|        |
|--------|
|        |  |  |  |  |
|   |   |   |   |   |

|        |
|--------|
|        |  |  |  |  |
|   | 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 x |   | No o |   |

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

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

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

----

|                      |
|----------------------|
|                      |  |  |  |
|                 |   |   | Page No. |
| PART I –  | Financial Information |   |
|                 |   |   |   |
|                 | ITEM 1 – | Financial Statements (unaudited) |   |
|                 |   |   |   |
|                 |   | Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010 | 1 |
|                 |   |   |   |
|                 |   | Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010 | 2 |
|                 |   |   |   |
|                 |   | Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 and 2010 | 3 |
|                 |   |   |   |
|                 |   | Notes to Unaudited Consolidated Financial Statements |  4 |
|                 |   |   |   |
|                 | ITEM 2 – | Management's Discussion and Analysis of Financial Condition and Results of Operations |  13 |
|                 |   |   |   |
|                 | ITEM 3 – | Quantitative and Qualitative Disclosures About Market Risk | 27 |
|                 |   |   |   |
|                 | ITEM 4 – | Controls and Procedures | 27 |
|                 |   |   |   |
| PART II – | Other Information |   |
|                 |   |   |
|                 | ITEM 1 – | Legal Proceedings | 28 |
|                 |   |   |   |
|                 | ITEM 1A – | Risk Factors | 28 |
|                 |   |   |   |
|                 | ITEM 2 – | Unregistered Sales of Equity Securities and Use of Proceeds | 28 |
|                 |   |   |   |
|                 | ITEM 3 – | Defaults upon Senior Securities | 28 |
|                 |   |   |   |
|                 | ITEM 4 – | Removed and Reserved | 28 |
|                 |   |   |   |
|                 | ITEM 5 – | Other Information | 28 |
|                 |   |   |   |
|                 | ITEM 6 – | Exhibits | 28 |
|                 |   |   |   |
|                 |   | Signatures | 29 |

----

|                                                                                                                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                      |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                 |   | March 31, 2011 |   | December 31, 2010 |
| ASSETS (Note 9)                                                                                                                                                                                                      |   |   |   |   |
| Current assets:                                                                                                                                                                                                      |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                            |   | $ | 19,332 |   |   | $ | 21,391 |   |
|      Accounts receivable, net of allowance for doubtful accounts of $804 and $910 at         March 31, 2011 and December 31, 2010, respectively     |   | 21,811 |   |   | 19,484 |   |
| Inventories                                                                                                                                                                                                          |   | 2,334 |   |   | 2,153 |   |
| Other current assets                                                                                                                                                                                                 |   | 1,694 |   |   | 1,899 |   |
| Total current assets                                                                                                                                                                                            |   | 45,171 |   |   | 44,927 |   |
|                                                                                                                                                                                                                 |   |   |   |   |
| Property, plant and equipment at cost                                                                                                                                                                                |   | 50,629 |   |   | 49,895 |   |
| Less: Accumulated depreciation and amortization                                                                                                                                                                      |   | 38,935 |   |   | 38,248 |   |
| Property, plant and equipment, net                                                                                                                                                                                   |   | 11,694 |   |   | 11,647 |   |
|                                                                                                                                                                                                                 |   |   |   |   |
| Intangible assets, net                                                                                                                                                                                               |   | 446 |   |   | 537 |   |
| Other assets                                                                                                                                                                                                         |   | 366 |   |   | 368 |   |
| Total assets                                                                                                                                                                                               |   | $ | 57,677 |   |   | $ | 57,479 |   |
|                                                                                                                                                                                                                 |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                 |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                 |   |   |   |   |
| Accounts payable                                                                                                                                                                                                     |   | $ | 6,317 |   |   | $ | 6,665 |   |
| Accrued expenses                                                                                                                                                                                                     |   | 6,380 |   |   | 5,941 |   |
| Total current liabilities                                                                                                                                                                                       |   | 12,697 |   |   | 12,606 |   |
| Other long-term liabilities                                                                                                                                                                                          |   | 1,322 |   |   | 1,247 |   |
| Commitments and Contingencies (Note 10)                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                                 |   |   |   |   |
| Stockholders' Equity:                                                                                                                                                                                                |   |   |   |   |
| Common stock, par value $.04 per share; authorized 240,000,000 shares, issued  69,598,982 shares as of March 31, 2011 and December 31, 2010. Outstanding: 69,589,587 shares at March 31, 2011 and December 31, 2010. |   | 2,784 |   |   | 2,784 |   |
| Additional paid-in capital                                                                                                                                                                                           |   | 148,284 |   |   | 148,195 |   |
| Accumulated deficit                                                                                                                                                                                             |   | (107,339 | ) |   | (107,282 | ) |
|                                                                                                                                                                                                                 |   | 43,729 |   |   | 43,697 |   |
| Less: Treasury stock, at cost; 9,395 shares as of  March 31, 2011 and December 31, 2010                                                                                                                              |   | (71 | ) |   | (71 | ) |
| Total stockholders' equity                                                                                                                                                                                           |   | 43,658 |   |   | 43,626 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                           |   | $ | 57,677 |   |   | $ | 57,479 |   |
|                                                                                                                                                                                                                 |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                                                                                                         |   |   |   |   |

