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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">As
    filed with the Securities and Exchange Commission on
    October&#160;2, 2009</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="font-size: 9pt; color: #3D332B">Registration
    <FONT style="white-space: nowrap">No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=0 -->

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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 13pt; color: #3D332B">UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 11pt; color: #3D332B">Washington,&#160;D.C.
    20549</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt; color: #3D332B">FORM
    S-1</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 12pt; color: #3D332B">REGISTRATION
    STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 22pt; color: #3D332B">IntegraMed
    America, Inc.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I><FONT style="font-size: 8pt; color: #3D332B">(Exact name of
    registrant as specified in its charter)</FONT></I>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="25%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="23%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="22%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD nowrap align="center" valign="top" style="color: #3D332B">
    <B>Delaware</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="color: #3D332B">
    <B>8011</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="color: #3D332B">
    <B>06-1150326</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top" style="color: #3D332B">
    <I>(State or other jurisdiction of<BR>
    incorporation or organization)</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top" style="color: #3D332B">
    <I>(Primary Standard Industrial<BR>
    Classification Code Number)</I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top" style="color: #3D332B">
    <I>(I.R.S. Employer<BR>
    Identification No.) </I>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #3F6075"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Two
    Manhattanville Road</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Purchase, New
    York 10577</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B"><FONT style="white-space: nowrap">(914)&#160;253-8000</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I><FONT style="font-size: 8pt; color: #3D332B">(Address,
    including zip code, and telephone number, including area code,
    of registrant&#146;s principal executive offices)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Jay
    Higham</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Chief Executive
    Officer</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Two
    Manhattanville Road</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">Purchase, New
    York 10577</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B"><FONT style="white-space: nowrap">(914)&#160;253-8000</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I><FONT style="font-size: 8pt; color: #3D332B">(Name, address,
    including zip code, and telephone number, including area code,
    of agent for service)</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 16%; border-bottom: 1pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=84 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 9pt; color: #3D332B">With copies
    to:</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="47%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B><FONT style="color: #3D332B">Steven Khadavi,&#160;Esq.<BR>
    Dorsey &#038; Whitney LLP<BR>
    250 Park Avenue<BR>
    New York, New York 10177<BR>
    Telephone: (212) 415-9200<BR>
    Facsimile: (212) 953-7201<BR>
    </FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="color: #3D332B">David B. Miller,&#160;Esq.<BR>
    Michael K. Coddington,&#160;Esq.<BR>
    Faegre &#038; Benson LLP<BR>
    2200 Wells Fargo Center<BR>
    90 South Seventh Street<BR>
    Minneapolis, Minnesota 55402<BR>
    Telephone: (612) 766-7000<BR>
    Facsimile: (612) 766-1600<BR>
    </FONT></B>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="color: #3D332B">Approximate date of commencement
    of proposed sale to the
    public</FONT></B><FONT style="color: #3D332B">: As soon as
    practicable after this registration statement becomes effective.
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">If any of the securities being
    registered on this Form are to be offered on a delayed or
    continuous basis pursuant to Rule&#160;415 under the Securities
    Act of 1933, check the following
    box.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">If this Form is filed to register
    additional securities for an offering pursuant to
    Rule&#160;462(b) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">If this Form is a post-effective
    amendment filed pursuant to Rule&#160;462(c) under the
    Securities Act, check the following box and list the Securities
    Act registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">If this Form is a post-effective
    amendment filed pursuant to Rule&#160;462(d) under the
    Securities Act, check the following box and list the Securities
    Act registration statement number of the earlier effective
    registration statement for the same
    offering.&#160;&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Indicate by check mark whether the
    registrant is a large accelerated filer, an accelerated filer, a
    non-accelerated filer, or a smaller reporting company. See the
    definitions of &#147;large accelerated filer,&#148;
    &#147;accelerated filer&#148; and &#147;smaller reporting
    company&#148; in
    <FONT style="white-space: nowrap">Rule&#160;12b-2</FONT>
    of the Exchange Act. (Check one):
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3D332B">Large
    accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3D332B">
    Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3D332B">
    Non-accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3D332B">
    Smaller reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>

<DIV align="center" style="margin-left: 32%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="font-size: 8pt; color: #3D332B">(Do not check if a
    smaller reporting
    company)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    </FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 9pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="48%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #3D332B">
    <B><FONT style="color: #3D332B">Proposed Maximum<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #3D332B">
    <B><FONT style="color: #3D332B">Proposed Maximum<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-top: 3px double #3D332B">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Title of Each Class of<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Amount to be<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Offering<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Aggregate Offering<BR>
    </FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Amount of<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Securities to be
    Registered</FONT></B>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Registered<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Price Per
    Share<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Price<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP></FONT></B>

