                                                                              |   |         |     |   |             |   |
| Cash and cash equivalents                                                                                                                                                                    |   | $            | 12,368   |   |             | $      | 11,547 |   |
| Accounts receivable, net of allowance for doubtful accounts of $2,042 and $3,036 at June 30, 2009 and December 31, 2008, respectively                                                        |   |         | 23,484   |   |             |   | 25,366 |   |
| Inventories                                                                                                                                                                                  |   |         | 3,185    |   |             |   | 2,865 |   |
| Income tax receivable                                                                                                                                                                        |   |         | 19       |   |             |   | 31 |   |
| Other current assets                                                                                                                                                                         |   |         | 1,570    |   |             |   | 2,325 |   |
| Total current assets                                                                                                                                                                    |   |         | 40,626   |   |             |   | 42,134 |   |
|                                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| Property, plant and equipment at cost                                                                                                                                                        |   |         | 45,096   |   |             |   | 44,736 |   |
| Less: Accumulated depreciation and amortization                                                                                                                                              |   |         | 31,938   |   |             |   | 29,395 |   |
| Property, plant and equipment, net                                                                                                                                                           |   |         | 13,158   |   |             |   | 15,341 |   |
|                                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| Intangible assets, net                                                                                                                                                                       |   |         | 1,140    |   |             |   | 1,429 |   |
| Other assets                                                                                                                                                                                 |   |         | 394      |   |             |   | 365 |   |
| Total assets                                                                                                                                                                       |   | $            | 55,318   |   |             | $      | 59,269 |   |
|                                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                   |   |         |     |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| Accounts payable                                                                                                                                                                             |   | $            | 5,619    |   |             | $      | 6,701 |   |
| Accrued expenses                                                                                                                                                                             |   |         | 10,147   |   |             |   | 11,452 |   |
| Total current liabilities                                                                                                                                                               |   |         | 15,766   |   |             |   | 18,153 |   |
| Other long-term liabilities                                                                                                                                                                  |   |         | 772      |   |             |   | 348 |   |
| Commitments and Contingencies (Note 11)                                                                                                                                                      |   |         |     |   |             |   |   |   |
|                                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| Stockholders’ Equity:                                                                                                                                                                  |   |         |     |   |             |   |   |   |
| Common stock, par value $.04 per share; authorized 240,000,000 shares, issued  68,713,982 and 68,683,982  shares as of June 30, 2009 and December 31, 2008, respectively |   |         | 2,748    |   |             |   | 2,747 |   |
| Additional paid-in capital                                                                                                                                                                   |   |         | 147,149  |   |             |   | 146,846 |   |
| Accumulated deficit                                                                                                                                                                     |   |         | (111,046 | )      |             |   | (108,754 | ) |
|                                                                                                                                                                                         |   |         | 38,851   |   |             |   | 40,839 |   |
| Less: Treasury stock, at cost 9,395 shares as of  June 30, 2009 and December 31, 2008                                                                                              |   |         | (71      | )      |             |   | (71 | ) |
| Total stockholders’ equity                                                                                                                                                             |   |         | 38,780   |   |             |   | 40,768 |   |
| Total liabilities and stockholders' equity                                                                                                                                                   |   | $            | 55,318   |   |             | $      | 59,269 |   |
|                                                                                                                                                                                         |   |         |     |   |             |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                                                                                 |   |         |     |   |             |

