----

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

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

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

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

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

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

----

|           |                                   |                                                                                               | Page No. |
|----------------|----------------------------------------|----------------------------------------------------------------------------------------------------|----------|
| PART I – | Financial      Information (unaudited) |                                                                                               |
|           |                                   |                                                                                               |     |
|           | ITEM      1 –                    | Financial      Statements                                                                          |     |
|           |                                   |                                                                                               |     |
|           |                                   | Consolidated      Balance Sheets as of March 31, 2009 and December 31, 2008                        | 1        |
|           |                                   |                                                                                               |     |
|           |                                   | Consolidated      Statements of Operations for the Three Months Ended March 31, 2009 and      2008 | 2        |
|           |                                   |                                                                                               |     |
|           |                                   | Consolidated      Statements of Cash Flows for the Three Months Ended March 31, 2009 and      2008 | 3        |
|           |                                   |                                                                                               |     |
|           |                                   | Notes      to Unaudited Consolidated Financial Statements                                          | 4-15     |
|           |                                   |                                                                                               |     |
|           | ITEM      2 –                    | Management's      Discussion and Analysis of Financial Condition and Results of      Operations    | 15-28    |
|           |                                   |                                                                                               |     |
|           | ITEM      3 –                    | Quantitative      and Qualitative Disclosures About Market Risk                                    | 28       |
|           |                                   |                                                                                               |     |
|           | ITEM      4 –                    | Controls      and Procedures                                                                       | 28       |
|           |                                   |                                                                                               |     |
| PART II– | Other      Information                 |                                                                                               |
|           |                                   |                                                                                               |
|           | ITEM      1 –                    | Legal      Proceedings                                                                             | 29       |
|           |                                   |                                                                                               |     |
|           | ITEM      1A –                   | Risk      Factors                                                                                  | 30       |
|           |                                   |                                                                                               |     |
|           | ITEM      2 –                    | Unregistered      Sales of Equity Securities and Use of Proceeds                                   | 30       |
|           |                                   |                                                                                               |     |
|           | ITEM      3 –                    | Defaults      upon Senior Securities                                                               | 30       |
|           |                                   |                                                                                               |     |
|           | ITEM      4 –                    | Submission      of Matters to a Vote of Security Holders                                           | 30       |
|           |                                   |                                                                                               |     |
|           | ITEM      5 –                    | Other      Information                                                                             | 30       |
|           |                                   |                                                                                               |     |
|           | ITEM      6 –                    | Exhibits                                                                                           | 30       |
|           |                                   |                                                                                               |     |
|           |                                   | Signatures                                                                                         | 31       |