</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Registration Fee</FONT></B>
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Common stock, $0.01&#160;par value per share
</DIV>
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    4,600,000
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    9.22
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    42,412,000
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-right: 1px solid #3D332B; padding-right: 2pt; border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
    2,367
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 1px solid #3D332B">
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B; border-top: 3px double #3D332B">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">(1)</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">Includes common stock issuable upon
    exercise of the underwriters&#146; over-allotment option.
    </FONT>
</TD>
</TR>




<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">(2)</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">Estimated solely for the purpose of
    calculating the registration fee pursuant to Rule&#160;457(c)
    under the Securities Act of 1933 and based on the average of the
    high and low sale prices for such common stock on
    September&#160;28, 2009, as reported on the Nasdaq Global Market.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 2pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="color: #3D332B">The registrant hereby amends
    this registration statement on such date or dates as may be
    necessary to delay its effective date until the registrant shall
    file a further amendment which specifically states that this
    registration statement shall thereafter become effective in
    accordance with Section&#160;8(a) of the Securities Act of 1933
    or until the registration statement shall become effective on
    such date as the Commission, acting pursuant to said
    Section&#160;8(a), may determine.</FONT></B>
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=0 -->

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #3D332B"></CENTER><!-- callerid=999 iwidth=504 length=0 -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 91%; margin-left: 4%"><!-- BEGIN PAGE WIDTH -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 10pt; color: #BF0A30">The information in
this prospectus is not complete and may be changed. We may not
sell these securities until the Securities and Exchange
Commission declares our registration statement effective. This
prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>
</DIV><!-- END PAGE WIDTH -->
<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="color: #BF0A30">Subject to completion, dated
    October&#160;2, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">4,000,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <IMG src="y79264y7926402.gif" alt="[INTEGRAMED LOGO]"><B><FONT style="font-size: 16pt">
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 17pt">INTEGRAMED AMERICA,
    INC.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">$&#160;&#160;&#160;&#160;&#160;
    per share</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    IntegraMed America, Inc. is
    offering&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;shares.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    The last reported sale price of our common stock on
    October&#160;1, 2009 was $9.37 per share.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Trading symbol: Nasdaq Global Market&#160;&#151; INMD
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 19%; border-bottom: 1pt solid #3F6075"></CENTER><!-- callerid=999 iwidth=456 length=90 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>This investment involves risk. See &#147;Risk Factors&#148;
    beginning on page&#160;10.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="76%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Per Share</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Total</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to IntegraMed America, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="font-size: 18pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I>The underwriters have a
    <FONT style="white-space: nowrap">30-day</FONT>
    option to purchase up to 600,000&#160;additional shares of
    common stock from us to cover over-allotments, if any.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved of anyone&#146;s investment
    in these securities or determined if this prospectus is truthful
    or complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Piper&#160;Jaffray</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Cowen and Company</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>The date of this prospectus
    is&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009.</B>
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV align="Center" style="font-size: 10pt; margin-top: 18pt">
</DIV>

<p>
<!-- Slide Number 0001 -->
<CENTER>
<IMG src="y79264y79264z0001.gif">
</CENTER>

