**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-Q**

**ý**
**               Quarterly Report Under Section 13 or 15(d)**

**of        the Securities Exchange Act of 1934**

**for        the quarterly period ended March 31, 2007**

**or**

**o**
**               Transition Report pursuant to Section 13 or 15(d)**

**of        the Securities Exchange Act of 1934**

**for        the transition period from         to        **

**Commission        File Number 0-9972**

**HOOPER        HOLMES, INC**
**.**

| **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) |

**        (908) 766-5000**

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

| Large                  Accelerated Filer o |   | Accelerated                  Filer ý |   | Non-accelerated                  Filer o |
|--------------------------------------------|--------|-------------------------------------------|--------|------------------------------------------|

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

----

**HOOPER        HOLMES, INC. AND SUBSIDIARIES**

**INDEX**

|                                            |                                               |                                                                                                                                        | Page                  No. |
|-------------------------------------------------|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|
| **PART                  I**                  -  | Financial                  Information (unaudited) |                                                                                                                                        |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | ITEM                  1 -                          | Financial                  Statements                                                                                                       |                      |
|                                            |                                               |                                                                                                                                        |                      |
|                                            |                                               | Consolidated                  Balance Sheets as of March 31, 2007 and December 31, 2006                                                     | 1                         |
|                                            |                                               |                                                                                                                                        |                      |
|                                            |                                               | Consolidated                  Statements of Operations for the Three Months Ended March 31, 2007                  and                  2006 | 2                         |
|                                            |                                               |                                                                                                                                        |                      |
|                                            |                                               | Consolidated                  Statements of Cash Flows for the Three Months Ended March 31, 2007                  and                  2006 | 3                         |
|                                            |                                               |                                                                                                                                        |                      |
|                                            |                                               | Notes                  to Unaudited Consolidated Financial Statements                                                                       | 4-14                      |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | ITEM                  2 -                          | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations                     | 15-29                     |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | ITEM                  3 -                          | Quantitative                  and Qualitative Disclosures About Market Risk                                                                 | 30                        |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | ITEM                  4 -                          | Controls                  and Procedures                                                                                                    | 31                        |
|                                            |                                               |                                                                                                                                        |                      |
| **PART                  II**                  - | Other                  Information                 |                                                                                                                                        |
|                                            |                                               |                                                                                                                                        |
|                                            | ITEM                  1 -                          | Legal                  Proceedings                                                                                                          | 32                        |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | ITEM                  1A -                         | Risk                  Factors                                                                                                               | 33                        |
|                                            |                                               |                                                                                                                                        |                      |
|                                            | 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                                                                                                                                    | 33                        |
|                                            |                                               |                                                                                                                                        |                      |
|                                            |                                               | Signatures                                                                                                                                  | 34                        |