----

|                                                                                                                                                                            |   |               |     |   |                  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-----------------------|--------|
|                                                                                                                                                                            |   | March      31,2009 |     |   | December      31,2008 |   |
| ASSETS      (Note 9)                                                                                                                                                            |   |               |     |   |                  |   |
| Current      assets:                                                                                                                                                            |   |               |     |   |                  |   |
| Cash      and cash equivalents                                                                                                                                                  |   | $                  | 10,202   |   |                  | $      | 11,547 |   |
| Accounts      receivable, net of allowance for doubtful accounts of $2,680 and $3,036 at      March 31, 2009 and December 31, 2008, respectively                                |   |               | 26,139   |   |                  |   | 25,366 |   |
| Inventories                                                                                                                                                                     |   |               | 2,472    |   |                  |   | 2,865 |   |
| Income      tax receivable                                                                                                                                                      |   |               | 25       |   |                  |   | 31 |   |
| Other      current assets                                                                                                                                                       |   |               | 2,847    |   |                  |   | 2,325 |   |
| Total      current assets                                                                                                                                                  |   |               | 41,685   |   |                  |   | 42,134 |   |
|                                                                                                                                                                            |   |               |     |   |                  |   |   |   |
| Property,      plant and equipment at cost                                                                                                                                      |   |               | 44,920   |   |                  |   | 44,736 |   |
| Less:      Accumulated depreciation and amortization                                                                                                                            |   |               | 30,424   |   |                  |   | 29,395 |   |
| Property,      plant and equipment, net                                                                                                                                         |   |               | 14,496   |   |                  |   | 15,341 |   |
|                                                                                                                                                                            |   |               |     |   |                  |   |   |   |
| Intangible      assets, net                                                                                                                                                     |   |               | 1,320    |   |                  |   | 1,429 |   |
| Other      assets                                                                                                                                                               |   |               | 395      |   |                  |   | 365 |   |
| Total      assets                                                                                                                                                     |   | $                  | 57,896   |   |                  | $      | 59,269 |   |
|                                                                                                                                                                            |   |               |     |   |                  |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’      EQUITY                                                                                                                            |   |               |     |   |                  |   |   |   |
| Current      liabilities:                                                                                                                                                       |   |               |     |   |                  |   |   |   |
| Accounts      payable                                                                                                                                                           |   | $                  | 6,901    |   |                  | $      | 6,701 |   |
| Accrued      expenses                                                                                                                                                           |   |               | 11,677   |   |                  |   | 11,452 |   |
| Total      current liabilities                                                                                                                                             |   |               | 18,578   |   |                  |   | 18,153 |   |
| Other      long-term liabilities                                                                                                                                                |   |               | 186      |   |                  |   | 348 |   |
| Commitments      and Contingencies (Note 10)                                                                                                                                    |   |               |     |   |                  |   |   |   |
|                                                                                                                                                                            |   |               |     |   |                  |   |   |   |
| Stockholders’      Equity:                                                                                                                                                |   |               |     |   |                  |   |   |   |
| Common      stock, par value $.04 per share; authorized 240,000,000 shares,      issued  68,683,982  shares as of March 31, 2009 and      December 31, 2008 |   |               | 2,747    |   |                  |   | 2,747 |   |
| Additional      paid-in capital                                                                                                                                                 |   |               | 147,001  |   |                  |   | 146,846 |   |
| Accumulated      deficit                                                                                                                                                   |   |               | (110,545 | )      |                  |   | (108,754 | ) |
|                                                                                                                                                                            |   |               | 39,203   |   |                  |   | 40,839 |   |
| Less:      Treasury stock, at cost 9,395 shares as of  March 31, 2009 and      December 31, 2008                                                                      |   |               | (71      | )      |                  |   | (71 | ) |
| Total      stockholders’      equity                                                                                                                                      |   |               | 39,132   |   |                  |   | 40,768 |   |
| Total      liabilities and stockholders' equity                                                                                                                                 |   | $                  | 57,896   |   |                  | $      | 59,269 |   |
|                                                                                                                                                                            |   |               |     |   |                  |   |   |   |
| See      accompanying notes to consolidated financial statements.                                                                                                               |   |               |     |   |                  |

