----

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

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

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

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

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

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

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|            |                              |                                                                                            | Page No. |
|-----------------|-----------------------------------|-------------------------------------------------------------------------------------------------|----------|
| PART I –  | Financial Information (unaudited) |                                                                                            |
|            |                              |                                                                                            |     |
|            | ITEM 1 –                    | Financial Statements                                                                            |     |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Balance Sheets as of June 30, 2010 and December 31, 2009                           | 1        |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2010 and 2009 | 2        |
|            |                              |                                                                                            |     |
|            |                              | Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2010 and 2009           | 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                                                                         | 30       |
|            |                              |                                                                                            |     |
| PART II – | Other Information                 |                                                                                            |
|            |                              |                                                                                            |
|            | ITEM 1 –                    | Legal Proceedings                                                                               | 30-31    |
|            |                              |                                                                                            |     |
|            | ITEM 1A –                   | Risk Factors                                                                                    | 31       |
|            |                              |                                                                                            |     |
|            | ITEM 2 –                    | Unregistered Sales of Equity Securities and Use of Proceeds                                     | 31       |
|            |                              |                                                                                            |     |
|            | ITEM 3 –                    | Defaults upon Senior Securities                                                                 | 31       |
|            |                              |                                                                                            |     |
|            | ITEM 4 –                    | Removed and Reserved                                                                            | 31       |
|            |                              |                                                                                            |     |
|            | ITEM 5 –                    | Other Information                                                                               | 32       |
|            |                              |                                                                                            |     |
|            | ITEM 6 –                    | Exhibits                                                                                        | 32       |
|            |                              |                                                                                            |     |
|            |                              | Signatures                                                                                      | 33       |

----

|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                           |   | June 30,2010 |     |   | December 31,2009 |   |
| ASSETS (Note 10)                                                                                                                                                                                                                                                                                                                                               |   |         |     |   |             |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                |   |         |     |   |             |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                      |   | $            | 19,459   |   |             | $      | 16,495 |   |
| Accounts receivable, net of allowance for doubtful accounts of $1,080 and $1,237 at June 30, 2010 and December 31, 2009, respectively                                                                                                                                                                                                                          |   |         | 20,107   |   |             |   | 20,365 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                    |   |         | 2,444    |   |             |   | 2,750 |   |
| Income tax receivable                                                                                                                                                                                                                                                                                                                                          |   |         | 18       |   |             |   | 1,479 |   |
| Other current assets                                                                                                                                                                                                                                                                                                                                           |   |         | 1,660    |   |             |   | 2,816 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                      |   |         | 43,688   |   |             |   | 43,905 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Property, plant and equipment at cost                                                                                                                                                                                                                                                                                                                          |   |         | 47,648   |   |             |   | 45,739 |   |
| Less: Accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                |   |         | 36,800   |   |             |   | 34,184 |   |
| Property, plant and equipment, net                                                                                                                                                                                                                                                                                                                             |   |         | 10,848   |   |             |   | 11,555 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                                         |   |         | 726      |   |             |   | 932 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                   |   |         | 293      |   |             |   | 310 |   |
| Total assets                                                                                                                                                                                                                                                                                                                                         |   | $            | 55,555   |   |             | $      | 56,702 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                     |   |         |     |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                               |   | $            | 5,273    |   |             | $      | 5,167 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                                               |   |         | 6,538    |   |             |   | 8,636 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                 |   |         | 11,811   |   |             |   | 13,803 |   |
| Other long-term liabilities                                                                                                                                                                                                                                                                                                                                    |   |         | 1,261    |   |             |   | 1,473 |   |
| Commitments and Contingencies (Note 11)                                                                                                                                                                                                                                                                                                                        |   |         |     |   |             |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| Stockholders’ Equity:                                                                                                                                                                                                                                                                                                                                    |   |         |     |   |             |   |   |   |
| Common stock, par value $.04 per share; authorized 240,000,000 shares, issued  69,598,982 shares and 68,713,982  shares as of June 30, 2010 and December 31, 2009, respectively. Outstanding: 69,589,587 shares        and 68,704,587 shares at June 30, 2010 and December 31, 2009, respectively. |   |         | 2,784    |   |             |   | 2,748 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                     |   |         | 148,010  |   |             |   | 147,507 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                       |   |         | (108,240 | )      |             |   | (108,758 | ) |
|                                                                                                                                                                                                                                                                                                                                                           |   |         | 42,554   |   |             |   | 41,497 |   |
| Less: Treasury stock, at cost; 9,395 shares as of  June 30, 2010 and December 31, 2009                                                                                                                                                                                                                                                               |   |         | (71      | )      |             |   | (71 | ) |
| Total stockholders’ equity                                                                                                                                                                                                                                                                                                                               |   |         | 42,483   |   |             |   | 41,426 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                                                                                                                                                                     |   | $            | 55,555   |   |             | $      | 56,702 |   |
|                                                                                                                                                                                                                                                                                                                                                           |   |         |     |   |             |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                                                                                                                                                                                                                                                   |   |         |     |   |             |

