HealthMedia Fourth Quarter 2007 Produces Highest Revenue in Company History

HealthMedia, the global leader in scalable behavior change interventions with outcomes, experienced its highest earnings for any single quarter since its inception in 1998 in the fourth quarter of 2007. Buoyed by several new contracts, HealthMedia’s healthcare license revenue in the fourth quarter of 2007 increased 62 percent from the same quarter in 2006. Year-end, HealthMedia’s healthcare license revenue increased 88 percent in 2007, compared to 2006 totals.

HealthMedia’s success has been driven by several factors, including new contracts, new and expanded partnerships with strategic vendors, and enhancements to its behavior change interventions, intelligent recruitment capabilities, and reporting tools. The sophisticated “fusion” technology that serves as the foundation of HealthMedia interventions is producing the anticipated results – significant and measurable reductions in healthcare costs and improved worker productivity.

Expanded Partnerships Fuel Success
Through an expanded contract with Corphealth, a bundle of HealthMedia’s online intervention and behavior management products are available to more than two million Humana members. Previously, Corphealth and HealthMedia partnered to make a bundle of online interventions and behavior management products available to 300,000 Humana members.

A new contract with Wellsource will make HealthMedia's full suite of online interventions available to Wellsource customers. These online interventions will add a full slate of additional follow-up programs to Wellsource's Health Risk Assessment for employers.

Through a new contract, Johnson & Johnson LifeScan will provide a custom HealthMedia® Care™ for Diabetes program and associated Lifestyle Management programs to consumers in the United Kingdom and Ireland that are currently using its OneTouch® Ultra®2 and OneTouch® UltraSmart™ Blood Glucose Monitors.

Through a multi-year agreement, HealthMedia and McKesson Health Solutions will provide comprehensive, best-of-breed health, wellness, and disease management programming to the Los Angeles County Department of Health Services for about 166,000 Medicaid and other state health care program recipients. The population will have access to HealthMedia's comprehensive suite of online behavior change interventions, including health risk assessment, disease management, lifestyle management, and behavioral health programs.

“Expanded partner relationships and the growing endorsement by leading health plan and employer customers – including Mike Huckabee and the State of Arkansas – have drawn attention to the efficacy of HealthMedia interventions, and of course the outcomes speak for themselves,” explained Ted Dacko, HealthMedia President and CEO. “In 2008, we will continue to build on this success by engaging in strategic partnerships and incorporating advanced technologies to effectively and inexpensively improve the health of large populations.”

About HealthMedia, Inc.
HealthMedia, Inc. is the global leader in scalable behavior change interventions with outcomes. HealthMedia’s proven outcomes increase compliance, reduce medical utilization, and increase productivity— boosting profitability for health plans, employers, pharmaceutical companies, and behavioral health organizations. A fusion of their own unique technology and proven behavioral science, HealthMedia delivers individually tailored behavior change interventions for health and wellness, disease management, behavioral health, and medication compliance. Clients include Kaiser Permanente, UPS, Cleveland Clinic, Johnson & Johnson, GSK, and eight Blue Cross Blue Shield organizations across the United States. HealthMedia partners include APS Healthcare, Corphealth, Health Dialog, Wellsource, and SHPS. For more information visit www.healthmedia.com.

Editorial Contact

Caren Kenney
Director of Corporate Communications
508-942-4407
ckenney@healthmedia.com

Secondary Contact

Mia Cupp
Corporate Communications Manager
734-536-2006
mcupp@healthmedia.com

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