----

|                                                              |   | Three      Months ended March 31, |       |
|-------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                              |   | 2009                              |       |   | 2008 |   |
| Revenues                                                          |   | $                                 | 47,435     |   |   | $ | 52,379 |   |
| Cost      of operations                                           |   |                              | 35,039     |   |   |   | 38,142 |   |
|  Gross      profit                                           |   |                              | 12,396     |   |   |   | 14,237 |   |
| Selling,      general and administrative expenses                 |   |                              | 13,832     |   |   |   | 13,336 |   |
| Restructuring      and other charges                         |   |                              | 188        |   |   |   | 1,653 |   |
|  Operating      loss from continuing operations              |   |                              | (1,624     | ) |   |   | (752 | ) |
| Other      income (expense):                                      |   |                              |       |   |   |   |   |   |
| Interest      income                                              |   |                              | 24         |   |   |   | 73 |   |
| Other      expense, net                                           |   |                              | (133       | ) |   |   | (56 | ) |
|                                                              |   |                              | (109       | ) |   |   | 17 |   |
| Loss      from continuing operations before income taxes          |   |                              | (1,733     | ) |   |   | (735 | ) |
|                                                              |   |                              |       |   |   |   |   |   |
| Income      tax expense (benefit)                                 |   |                              | 17         |   |   |   | (51 | ) |
|                                                              |   |                              |       |   |   |   |   |   |
| Loss      from continuing operations                              |   |                              | (1,750     | ) |   |   | (684 | ) |
|                                                              |   |                              |       |   |   |   |   |   |
| Discontinued      operations:                                     |   |                              |       |   |   |   |   |   |
| Income      from discontinued operations, net of income tax       |   |                              | -          |   |   |   | 86 |   |
| Loss      on sale of subsidiary                                   |   |                              | (41        | ) |   |   | - |   |
|                                                              |   |                              | (41        | ) |   |   | 86 |   |
| Net      loss                                                     |   | $                                 | (1,791     | ) |   | $ | (598 | ) |
| Basic      and diluted earnings (loss) per share:                 |   |                              |       |   |   |   |   |   |
| Continuing      operations                                        |   |                              |       |   |   |   |   |   |
| Basic                                                             |   | $                                 | (0.03      | ) |   | $ | (0.01 | ) |
| Diluted                                                           |   |                              | (0.03      | ) |   |   | (0.01 | ) |
| Discontinued      operations                                      |   |                              |       |   |   |   |   |   |
| Basic                                                             |   | $                                 | -          |   |   | $ | - |   |
| Diluted                                                           |   |                              | -          |   |   |   | - |   |
| Net      loss                                                     |   |                              |       |   |   |   |   |   |
| Basic                                                             |   | $                                 | (0.03      | ) |   | $ | (0.01 | ) |
| Diluted                                                           |   |                              | (0.03      | ) |   |   | (0.01 | ) |
|                                                              |   |                              |       |   |   |   |   |   |
| Weighted      average number of shares:                           |   |                              |       |   |   |   |   |   |
| Basic      and diluted                                            |   |                              | 68,674,587 |   |   |   | 68,634,587 |   |
|                                                              |   |                              |       |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements. |   |                              |       |   |   |   |   |   |