----

|                                                         |   | Three Months endedJune 30, |       |   | Six Months endedJune 30, |   |
|--------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                                         |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                     |   | $                          | 40,714     |   |                     | $      | 46,212 |   |   | $ | 82,632 |   |   | $ | 93,647 |   |
| Cost of operations                                           |   |                       | 29,940     |   |                     |   | 33,292 |   |   |   | 60,689 |   |   |   | 68,331 |   |
|  Gross profit                                           |   |                       | 10,774     |   |                     |   | 12,920 |   |   |   | 21,943 |   |   |   | 25,316 |   |
| Selling, general and administrative expenses                 |   |                       | 10,975     |   |                     |   | 12,661 |   |   |   | 22,685 |   |   |   | 26,493 |   |
| Restructuring and other charges                         |   |                       | 131        |   |                     |   | 690 |   |   |   | 239 |   |   |   | 878 |   |
|  Operating loss from continuing operations              |   |                       | (332       | )      |                     |   | (431 | ) |   |   | (981 | ) |   |   | (2,055 | ) |
| Other income (expense):                                      |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                             |   |                       | (3         | )      |                     |   | (1 | ) |   |   | (6 | ) |   |   | (1 | ) |
| Interest income                                              |   |                       | 27         |   |                     |   | 20 |   |   |   | 77 |   |   |   | 44 |   |
| Other income (expense), net                                  |   |                       | 1,543      |   |                     |   | (68 | ) |   |   | 1,455 |   |   |   | (201 | ) |
|                                                         |   |                       | 1,567      |   |                     |   | (49 | ) |   |   | 1,526 |   |   |   | (158 | ) |
| Income (loss) from continuing operations before income taxes |   |                       | 1,235      |   |                     |   | (480 | ) |   |   | 545 |   |   |   | (2,213 | ) |
|                                                         |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                                           |   |                       | 13         |   |                     |   | 21 |   |   |   | 27 |   |   |   | 38 |   |
|                                                         |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                     |   |                       | 1,222      |   |                     |   | (501 | ) |   |   | 518 |   |   |   | (2,251 | ) |
|                                                         |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations:                                     |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Loss on sale of subsidiary                                   |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | (41 | ) |
|                                                         |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | (41 | ) |
| Net income (loss)                                            |   | $                          | 1,222      |   |                     | $      | (501 | ) |   | $ | 518 |   |   | $ | (2,292 | ) |
| Basic and diluted income (loss) per share:                   |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Continuing operations                                        |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                          | 0.02       |   |                     | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
| Diluted                                                      |   |                       | 0.02       |   |                     |   | (0.01 | ) |   |   | 0.01 |   |   |   | (0.03 | ) |
| Discontinued operations                                      |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                          | -          |   |                     | $      | - |   |   | $ | - |   |   | $ | - |   |
| Diluted                                                      |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | - |   |
| Net income (loss)                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $                          | 0.02       |   |                     | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
| Diluted                                                      |   |                       | 0.02       |   |                     |   | (0.01 | ) |   |   | 0.01 |   |   |   | (0.03 | ) |
|                                                         |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares:                           |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                        |   |                       | 69,566,125 |   |                     |   | 68,684,477 |   |   |   | 69,283,316 |   |   |   | 68,679,559 |   |
| Diluted                                                      |   |                       | 69,988,628 |   |                     |   | 68,684,477 |   |   |   | 69,955,901 |   |   |   | 68,679,559 |   |
|                                                         |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                           |   | Six Months ended June 30, |   |
|--------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                           |   | 2010                           |   |   | 2009 |   |
| Cash flows from operating activities:                                          |   |                           |   |   |   |   |
| Net income (loss)                                                              |   | $                              | 518    |   |   | $ | (2,292 | ) |
| Loss from discontinued operations, net of income taxes                         |   |                           | -      |   |   |   | (41 | ) |
| Income (loss) from continuing operations                                       |   |                           | 518    |   |   |   | (2,251 | ) |