----

**Consolidated        Balance Sheets**

|                                                                                                                                                                                                                                                          |   | **March                  31,****2007** |    |  **December                  31,****2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                          |   |                                   |    |
| **ASSETS                  (Note 10)**                                                                                                                                                                                                                         |   |                                   |    |                                            |   |   |   |
| Current                  Assets:                                                                                                                                                                                                                              |   |                                   |    |                                            |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                    |   | $                                      | 329     |                                            | $      | 7,941 |   |
| Accounts                  receivable, net                                                                                                                                                                                                                     |   |                                   | 42,089  |                                            |   | 37,584 |   |
| Income                  tax receivable                                                                                                                                                                                                                        |   |                                   | 3,189   |                                            |   | 3,209 |   |
| Other                  current assets                                                                                                                                                                                                                         |   |                                   | 5,908   |                                            |   | 5,139 |   |
| Total                  current assets                                                                                                                                                                                                                         |   |                                   | 51,515  |                                            |   | 53,873 |   |
| Property,                  plant and equipment at cost                                                                                                                                                                                                        |   |                                   | 47,278  |                                            |   | 46,425 |   |
| Less:                  Accumulated depreciation and amortization                                                                                                                                                                                              |   |                                   | 31,338  |                                            |   | 30,586 |   |
| Property,                  plant and equipment, net                                                                                                                                                                                                           |   |                                   | 15,940  |                                            |   | 15,839 |   |
|                                                                                                                                                                                                                                                          |   |                                   |    |                                            |   |   |   |
| Goodwill                                                                                                                                                                                                                                                      |   |                                   | 5,702   |                                            |   | 5,702 |   |
| Intangible                  assets, net                                                                                                                                                                                                                       |   |                                   | 8,210   |                                            |   | 8,721 |   |
| Deferred                  income taxes                                                                                                                                                                                                                        |   |                                   | 312     |                                            |   | 310 |   |
| Other                  assets                                                                                                                                                                                                                                 |   |                                   | 461     |                                            |   | 570 |   |
| Total                  assets                                                                                                                                                                                                                                 |   | $                                      | 82,140  |                                            | $      | 85,015 |   |
|                                                                                                                                                                                                                                                          |   |                                   |    |                                            |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                     |   |                                   |    |                                            |   |   |   |
| Current                  liabilities:                                                                                                                                                                                                                         |   |                                   |    |                                            |   |   |   |
| Accounts                  payable                                                                                                                                                                                                                             |   | $                                      | 11,354  |                                            | $      | 13,294 |   |
| Accrued                  expenses                                                                                                                                                                                                                             |   |                                   | 21,554  |                                            |   | 20,961 |   |
| Total                  current liabilities                                                                                                                                                                                                                    |   |                                   | 32,908  |                                            |   | 34,255 |   |
| Other                  long-term liabilities                                                                                                                                                                                                                  |   |                                   | 1,131   |                                            |   | 2,332 |   |
| Commitments                  and Contingencies                                                                                                                                                                                                                |   |                                   |    |                                            |   |   |   |
|                                                                                                                                                                                                                                                          |   |                                   |    |                                            |   |   |   |
| Stockholders’                  Equity:                                                                                                                                                                                                                  |   |                                   |    |                                            |   |   |   |
| Common                  stock, par value $.04 per share; authorized 240,000,000 shares,                  issued                  68,464,474 and 67,933,274 shares as of March 31, 2007 and December                  31,                  2006, respectively. |   |                                   | 2,739   |                                            |   | 2,717 |   |
| Additional                  paid-in capital                                                                                                                                                                                                                   |   |                                   | 116,778 |                                            |   | 115,465 |   |
| Accumulated                  other comprehensive income                                                                                                                                                                                                       |   |                                   | 1,565   |                                            |   | 1,550 |   |
| Accumulated                  deficit                                                                                                                                                                                                                          |   |                                   | (72,910 | )                                               |   | (71,233 | ) |
|                                                                                                                                                                                                                                                          |   |                                   | 48,172  |                                            |   | 48,499 |   |
| Less:                  Treasury stock, at cost 9,395 shares as of March 31, 2007 and December                  31,                  2006                                                                                                                      |   |                                   | 71      |                                            |   | 71 |   |
| Total                  stockholders' equity                                                                                                                                                                                                                   |   |                                   | 48,101  |                                            |   | 48,428 |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                   |   | $                                      | 82,140  |                                            | $      | 85,015 |   |
|                                                                                                                                                                                                                                                          |
| *See                  accompanying notes to consolidated financial statements*.                                                                                                                                                                               |

----

**Consolidated        Statements of Operations**

|                                                                                      |   | Three                  Months ended March 31,  |       |
|-------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|
|                                                                                      |   | 2007                                           |       | 2006  |   |
| Revenues                                                                             |   | $                                                   | 72,498     |   | $ | 76,802 |   |
| Cost                  of operations                                                  |   |                                                | 53,939     |   |   | 58,702 |   |
| Gross                  profit                                                        |   |                                                | 18,559     |   |   | 18,100 |   |
| Selling,                  general and administrative expenses                        |   |                                                | 19,484     |   |   | 18,959 |   |
| Restructuring                  and other charges                                     |   |                                                | 513        |   |   | 1,269 |   |
| Operating                  loss                                                      |   |                                                | (1,438     | ) |   | (2,128 | ) |
| Other                  income (expense):                                             |   |                                                |       |   |   |   |   |
| Interest                  expense                                                    |   |                                                | (89        | ) |   | (88 | ) |
| Interest                  income                                                     |   |                                                | 22         |   |   | 38 |   |
| Other                  expense, net                                                  |   |                                                | (99        | ) |   | (116 | ) |
|                                                                                      |   |                                                | (166       | ) |   | (166 | ) |
| Loss                  before income taxes                                            |   |                                                | (1,604     | ) |   | (2,294 | ) |
| Income                  tax provision                  (benefit)                     |   |                                                | 73         |   |   | (943 | ) |
| Net                  loss                                                            |   | $                                                   | (1,677     | ) | $ | (1,351 | ) |
| Loss                  per share:                                                     |   |                                                |       |   |   |   |   |
| Basic                                                                                |   | $                                                   | (0.02      | ) | $ | (0.02 | ) |
| Diluted                                                                              |   | $                                                   | (0.02      | ) | $ | (0.02 | ) |
| Weighted                  average number                  of shares — basic    |   |                                                | 68,061,631 |   |   | 66,196,745 |   |
| Weighted                  average number                  of shares — diluted  |   |                                                | 68,061,631 |   |   | 66,196,745 |   |