----

|                                                                                                      |   | Three      Months ended March 31, |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                                      |   | 2009                                   |   |   | 2008 |   |
| Cash      flows from operating activities:                                                                |   |                                   |   |   |   |   |
| Net      loss                                                                                             |   | $                                      | (1,791 | ) |   | $ | (598 | ) |
| (Loss)      income from discontinued operations, net of taxes                                             |   |                                   | (41    | ) |   |   | 86 |   |
| Loss      from continuing operations                                                                      |   |                                   | (1,750 | ) |   |   | (684 | ) |
| Adjustments      to reconcile loss from continuing operations to net cash provided      by                |   |                                   |   |   |   |   |   |   |
| (used      in) operating activities of continuing operations:                                             |   |                                   |   |   |   |   |   |   |
| Depreciation                                                                                              |   |                                   | 1,724  |   |   |   | 758 |   |
| Amortization                                                                                              |   |                                   | 109    |   |   |   | 270 |   |
| Provision      for bad debt expense                                                                       |   |                                   | 17     |   |   |   | 46 |   |
| Share-based      compensation expense                                                                     |   |                                   | 155    |   |   |   | 7 |   |
| Loss      on disposal of fixed assets                                                                     |   |                                   | 66     |   |   |   | 39 |   |
| Change      in assets and liabilities, net of effect                                                      |   |                                   |   |   |   |   |   |   |
|  from      disposition of business:                                                                  |   |                                   |   |   |   |   |   |   |
| Accounts      receivable                                                                                  |   |                                   | (790   | ) |   |   | (3,467 | ) |
| Inventories                                                                                               |   |                                   | 393    |   |   |   | 87 |   |
| Other      assets                                                                                         |   |                                   | (456   | ) |   |   | (391 | ) |
| Income      tax receivable                                                                                |   |                                   | 6      |   |   |   | (42 | ) |
| Accounts      payable, accrued expenses and other long-term liabilities                                   |   |                                   | 679    |   |   |   | (1,204 | ) |
|          Net cash provided by (used) in operating activities of continuing      operations |   |                                   | 153    |   |   |   | (4,581 | ) |
| Net      cash provided by operating activities of discontinued      operations                            |   |                                   | -      |   |   |   | 648 |   |
| Net      cash provided by (used in) operating activities                                                  |   |                                   | 153    |   |   |   | (3,933 | ) |
|                                                                                                      |   |                                   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                |   |                                   |   |   |   |   |   |   |
| Capital      expenditures                                                                                 |   |                                   | (1,403 | ) |   |   | (1,387 | ) |
|          Net cash used in investing activities of continuing    operations                 |   |                                   | (1,403 | ) |   |   | (1,387 | ) |
|          Net cash provided by investing activities of discontinued      operations         |   |                                   | 83     |   |   |   | - |   |
| Net      cash used in investing activities                                                                |   |                                   | (1,320 | ) |   |   | (1,387 | ) |
|                                                                                                      |   |                                   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                |   |                                   |   |   |   |   |   |   |
| Debt      financing fees                                                                                  |   |                                   | (178   | ) |   |   | - |   |
| Net      cash used in financing activities of continuing operations                                       |   |                                   | (178   | ) |   |   | - |   |
| Net      cash used in financing activities of discontinued    operations                                  |   |                                   | -      |   |   |   | - |   |
| Net      cash used in financing activities                                                                |   |                                   | (178   | ) |   |   | - |   |
|                                                                                                      |   |                                   |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                            |   |                                   | (1,345 | ) |   |   | (5,320 | ) |
| Cash      and cash equivalents at beginning of period                                                     |   |                                   | 11,547 |   |   |   | 11,267 |   |
| Cash      and cash equivalents at end of period                                                           |   | $                                      | 10,202 |   |   | $ | 5,947 |   |
|                                                                                                      |   |                                   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash investing activities:                                            |   |                                   |   |   |   |   |   |   |
| Fixed      assets vouchered but not paid                                                                  |   | $                                      | 198    |   |   | $ | 614 |   |
| Supplemental      disclosure of cash flow information:                                                    |   |                                   |   |   |   |   |   |   |
| Cash      paid during the period for:                                                                     |   |                                   |   |   |   |   |   |   |
| Income      taxes                                                                                         |   |                                   | -      |   |   | $ | 6 |   |
|                                                                                                      |   |                                   |   |   |   |   |   |   |
| See      accompanying notes to consolidated financial statements.                                         |   |                                   |   |   |   |   |   |   |

----

----

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

| Note      3: | Earnings      (Loss) Per Share |
|--------------|--------------------------------|

----

|                                        |   | For      the three months ended March 31, |   |
|---------------------------------------------|--------|-------------------------------------------|--------|
|                                        |   | 2009                                      |   |
| Expected      life (years)                  |   |                                      | 5.54   |   |
| Expected      volatility                    |   |                                      | 65.9   | % |
| Expected      dividend yield                |   |                                      | -      |   |
| Risk-free      interest rate                |   |                                      | 1.67   | % |
| Weighted      average fair value of options |   |                                      |   |   |
| granted      during the period              |   | $                                         | 0.13   |   |

----

|                                          |   |                  |      |   |                                       |   |   |                                                 |   |   |                                       |   |
|-----------------------------------------------|--------|-----------------------|-----------|--------|--------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                          |   | Number      of Shares |      |   | WeightedAverageExercisePrice      PerShare |   |   | WeightedAverageRemainingContractualLife      (years) |   |   | AggregateIntrinsicValue(in      thousands) |   |
| Outstanding      balance at December 31, 2008 |   |                  | 6,309,000 |   |                                       | $      | 3.52   |                                                 |   |   |                                       |   |   |   |
| Granted                                       |   |                  | 75,000    |   |                                       | $      | 0.22   |                                                 |   |   |                                       |   |   |   |
| Exercised                                     |   |                  | -         |   |                                       |   | -      |                                                 |   |   |                                       |   |   |   |
| Cancelled                                     |   |                  | (99,200   | )      |                                       |   | 3.60   |                                                 |   |   |                                       |   |   |   |
| Forfeitures                                   |   |                  | (340,000  | )      |                                       |   | 2.76   |                                                 |   |   |                                       |   |   |   |
| Outstanding      balance at March 31, 2009    |   |                  | 5,944,800 |   |                                       | $      | 3.52   |                                                 |   |   | 6.8                                        |   |   | $ | 41 |   |
| Options      exercisable at March 31, 2009    |   |                  | 2,577,925 |   |                                       | $      | 6.22   |                                                 |   |   | 4.0                                        |   |   |   | - |   |