| Adjustments to reconcile income (loss) from continuing operations to net cash  |   |                           |   |   |   |   |   |   |
| provided by operating activities of continuing operations:                     |   |                           |   |   |   |   |   |   |
| Depreciation                                                                   |   |                           | 2,677  |   |   |   | 3,561 |   |
| Amortization                                                                   |   |                           | 206    |   |   |   | 289 |   |
| Provision for bad debt expense                                                 |   |                           | 108    |   |   |   | 34 |   |
| Share-based compensation expense                                               |   |                           | 387    |   |   |   | 304 |   |
| Loss on disposal of fixed assets                                               |   |                           | 9      |   |   |   | 147 |   |
| Change in assets and liabilities, net of effect                                |   |                           |   |   |   |   |   |   |
| from disposition of business:                                                  |   |                           |   |   |   |   |   |   |
| Accounts receivable                                                            |   |                           | 150    |   |   |   | 1,848 |   |
| Inventories                                                                    |   |                           | 306    |   |   |   | (320 | ) |
| Other assets                                                                   |   |                           | 1,176  |   |   |   | (263 | ) |
| Income tax receivable                                                          |   |                           | 1,461  |   |   |   | 12 |   |
| Accounts payable, accrued expenses and other long-term liabilities             |   |                           | (2,322 | ) |   |   | 5 |   |
| Net cash provided by operating activities of continuing operations             |   |                           | 4,676  |   |   |   | 3,366 |   |
| Net cash used in operating activities of discontinued operations               |   |                           | -      |   |   |   | (300 | ) |
| Net cash provided by operating activities                                      |   |                           | 4,676  |   |   |   | 3,066 |   |
|                                                                           |   |                           |   |   |   |   |   |   |
| Cash flows from investing activities:                                          |   |                           |   |   |   |   |   |   |
| Capital expenditures                                                           |   |                           | (1,697 | ) |   |   | (2,008 | ) |
| Net cash used in investing activities of continuing operations                 |   |                           | (1,697 | ) |   |   | (2,008 | ) |
| Net cash provided by investing activities of discontinued operations           |   |                           | -      |   |   |   | 83 |   |
| Net cash used in investing activities                                          |   |                           | (1,697 | ) |   |   | (1,925 | ) |
|                                                                           |   |                           |   |   |   |   |   |   |
| Cash flows from financing activities:                                          |   |                           |   |   |   |   |   |   |
| Proceeds from issuance of stock related to employee stock purchase plan        |   |                           | 153    |   |   |   | - |   |
| Reduction in capital lease obligation                                          |   |                           | (67    | ) |   |   | (64 | ) |
| Debt financing fees                                                            |   |                           | (101   | ) |   |   | (256 | ) |
| Net cash used in financing activities of continuing operations                 |   |                           | (15    | ) |   |   | (320 | ) |
| Net cash provided by (used in) financing activities of discontinued operations |   |                           | -      |   |   |   | - |   |
| Net cash used in financing activities                                          |   |                           | (15    | ) |   |   | (320 | ) |
|                                                                           |   |                           |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                      |   |                           | 2,964  |   |   |   | 821 |   |
| Cash and cash equivalents at beginning of period                               |   |                           | 16,495 |   |   |   | 11,547 |   |
| Cash and cash equivalents at end of period                                     |   | $                              | 19,459 |   |   | $ | 12,368 |   |
|                                                                           |   |                           |   |   |   |   |   |   |
| Supplemental disclosure of non-cash investing activities:                      |   |                           |   |   |   |   |   |   |
| Fixed assets vouchered but not paid                                            |   | $                              | 519    |   |   | $ | 93 |   |
| Supplemental disclosure of cash flow information:                              |   |                           |   |   |   |   |   |   |
| Cash paid during the period for:                                               |   |                           |   |   |   |   |   |   |
| Income taxes                                                                   |   | $                              | 57     |   |   | $ | 31 |   |
|                                                                           |   |                           |   |   |   |   |   |   |
|                                                                           |   |                           |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                   |   |                           |   |   |   |   |   |   |