<TABLE width="90%">
<TR><TD><FONT size="1" color="#FFFFFF" style="font-size: 1pt; color: #FFFFFF">
IntegraMed Partner Fertility Centers IntegraMed Affiliate Fertility Centers IntegraMed Vein Clinics
</FONT></TD></TR></TABLE>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Page</FONT></B>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#102'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#103'>Cautionary Statement Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#104'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#105'>Price Range of Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#106'>Dividend Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#107'>Capitalization</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#108'>Selected Consolidated Financial Data</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#109'>Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#110'>Business</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#111'>Management</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#112'>Principal Stockholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#113'>Related Party Transactions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>Description of Capital Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>Material U.S. Federal Tax Considerations for
    <FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders of Our Common Stock</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#116'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>Index to Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv4w1.htm">EX-4.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv10w5.htm">EX-10.5</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv10w6.htm">EX-10.6</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv10w7.htm">EX-10.7</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv21w1.htm">EX-21.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv23w1.htm">EX-23.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y79264exv24w1.htm">EX-24.1</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 39%; border-bottom: 1pt solid #3F6075"></CENTER><!-- callerid=999 iwidth=456 length=180 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    You should rely only on the information contained in this
    prospectus. We have not, and the underwriters have not,
    authorized any other person to provide you with different
    information. If anyone provides you with different information,
    you should not rely on it. We are not, and the underwriters are
    not, making an offer to sell these securities in any
    jurisdiction where the offer or sale is not permitted. You
    should assume that the information appearing in this prospectus
    is accurate only as of the date on the front cover of this
    prospectus. Our business, financial condition, results of
    operations and prospects may have changed since that date.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I>The items in the following summary are described in more
    detail later in this prospectus. This summary does not contain
    all the information you should consider before investing in our
    common stock. You should carefully read the more detailed
    information set out in this prospectus, especially the risks
    related to our business and investing in our common stock that
    we discuss under the heading &#147;Risk Factors,&#148; as well
    as the consolidated financial statements and related notes
    appearing elsewhere in this prospectus. References in this
    prospectus to &#147;we,&#148; &#147;us,&#148; &#147;our,&#148;
    &#147;the Company,&#148; &#147;our Company&#148; and
    &#147;IntegraMed&#148; refer to IntegraMed America, Inc. and its
    consolidated subsidiaries, unless the context requires
    otherwise.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We believe our network of Partner fertility
    centers is the largest managed network of fertility centers in
    the United States, with 63&#160;locations and 97&#160;physicians
    and PhD scientists, accounting for approximately 14% of the
    total in&#160;vitro fertilization (&#147;IVF&#148;) procedures
    performed in the United States in 2007, which is the latest
    period for which third-party data are available. We also believe
    our vein clinics are the single largest network of vein care
    providers in the United States. We have a centralized corporate
    infrastructure that provides clinical and financial information
    systems, revenue cycle management, sales and marketing services,
    group purchasing and other operational support functions to our
    fertility centers and vein clinics. These services remove
    administrative burdens from the physicians, allowing them more
    time to practice medicine, which we believe results in increased
    patient treatment volumes and improved patient care. We also
    provide physicians access to capital to finance fertility center
    and vein clinic operations, including access to current
    technologies and facilities, which we believe aids in patient
    and physician recruitment. We deliver these services through
    three operating divisions: Fertility Centers, Consumer Services
    and Vein Clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Fertility Centers Division is comprised of 11 contracted
    fertility centers, referred to as our Partner Program, serving
    13 metropolitan markets across the United States. The centers
    provide a wide range of fertility services to patients,
    including diagnostic testing and fertility treatments such as
    IVF, intrauterine insemination and surgical correction of
    anatomical reproductive problems. We receive fees and cost
    reimbursement from these fertility centers for providing the
    technology, equipment, facilities, non-physician personnel and
    support necessary to operate the fertility centers, but we do
    not employ or control the physicians who provide or direct the
    treatment of patients. For the six months ended June&#160;30,
    2009, our Fertility Centers Division generated approximately 68%
    of our revenues and 54% of our contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Consumer Services Division offers services directly to
    fertility patients. The division offers a family of programs,
    including our
    Attain<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>