----

|                    |   | Three      Months Ended March 31, 2008 |   |
|-------------------------|--------|----------------------------------------|--------|
| (in      thousands)     |   |                                   |   |
| Revenues                |   | $                                      | 6,717  |   |
| Pre-tax      income     |   | $                                      | 97     |   |
| Income      tax expense |   | $                                      | 11     |   |

----

| (in      thousands)             |   | Weighted Average Useful      Life(years) |   |   | Gross CarryingAmount |   |   | Amortization |   |   | Balance |   |
|---------------------------------|--------|----------------------------------------------------|--------|--------|---------------------------|--------|--------|--------------|--------|--------|---------|--------|
| At      March 31, 2009:         |   |                                               |   |   |                      |   |   |         |   |   |    |   |
| Non-Competition      agreements |   |                                               | 4.7    |   |                      | $      | 8,738  |         |   | $      | 8,738   |   |   | $ | - |   |
| Customer      relationships     |   |                                               | 9.7    |   |                      |   | 12,502 |         |   |   | 11,307  |   |   |   | 1,195 |   |
| Trademarks      and tradenames  |   |                                               | 15.7   |   |                      |   | 487    |         |   |   | 362     |   |   |   | 125 |   |
|                            |   |                                               |   |   |                      | $      | 21,727 |         |   | $      | 20,407  |   |   | $ | 1,320 |   |
| At      December 31, 2008:      |   |                                               |   |   |                      |   |   |         |   |   |    |   |   |   |   |   |
| Non-Competition      agreements |   |                                               | 4.7    |   |                      | $      | 8,738  |         |   | $      | 8,735   |   |   | $ | 3 |   |
| Customer      relationships     |   |                                               | 9.7    |   |                      |   | 12,502 |         |   |   | 11,207  |   |   |   | 1,295 |   |
| Trademarks      and tradenames  |   |                                               | 15.7   |   |                      |   | 487    |         |   |   | 356     |   |   |   | 131 |   |
|                            |   |                                               |   |   |                      | $      | 21,727 |         |   | $      | 20,298  |   |   | $ | 1,429 |   |

----

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

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

----

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

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

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

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

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

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

----

----

----

----

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

----

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

| ·   | Infolink – conducts      telephone interviews of individuals seeking life insurance coverage, and      retrieves the medical records of such individuals, to gather much of the      medical information needed in connection with the application      process; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| ·   | Underwriting Solutions –      provides risk management solutions and underwriting services to      reinsurance companies and insurance carriers in the life, health and      annuity insurance industry. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

| ·   | In      early 2009, we engaged Leerink Swann, a healthcare strategic advisor, to      assess the short and long term strategy of the Company, including      assistance in creating new sources of revenue in adjacent markets (such as      healthcare) by utilizing existing core capabilities in each of our      business units, including Portamedic/Infolink.  Leerink Swann      will also assist the Company in expanding the range of offerings in our      Health & Wellness and Heritage Labs businesses, with a specific focus      on high value opportunities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      expect to continue to expand managed scheduling across the Portamedic      business.  Currently, many of our examiners schedule their own      appointments with applicants, and it may take six to seven days to      schedule an examination.  In those markets where we have      introduced managed scheduling, we have reduced the time required to      schedule an examination to as little as three to four  days. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