----

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |  |
|                                                         |   | Three Months Ended March 31, |   |
|                                                         |   | 2011 |   | 2010 |   |
| Revenues                                                     |   | $ | 40,577 |   |   | $ | 41,918 |   |   |
| Cost of operations                                           |   | 29,608 |   |   | 30,749 |   |   |
|  Gross profit                                           |   | 10,969 |   |   | 11,169 |   |   |
| Selling, general and administrative expenses                 |   | 10,880 |   |   | 11,710 |   |   |
| Restructuring charges                                        |   | 56 |   |   | 108 |   |   |
|  Operating income (loss)                                |   | 33 |   |   | (649 | ) |   |
| Other (expense) income:                                      |   |   |   |   |   |
| Interest expense                                             |   | (4 | ) |   | (3 | ) |   |
| Interest income                                              |   | 18 |   |   | 50 |   |   |
| Other expense                                                |   | (81 | ) |   | (88 | ) |   |
|                                                         |   | (67 | ) |   | (41 | ) |   |
| Loss before income taxes                                     |   | (34 | ) |   | (690 | ) |   |
|                                                         |   |   |   |   |   |
| Income tax expense                                           |   | 23 |   |   | 14 |   |   |
|                                                         |   |   |   |   |   |
| Net loss                                                     |   | $ | (57 | ) |   | $ | (704 | ) |   |
| Basic and diluted loss per share:                            |   |   |   |   |   |
| Basic                                                        |   | $ | — |   |   | $ | (0.01 | ) |   |
| Diluted                                                      |   | $ | — |   |   | $ | (0.01 | ) |   |
| Weighted average number of shares:                           |   |   |   |   |   |
| Basic and diluted                                            |   | 69,589,587 |   |   | 68,997,365 |   |   |
|                                                         |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |

----

|                                                                                           |
|-------------------------------------------------------------------------------------------|
|                                                                                           |  |  |  |  |  |  |  |
|                                                                                      | Three Months Ended March 31, |
|                                                                                      | 2011 |   | 2010 |
| Cash flows from operating activities:                                                     |   |   |   |
| Net loss                                                                                  | $ | (57 | ) |   | $ | (704 | ) |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |   |   |   |
| Depreciation                                                                              | 780 |   |   | 1,471 |   |
| Amortization                                                                              | 91 |   |   | 104 |   |
| Provision for bad debt expense                                                            | (20 | ) |   | 31 |   |
| Share-based compensation expense                                                          | 89 |   |   | 189 |   |
| Loss on disposal of fixed assets                                                          | 2 |   |   | 5 |   |
| Change in assets and liabilities:                                                         |   |   |   |
| Accounts receivable                                                                       | (2,307 | ) |   | (1,416 | ) |
| Inventories                                                                               | (181 | ) |   | 116 |   |
| Other assets                                                                              | 207 |   |   | 433 |   |
| Income tax receivable                                                                     | — |   |   | 1,461 |   |
| Accounts payable, accrued expenses and other long-term liabilities                        | 408 |   |   | 193 |   |
| Net cash (used in) provided by operating activities                                       | (988 | ) |   | 1,883 |   |
|                                                                                      |   |   |   |
| Cash flows from investing activities:                                                     |   |   |   |
| Capital expenditures                                                                      | (901 | ) |   | (620 | ) |
| Net cash used in investing activities                                                     | (901 | ) |   | (620 | ) |
|                                                                                      |   |   |   |
| Cash flows from financing activities:                                                     |   |   |   |
| Reduction in capital lease obligations                                                    | (69 | ) |   | (33 | ) |
| Debt financing fees                                                                       | (101 | ) |   | — |   |
| Net cash used in financing activities                                                     | (170 | ) |   | (33 | ) |
|                                                                                      |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                      | (2,059 | ) |   | 1,230 |   |
| Cash and cash equivalents at beginning of period                                          | 21,391 |   |   | 16,495 |   |
| Cash and cash equivalents at end of period                                                | $ | 19,332 |   |   | $ | 17,725 |   |
|                                                                                      |   |   |   |
| Supplemental disclosure of non-cash investing activities:                                 |   |   |   |
| Fixed assets vouchered but not paid                                                       | $ | 276 |   |   | $ | 209 |   |
|      Fixed assets acquired by capital lease                      | $ | 125 |   |   | $ | — |   |
| Supplemental disclosure of cash flow information:                                         |   |   |   |
| Cash paid during the period for income taxes                                              | $ | 30 |   |   | $ | 20 |   |
|                                                                                      |   |   |   |
|                                                                                      |   |   |   |
| See accompanying notes to consolidated financial statements.                              |   |   |   |