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|                                                         |   | Three Months ended June 30, |       |   | Six Months endedJune 30, |   |
|--------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------------------|--------|
|                                                         |   | 2009                        |       |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                     |   | $                           | 46,212     |   |                     | $      | 51,217 |   |   | $ | 93,647 |   |   | $ | 103,596 |   |
| Cost of operations                                           |   |                        | 33,292     |   |                     |   | 38,230 |   |   |   | 68,331 |   |   |   | 76,372 |   |
|  Gross profit                                           |   |                        | 12,920     |   |                     |   | 12,987 |   |   |   | 25,316 |   |   |   | 27,224 |   |
| Selling, general and administrative expenses                 |   |                        | 12,661     |   |                     |   | 13,246 |   |   |   | 26,493 |   |   |   | 26,582 |   |
| Restructuring and other charges                         |   |                        | 690        |   |                     |   | - |   |   |   | 878 |   |   |   | 1,653 |   |
|  Operating loss from continuing operations              |   |                        | (431       | )      |                     |   | (259 | ) |   |   | (2,055 | ) |   |   | (1,011 | ) |
| Other income (expense):                                      |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                              |   |                        | 20         |   |                     |   | 43 |   |   |   | 44 |   |   |   | 116 |   |
| Other expenses, net                                          |   |                        | (69        | )      |                     |   | (56 | ) |   |   | (202 | ) |   |   | (112 | ) |
|                                                         |   |                        | (49        | )      |                     |   | (13 | ) |   |   | (158 | ) |   |   | 4 |   |
| Loss from continuing operations before income taxes          |   |                        | (480       | )      |                     |   | (272 | ) |   |   | (2,213 | ) |   |   | (1,007 | ) |
|                                                         |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                 |   |                        | 21         |   |                     |   | (12 | ) |   |   | 38 |   |   |   | (63 | ) |
|                                                         |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loss from continuing operations                              |   |                        | (501       | )      |                     |   | (260 | ) |   |   | (2,251 | ) |   |   | (944 | ) |
|                                                         |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations:                                     |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations, net of income tax       |   |                        | -          |   |                     |   | 126 |   |   |   | - |   |   |   | 212 |   |
| Income (loss) on sale of subsidiary                          |   |                        | -          |   |                     |   | 280 |   |   |   | (41 | ) |   |   | 280 |   |
|                                                         |   |                        | -          |   |                     |   | 406 |   |   |   | (41 | ) |   |   | 492 |   |
| Net (loss) income                                            |   | $                           | (501       | )      |                     | $      | 146 |   |   | $ | (2,292 | ) |   | $ | (452 | ) |
| Basic and diluted (loss) earnings per share:                 |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                        |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                           | (0.01      | )      |                     | $      | - |   |   | $ | (0.03 | ) |   | $ | (0.01 | ) |
| Diluted                                                      |   |                        | (0.01      | )      |                     |   | - |   |   |   | (0.03 | ) |   |   | (0.01 | ) |
| Discontinued operations                                      |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                           | -          |   |                     | $      | 0.01 |   |   | $ | - |   |   | $ | 0.01 |   |
| Diluted                                                      |   |                        | -          |   |                     |   | 0.01 |   |   |   | - |   |   |   | 0.01 |   |
| Net loss                                                     |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                           | (0.01      | )      |                     | $      | - |   |   | $ | (0.03 | ) |   | $ | (0.01 | ) |
| Diluted                                                      |   |                        | (0.01      | )      |                     |   | - |   |   |   | (0.03 | ) |   |   | (0.01 | ) |
|                                                         |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares:                           |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                            |   |                        | 68,684,477 |   |                     |   | 68,647,774 |   |   |   | 68,679,559 |   |   |   | 68,641,180 |   |
|                                                         |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |                        |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                 |   | Six Months ended June 30, |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                 |   | 2009                           |   |   | 2008 |   |
| Cash flows from operating activities:                                                |   |                           |   |   |   |   |
| Net loss                                                                             |   | $                              | (2,292 | ) |   | $ | (452 | ) |
| (Loss) income from discontinued operations, net of income taxes                      |   |                           | (41    | ) |   |   | 492 |   |
| Loss from continuing operations                                                      |   |                           | (2,251 | ) |   |   | (944 | ) |
| Adjustments to reconcile loss from continuing operations to net cash provided by     |   |                           |   |   |   |   |   |   |
| (used in) operating activities of continuing operations:                             |   |                           |   |   |   |   |   |   |
| Depreciation                                                                         |   |                           | 3,473  |   |   |   | 1,619 |   |
| Amortization                                                                         |   |                           | 289    |   |   |   | 540 |   |
| Provision for bad debt expense                                                       |   |                           | 34     |   |   |   | 77 |   |
| Share-based compensation expense                                                     |   |                           | 304    |   |   |   | 60 |   |
| Loss on disposal of fixed assets                                                     |   |                           | 147    |   |   |   | 46 |   |
| Change in assets and liabilities, net of effect                                      |   |                           |   |   |   |   |   |   |
|  from disposition of business:                                                  |   |                           |   |   |   |   |   |   |
| Accounts receivable                                                                  |   |                           | 1,848  |   |   |   | (3,620 | ) |
| Inventories                                                                          |   |                           | (320   | ) |   |   | (51 | ) |
| Other assets                                                                         |   |                           | (263   | ) |   |   | 360 |   |
| Income tax receivable                                                                |   |                           | 12     |   |   |   | (13 | ) |
| Accounts payable, accrued expenses and other long-term liabilities                   |   |                           | 29     |   |   |   | (1,495 | ) |
| N N et cash provided by (used in) operating activities of continuing operations |   |                           | 3,302  |   |   |   | (3,421 | ) |
| Net cash (used in) provided by operating activities of discontinued operations       |   |                           | (300   | ) |   |   | 878 |   |
| Net cash provided by (used in) operating activities                                  |   |                           | 3,002  |   |   |   | (2,543 | ) |
|                                                                                 |   |                           |   |   |   |   |   |   |
| Cash flows from investing activities:                                                |   |                           |   |   |   |   |   |   |
| Capital expenditures                                                                 |   |                           | (2,008 | ) |   |   | (2,812 | ) |
|  NNet cash used in investing activities of continuing operations                |   |                           | (2,008 | ) |   |   | (2,812 | ) |
| N Net cash provided by investing activities of discontinued operations               |   |                           | 83     |   |   |   | 5,071 |   |
| Net cash (used in) provided by investing activities                                  |   |                           | (1,925 | ) |   |   | 2,259 |   |
|                                                                                 |   |                           |   |   |   |   |   |   |
| Cash flows from financing activities:                                                |   |                           |   |   |   |   |   |   |
| Debt financing fees                                                                  |   |                           | (256   | ) |   |   | - |   |
| Net cash used in financing activities of continuing operations                       |   |                           | (256   | ) |   |   | - |   |
| Net cash used in financing activities of discontinued operations                     |   |                           | -      |   |   |   | - |   |
| Net cash used in financing activities                                                |   |                           | (256   | ) |   |   | - |   |
|                                                                                 |   |                           |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                 |   |                           | 821    |   |   |   | (284 | ) |
| Cash and cash equivalents at beginning of period                                     |   |                           | 11,547 |   |   |   | 11,267 |   |
| Cash and cash equivalents at end of period                                           |   | $                              | 12,368 |   |   | $ | 10,983 |   |
|                                                                                 |   |                           |   |   |   |   |   |   |
| Supplemental disclosure of non-cash investing activities:                            |   |                           |   |   |   |   |   |   |
| Fixed assets vouchered but not paid                                                  |   | $                              | 93     |   |   | $ | 458 |   |
| Supplemental disclosure of cash flow information:                                    |   |                           |   |   |   |   |   |   |
| Cash paid during the period for:                                                     |   |                           |   |   |   |   |   |   |
| Income taxes                                                                         |   | $                              | 31     |   |   | $ | 21 |   |
|                                                                                 |   |                           |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                         |   |                           |   |   |   |   |   |   |