*See        accompanying notes to consolidated financial statements.*

----

**Consolidated        Statements of Cash Flows**

|                                                                                                            |   | Three                  Months ended March 31, |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                                                            |   | 2007                                          |   | 2006 |   |
| **Cash                  flows from operating activities:**                                                      |   |                                          |   |   |   |   |   |
| Net                  loss                                                                                       |   | $                                             | (1,677 | ) | $ | (1,351 | ) |
| Adjustments                  to reconcile net loss to net cashused                  in operating activities:    |   |                                          |   |   |   |   |   |
| Depreciation                                                                                                    |   |                                          | 1,020  |   |   | 898 |   |
| Amortization                                                                                                    |   |                                          | 519    |   |   | 735 |   |
| Provision                  for bad debt expense                                                                 |   |                                          | 625    |   |   | 78 |   |
| Deferred                  income taxes                                                                          |   |                                          | -      |   |   | 820 |   |
| Share                  based compensation expense                                                               |   |                                          | 115    |   |   | 7 |   |
| Loss                  on sale of fixed assets                                                                   |   |                                          | 39     |   |   | 49 |   |
| Change                  in assets and liabilities, net of effect from acquisition of                  business: |   |                                          |   |   |   |   |   |
| Accounts                  receivable                                                                            |   |                                          | (5,093 | ) |   | (2,010 | ) |
| Other                  assets                                                                                   |   |                                          | (659   | ) |   | (656 | ) |
| Income                  tax receivable                                                                          |   |                                          | 20     |   |   | (1,896 | ) |
| Accounts                  payable, accrued expenses and other long-term liabilities                             |   |                                          | (2,581 | ) |   | 873 |   |
| **Net                  cash used in operating activities**                                                      |   |                                          | (7,672 | ) |   | (2,453 | ) |
|                                                                                                            |   |                                          |   |   |   |   |   |
| **Cash                  flows from investing activities:**                                                      |   |                                          |   |   |   |   |   |
| Redemptions                  of marketable securities                                                           |   |                                          | -      |   |   | 97 |   |
| Business                  acquisition, net of cash acquired                                                     |   |                                          | -      |   |   | (1,413 | ) |
| Capital                  expenditures                                                                           |   |                                          | (1,154 | ) |   | (1,627 | ) |
| **Net                  cash used in investing activities**                                                      |   |                                          | (1,154 | ) |   | (2,943 | ) |
|                                                                                                            |   |                                          |   |   |   |   |   |
| **Cash                  flows from financing activities:**                                                      |   |                                          |   |   |   |   |   |
| Borrowing                  under revolving credit facility                                                      |   |                                          | 2,000  |   |   | - |   |
| Payments                  on revolving credit facility                                                          |   |                                          | (2,000 | ) |   | - |   |
| Principal                  payments on long-term debt                                                           |   |                                          | -      |   |   | (1,000 | ) |
| Proceeds                  related to the exercise of stock options                                              |   |                                          | 1,220  |   |   | 81 |   |
| Excess                  tax benefits on stock option exercises                                                  |   |                                          | -      |   |   | 23 |   |
| **Net                  cash provided by (used in) in financing                  activities**                    |   |                                          | 1,220  |   |   | (896 | ) |
| Effect                  of exchange rate changes on cash                                                        |   |                                          | (6     | ) |   | 34 |   |
|                                                                                                            |   |                                          |   |   |   |   |   |
| **Net                  decrease in cash and cash equivalents**                                                  |   |                                          | (7,612 | ) |   | (6,258 | ) |
| **Cash                  and cash equivalents at beginning of period**                                           |   |                                          | 7,941  |   |   | 11,683 |   |
| **Cash                  and cash equivalents at end of period**                                                 |   | $                                             | 329    |   | $ | 5,425 |   |
| Supplemental                  disclosure of non-cash investing activity:                                        |   |                                          |   |   |   |   |   |
| Change                  in net unrealized gain on marketable securities                                         |   |                                          | -      |   | $ | 1 |   |
| Supplemental                  disclosure of cash flow information:                                              |   |                                          |   |   |   |   |   |
| Cash                  paid during the period for:                                                               |   |                                          |   |   |   |   |   |
| Interest                                                                                                        |   | $                                             | 121    |   | $ | 25 |   |
| Income                  taxes                                                                                   |   | $                                             | 68     |   | $ | 129 |   |

*See        accompanying notes to consolidated financial statements.*

----

**HOOPER        HOLMES, INC.**

**Notes        to Unaudited Consolidated Financial Statements**

**Note        1**
**:        Basis of Presentation**

| **Note                  2:** | **Liquidity** |
|------------------------------|---------------|

| ·   | restructuring                payments related to employee severance and branch office closure                costs                totaling $0.9 million; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | capital                expenditures of $1.2 million; |
|--------------------|------------------------------------------------------|
| ·   | an                increase in accounts receivable of $5.1 million;                and |
|--------------------|---------------------------------------------------------------------------------------|

----

| ·   | payment                of a contract cancellation fee totaling $0.5                million |
|--------------------|--------------------------------------------------------------------------------------------|

| **Note                  3:** | **Earnings                  Per Share** |
|------------------------------|-----------------------------------------|