----

----

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

----

| Note 4: | Income (Loss) Per Share |
|---------|-------------------------|

|                                          |   | Three Months Ended |       |   | Six Months Ended |   |
|-----------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                          |   | June 30,           |       |   | June 30,         |   |
|                                          |   | 2010               |       |   | 2009             |   |   | 2010 |   |   | 2009 |   |
| Net income (loss) - basic and diluted:        |   |               |       |   |             |   |   |   |   |   |   |   |
| Income (loss) from continuing operations      |   | $                  | 1,222      |   |             | $      | (501 | ) |   | $ | 518 |   |   | $ | (2,251 | ) |
| Loss from discontinued operations             |   |               | -          |   |             |   | - |   |   |   | - |   |   |   | (41 | ) |
| Net income (loss)                             |   | $                  | 1,222      |   |             | $      | (501 | ) |   | $ | 518 |   |   | $ | (2,292 | ) |
|                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - basic   |   |               | 69,566,125 |   |             |   | 68,684,477 |   |   |   | 69,283,316 |   |   |   | 68,679,559 |   |
| Effect of dilutive common stock options       |   |               | 422,503    |   |             |   | - |   |   |   | 672,584 |   |   |   | - |   |
| Weighted average shares outstanding - diluted |   |               | 69,988,628 |   |             |   | 68,684,477 |   |   |   | 69,955,901 |   |   |   | 68,679,559 |   |
|                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - basic:                   |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations      |   | $                  | 0.02       |   |             | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
| Loss from discontinued operations             |   |               | -          |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Net income (loss)                             |   | $                  | 0.02       |   |             | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
|                                          |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share - diluted:                 |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations      |   | $                  | 0.02       |   |             | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
| Loss from discontinued operations             |   |               | -          |   |             |   | - |   |   |   | - |   |   |   | - |   |
| Net income (loss)                             |   | $                  | 0.02       |   |             | $      | (0.01 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |

----

|                                   |   | For the six months ended June 30, |   |
|----------------------------------------|--------|-----------------------------------|--------|
|                                   |   | 2010                              |   |   | 2009 |   |
| Expected life (years)                  |   |                              | 5.4    |   |   |   | 5.5 |   |
| Expected volatility                    |   |                              | 92.1   | % |   |   | 65.9 | % |
| Expected dividend yield                |   |                              | -      |   |   |   | - |   |
| Risk-free interest rate                |   |                              | 2.6    | % |   |   | 1.7 | % |
| Weighted average fair value of options |   |                              |   |   |   |   |   |   |
| granted during the period              |   | $                                 | 0.71   |   |   | $ | 0.13 |   |