----

----

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |
|                                   |   | For the Three Months Ended March 31, |
|                                   |   | 2011 |   | 2010 |
| Expected life (years)                  |   | 5.4 |   |   | 5.4 |   |
| Expected volatility                    |   | 92.2 | % |   | 92.1 | % |
| Expected dividend yield                |   | — |   |   | — |   |
| Risk-free interest rate                |   | 2.0 | % |   | 2.6 | % |
| Weighted average fair value of options |   |   |   |   |
| granted during the period              |   | $ | 0.54 |   |   | $ | 0.71 |   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | Number of Shares |   | Weighted Average Exercise Price Per Share |   | Weighted Average Remaining Contractual Life (years) |   | Aggregate Intrinsic Value (in thousands) |
| Outstanding balance at December 31, 2010 |   | 6,370,150 |   |   | $ | 2.07 |   |   |   |   |   |
| Granted                                  |   | 150,000 |   |   | 0.74 |   |   |   |   |   |
| Expired                                  |   | (38,650 | ) |   | 9.53 |   |   |   |   |   |
| Forfeitures                              |   | (527,500 | ) |   | 1.01 |   |   |   |   |   |
| Outstanding balance at March 31, 2011    |   | 5,954,000 |   |   | $ | 2.08 |   |   | 6.7 |   | $ | 334 |   |
| Options exercisable at March 31, 2011    |   | 2,678,375 |   |   | $ | 3.54 |   |   | 4.5 |   | $ | 25 |   |

----

|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |  |  |  |  |
|                       |   | Weighted |   |   |   |   |   |   |
|                       |   | Average |   | Gross |   |   |   |   |
|                       |   | Useful Life |   | Carrying |   | Accumulated |   | Net |
| (dollars in thousands)     |   | (years) |   | Amount |   | Amortization |   | Balance |
| At March 31, 2011:         |   |   |   |   |   |   |   |   |
| Customer relationships     |   | 9.7 |   | $12,502 |   | $12,128 |   | $374 |
| Trademarks and trade names |   | 15.7 |   | 487 |   |   | 415 |   |   | 72 |   |
|                       |   |   |   | $12,989 |   | $12,543 |   | $446 |
| At December 31, 2010:      |   |   |   |   |   |   |   |   |
| Customer relationships     |   | 9.7 |   | $12,502 |   | $12,044 |   | $458 |
| Trademarks and trade names |   | 15.7 |   | 487 |   |   | 408 |   |   | 79 |   |
|                       |   |   |   | $12,989 |   | $12,452 |   | $537 |

----

|                      |
|----------------------|
|                      |  |  |  |
| (In millions)        | Charges | 2011 Payments | Balance at March 31, 2011 |
| Severance            | $0.04 | $0.02 | $0.02 |
| Branch closure costs | 0.02 | 0.01 | 0.01 |
|                 | $0.06 | $0.03 | $0.03 |

|               |
|---------------|
|               |  |  |  |
| (In millions) | Balance atDecember 31, 2010 |  2011Payments |  Balance atMarch 31, 2011 |
| Severance     | $0.1 | $0.05 | $0.05 |

|                      |
|----------------------|
|                      |  |  |  |
| (In millions)        | Balance atDecember 31, 2010 |  2011Payments |  Balance atMarch 31, 2011 |
| Branch closure costs | $0.1 | $0.04 | $0.06 |