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|                                     |   |             |      |   |                                  |   |   |                                            |   |   |                                  |   |
|------------------------------------------|--------|------------------|-----------|--------|---------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------------------|--------|
|                                     |   | Number of Shares |      |   | WeightedAverageExercisePrice PerShare |   |   | WeightedAverageRemainingContractualLife (years) |   |   | AggregateIntrinsicValue(in thousands) |   |
| Outstanding balance at December 31, 2008 |   |             | 6,309,000 |   |                                  | $      | 3.52   |                                            |   |   |                                  |   |   |   |
| Granted                                  |   |             | 75,000    |   |                                  |   | 0.22   |                                            |   |   |                                  |   |   |   |
| Exercised                                |   |             | -         |   |                                  |   | -      |                                            |   |   |                                  |   |   |   |
| Cancelled                                |   |             | (132,650  | )      |                                  |   | 4.25   |                                            |   |   |                                  |   |   |   |
| Forfeitures                              |   |             | (386,250  | )      |                                  |   | 2.71   |                                            |   |   |                                  |   |   |   |
| Outstanding balance at June 30, 2009     |   |             | 5,865,100 |   |                                  | $      | 3.51   |                                            |   |   | 6.5                                   |   |   | $ | 40 |   |
| Options exercisable at June 30, 2009     |   |             | 2,569,475 |   |                                  | $      | 6.19   |                                            |   |   | 3.7                                   |   |   | $ | - |   |

----

|               |   | Three Months EndedJune 30, 2008 |   |   | Six Months EndedJune 30, 2008 |   |
|--------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
| (in thousands)     |   |                            |   |   |                          |   |
| Revenues           |   | $                               | 6,362  |   |                          | $      | 13,079 |   |
| Pre-tax income     |   | $                               | 137    |   |                          | $      | 234 |   |
| Income tax expense |   | $                               | 11     |   |                          | $      | 22 |   |