**Note        4: **
**Share-Based        Compensation**

*Stock        Option Plans*

----

*Stock        Purchase Plan*

*Stock        Awards*

|                                                                              | Three                  Months ended March 31, 2006 |
|-----------------------------------------------------------------------------------|----------------------------------------------------|
| Expected                  life (years)                                            | 6.75                                               |
| Expected                  volatility                                              | 45.79%                                             |
| Expected                  dividend yield                                          | 0%                                                 |
| Risk-free                  interest rate                                          | 4.39%                                              |
| Weighted                  average fair value of options granted during the period | $                  1.79                            |

----

|  * (in                  thousands, except share and per share amounts)*   | Shares    | Weighted                  Average Exercise Price Per Share | Weighted                  Average Remaining Contractual Life (years) | Aggregate                  Intrinsic Value |
|-----------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------|----------------------------------------------------------------------|--------------------------------------------|
|                                                                                          |      |                                                       |                                                                 |                                       |   |   |   |
| Outstanding                  Balance, December 31, 2006                                       |      | 6,052,700                                                  | $                  5.58                                              |                                       |   |
| Granted                                                                                       |      |                                                       |                                                                 | -                                          | - |   |   |
| Exercised                                                                                     |      |                                                       | (531,200)                                                            | 2.30                                       |   |   |
| Cancelled                                                                                     |      |                                                       | (247,600)                                                            | 6.69                                       |   |   |
| Forfeitures                                                                                   |      |                                                       | (20,000)                                                             | 2.86                                       |   |   |
| Outstanding                  Balance, March 31, 2007                                          |      | 5,253,900                                                  | $                  5.87                                              | 4.7                                        | $                  2,183 |
|                                                                                          |      |                                                       |                                                                 |                                       |   |   |   |
| Options                  exercisable - March 31, 2007                                         | 4,026,400 | $                  6.75                                    | 4.7                                                                  | $                  382                     |

**Note        **
**5:        Goodwill and Intangibles**

***Goodwill***

----

***Intangibles***

|                                                |   | Weighted                     |   |     |   |         |   |    |   |
|-----------------------------------------------------|--------|------------------------------|--------|----------|--------|--------------|--------|---------|--------|
|                                                |   | Average                      |   | Gross    |   |         |   |    |   |
|                                                |   | Useful                  Life |   | Carrying |   | Accumulated  |   | Net     |   |
| *(in                  thousands)*              |   | (years)                      |   | Amount   |   | Amortization |   | Balance |   |
| At                  March                  31, 2007 |   |                         |   |     |   |         |   |    |   |   |   |   |   |
| Non-Competition                  agreements         |   |                         | 4.5    |     | $      | 9,277        |   | $       | 8,969  |   | $ | 308 |   |
| Customer                  relationships             |   |                         | 9.4    |     |   | 16,033       |   |    | 10,671 |   |   | 5,362 |   |
| Contractor                  network                 |   |                         | 7.0    |     |   | 5,700        |   |    | 5,700  |   |   | 0 |   |
| Trademarks                  and tradenames          |   |                         | 10.8   |     |   | 3,214        |   |    | 674    |   |   | 2,540 |   |
|                                                |   |                         |   |     | $      | 34,224       |   | $       | 26,014 |   | $ | 8,210 |   |
| At                  December 31, 2006               |   |                         |   |     |   |         |   |    |   |   |   |   |   |
| Non-Competition                  agreements         |   |                         | 4.5    |     | $      | 9,277        |   | $       | 8,863  |   | $ | 414 |   |
| Customer                  relationships             |   |                         | 9.4    |     |   | 16,033       |   |    | 10,332 |   |   | 5,701 |   |
| Contractor                  network                 |   |                         | 7.0    |     |   | 5,700        |   |    | 5,700  |   |   | 0 |   |
| Trademarks                  and tradenames          |   |                         | 10.8   |     |   | 3,214        |   |    | 608    |   |   | 2,606 |   |
|                                                |   |                         |   |     |   |         |   |    |   |   |   |   |   |
|                                                |   |                         |   |     | $      | 34,224       |   | $       | 25,503 |   | $ | 8,721 |   |

**Note        **
**6:        Acquisitions **

|                                                                     |   |   |   | Weighted                  Average |   |
|--------------------------------------------------------------------------|--------|--------|--------|-----------------------------------|--------|
|                                                                     |   | Amount |   | Useful                  Life      |   |
| Current                  assets                                          |   | $      | 301    |                              |   |   |   |
| Intangible                  assets (customer relationship and tradename) |   |   | 882    |                              |   | 9.2                  years |   |
| Goodwill                                                                 |   |   | 598    |                              |   |   |   |
| Current                  liabilities                                     |   |   | (674   | )                                 |   |   |   |
| Total                                                                    |   | $      | 1,107  |                              |   |   |   |