|                                     |   |             |      |   |                                  |   |   |                                            |   |   |                                  |   |
|------------------------------------------|--------|------------------|-----------|--------|---------------------------------------|--------|--------|-------------------------------------------------|--------|--------|---------------------------------------|--------|
|                                     |   | Number of Shares |      |   | WeightedAverageExercisePrice PerShare |   |   | WeightedAverageRemainingContractualLife (years) |   |   | AggregateIntrinsicValue(in thousands) |   |
| Outstanding balance at December 31, 2009 |   |             | 5,782,100 |   |                                  | $      | 2.54   |                                            |   |   |                                  |   |   |   |
| Granted                                  |   |             | 135,000   |   |                                  |   | 0.97   |                                            |   |   |                                  |   |   |   |
| Exercised                                |   |             | -         |   |                                  |   | -      |                                            |   |   |                                  |   |   |   |
| Cancelled                                |   |             | (63,100)  |   |                                  |   | 4.01   |                                            |   |   |                                  |   |   |   |
| Forfeitures                              |   |             | (47,500)  |   |                                  |   | 3.88   |                                            |   |   |                                  |   |   |   |
| Outstanding balance at June 30, 2010     |   |             | 5,806,500 |   |                                  | $      | 2.48   |                                            |   |   | 6.5                                   |   |   | $ | 140 |   |
| Options exercisable at June 30, 2010     |   |             | 2,087,750 |   |                                  | $      | 4.82   |                                            |   |   | 3.6                                   |   |   | $ | - |   |

----

----

|                       |   | Weighted    |   |   |     |   |   |         |   |   |    |   |
|----------------------------|--------|-------------|--------|--------|----------|--------|--------|--------------|--------|--------|---------|--------|
|                       |   | Average     |   |   | Gross    |   |   |         |   |   |    |   |
|                       |   | Useful Life |   |   | Carrying |   |   | Accumulated  |   |   | Net     |   |
| (in thousands)             |   | (years)     |   |   | Amount   |   |   | Amortization |   |   | Balance |   |
| At June 30, 2010:          |   |        |   |   |     |   |   |         |   |   |    |   |
| Non-Competition agreements |   |        | 4.7    |   |     | $      | 8,738  |         |   | $      | 8,738   |   |   | $ | - |   |
| Customer relationships     |   |        | 9.7    |   |     |   | 12,502 |         |   |   | 11,868  |   |   |   | 634 |   |
| Trademarks and trade names |   |        | 15.7   |   |     |   | 487    |         |   |   | 395     |   |   |   | 92 |   |
|                       |   |        |   |   |     | $      | 21,727 |         |   | $      | 21,001  |   |   | $ | 726 |   |
| At December 31, 2009:      |   |        |   |   |     |   |   |         |   |   |    |   |   |   |   |   |
| Non-Competition agreements |   |        | 4.7    |   |     | $      | 8,738  |         |   | $      | 8,738   |   |   | $ | - |   |
| Customer relationships     |   |        | 9.7    |   |     |   | 12,502 |         |   |   | 11,675  |   |   |   | 827 |   |
| Trademarks and trade names |   |        | 15.7   |   |     |   | 487    |         |   |   | 382     |   |   |   | 105 |   |
|                       |   |        |   |   |     | $      | 21,727 |         |   | $      | 20,795  |   |   | $ | 932 |   |

----

|              |   | Balance at        |   |   | 2010     |   |   | Balance at    |   |
|-------------------|--------|-------------------|--------|--------|----------|--------|--------|---------------|--------|
| (In millions)     |   | December 31, 2009 |   |   | Payments |   |   | June 30, 2010 |   |
| Severance         |   | $                 | -      |   |     | $      | -      |          |   | $ | - |   |
| Lease Obligations |   |              | 0.3    |   |     |   | (0.1   | )             |   |   | 0.2 |   |
|              |   | $                 | 0.3    |   |     | $      | (0.1   | )             |   | $ | 0.2 |   |

|              |   | Balance at        |   |   | 2010     |   |   | Balance at    |   |
|-------------------|--------|-------------------|--------|--------|----------|--------|--------|---------------|--------|
| (In millions)     |   | December 31, 2009 |   |   | Payments |   |   | June 30, 2010 |   |
| Lease Obligations |   | $                 | 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, primarily on behalf of insurance companies in connection with the offering or rating of insurance coverage (mainly life insurance), along with medical examinations of health plan participants in order to provide medical information on plan members to the plan sponsors; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