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|                       |   | Weighted    |   |   |     |   |   |         |   |   |    |   |
|----------------------------|--------|-------------|--------|--------|----------|--------|--------|--------------|--------|--------|---------|--------|
|                       |   | Average     |   |   | Gross    |   |   |         |   |   |    |   |
|                       |   | Useful Life |   |   | Carrying |   |   | Accumulated  |   |   | Net     |   |
| (in thousands)             |   | (years)     |   |   | Amount   |   |   | Amortization |   |   | Balance |   |
| At June 30, 2009:          |   |        |   |   |     |   |   |         |   |   |    |   |
| Non-Competition agreements |   |        | 4.7    |   |     | $      | 8,738  |         |   | $      | 8,738   |   |   | $ | - |   |
| Customer relationships     |   |        | 9.7    |   |     |   | 12,502 |         |   |   | 11,480  |   |   |   | 1,022 |   |
| Trademarks and tradenames  |   |        | 15.7   |   |     |   | 487    |         |   |   | 369     |   |   |   | 118 |   |
|                       |   |        |   |   |     | $      | 21,727 |         |   | $      | 20,587  |   |   | $ | 1,140 |   |
| At December 31, 2008:      |   |        |   |   |     |   |   |         |   |   |    |   |   |   |   |   |
| Non-Competition agreements |   |        | 4.7    |   |     | $      | 8,738  |         |   | $      | 8,735   |   |   | $ | 3 |   |
| Customer relationships     |   |        | 9.7    |   |     |   | 12,502 |         |   |   | 11,207  |   |   |   | 1,295 |   |
| Trademarks and tradenames  |   |        | 15.7   |   |     |   | 487    |         |   |   | 356     |   |   |   | 131 |   |
|                       |   |        |   |   |     | $      | 21,727 |         |   | $      | 20,298  |   |   | $ | 1,429 |   |

| (in millions)     |   | 2009    |   |   | Balance at |   |
|-------------------|--------|---------|--------|--------|------------|--------|
|              |   | Charges |   |   | Payments   |   |   | June 30, 2009 |   |
| Severance         |   | $       | 0.3    |   |       | $      | (0.3 | ) |   | $ | - |   |
| Lease Obligations |   |    | 0.2    |   |       |   | - |   |   |   | 0.2 |   |
|              |   | $       | 0.5    |   |       | $      | (0.3 | ) |   | $ | 0.2 |   |

----

|              |   | Balance at        |   |   | 2009     |   |   | Balance at    |   |
|-------------------|--------|-------------------|--------|--------|----------|--------|--------|---------------|--------|
| (In millions)     |   | December 31, 2008 |   |   | Payments |   |   | June 30, 2009 |   |
| Lease Obligations |   | $                 | 0.4    |   |     | $      | (0.1   | )             |   | $ | 0.3 |   |

| (In millions)               |   | Balance atDecember 31, 2008 |   |   | 2009Payments |   |   | Balance atJune 30, 2009 |   |
|-----------------------------|--------|-----------------------------|--------|--------|--------------|--------|--------|-------------------------|--------|
| Severance\Lease Obligations |   | $                           | 0.2    |   |         | $      | (0.1   | )                       |   | $ | 0.1 |   |

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| ·   | pay any dividends or distributions on, or purchase, redeem or retire any shares of any class of its capital stock or other equity interests; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | incur additional indebtedness; |
|--------------------|--------------------------------|

| ·   | sell or otherwise dispose of any of its assets, other than in the ordinary course of business; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | create liens on its assets; |
|--------------------|-----------------------------|

| ·   | enter into any sale and leaseback transactions; and |
|--------------------|-----------------------------------------------------|

| ·   | enter into transactions with any of its affiliates on other than an arm’s-length or no less favorable basis. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

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|  ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|--------------|---------------------------------------------------------------------------------------------|