----

**Acquisition        - Related Payments:**

** **

|                                     | 2006                   |   |
|------------------------------------------|------------------------|--------|
| Allegiance                  Health, Inc. | $                  56  | (a)    |
| Medimax,                  Inc.           | 250                    | (b)    |
| Total                                    | $                  306 |   |

| (a)                  - | Represents                  additional purchase price recorded in 2005 to reimburse the seller                  for                  certain tax consequences of the                  acquisition. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)                  - | Represents                  additional consideration that was recorded as additional purchase                  price in                  2004 upon the achievement of certain performance                  criteria. |
|------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note        **
**7:        Operating Segments**

|                                                      |   | Three                  Months Ended |   | Three                  Months Ended |   |
|-----------------------------------------------------------|--------|-------------------------------------|--------|-------------------------------------|--------|
| *(In                  thousands)*                         |   | March                  31, 2007     |   | March                  31, 2006     |   |
|                                                      |   | HID                                 |   | CED                                 |   | Total |   | HID |   | CED |   | Total |   |
| Revenues                                                  |   | $                                   | 64,592 |                                | $      | 7,906 |   | $ | 72,498 |   | $ | 68,558 |   | $ | 8,244 |   | $ | 76,802 |   |
| Depreciation                  and amortization            |   |                                | 1,349  |                                |   | 190 |   |   | 1,539 |   |   | 1,464 |   |   | 169 |   |   | 1,633 |   |
| Operating                  income                  (loss) |   |                                | (1,986 | )                                   |   | 548 |   |   | (1,438 | ) |   | (2,319 | ) |   | 191 |   |   | (2,128 | ) |
| Capital                  expenditures                     |   |                                | 1,140  |                                |   | 14 |   |   | 1,154 |   |   | 1,626 |   |   | 1 |   |   | 1,627 |   |
| Total                  assets                             |   | $                                   | 68,892 |                                | $      | 13,247 |   | $ | 82,140 |   | $ | 133,113 |   | $ | 28,494 |   | $ | 161,607 |   |

----

**Note        **
**8:        Comprehensive Income (Loss)**

| *(In**thousands)*                                                           |   |                                                  |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                        |   | For                  the three months ended March 31, |   |
|                                                                        |   | 2007                                                  |   | 2006 |   |
| Net                  loss                                                   |   | $                                                     | (1,677 | ) | $ | (1,351 | ) |
| Other                  comprehensive income:                                |   |                                                  |   |   |   |   |   |
| Unrealized                  holding gains arising during period, net of tax |   |                                                  | -      |   |   | 1 |   |
| Net                  unrealized gain on securities, net of tax              |   |                                                  | -      |   |   | 1 |   |
| Foreign                  currency translation                               |   |                                                  | 15     |   |   | 161 |   |
| Total                  comprehensive loss                                   |   | $                                                     | (1,662 | ) | $ | (1,189 | ) |

**Note        9: Restructuring and Other Charges**

|                               |   | Three                  Months Ended |   |                        |   |
|------------------------------------|--------|-------------------------------------|--------|-----------------------------|--------|
| *(In                  millions)*   |   | March                  31, 2007     |   | Balance                  at |   |
| Charges                            |   |                                |   |                        |   | Payments |   |   | March                  31, 2007 |   |
| Severance                          |   | $                                   | 0.4    |                        | $      | (0.1 | ) | $ | 0.3 |   |
| Lease                  Obligations |   |                                | 0.1    |                        |   | (0.1 | ) |   | - |   |
| Total                              |   | $                                   | 0.5    |                        | $      | (0.2 | ) | $ | 0.3 |   |

| ·   | restructuring                charges totaling $2.3 million; |
|--------------------|-------------------------------------------------------------|
| ·   | a                contract cancellation fee related to early termination of a software                resale agreement totaling $0.5 million; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                fee payable to outside consultants of $5.6 million based on the results                of                the cost saving opportunities identified in the Company’s 2006 strategic                review; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                litigation settlement charge of $1.2 million related to a lawsuit                filed                against the Company (See Note 11); and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | outside                legal and audit fees of $0.9 million associated with the restatement                of                the Company’s 2004 and 2005 consolidated financial                statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *(In                  millions)*   |   | Balance                  at        |   | 2007     |   | Balance                  at     |   |
|------------------------------------|--------|------------------------------------|--------|----------|--------|---------------------------------|--------|
|                               |   | December                  31, 2006 |   | Payments |   | March                  31, 2007 |   |
| Severance                          |   | $                                  | 0.3    |     | $      | (0.2                            | )      | $ | 0.1 |   |
| Lease                  Obligations |   |                               | 0.5    |     |   | (0.3                            | )      |   | 0.2 |   |
| Total                              |   | $                                  | 0.8    |     | $      | (0.5                            | )      | $ | 0.3 |   |

|  *(In                  millions)*             |   |  Balance                  atDecember                  31, 2006 |   |  2007Payments |   |  Balance                  atMarch                  31, 2007 |   |
|----------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------------------|--------|------------------------------------------------------------------|--------|
| Severance\Lease                  Obligations - HID |   | $                                                                   | 0.7    |               | $      | (0.2                                                             | )      | $ | 0.5 |   |
| Total                                              |   | $                                                                   | 0.7    |               | $      | (0.2                                                             | )      | $ | 0.5 |   |

