Hooper Holmes (HH) 8-K Entry into a Material Definitive Agreement

EXHIBIT 99.3

News Release

170 Mt. Airy Road

Basking Ridge, NJ 07920

Hooper Holmes

James Calver

Chief Executive Officer

(908) 766-5000

Financial Dynamics

Investors: Evan Smith, CFA

Media: Sean Leous

212-850-5600

HOOPER HOLMES ANNOUNCES SECOND QUARTER AND FIRST HALF 2006 RESULTS

Company’s Strategic Review Progressing According to Plan

BASKING RIDGE, NJ, Aug 9, 2006, Hooper Holmes, Inc. (AMEX:HH) today announced financial results for the second quarter and six months ended June 30, 2006.

For the three months ended June 30, 2006, total revenues decreased 10% to $75.6 million compared to $84.4 million in the second quarter 2005. The Company incurred a net loss of $0.5 million or $(0.01) per diluted share compared to net income of $3.1 million or $0.05 per diluted share in the second quarter 2005. The net loss for the second quarter 2006 includes $0.5 million ($0.3 million after tax) of restructuring charges, primarily relating to employee severance and branch office closure costs. The Company’s net income in the second quarter of 2005 was not affected by restructuring charges.

For the first six months of 2006, total revenues were $152.4 million compared to $166.4 million in the comparable period of 2005, a decrease of 8%. The Company’s net loss for the first six months of 2006 totaled $1.8 million, or $(0.03) per diluted share, compared to net income of $5.1 million, or $0.08 per diluted share in the comparable period of 2005. The 2006 net loss includes $1.7 million ($0.9 million after tax) of restructuring and other charges. The net income for the first six months of 2005 included $1.0 million ($0.6 million after tax) pertaining to restructuring charges.

Second Quarter 2006 Results by Division

Health Information Division (HID)

The HID reported a decline in second quarter revenues to $67.4 million compared to $74.2 million in 2005, due primarily to continued weakness in the Company’s core paramedical business.

• Portamedicrevenues decreased 10% to $40.6 million, compared to $44.9 million in the second quarter 2005. The decrease is a result of fewer paramedical exams being completed during the quarter, primarily attributable to the overall decline in life insurance activity.

• Infolinkreported revenues of $8.8 million, an increase of 9% compared to $8.1 million in the second quarter of 2005. The increase reflects a greater number of tele-interviewing reports generated from an increasing number of customers.

• Medicals Direct Group revenues decreased 15% to $9.5 million compared to $11.2 million in the same period of 2005. The decrease is primarily due to a decline in medical screenings and outsourced underwriting revenues. The decline is partially attributable to a weaker U.K. housing market, resulting in fewer life insurance policies, which are customarily purchased in conjunction with home mortgages.

• Heritage Labs revenues decreased 15% to $4.5 million compared to 5.3 million in the same period of 2005, reflecting fewer specimens tested.

• Mid-America Agency Services (MAAS) reported revenues of $4.0 million, a decline of $0.7 million compared to the second quarter of 2005, as a result of a reduction in life insurance applications.

Claims Evaluation Division (CED)

The CED reported second quarter revenues of $8.2 million, a decline of 20% compared to $10.2 million in the second quarter 2005. The decrease was primarily a result of decreased claims activity within its current customer base and a reduction in peer reviews.

Strategic Review Update

The Company’s previously announced full-scale Strategic Review is on schedule and expected to be completed in September. EHS Partners is advising in the process of identifying efficiency improvements and cost savings, in turn improving the overall performance of the Company.The Company intends to update the market on the conclusions of the review, including the implementation timetable and related financial impact, with the release of its third quarter financial results.

James Calver, Chief Executive Officer of Hooper Holmes, commented, “I am pleased with our direction as we approach the end of our Strategic Review. We have laid the foundation to begin implementation of the recovery process during the fourth quarter. We remain confident that the changes we have already implemented, combined with additional anticipated improvements to our operations, will strengthen the organization. This will provide future opportunities for revenue growth and profitability. As we have said in the past, 2006 is about correcting past imbalances and we look forward to a recovery that we expect to see in 2007 and beyond.”