----

----

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | pay any dividends or distributions on, or  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 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations |

|         |                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Portamedic - performs paramedical and medical examinations of individuals, primarily on behalf of insurance companies in connection with the offering or rating of insurance coverage (mainly life insurance), along with medical examinations of health plan participants in order to provide medical information on plan members to the plan sponsors; |

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

|         |                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Health & Wellness - collects health information via on-site biometric screenings, self-collection laboratory test kits and health risk assessments for health management companies, including wellness companies, disease management organizations and health plans; and |

|         |                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hooper Holmes Services - provides telephone interviews of insurance candidates, retrieval of medical records and inspections; provides risk management solutions and underwriting services for simplified issue products and products requiring full underwriting. |

----

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In early 2011, we instituted sales leadership changes which are expected to positively impact our Portamedic service line.   As noted previously, Anthony Mendicino has been appointed Senior Vice President for Risk Assessment Sales and is responsible for the sale of all products and services to our insurance industry customers.  In addition, we are taking steps to strengthen our national and local sales forces, including recruiting experienced sales leaders and improving sales training. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We are continuing our introduction of iParamed, a new technology platform that improves underwriting accuracy and requires only "one touch" with an applicant.  The iParamed platform delivers a complete, digital case file for any life insurance applicant, sending structured data into our customers' underwriting or workflow systems.  We believe iParamed will help our customers place more business faster, and has the potential to significantly reduce our customers' total cost of underwriting.  As of March 31, 2011, we deployed 680 iParamed-equipped netbooks to our examiners, in 51 Portamedic branch offices in 16 states.  We expect this rollout to continue in 2011. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have implemented operational improvements that have reduced the average amount of time required to complete an insurance exam.  We have extended the weekday hours of operation of Portamedic's Dallas-based Managed Scheduling Center to 11:00 p.m. eastern time, and Saturday until 5:00 p.m.  We developed and introduced Instant Scheduling, a service which is being utilized by many local producers.  As a result of these and other changes, we estimate that Portamedic's average time to schedule and complete an insurance exam is two to four calendar days faster than in 2009, giving Portamedic a speed advantage that is important to local producers. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | 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 IT system for processing customer orders.  As previously disclosed, based on our current project timetable, this system is scheduled for completion during the fourth quarter of 2011 and is now expected to cost $2.6 million, including implementation costs.  We spent approximately $1.6 million as of December 31, 2010, an additional $0.2 million during the first quarter 2011, with the remaining $0.8 million expected to be incurred during the remainder of 2011. We believe this new IT system will enhance the quality of service to our customers, while improving productivity and decreasing future cash outlay. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have introduced new, one-stop services for customers who bring most insurance products to market:  brokers, direct marketing organizations, broker dealers, and producer groups.  Our national service center in Allentown, Pennsylvania now gives these customers a single point of contact for application quality assurance, case management service, application packet processes, and custom work flow processes. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We are developing a new website, integrated with our back end operations, to make it easier for Portamedic customers to enter orders and track order status.  We believe that this website will increase customer satisfaction.  We expect to deploy this new website to our Portamedic customers in the second quarter of 2011, and eventually to extend this website to facilitate the ordering and status of all of our risk assessment services. |

----

|         |                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have successfully completed our second annual SAS70 Type II engagement, a third-party review of our IT processes and procedures for handling customer data.  We believe this review gives customers confidence in our information controls, information security and technology management processes. |

|         |                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | During the first quarter of 2011, Heritage Labs appointed Gurmukh Singh, M.D. as Lab Director.  Heritage Labs also appointed Patricia A. Thomas, M.D. as Assistant Lab Director.  Dr. Singh will oversee the day-to-day pathology-related matters and Dr. Thomas will serve in an advisory capacity with a focus on potential new lab development. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Heritage labs has announced a collaboration with MIB Solutions to help insurers better evaluate excess mortality risk in their book of new business.  By incorporating specifically identified  laboratory results from Heritage Labs, MIB Solutions is able to provide clearer insights into business exceptions and risk concentrations across every risk class to help fine tune underwriting performance.  We believe this will be the first of several collaborative efforts between Heritage Labs and MIB Solutions to help insurers better manage mortality risk, and believe this will lead to increased lab testing business. |