**Note        **
**10:        **
**Revolving        Credit Facility**

|   | (i) | 90%                  of “Eligible Receivables” (as that term is defined in the Loan and                  Security Agreement) of the Company and the Company’s subsidiaries                  providing guarantees of the indebtedness under the facility;                  plus |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | 65%                  of the fair market value of the Company’s corporate headquarters located                  in Basking Ridge, New Jersey - |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

**Note        11: Commitments and Contingencies**

**Note        1**
**2:        Income Taxes**

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

----

*Accounting        for Uncertainty in Income Taxes, an Interpretation of FASB Statement No.        109*
*Definition        of Settlement in FASB Interpretation 48*

|   |   | State                  income tax returns for the year 2002 and forward are subject to                  examination. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

**Note        1**
**3:        Recently Issued Accounting Standards**

**Note        1**
**4        — Related Party Transaction**

----

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

**Cautionary        Statement Regarding Forward-Looking Statements**

|   | · | our                  ability to implement the strategic plans in connection with management’s                  strategic review of all aspects of the Company’s operations completed in                  September 2006; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                  ability to effect several expense management initiatives, including                  (i)                  aligning our costs with existing, and possibly continued declining                  levels                  of revenues, (ii) making better use of our assets, particularly                  our branch                  offices and branch office personnel within our Portamedic paramedical                  examination business, and (iii) generating cost efficiencies through                  an                  enhanced information technology platform and realizing the anticipated                  cost savings from such initiatives; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                  ability to finance our operations: |
|--------|--------|---------------------------------------------------------|

|   | · | our                  ability to reverse the decline in revenues and profitability we                  are                  experiencing in each of our two                  divisions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                  success in generating additional operating income from new revenue                  initiatives; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | our                  meeting or exceeding our customers’ expectations with respect to the                  quality and timeliness of our services on a consistent                  basis; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                  ability to enhance and expand our technology and network                  infrastructure; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | our                  ability to leverage our core capabilities to generate revenues                  in the                  wellness and disease management markets;                  and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our                  ability to anticipate key trends and developments affecting our                  businesses, and proactively position ourselves to seize opportunities                  presented by these trends and                  developments. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Overview**

***Business        Description***

**Health        Information Division (HID)**

|   | · | arranging                  paramedical and medical examinations of individual insurance policy                  applicants - mainly life insurance policy applicants - throughout                  the                  United States (under the Portamedic brand name) and in the United                  Kingdom                  (under the Medicals Direct brand                  name); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | performing                  telephone interviews of applicants and collecting applicants’ medical                  records; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | testing                  the blood, urine and other specimens obtained in connection with                  a portion                  of the paramedical examinations we coordinate, as well as specimens                  provided by third-party health information service providers;                  and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | underwriting                  life insurance policies on an outsourced basis for life insurance                  companies. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

**Claims        Evaluation Division (CED)**

***Financial        Results and Business Summary for the First Quarter Ended March 31,        2007***

----

| ·   | Getting                on the list of approved outside risk assessment service providers                of the                national offices of two large insurance carriers with respect to                our                Portamedic paramedical exam and Heritage Labs specimen testing                businesses |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Increasing                our field sales teams to secure revenue orders that are generated                locally                by agents |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Introducing                new field sales incentive plans, along with new, dedicated field                sales                leadership |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Heritage                Labs entering into contracts with new insurance company customers                from                which we expect to derive annual revenue of $1.0                million |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Entering                into a contract with a wellness and disease management customer to                provide                lab specimen collection kits from which we expect to derive annual                revenue                of $0.3 million |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Our                Underwriting Solutions business (formerly “MAAS”) entering into four new                contracts from which we expect to derive annual revenue of over $1.0                million |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Status        of Our Strategic Review and Turnaround Program*