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| ·   | Portamedic – performs paramedical and medical examinations of individuals seeking insurance coverage, mainly life insurance; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Heritage Labs – performs tests of blood, urine and/or oral fluid specimens, primarily generated in connection with the paramedical exams and wellness screenings performed by our Portamedic and Health & Wellness services, and assembles and sells specimen collection kits; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Health & Wellness – conducts wellness screenings for health management companies, including wellness companies, disease management organizations and health plans; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Hooper Holmes Services (formerly Underwriting Solutions and Infolink) – conducts telephone interviews of individuals seeking life insurance coverage, retrieves medical records, and conducts inspections. It also provides risk management solutions and underwriting services to reinsurance companiesand insurance carriers in the life, health and annuity insurance industry. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | The Company has introduced its National Broker & General Agency service program which includes specialized training of our field sales representatives to market to this specific distribution channel.  To serve these customers, we have implemented new case management services which link our ordering and imaging systems to many agency managementtools. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January 2009, we instituted a pricing increase for Portamedic examinations of approximately 6% for non-contract customers.  As a result of this pricing increase, and increases received from other Portamedic customers under contract, average revenue per exam increased approximately 4% in the first half of 2009 in comparison to the correspondingprior year period. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In early 2009, we engaged Leerink Swann, a healthcare strategic advisor, to assess our short and long-term strategy, including assistance in creating new sources of revenue in adjacent markets (such as healthcare) by utilizing existing core capabilities in our operations, including Portamedic. Leerink Swann’s analysis also identified areas of opportunityto automate current manual processes in ordering and completing paramedical exams.  This effort is expected to reduce costs and errors, and increase efficiency and speed. Leerink Swann’s  analysis will also assist us in expanding the range of services and products offered by our Health & Wellness and Heritage Labs service lines, with a specific focus on high value opportunities. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Over 75 of our Portamedic branch offices are now utilizing managed scheduling.  In those offices where we have implemented managed scheduling, the time required to schedule an examination has been reduced significantly relative to offices where examiners schedule their own appointments with applicants.  Our roll-out of the managed schedulingproject is on schedule and is expected to be completed by the end of the third quarter 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·  | We have established a quality/imaging platform for all paramedical exam reports on a trial basis.  This platform allows us to review the accuracy and legibility of examination reports.  This imaging platform, which we plan to extend throughout Portamedic, is expected to improve our quality of service to customers. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In September 2008, we appointed a new President of Portamedic who has more than 25 years experience as a senior executive in the insurance industry. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | In an effort to improve the speed, accuracy and consistency of services provided to our Portamedic customers, we decided in December 2008 to begin the development of a new customer service order tracking IT system.  In utilizing our current IT system, we license the software and, as such, have difficulties in quickly implementing improvementsand enhancements to the software.  Our new IT system is expected to eliminate these difficulties and is expected to operate at a significantly lower cost and cash outlay in the future relative to our existing system.  Our new customer service system is expected to cost approximately $1.1 million and is scheduled for completion in mid-2010.  As a result of the development of this new system, we have reduced the estimated useful life of our current IT systems to terminate in mid-2010.  Thisreduction in useful life will increase depreciation expense (non-cash charge) in 2009 by approximately $2.8 million and in 2010 by approximately $0.6 million.  We believe that our investment in this new customer service system will enhance the quality of service to our customers, while improving productivity and decreasing future cash outlay. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January 2009, Heritage Labs moved its lab facilities to a new, larger location which is expected to increase productivity and enable new service/product offerings, including offerings focusing outside the paramedical exam marketplace. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Heritage Labs has also added a Medical Director to its organization to better serve our clients with lab and mortality related issues.  This reflects our strategy to deliver research and statistical analyses to improve our customers’ underwriting performance. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Heritage Labs continues to expand its kit assembly products and services.  Heritage Labs is an FDA-registered Class I and Class II medical device assembler.  Of the three laboratories providing testing services to the insurance industry, only Heritage Labs is licensed to assemble kits.  In late 2008, Heritage Labs announcedthe award of a contract to assemble biospecimen kits for the National Children’s Study, a study focused on improving children’s health and led by a consortium of federal agencies. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In 2008, Heritage Labs began to market a line of self-collected finger stick test kits directly to customers, under the trade name “Appraise.”  These kits test hemoglobin A1c.  The hemoglobin A1c test is particularly important for diabetics, who must regularly monitor their hemoglobin A1c levels.  Heritage Labsuses two blood testing methods for hemoglobin A1c, one for testing whole blood specimens and the other for testing dried blood spots.  Heritage Labs is the only laboratory worldwide which has been certified by the National Glycohemoglobin Standardization Program for A1c testing using dried blood spot specimens.  The test kits are currently available in retail locations including Wal-Mart, Rite Aid, Walgreens and other locations nationwide. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | the number of paramedical examinations performed by Portamedic; |
|--------|--------|-----------------------------------------------------------------|