----

----

| ·   | In April 2010, we began deploying a new electronic system for capturing paramedical exam information which utilizes wireless electronic devices, linked to secure corporate servers.  This new “iParamed e-Exam” service  provides our customers with real-time quality assurance at the time of exam.  The cycle time required for insurance carriers to process applications is also expected to be reduced. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In the second quarter of 2010, we began providing examination services to several health insurance providers.  We provide these services using our network of medical professionals.  The purpose of these examinations is to enable health insurance companies to evaluate risk and insurability for health insurance applicants. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·  | In the fourth quarter of 2009, we expanded our service offering of providing medical exam assessments to senior individuals who are enrolled in Medicare Advantage healthcare plans.  We provide these services utilizing our network of licensed and trained physicians, nurse practitioners and physician assistants.  The purpose of these medical assessments is to provide health insurance payors with health information on their plan members to assist in validating pricing/reimbursement information, and to provide information used in quality improvement and disease management initiatives. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | In the third quarter of 2009, we introduced a new appointment scheduling option called Instant Scheduling.  It allows insurance agents, while completing the policy application with the applicant, to immediately schedule the examination utilizing our centralized scheduling center.  The new process significantly reduces the cycle time of policy application to policy issuance, which benefits the applicant, agent/broker and insurance carrier. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We introduced our 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. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | All of our Portamedic branch offices are now utilizing managed scheduling.  As a result of implementing managed scheduling, the time required to schedule an examination has been reduced significantly relative to past procedures where examiners scheduled their own appointments with applicants. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | During the third quarter 2010, we will begin the rollout of our new customer service order tracking IT system at a number of our larger branch offices.  We plan to complete the conversion of the systems at all of our branches by year end 2010. The new system is expected to improve the speed, accuracy and consistency of services provided to our Portamedic customers.  We license the software utilized by our old system and, as such, have difficulties in quickly implementing improvements and enhancements to the software.  Our new 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 old system.  Our new customer service system is expected to cost approximately $1.8 million including implementation costs.  As a result of the development of this new system, we initially reduced the estimated useful life of our old system to terminate in the third quarter of 2010.  We have revised the estimated useful life to terminate by year end 2010.  This reduction in useful life accelerated depreciation expense (non-cash charge) by approximately $0.2 million and $0.8 million in the second quarter of 2010 and 2009, respectively.  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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | We continue to take steps to strengthen our local sales force including hiring additional sales representatives, streamlining our sales tracking systems, improving sales training, and focusing sales incentives on increases in paramedical exams completed (i.e. unit goals). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | In December 2009, we hired a new Chief Operating Officer to oversee the operations of our Heritage Labs and Health & Wellness service lines.  This individual has assisted in the implementation of actions to improve our processes and reduce costs, including the outsourcing of several kit assembly functions, obtaining price reductions for kit raw materials and lab test re-agents, along with a consolidation of certain Heritage Labs and Health & Wellness job functions. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| · | Heritage Labs hired a medical director in 2008 to help improve the value added services provided to customers and to aid in gaining new business.  The main focus of the medical director has been to use sophisticated data modeling to gain a better understanding of the true mortality consequences of the laboratory tests that we provide to the insurance industry.  Our objective has been to assist our clients in their ability to develop new insurance products and establish more accurate premium rating or pricing techniques using the lab mortality data that we have developed.  We have also begun to develop risk scores to help our insurance clients better understand the mortality implications between and among interactions of multiple tests related to specific disease states. We believe that the mortality data we are providing is unique and more complex than the data being provided by our competitors.  We believe we will be able to leverage the value of the data we supply to gain new business in 2010. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Heritage Labs continues to expand its kit assembly products and services.  Heritage Labs is an FDA-registered Class I and Class II medical device assembler.  Of the three laboratories providing testing services to the insurance industry, only Heritage Labs is licensed to assemble kits. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Heritage Labs is marketing 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.  The test kits are currently available in retail locations including Wal-Mart, Rite Aid, Walgreens and other locations nationwide. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

|   | · | the MIB Life Index data and research data from a national insurance industry consulting company, which represents an indicator of the level of life insurance application activity; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