*Expense        Management*

----

*Revenue        Enhancement*

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

|   | · | seeking                  opportunities to grow and expand our current services by delivering                  new                  and increased value to our customers. The life insurance market                  in the                  United States continues to decline based on the reduction in individual                  life insurance application activity. In order to stabilize and                  ultimately                  grow our Portamedic market share in a declining market, we need                  to deliver                  higher levels of service, speed and quality, which we believe are                  critical                  metrics to our customers’ success; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increasing                  the number of local sales and marketing people calling upon local                  insurance agents in our Portamedic business. While we have national                  contracts with a large number of leading insurance carriers, the                  majority                  of our Portamedic business is generated locally through our branch                  offices                  and the local insurance agents and brokers they serve. We are also                  increasing the sales force in our other businesses, including Heritage                  Labs, Underwriting Solutions and the Claims Evaluation Division.                  In                  addition, sales incentive plans have been implemented in 2007 for                  all                  sales personnel of the Company; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | introducing                  new products and services which address the critical business needs                  of new                  and existing customers and, as a result, provide additional revenue                  opportunities for our Company; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | obtaining                  price increases from customers in response to improved service                  levels                  provided by the Company, along with charging for ancillary services                  not                  currently charged for, but in conformance with industry standards                  (e.g.                  cancellation fees, etc.). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Growth        Investment*

----

**Key        Factors and Industry Trends Affecting Our Businesses**

***Health        Information Division***

*Decline        in Life Insurance Application Activity*

----

*Pricing        Pressure from Life Insurance Carriers*

***Claims        Evaluation Division***

*Contraction        of the Outsourced Claims Management Market in the United        States*

|   | · | the                  decrease in manufacturing employment levels in the United States                  and the                  associated decline in the rates of workplace injuries and, in turn,                  workers’ compensation claims; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                  reported decline in the number of people injured in automobile                  accidents                  in the United States; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes                  in state laws and regulations that, in general, encourage the use                  of                  managed care techniques in handling workers’ compensation and                  automobile-related personal injury insurance claims. Managed care                  laws                  generally channel claimants into provider networks and suggest                  treatment                  protocols and other constraints on the activity of the physician                  practitioners in such networks. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Key        Financial and Other Metrics Monitored by Management**

*Health        Information Division*

|   | · | the                  MIB Life Index data, which, as discussed previously, serves as                  a proxy for                  the level of life insurance application activity and indirectly                  serves to                  give us a sense of changes in our market                  share; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                  number of paramedical examinations and screenings performed by                  Portamedic                  and Medicals Direct, respectively; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

|   | · | 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. |
|--------|--------|-----------------------------------------------------------|

*        Claims Evaluation Division*

|   | · | the                  number of incoming cases by client and by insurance                  adjuster; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | time                  of service, which measures the time to complete a claim, from receipt                  to                  issuing a report; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | budget                  to actual financial performance, including customer and product                  line                  profitability. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

**Results        of Operations**

***Comparative        Discussion and Analysis of Results of Operations for the three months ended        March 31, 2007 and March 31, 2006, respectively***

*Revenues        by Component Businesses and Reporting Segments*

| *(in                  thousands)*            |   | For                  the Three Months Ended March 31, |   |
|----------------------------------------------|--------|-------------------------------------------------------|--------|
|                                         |   |  2007                                            |   |  2006 |   |  %                  Change |   |
|                                         |   |                                                  |   |   |   |   |   |
| HID                                          |   |                                                  |   |   |   |   |   |   |   |   |
| Portamedic                                   |   | $                                                     | 39,593 |   | $ | 42,614 |   |   | -7.1 | % |
| Infolink                                     |   |                                                  | 6,909  |   |   | 8,039 |   |   | -14.1 | % |
| Medicals                  Direct Group (MDG) |   |                                                  | 9,704  |   |   | 9,528 |   |   | 1.8 | % |
| Other                                        |   |                                                  | 8,386  |   |   | 8,377 |   |   | 0.1 | % |
| Total                  HID                   |   |                                                  | 64,592 |   |   | 68,558 |   |   | -5.6 | % |
| CED                                          |   |                                                  | 7,906  |   |   | 8,244 |   |   | -4.1 | % |
| Total                                        |   | $                                                     | 72,498 |   | $ | 76,802 |   |   | -5.6 | % |

***Revenues***

*Health        Information Division*

*Portamedic*

----

*Infolink*

*Medicals        Direct Group*

*Other*

----

*Claims        Evaluation Division*

| ·   | a                reduction in peer reviews in New York State, which we believe reflects                increased cost consciousness on the part of property and casualty                insurance carriers, self-insureds and third-party administrators                and the                perception that such reviews have been of limited value in litigating                claims; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                decrease in the number of independent medical exams (IMEs) ordered                by our                customers when evaluating a claim; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | a                decrease in the number of claims referred to the division by its                existing                customer base. The Company has recently hired additional salespersons                to                expand our customer base, while offering several new                products/services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Cost        of Operations***

|                                  |   | For                  the three months ended March 31, |   |
|---------------------------------------|--------|-------------------------------------------------------|--------|
|                                  |   |                                                  |   | As                  a % of |   |   |   | As                  a % of |   |
| *(in                  thousands)*     |   | 2007                                                  |   | Revenues |   | 2006 |   | Revenues |   |
| HID                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Portamedic/                  Infolink |   | $                                                     | 35,594 |   |   | 76.5 | % | $ | 40,291 |   |   | 79.5 | % |
| Medicals                  Direct      |   |                                                  | 7,345  |   |   | 75.7 | % |   | 7,197 |   |   | 75.5 | % |
| Other                                 |   |                                                  | 5,337  |   |   | 63.7 | % |   | 5,175 |   |   | 61.8 | % |
| Total                  HID            |   |                                                  | 48,276 |   |   | 74.7 | % |   | 52,663 |   |   | 76.8 | % |
|                                  |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| CED                                   |   |                                                  | 5,663  |   |   | 71.6 | % |   | 6,039 |   |   | 73.3 | % |
| Total                                 |   | $                                                     | 53,939 |   |   | 74.4 | % | $ | 58,702 |   |   | 76.4 | % |