|   | · | the average revenue per paramedical examination; |
|--------|--------|--------------------------------------------------|

|   | · | time service performance, from examination order to completion; |
|--------|--------|-----------------------------------------------------------------|

|   | · | the MIB Life Index data, which represents an indicator of the level of life insurance application activity; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | the number of health screenings completed by Health & Wellness; |
|--------|--------|---------------------------------------------------------------------|

|   | · | the number of tele-interviewing/underwriting reports we generate; |
|--------|--------|-------------------------------------------------------------------|

|   | · | the number of specimens tested by Heritage Labs; |
|--------|--------|--------------------------------------------------|

|   | · | the average revenue per specimen tested; |
|--------|--------|------------------------------------------|

|   | · | budget to actual performance at the branch level as well as in the aggregate; and |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | customer and product line profitability. |
|--------|--------|------------------------------------------|

----

|                             |   | For the Three Months EndedJune 30, |   |   | For the Six Months EndedJune 30, |   |
|----------------------------------|--------|------------------------------------|--------|--------|----------------------------------|--------|
|    (in thousands) |   | 2009                               |   |   | 2008                             |   |   | % Change |   |   | 2009 |   |   | 2008 |   |   | % Change |   |
|                             |   |                               |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portamedic                       |   | $                                  | 34,616 |   |                             | $      | 36,438 |   |   |   | -5.0 | % |   | $ | 69,640 |   |   | $ | 73,781 |   |   |   | -5.6 | % |
| Heritage Labs                    |   |                               | 3,777  |   |                             |   | 4,164 |   |   |   | -9.3 | % |   |   | 7,747 |   |   |   | 8,619 |   |   |   | -10.1 | % |
| Health and Wellness              |   |                               | 1,977  |   |                             |   | 1,336 |   |   |   | 47.9 | % |   |   | 4,351 |   |   |   | 3,223 |   |   |   | 35.0 | % |
| Hooper Holmes Services           |   |                               | 6,485  |   |                             |   | 10,060 |   |   |   | -35.5 | % |   |   | 13,262 |   |   |   | 19,605 |   |   |   | -32.4 | % |
|    Subtotal       |   |                               | 46,855 |   |                             |   | 51,998 |   |   |   | - |   |   |   | 95,000 |   |   |   | 105,228 |   |   |   | - |   |
| Intercompany eliminations(a)     |   |                               | (643   | )      |                             |   | (781 | ) |   |   | - |   |   |   | (1,353 | ) |   |   | (1,632 | ) |   |   | - |   |
|    Total          |   | $                                  | 46,212 |   |                             | $      | 51,217 |   |   |   | -9.8 | % |   | $ | 93,647 |   |   | $ | 103,596 |   |   |   | -9.6 | % |

| ·   | fewer paramedical examinations performed in the second quarter 2009 (393,000 in the second quarter 2009, or 6,146 per day vs. 435,000 in the second  quarter of 2008, or 6,791 per day), and in the six month period ended June 30, 2009 (789,000 in the six month period ended June 30, 2009, or 6,213 per day vs. 879,000 in the six month period endedJune 30, 2008, or 6,864 per day); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher average revenue per paramedical examination in the second quarter of 2009 of approximately 3% ($89.09 in the second quarter of 2009 vs. $86.14  in the second quarter of 2008), and in the six month period ended June 30, 2009 a higher average revenue per paramedical examination of approximately 4% ($89.51 in the six month period ended June30, 2009 vs. $86.17 in the six month period ended June 30, 2008). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | Cost of Operations |
|--------|--------------------|