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

| ·   | Heritage      Labs has increased its sales force, including the hiring of an individual      with significant experience in the life insurance industry to a      newly-created position of VP of Sales. In addition, Heritage Labs hired a      Medical Director to better serve our clients with lab and mortality      related issues.  This reflects our strategy to deliver research      and statistical analyses to improve our customers’ underwriting      performance. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

|   | · | the      average revenue per paramedicalexamination; |
|--------|--------|------------------------------------------------------|

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

----

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

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

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

|   | · | the      number of specimens tested by HeritageLabs; |
|--------|--------|------------------------------------------------------|

|   | · | the      average revenue per specimentested; |
|--------|--------|----------------------------------------------|

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

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

| (in      thousands)               |   | For      the Three Months Ended March 31, |   |
|-----------------------------------|--------|-------------------------------------------|--------|
|                              |   | 2009                                      |   |   | 2008 |   |   | %      Change |   |
|                              |   |                                      |   |   |   |   |   |   |   |
| Portamedic                        |   | $                                         | 35,024 |   |   | $ | 37,343 |   |   |   | -6.2 | % |
| Infolink                          |   |                                      | 4,972  |   |   |   | 6,620 |   |   |   | -24.9 | % |
| Heritage      Labs                |   |                                      | 3,970  |   |   |   | 4,455 |   |   |   | -10.9 | % |
| Health      and Wellness          |   |                                      | 2,374  |   |   |   | 1,887 |   |   |   | 25.8 | % |
| Underwriting      Solutions       |   |                                      | 1,805  |   |   |   | 2,925 |   |   |   | -38.3 | % |
|    Subtotal        |   |                                      | 48,145 |   |   |   | 53,230 |   |   |   | - |   |
| Intercompany      eliminations(a) |   |                                      | (710   | ) |   |   | (851 | ) |   |   | - |   |
|    Total           |   | $                                         | 47,435 |   |   | $ | 52,379 |   |   |   | -9.4 | % |

| ·   | fewer      paramedical examinations performed per day in the first quarter 2009      (396,000 in the first quarter 2009, or 6,281 per day vs. 444,000 in the      first quarter of 2008, or 6,937 perday); |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | higher      average revenue per paramedical examination in the first quarter of      2009 of approximately 4% ($89.94 in the first quarter of 2009 vs.      $86.20 in the first quarter of2008). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Infolink |
|--------|----------|

----

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

| (in      thousands)                     |   | For      the three months ended March 31, |   |
|-----------------------------------------|--------|-------------------------------------------|--------|
|                                    |   |                                      |   |   | As      a % of |   |   |   |   |   | As      a % of |   |
|                                    |   | 2009                                      |   |   | Revenues |   |   | 2008 |   |   | Revenues |   |
| Portamedic/Infolink/      H&W       |   | $                                         | 31,398 |   |   |   | 74.1 | % |   | $ | 34,119 |   |   |   | 74.4 | % |
| Heritage      Labs                      |   |                                      | 2,490  |   |   |   | 62.7 | % |   |   | 2,731 |   |   |   | 61.3 | % |
| Underwriting      Solutions             |   |                                      | 1,861  |   |   |   | 103.1 | % |   |   | 2,143 |   |   |   | 73.3 | % |
|  Subtotal                          |   |                                      | 35,749 |   |   |   | - |   |   |   | 38,993 |   |   |   | - |   |
| Intercompany      eliminations      (a) |   |                                      | (710   | ) |   |   | - |   |   |   | (851 | ) |   |   | - |   |
|      Total     |   | $                                         | 35,039 |   |   |   | 73.9 | % |   | $ | 38,142 |   |   |   | 72.8 | % |

| (in      thousands)                               |   | For      the three months endedMarch      31, |   |   | Increase |   |
|---------------------------------------------------|--------|-----------------------------------------------|--------|--------|----------|--------|
|                                              |   | 2009                                          |   |   | 2008     |   |   | 2009      vs. 2008 |   |
| Selling,      general and administrative expenses |   | $                                             | 13,832 |   |     | $      | 13,336 |   |   |   | 3.7 | % |