|         |                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We have developed a "risk score" methodology to help our insurance clients better understand the mortality implications between and among interactions of multiple tests related to specific disease states.  We believe that the mortality data we are providing is unique and more complex than the data being provided by our competitors. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | We continue to use sophisticated data modeling to gain a better understanding of the true mortality consequences of the laboratory tests that we provide to the insurance industry.  Our objective has been to assist our clients in their ability to develop new insurance products and establish more accurate premium rating or pricing techniques using the lab mortality data that we have developed.  We believe we will be able to leverage the value of the data we supply to gain new business. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Heritage Labs received a Certificate of Registration on May 28, 2010 and is now an ISO 13485:2003 registered company.  The certification means that Heritage Labs has passed all of the audit requirements and is officially recognized as being a provider of medical devices and related services that consistently meet customer and regulatory requirements.  The certification also means that Heritage Labs has developed, implemented and maintained a quality management system that focuses on providing safe and effective medical devices.  ISO 13485 is currently recognized by the European Union, the United States, Canada, Japan, and Taiwan, among others. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Heritage Labs is marketing a line of self-collected finger stick blood test kits directly to customers which are used to test hemoglobin A1c.  The hemoglobin A1c test is particularly important for diabetics, who should regularly monitor their hemoglobin A1c levels.  Heritage Labs uses two blood testing methods for hemoglobin A1c, one for testing whole blood specimens and the other for testing dried blood spots.  The test kits are currently available in retail locations  nationwide. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Diabetes Know Now!, a health awareness platform to combat diabetes which combines an online risk assessment and at-home diabetes test kit assembled and sold by Heritage Labs.  We believe Diabetes Know Now! is a novel and efficient way to target diabetes screenings.  Diabetes Know Now! improves the efficiency and effectiveness of our customers' programs by only completing blood tests on targeted groups that are at the highest risk for diabetes. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hooper Holmes OnSitesm, a face-to-face, on-premises health coaching service for work locations with any number of employees.  The service is delivered by specially trained Health Champions many of whom are physical therapists, personal trainers and nutritionists.  We believe OnSite is an important addition to our service line because it better enables our customers to deliver behavior change and motivation. |

----

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | 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 and LIMRA (a life insurance industry research organization) which tracks the number of completed life insurance applications; |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | 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. |

----

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |
|   |   (in thousands) |   | For the Three Months Ended March 31, |
|   |   | 2011 |   | 2010 |   | % Change |
|   |   |   |   |   |   |   |   |
|   | Portamedic |   | $ | 28,618 |   |   | $ | 31,114 |   |   | (8.0 | )% |
|   | Heritage Labs |   | 3,631 |   |   | 3,417 |   |   | 6.3 |  % |
|   | Health & Wellness |   | 3,416 |   |   | 2,515 |   |   | 35.8 |  % |
|   | Hooper Holmes Services |   | 5,471 |   |   | 5,442 |   |   | 0.5 |  % |
|   |    Subtotal |   | 41,136 |   |   | 42,488 |   |   |   |
|   | Intercompany eliminations(a) |   | (559 | ) |   | (570 | ) |   |   |
|   |    Total |   | $ | 40,577 |   |   | $ | 41,918 |   |   | (3.2 | )% |

|         |                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | decreased paramedical examinations performed in the first quarter of 2011 of approximately 6.2% as compared to the first quarter of 2010 (333,000 in the first quarter of 2011, or 5,204 per day, vs. 355,000 in the first quarter of 2010, or 5,636 per day); and |

|         |                                                                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | decreased average revenue per paramedical examination in the first quarter of 2011 of approximately 3.3% as compared to the first quarter of 2010 ($85.57 in the first quarter of 2011 vs. $88.49 in the first quarter of 2010). |

----

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | For the Three Months Ended March 31, |   |
| (in thousands)                      |   | 2011 |   | As a % ofRevenue |   | 2010 |   | As a % ofRevenue |   |
| Portamedic/Health & Wellness    |   | $ | 23,709 |   |   | 74.0 | % |   | $ | 24,379 |   |   | 72.5 | % |   |
| Heritage Labs                       |   | 2,346 |   |   | 64.6 | % |   | 2,244 |   |   | 65.7 | % |   |
| Hooper Holmes Services              |   | 4,116 |   |   | 75.2 | % |   | 4,591 |   |   | 84.4 | % |   |
|  Subtotal                      |   | 30,171 |   |   |   |   | 31,214 |   |   |   |   |
| Intercompany eliminations (a)  |   | (563 | ) |   |   |   | (465 | ) |   |   |   |
|      Total |   | $ | 29,608 |   |   | 73.0 | % |   | $ | 30,749 |   |   | 73.4 | % |   |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands)                               |   | For the Three Months Ended March 31, |   | Decrease |   |
|                                         |   | 2011 |   | 2010 |   | 2011 vs. 2010 |   |
| Selling, general and administrative expenses |   | $ | 10,880 |   |   | $ | 11,710 |   |   | $ | 830 |   |   |