Hooper Holmes will host a conference call on Thursday, August 10, 2006 to discuss second quarter results at 11:00 a.m. Eastern Time. The call is accessible by dialing (800) 779-9618 or (312) 470-7054, password: Hooper Holmes. The call will also be broadcast live over the Internet, and is accessible at the Company’s website located athttp://www.hooperholmes.com. In addition, an online archive of the broadcast will be available within two hours of the live call until the next quarterly conference call.

Hooper Holmes provides outsourced risk assessment services to the life insurance industry through over 250 locations nationwide and in the United Kingdom, as well as claims evaluation information services to the automobile and workers’ compensation insurance industries.

Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involving the Company’s business. These forward-looking statements are qualified in their entirety by cautionary statements contained in the Company’s Securities and Exchange Commission filings. The Company disclaims any obligation to update these forward-looking statements.

-TABLES TO FOLLOW-

HOOPER HOLMES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except share data)

	Three Months ended June 30,						Six Months ended June 30,
	2006			2005			2006			2005
				(Restated)						(Restated)
Revenues	$	75,637		$	84,389		$	152,438		$	166,418
Cost of operations		56,864			60,689			115,172			119,561
Gross profit		18,773			23,700			37,266			46,857
Selling, general and administrative expenses		19,192			18,458			38,545			36,944
Restructuring and other charges		463			—			1,732			1,041
Operating income (loss)		(882	)		5,242			(3,011	)		8,872
Other income (expense):
Interest expense		(98	)		(112	)		(186	)		(292	)
Interest income		47			76			85			123
Other expense, net		(87	)		(131	)		(202	)		(227	)
		(138	)		(167	)		(303	)		(396	)
Income (loss) before income taxes		(1,020	)		5,075			(3,314	)		8,476
Income tax (benefit) provision		(556	)		1,982			(1,499	)		3,351
Net income (loss)	$	(464	)	$	3,093		$	(1,815	)	$	5,125
Earnings (loss) per share:
Basic	$	(0.01	)	$	0.05		$	(0.03	)	$	0.08
Diluted	$	(0.01	)	$	0.05		$	(0.03	)	$	0.08
Weighted average number of shares:
Basic		66,288,345			65,283,711			66,242,798			65,261,409
Diluted		66,288,345			66,255,343			66,242,798			66,358,120

HOOPER HOLMES, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands except share data)

	June 30, 2006		December 31, 2005
ASSETS
Current assets:
Cash and cash equivalents	$	4,720	$	11,683
Marketable securities		192		383
Accounts receivable, net		43,249		42,121
Deferred income taxes		1,318		1,295
Income tax receivable		8,806		5,612
Other current assets		4,878		4,907
Total current assets		63,163		66,001
Property, plant and equipment, at cost		44,039		40,563
Less: Accumulated depreciation and amortization		28,994		27,085
Property, plant and equipment, net		15,045		13,478
Goodwill		42,426		40,038
Intangible assets, net		10,865		12,203
Deferred income taxes		28,575		30,269
Other assets		478		342
Total assets	$	160,552	$	162,331
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt	$	—	$	1,000
Accounts payable		12,679		13,706
Accrued expenses		18,280		17,523
Total current liabilities		30,959		32,229
Other long term liabilities		1,469		1,200
Commitments and Contingencies
Stockholders’ equity:
Common stock, par value $.04 per share; authorized 240,000,000 shares, issued 67,499,074 as of June 30, 2006 and December 31, 2005		2,700		2,700
Additional paid-in capital		120,571		121,278
Accumulated other comprehensive income		984		354
Retained earnings		12,759		14,574
		137,014		138,906
Less: Treasury stock at cost 1,180,795 shares and 1,328,795 shares as of June 30, 2006 and December 31, 2005, respectively		8,890		10,004
Total stockholders’ equity		128,124		128,902
Total liabilities and stockholders’ equity	$	160,552	$	162,331