| (in thousands)                      |   | For the three months ended June 30, |   |   | For the six months ended June 30, |   |
|-------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                |   |                                |   |   | As a % of                         |   |   |   |   |   | As a % of |   |   |   |   |   | As a % of |   |   |   |   |   | As a % of |   |
|                                |   | 2009                                |   |   | Revenues                          |   |   | 2008 |   |   | Revenues |   |   | 2009 |   |   | Revenues |   |   | 2008 |   |   | Revenues |   |
| Portamedic/Health & Wellness    |   | $                                   | 26,006 |   |                              |   | 71.1 | % |   | $ | 28,554 |   |   |   | 75.6 | % |   | $ | 53,515 |   |   |   | 72.3 | % |   | $ | 57,354 |   |   |   | 74.5 | % |
| Heritage Labs                       |   |                                | 2,468  |   |                              |   | 65.3 | % |   |   | 2,682 |   |   |   | 64.4 | % |   |   | 4,958 |   |   |   | 64.0 | % |   |   | 5,413 |   |   |   | 62.8 | % |
| Hooper Holmes Services              |   |                                | 5,462  |   |                              |   | 84.2 | % |   |   | 7,766 |   |   |   | 77.2 | % |   |   | 11,212 |   |   |   | 84.5 | % |   |   | 15,228 |   |   |   | 77.7 | % |
|  Subtotal                      |   |                                | 33,936 |   |                              |   | - |   |   |   | 39,002 |   |   |   | - |   |   |   | 69,685 |   |   |   | - |   |   |   | 77,995 |   |   |   | - |   |
| Intercompany eliminations (a)       |   |                                | (644   | )      |                              |   | - |   |   |   | (772 | ) |   |   | - |   |   |   | (1,354 | ) |   |   | - |   |   |   | (1,623 | ) |   |   | - |   |
|      Total |   | $                                   | 33,292 |   |                              |   | 72.0 | % |   | $ | 38,230 |   |   |   | 74.6 | % |   | $ | 68,331 |   |   |   | 73.0 | % |   | $ | 76,372 |   |   |   | 73.7 | % |

| (in thousands)                               |   |  For the three months endedJune 30, |   |   | (Decrease) |   |   | For the six months endedJune 30, |   |   | (Decrease) |   |
|----------------------------------------------|--------|------------------------------------------|--------|--------|------------|--------|--------|----------------------------------|--------|--------|------------|--------|
|                                         |   | 2009                                     |   |   | 2008       |   |   | 2009 vs. 2008                    |   |   | 2009       |   |   | 2008 |   |   | 2009 vs. 2008 |   |
| Selling, general and administrative expenses |   | $                                        | 12,661 |   |       | $      | 13,246 |                             |   | $      | (585       | )      |   | $ | 26,493 |   |   | $ | 26,582 |   |   | $ | (89 | ) |

|   | · | reduced incentive compensation expense totaling $0.4 million and $0.9 million, respectively; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | reduced legal and general insurance costs totaling $0.2 million and $0.5 million, respectively; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | reduced amortization expense resulting from certain intangible assets now fully amortized totaling $0.2 million and $0.3 million, respectively; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reduced Portamedic and Hooper Holmes Services sales salaries and related sales expenses totaling $0.3 million and $0.3 million, respectively; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | reduced 401K employer match relating to the elimination of the 401K Company match totaling $0.2 million and $0.2 million, respectively; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reduced general business taxes and reduced Board of Directors fees and expenses totaling $0.3 million and $0.3 million, respectively. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | The decreases listed above were partially offset by the following: |
|--------|--------------------------------------------------------------------|

|   | · | increased depreciation expense (non-cash) resulting from a reduction in the estimated useful life of our current IT systems scheduled to be replaced in mid 2010, totaling $0.8 million and $1.6 million, respectively; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased consulting costs associated with retaining the services of a strategic advisor totaling $0.2 million and $0.5 million, respectively; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased health insurance costs totaling $0.1 million and $0.3 million, respectively. |
|--------|--------|----------------------------------------------------------------------------------------|

| ·   | restructuring charges for employee severance and branch office closures totaling $0.3 million and $0.5 million, respectively; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | charges related to legal and other costs for the Board of Director election proxy costs totaling $0.4 million and $0.4 million, respectively. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | restructuring charges for employee severance and office closures totaling $0.4 million; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | charges related to the early termination of an agreement with an outside consultant utilized in our 2006 strategic review totaling $0.9 million; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | severance charges related to the resignation of our former CEO of $0.4 million. |
|--------------------|---------------------------------------------------------------------------------|

----

----

| ·   | restructuring payments related to employee severance and lease obligations totaling $0.5 million; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | consulting payments related to the services of a strategic advisor totaling $0.5 million; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | capital expenditures of $2.0 million; and |
|--------------------|-------------------------------------------|

| ·   | increase in inventory of $0.3 million from December 31, 2008. |
|--------------------|---------------------------------------------------------------|

| ·   | a decrease in accounts receivable of $1.8 million from December 31, 2008; and |
|--------------------|-------------------------------------------------------------------------------|

| ·   | receipt of a $0.6 million lease incentive. |
|--------------------|--------------------------------------------|