----

*Health        Information Division*

|   | · | a                  decline in revenues in our Portamedic, Infolink and Heritage Labs                  businesses, |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | reduced                  branch operating expenses and fewer branch offices resulting from                  the                  Company’s continued restructuring of the Portamedic organization,                  and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                  higher average revenue per Portamedic                  examination |
|--------|--------|-----------------------------------------------------------------------------------------|

*Claims        Evaluation Division*

***Selling,        General and Administrative Expenses***

| *(in                  thousands)* |   | For                  the three months ended March 31, |   | Change                  Increase (Decrease) |   |
|-----------------------------------|--------|-------------------------------------------------------|--------|---------------------------------------------|--------|
|                              |   | 2007                                                  |   | 2006                                        |   | 2007                  vs. 2006 |   |
| HID                               |   | $                                                     | 17,789 |                                        | $      | 16,874 |   | $ | 915 |   |
| CED                               |   |                                                  | 1,695  |                                        |   | 2,085 |   |   | (390 | ) |
| Total                             |   | $                                                     | 19,484 |                                        | $      | 18,959 |   | $ | 525 |   |

----

*Health        Information Division*

|   | · | increased                  depreciation expense totaling approximately $0.1 million, resulting                  from                  our new branch and financial operating systems; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | additional                  2007 expenses totaling $0.1 million attributable to bank fees related                  to                  our credit facility and expenses associated with the completion                  of our                  strategic review; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased                  bad debt expense associated with the Company’s review of the                  collectability of certain accounts receivable of approximately                  $0.6                  million; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased                  costs at Heritage Labs associated with the hiring of additional                  administration personnel, sales personnel and increased leased                  lab                  equipment charges totaling $0.2 million |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Claims        Evaluation Division*

***Restructuring        and Other Charges***

***Operating        Income (Loss)***

*Health        Information Division.*

*Claims        Evaluation Division.*

----

***Income        Taxes***

***Net        Loss***

***Liquidity        and Financial Resources***

| ·   | restructuring                payments related to employee severance and branch office closure                costs                totaling $0.9 million; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | capital                expenditures of $1.2 million; |
|--------------------|------------------------------------------------------|
| ·   | an                increase in accounts receivable of $5.1 million;                and |
|--------------------|---------------------------------------------------------------------------------------|
| ·   | payment                of a contract cancellation fee totaling $0.5                million |
|--------------------|--------------------------------------------------------------------------------------------|

----

***Cash        Flows from Operating Activities***

|   | · | an                  increase in accounts receivable of $5.1 million, primarily due                  to a                  reduction in Portamedic cash collections during the first quarter                  of the                  year, a trend historically experienced by the Company. Consolidated                  days                  sales outstanding (DSO), measured on a rolling 90-day basis was                  52 days at                  March 31, 2007, compared to 48 days at December 31, 2006, and 51                  days at                  March 31, 2006, and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                  decrease in accounts payable and accrued expenses of $2.6 million, |
|--------|--------|---------------------------------------------------------------------------------------|

***Cash        Flows used in Investing Activities***

***Cash        Flows used in Financing Activities***

**Our        Credit Facility**

----

**Off-Balance        Sheet Arrangements**

**Share        Repurchases**

**Dividends**

**Contractual        Obligations **

**Inflation**

**Critical        Accounting Policies**

----

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

----

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

**(a)        Evaluation of Disclosure Controls and Procedures**

**(b)        Changes in Internal Control over Financial Reporting**

----

**PART        II - Other Information**

| **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** |
|-----------------------------|-------------------------------------------------------------------------------------------|

| **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. |

----

**SIGNATURES**

|   |   | By:                  /s/                  James D. Calver          |   |
|--------|--------|--------------------------------------------------------------------|--------|
|   |   | James                  D. Calver                                   |   |
|   |   | Chief                  Executive Officer and President             |   |
|   |   |                                                               |   |
|   |   |                                                               |   |
|   |   |                                                               |   |
|   |   | By:                  /s/                  Michael J. Shea          |   |
|   |   | Michael                  J. Shea                                   |   |
|   |   | Senior                  Vice President and Chief Financial Officer |   |

----