----

|  (in thousands)         |   | For the Three Months EndedJune 30, |   |   | For the Six Months EndedJune 30, |   |
|------------------------------|--------|------------------------------------|--------|--------|----------------------------------|--------|
|                         |   | 2010                               |   |   | 2009                             |   |   | % Change |   |   | 2010 |   |   | 2009 |   |   | % Change |   |
|                         |   |                               |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Portamedic                   |   | $                                  | 30,089 |   |                             | $      | 34,616 |   |   |   | -13.1 | % |   | $ | 61,203 |   |   | $ | 69,640 |   |   |   | -12.1 | % |
| Heritage Labs                |   |                               | 3,341  |   |                             |   | 3,777 |   |   |   | -11.5 | % |   |   | 6,758 |   |   |   | 7,747 |   |   |   | -12.8 | % |
| Health and Wellness          |   |                               | 2,325  |   |                             |   | 1,977 |   |   |   | 17.6 | % |   |   | 4,840 |   |   |   | 4,351 |   |   |   | 11.2 | % |
| Hooper Holmes Services       |   |                               | 5,486  |   |                             |   | 6,485 |   |   |   | -15.4 | % |   |   | 10,928 |   |   |   | 13,262 |   |   |   | -17.6 | % |
|    Subtotal   |   |                               | 41,241 |   |                             |   | 46,855 |   |   |   |   |   |   |   | 83,729 |   |   |   | 95,000 |   |   |   |   |   |
| Intercompany eliminations(a) |   |                               | (527   | )      |                             |   | (643 | ) |   |   |   |   |   |   | (1,097 | ) |   |   | (1,353 | ) |   |   |   |   |
|    Total      |   | $                                  | 40,714 |   |                             | $      | 46,212 |   |   |   | -11.9 | % |   | $ | 82,632 |   |   | $ | 93,647 |   |   |   | -11.8 | % |

| ·   | decreased paramedical examinations performed in the second quarter of 2010 of approximately 14.7% (336,000 in the second quarter of 2010, or 5,244 per day, vs. 393,000 in the second  quarter of 2009, or 6,146 per day), and in the six month period ended June 30, 2010 of approximately 12.5% (691,000 in the six month period ended June 30, 2010, or 5,438 per day, vs. 789,000 in the six month period ended June 30, 2009, or 6,213 per day); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | higher average revenue per paramedical examination in the second quarter of 2010 of approximately 0.4% as compared to the second quarter of 2009 ($89.40 in the second quarter of 2010 vs. $89.09 in the second quarter of 2009), and in the six month period ended June 30, 2010 a lower average revenue per paramedical examination of approximately 0.6% ($88.93 in the six month period ended June 30, 2010 vs. $89.51 in the six month period ended June 30, 2009) |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (in thousands)                      |   | For the three months ended June 30, |   |   | For the six months ended June 30, |   |
|-------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                |   |                                |   |   | As a % of                         |   |   |   |   |   | As a % of |   |   |   |   |   | As a % of |   |   |   |   |   | As a % of |   |
|                                |   | 2010                                |   |   | Revenues                          |   |   | 2009 |   |   | Revenues |   |   | 2010 |   |   | Revenues |   |   | 2009 |   |   | Revenues |   |
| Portamedic/Health & Wellness    |   | $                                   | 23,970 |   |                              |   | 73.9 | % |   | $ | 26,006 |   |   |   | 71.1 | % |   | $ | 48,349 |   |   |   | 73.2 | % |   | $ | 53,515 |   |   |   | 72.3 | % |
| Heritage Labs                       |   |                                | 2,101  |   |                              |   | 62.9 | % |   |   | 2,468 |   |   |   | 65.3 | % |   |   | 4,345 |   |   |   | 64.3 | % |   |   | 4,958 |   |   |   | 64.0 | % |
| Hooper Holmes Services              |   |                                | 4,396  |   |                              |   | 80.1 | % |   |   | 5,462 |   |   |   | 84.2 | % |   |   | 8,987 |   |   |   | 82.2 | % |   |   | 11,212 |   |   |   | 84.5 | % |
|  Subtotal                      |   |                                | 30,467 |   |                              |   |   |   |   |   | 33,936 |   |   |   |   |   |   |   | 61,681 |   |   |   |   |   |   |   | 69,685 |   |   |   |   |   |
| Intercompany eliminations (a)       |   |                                | (527   | )      |                              |   |   |   |   |   | (644 | ) |   |   |   |   |   |   | (992 | ) |   |   |   |   |   |   | (1,354 | ) |   |   |   |   |
|      Total |   | $                                   | 29,940 |   |                              |   | 73.5 | % |   | $ | 33,292 |   |   |   | 72.0 | % |   | $ | 60,689 |   |   |   | 73.4 | % |   | $ | 68,331 |   |   |   | 73.0 | % |