|         |                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | accelerated depreciation expense related to the reduction of the estimated useful life of our current customer service order tracking systems totaling $0.4 million; |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | health insurance, workers compensation and employee paid time off accrual totaling $0.2 million; |

|         |                                                                                             |
|---------|---------------------------------------------------------------------------------------------|
| • | Portamedic regional and administrative salaries and related expenses totaling $0.2 million; |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | administrative and sales headcount reductions at Hooper Holmes Services totaling $0.2 million; |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | outside legal fees and in-house legal department salaries totaling $0.1 million; and |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | stock based compensation expense totaling $0.1 million. |

----

|         |                                                     |
|---------|-----------------------------------------------------|
| • | incentive compensation expense of $0.4 million; and |

|         |                                                               |
|---------|---------------------------------------------------------------|
| • | corporate sales and marketing salaries totaling $0.1 million. |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | an increase in accounts receivable of $2.3 million; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | an increase in inventories of $0.2 million; and |

|         |                                       |
|---------|---------------------------------------|
| • | capital expenditures of $0.9 million. |

|         |                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | a net loss of $0.06 million, including non-cash charges of $0.9 million in depreciation and amortization expense and $0.1 million in stock-based compensation expense; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | a decrease in other assets of $0.2 million; and |

----

|         |                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | an increase in accounts payable, accrued expense and other long-term liabilities (including restructuring payments related to employee severance of $0.1 million) of $0.4 million. |

----

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

|         |                                |
|---------|--------------------------------|
| • | incur additional indebtedness; |

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

|         |                             |
|---------|-----------------------------|
| • | create liens on our assets; |

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

|         |                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------|
| • | enter into transactions with any of our affiliates on other than an arm's-length or no less favorable basis. |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | an increase in accounts receivable of  $2.3 million. Our consolidated days sales outstanding (“DSO”), measured on a rolling 90-day basis, was 48 days at March 31, 2011, compared to 40 days at December 31, 2010 and 47 days at March 31, 2010. Historically, our accounts receivable balances and our DSO are at their lowest point in December as many of our customers utilize the remainder of their operating budgets before their year-end budget close-out. Historically, we experience an increase in DSO starting in the first quarter of each year, in comparison to the prior year-end DSO position.  As has historically been the case, we believe our persistent collection efforts will reduce our DSO over the remainder of the year. Our consolidated allowance for doubtful accounts, which includes a reserve for revenue reductions, declined approximately $0.1 million since December 31, 2010, of which approximately $0.09 million was reversed to revenue during the three month period ended March 31, 2011; |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | an increase in accounts payable, accrued expenses and other long-term liabilities of $0.4 million; |

|         |                                                 |
|---------|-------------------------------------------------|
| • | an increase in inventories of $0.2 million; and |

|         |                                             |
|---------|---------------------------------------------|
| • | a decrease in other assets of $0.2 million. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | an increase in accounts receivable of $1.4 million, primarily due to decreased Portamedic cash collections. Our consolidated DSO, measured on a rolling 90-day basis, was 47 days at March 31, 2010, compared to 41 days at December 31, 2009 and 50 days at March 31, 2009. Historically, our accounts receivable balances and our DSO are at their lowest point in December as many of our customers utilize the remainder of their operating budgets before their year-end budget close-out.  Historically, we experience an increase in DSO during the first quarter of each year, in comparison to the prior year-end position.  Our consolidated allowance for doubtful accounts, which includes a reserve for revenue reductions, declined approximately $0.1 million since December 31, 2009, of which $0.1 million was reversed to revenue during the three month period ended March 31, 2010; |

|         |                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------|
| • | an increase in accounts payable, accrued expenses and other long-term liabilities of $0.2 million; and |

|         |                                             |
|---------|---------------------------------------------|
| • | a decrease in other assets of $0.4 million. |

----

----

|        |
|--------|
|        |  |
| 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 | Removed and Reserved |

|        |
|--------|
|        |  |
| 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/ Ransom J. Parker |   |
|   |   | Ransom J. Parker |   |
|   |   | Chief Executive Officer and President(Principal Executive Officer) |   |
|   |   |   |   |
|   |   | By: /s/ Michael J. Shea |   |
|   |   | Michael J. Shea |   |
|   |   | Senior Vice President and Chief Financial Officer(Principal Financial and Accounting Officer) |   |