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

|   | · | increased      consulting costs associated with retaining the services of a strategic      advisor totaling $0.3 million; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | costs      associated with the move of Heritage Labs to its new facility in the first      quarter of 2009, totaling $0.2 million;and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased      branch ordering systems maintenance and support fees totaling $0.2      million. |
|--------|--------|-------------------------------------------------------------------------------------------------|

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

|   | · | reduced      legal and general insurance costs totaling $0.3  million; |
|--------|--------|------------------------------------------------------------------------|

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

----

|   | · | reduced      incentive compensation expense totaling $0.4  million. |
|--------|--------|---------------------------------------------------------------------|

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

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

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

|   | Operating      Loss from Continuing Operations |
|--------|------------------------------------------------|

|   | Loss      from Continuing Operations |
|--------|--------------------------------------|

----

| ·   | restructuring      payments related to employee severance totaling $0.2    million; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | capital      expenditures of $1.4 million; and |
|--------------------|------------------------------------------------|

| ·   | an      increase in accounts receivable of $0.8million. |
|--------------------|---------------------------------------------------------|

| ·   | a      decrease in inventory of $0.4 million;and |
|--------------------|--------------------------------------------------|

| ·   | an      increase in accounts payable, accrued expenses and other long-term      liabilities of $0.7 million. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

----

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

|   | · | an increase      in accounts receivable of $0.8 million, primarily due to decreased      Portamedic cash collections.  Our consolidated days sales      outstanding (DSO), measured on a rolling 90-day basis was 50 days at March      31, 2009, compared to 48 days at December 31, 2008 and 51 days at March      31, 2008.  Historically, our accounts receivable balances and      our DSO are at their lowest point in December as many of our customers      utilize the remainder of their operating budgets before their year-end      budget close-out.  Our      DSO change from December 31, 2008 to March 31, 2009 increased 2 days      compared to 5 days for the same period of the prior year.  Our      increased collection efforts continued into the first quarter of 2009 and      we have reduced the first quarter increases in DSO which we historically      experience; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | an increase      in accounts payable, accrued expenses and other long-term liabilities of      $0.7 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | an increase      in accounts receivable of $3.5 million, primarily due to a reduction in      Portamedic cash collections during the first quarter of 2008, a trend      historically experienced by the Company.  Our DSO, measured on a      rolling 90-day basis was 51 days at March 31, 2008, compared to 46 days at      December 31, 2007; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      decrease in accounts payable, accrued expenses and other long-term      liabilities of $1.2 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

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

----

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

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

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

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

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

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

----

| ITEM      3 | Quantitative      and Qualitative Disclosures About MarketRisk |
|-------------|----------------------------------------------------------------|

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

----

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

----

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

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

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

| ITEM      4 | Submission      of Matters to a Vote of SecurityHolders |
|-------------|---------------------------------------------------------|

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

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

| Exhibit No. |   | Description of Exhibit                                                                                                                                                                                                            |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                              |
| 10.1        |   | Loan      and Security Agreement between Hooper Holmes, Inc. and TD Bank, N.A.,      dated March 9, 2009 (incorporated by reference to Exhibit 10.1 of the      Company’s Current Report on Form 8-K dated March 13,  2009) |
|        |   |                                                                                                                                                                                                                              |
| 31.1        |   | Certification      of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities      Exchange Act of 1934.                                                                                                          |
|        |   |                                                                                                                                                                                                                              |
| 31.2        |   | Certification      of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities      Exchange Act of 1934.                                                                                                          |
|        |   |                                                                                                                                                                                                                              |
| 32.1        |   | Certification      of Chief Executive Officer pursuant to Rule 13a-14(b) under the Securities      Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                               |
|        |   |                                                                                                                                                                                                                              |
| 32.2        |   | Certification      of Chief Financial Officer pursuant to Rule 13a-14(b) under the Securities      Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                               |
|        |   |                                                                                                                                                                                                                              |
|        |   |                                                                                                                                                                                                                              |

----

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

----