----

| (in thousands)                                     | For the three months endedJune 30, | Decrease | For the six months endedJune 30, |  Decrease |
|----------------------------------------------------|------------------------------------|----------|----------------------------------|----------------|
|                                               | 2010                               | 2009     | 2010 vs. 2009                    | 2010           | 2009 | 2010 vs. 2009 |
|  Selling, general and administrative expenses | $10,975                            | $12,661  |  $(1,686)                   |  $22,685  |  $26,493 | $(3,808) |

|   | · | incentive compensation expense totaling $0.0 million and $0.2 million, respectively; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Portamedic regional and administrative salaries and related expenses totaling $0.1 million and $0.2 million, respectively; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | audit and bank fees, and amortization expense totaling $0.2 million and $0.3 million, respectively; |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | health insurance, workers compensation and general insurance costs totaling $0.6 million and $1.2 million, respectively; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | consulting costs associated with a strategic advisor retained in 2009 and Corporate and IT salary costs totaling $0.3 million and $0.7 million, respectively; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | moving expense associated with Heritage Labs’ move to a new facility in January 2009 totaling $0.0 million and $0.2 million, respectively; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | accelerated depreciation expense related to the reduction of the estimated useful life of our current customer service order tracking IT systems totaling $0.6 million and $0.9 million, respectively. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Income (Loss) from Continuing Operations |
|--------|------------------------------------------|

| ·   | a decrease in accounts payable, accrued expense and other long-term liabilities (including restructuring payments related to employee severance of $0.3 million) of $2.3 million; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | capital expenditures of $1.7 million. |
|--------------------|---------------------------------------|

| ·   | a decrease in other assets of $1.2 million; and |
|--------------------|-------------------------------------------------|

| ·   | receipt of a $1.5 million income tax refund. |
|--------------------|----------------------------------------------|

----

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

| ·   | a decrease in accounts receivable of $0.2 million.  Our consolidated days sales outstanding (“DSO”), measured on a rolling 90-day basis was 44 days at June 30, 2010, compared to 41 days at December 31, 2009 and 46 days at June 30, 2009.  Historically, our accounts receivable balances and our DSO are at their lowest point in December as many of our customers utilize the remainder of their operating budgets before their year-end budget close-out.  Historically, we experience an increase in DSO during the first quarter of each year, in comparison to the prior year-end DSO position.  We believe our persistent collection efforts, along with our continued focus on electronic customer billing will reduce our DSO over the remainder of the year, as has historically been the case.  Our consolidated allowance for doubtful accounts, which includes a reserve for revenue reductions, declined approximately $0.2 million since December 31, 2009, of which $0.1 million was credited to revenue during the six month period ended June 30, 2010; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a decrease in accounts payable, accrued expenses and other long-term liabilities of $2.3 million; and |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | a decrease in other assets of $1.2 million. |
|--------------------|---------------------------------------------|

----

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

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

----

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

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

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

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

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

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

----

----

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

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

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

----

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

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

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

| ITEM 4 | Removed and Reserved |
|--------|----------------------|

----

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

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

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

----

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

----