----

|   | Cash Flows from Operating Activities |
|--------|--------------------------------------|

|   | · | a decrease in accounts receivable of $1.8 million, primarily due to increased Portamedic cash collections.  Our consolidated days sales outstanding (DSO), measured on a rolling 90-day basis was 46 days at June 30, 2009, compared to 48 days at December 31, 2008 and 53 days at June 30, 2008.  Historically, our accounts receivable balances and our DSO are at their lowest point in December as manyof our customers utilize the remainder of their operating budgets before their year-end budget close-out.  Our DSO from December 31, 2008 to June 30, 2009 improved 2 days compared to an increase of 7 days for the same period of the prior year.  We believe our increased collection efforts in the first half of 2009, along with our continued focus on electronic customer billing, are the primary drivers of our improvement inDSO relative to our historic experience in the first half of the year. As a result of these improvements, our allowance for doubtful accounts, which includes a reserve for revenue reductions, declined approximately $1.0 million since December 31, 2008, of which $0.2 million was reversed to revenue during the three months ended June 30, 2009. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase in accounts receivable of $3.6 million, primarily due to a reduction in Portamedic cash collections during the first six months of 2008. Our DSO, measured on a rolling 90-day basis was 53 days at June 30, 2008, compared to 46 days at December 31, 2007; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a decrease in accounts payable, accrued expenses and other long-term liabilities of $1.5 million. |
|--------|--------|---------------------------------------------------------------------------------------------------|

----

|   | Cash Flows used in Investing Activities |
|--------|-----------------------------------------|

----

| ·   | pay any dividends or distributions on, or purchase, redeem or retire any shares of any class of its capital stock or other equity interests; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | incur additional indebtedness; |
|--------------------|--------------------------------|

| ·   | sell or otherwise dispose of any of its assets, other than in the ordinary course of business; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | create liens on its assets; |
|--------------------|-----------------------------|

| ·   | enter into any sale and leaseback transactions; and |
|--------------------|-----------------------------------------------------|

| ·   | enter into transactions with any of its affiliates on other than an arm’s-length or no less favorable basis. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

----

| ITEM 3 | Quantitative and Qualitative Disclosures About Market Risk |
|--------|------------------------------------------------------------|

| ITEM 4 | Controls and Procedures |
|--------|-------------------------|

----

| ITEM 1 | Legal Proceedings |
|--------|-------------------|

| ITEM 1A | Risk Factors |
|---------|--------------|

----

| ITEM 2 | Unregistered Sales of Equity Securities and Use of Proceeds |
|--------|-------------------------------------------------------------|

| ITEM 3 | Defaults Upon Senior Securities |
|--------|---------------------------------|

| ITEM 4 | Submission of Matters to a Vote of Security Holders |
|--------|-----------------------------------------------------|

|  Nominee        |  For  | Votes Cast Against |  Withheld                       | Broker Non-votes |  Abstained |
|----------------------|------------|--------------------|--------------------------------------|-----------------------|-----------------|
| Ronald V. Aprahamian | 24,828,717 | -                  | 8,126,569                            | -                     | -               |
| Larry Ferguson       | 32,941,826 | -                  |      13,460 | -                     | -               |
| Leslie Hudson        | 17,477,357 | -                  |    912,681            | -                     | -               |
| Roy E. Lowrance      | 17,494,640 | -                  |    895,398            | -                     | -               |

| ITEM 5 | Other Information |
|--------|-------------------|

----

| ITEM 6 | Exhibits |
|--------|----------|

| Exhibit No. |   | Description of Exhibit                                                                                                                    |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                      |
|        |   |                                                                                                                                      |
|        |   |                                                                                                                                      |
| 31.1        |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.                            |
|        |   |                                                                                                                                      |
| 31.2        |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.                            |
|        |   |                                                                                                                                      |
| 32.1        |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |
|        |   |                                                                                                                                      |
| 32.2        |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350. |
|        |   |                                                                                                                                      |
|        |   |                                                                                                                                      |

----

|   |   | By: /s/ Roy H. Bubbs                              |   |
|--------|--------|---------------------------------------------------|--------|
|   |   | Roy H. Bubbs                                      |   |
|   |   | Chief Executive Officer and President             |   |
|   |   |                                              |   |
|   |   |                                              |   |
|   |   |                                              |   |
|   |   | By: /s/ Michael J. Shea                           |   |
|   |   | Michael J. Shea                                   |   |
|   |   | Senior Vice President and Chief Financial Officer |   |

----