    IVF Refund Program and our recently introduced Attain IVF
    Multi-Cycle Program, collectively referred to as our Attain IVF
    programs, which are designed to help patients attain their goal
    of starting a family. IVF treatments are typically paid for
    out-of-pocket by the patient and a patient usually requires more
    than one IVF treatment cycle. The average cost of one fresh IVF
    cycle as of August 2009 was approximately $12,000 according to
    Marketdata Enterprises, Inc. and, in 2007, the likelihood of a
    live birth occurring after one fresh IVF cycle was 31% according
    to the Society for Assisted Reproductive Technology. Our Attain
    IVF Refund Program allows medically cleared patients to pay an
    up-front deposit of approximately twice the average cost of a
    fresh IVF cycle in return for up to six treatment cycles
    (consisting of three fresh IVF cycles and three frozen embryo
    transfers) with a specified percentage refund if treatment does
    not result in a baby. Our Attain IVF Multi-Cycle Program allows
    all patients, including those who are not medically cleared for
    our Attain
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    IVF Refund Program, to pay a single fee, which is slightly less
    than the average cost of two fresh IVF cycles, in return for up
    to four treatment cycles (consisting of two fresh IVF cycles and
    two frozen embryo transfers). Our Attain IVF Multi-Cycle Program
    offers a partial refund under certain circumstances. We provide
    Attain IVF patients with the improved success rates associated
    with multiple fertility treatment cycles, as well as increased
    financial certainty for the IVF process. Additionally, we
    provide Attain IVF patients with a roadmap for treatment,
    including patient education, on-going case management and
    treatment plan monitoring, which provide visibility and ease to
    the process.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition to being offered to our Partner fertility centers,
    the division offers our Attain IVF programs through a contracted
    network that consisted of 25 independent fertility centers as of
    September&#160;30, 2009, referred to as our Affiliate Program.
    Our Affiliate Program allows fertility centers to pay fees to
    receive selected management and consumer services we provide.
    The benefits that our fertility centers realize from offering
    our Attain IVF programs include: allowing patients to commit to
    multiple fertility treatments, which improves treatment volume
    and revenues; insulating the centers from refund risk; managing
    cash and administrative details associated with our Attain IVF
    programs; and enabling physicians to maintain a traditional fee
    for service arrangement without the appearance of conflicts of
    interest that otherwise might arise from self administering a
    refund program. We bind our Partner and Affiliate fertility
    centers, which provide the IVF treatments, to abide by the terms
    of the program through participation agreements that support our
    packaged pricing model, but we do not employ or control the
    physicians who provide or direct the treatment of patients. For
    the six months ended June&#160;30, 2009, our Consumer Services
    Division generated approximately 9% of our revenues and 26% of
    our contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division began operations on August&#160;8,
    2007, with the purchase of Vein Clinics of America, Inc.
    (&#147;VCA&#148;), a company that had been in business since
    1981. Our Vein Clinics Division currently operates a network of
    34 clinics located in 13&#160;states. These vein clinics provide
    specialized outpatient treatment for patients suffering from
    vein diseases and other vein disorders. Our current treatment
    options are alternatives to more invasive outpatient surgical
    procedures and include Endovenous Laser Treatment
    (&#147;ELT&#148;), a minimally invasive laser treatment, and
    sclerotherapy, which involves injecting veins with a solution
    designed to immediately shrink and then dissolve such veins over
    a period of weeks. We offer business services and support to the
    vein clinics and have a controlling financial interest in their
    operations. Medical services or treatments are provided to vein
    clinic patients by physicians who are employed by professional
    corporations, whose financial condition, results of operations
    and cash flows are consolidated with our consolidated financial
    statements. For the six months ended June&#160;30, 2009, our
    Vein Clinics Division generated approximately 23% of our
    revenues and 20% of our contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Industries</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We are currently focused on the following industries:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Reproductive Medicine.</I>&#160;&#160;According to a recent
    industry estimate, approximately 10% of U.S.&#160;couples have
    trouble conceiving. In addition, women are increasingly delaying
    starting families. In 2006, approximately one out of every 12
    first births was to a woman age&#160;35 or older, compared with
    one out of every 100 first births in 1970, according to the
    U.S.&#160;Centers for Disease Control and Prevention. There are
    approximately 1,400 practicing reproductive endocrinologists
    offering fertility services across 480 fertility centers in the
    United States. Fertility services include diagnostic tests
    performed on both the female and the male, as well as fertility
    treatments. Treatment options may include fertility drug
    therapy, artificial insemination, fertility surgeries to correct
    anatomical problems and assisted reproduction technology
    (&#147;ART&#148;) services. Current types of ART services
    include IVF, frozen embryo
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 11%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    transfers and donor egg programs, as well as more specialized
    treatments. IVF treatments are the most frequently employed form
    of ART, with 103,367 fresh IVF cycles performed in the United
    States in 2007. Expenditures relating to fertility services in
    the U.S.&#160;market are estimated at approximately
    $4&#160;billion for 2008, according to Marketdata Enterprises,
    Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Vein Disease.</I>&#160;&#160;Common venous diseases and their
    symptoms can take many forms, including varicose veins, spider
    veins and venous leg ulcers. We believe that approximately
    25&#160;million people are currently affected by vein disease in
    the United States, but only approximately one million receive
    treatment for such vein disease. Historically, the most common
    treatment for vein disease was vein stripping, which is the
    surgical removal of surface veins that is generally done as an
    outpatient procedure while the patient is under general
    anesthesia and which requires an extended recovery time. More
    recently, minimally invasive alternatives such as ELT and
    sclerotherapy have been growing as alternatives to invasive
    surgical options. Annual expenditures related to vein care in
    the United States are approximately $2&#160;billion and
    projected to grow 12% per year through 2010, according to our
    estimates. The U.S.&#160;Food and Drug Administration&#146;s
    approval of lasers for thermal ablation of veins and subsequent
    establishment of an American Medical Association Current
    Procedural Terminology code for reimbursement by the Centers for
    Medicare and Medicaid Services has opened this market to rapid
    growth and development over the last several years.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strengths</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe that our strengths include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Leading Network of Fertility Centers.</I>&#160;&#160;We
    believe our network of 11 Partner fertility centers is the
    largest managed network of fertility centers in the United
    States, with 63&#160;locations and 97&#160;physicians and PhD
    scientists, accounting for approximately 14% of the total IVF
    procedures performed in the United States in 2007, which is the
    latest period for which third-party data are available.
    Additionally, we are affiliated with four of the top five
    fertility practices in the United States, based on volume of
    procedures. Our centralized infrastructure and ability to
    leverage economies of scale result in our Partner fertility
    centers demonstrating faster growth than the industry average,
    based on volume of procedures.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Strong and Replicable Vein Clinic Model.</I>&#160;&#160;We
    believe our 34 vein clinics are the single largest network of
    vein care providers in the United States. This network allows
    for marketing, operational and revenue cycle efficiencies by
    leveraging resources, knowledge and infrastructure as well as
    providing a strong base and replicable model for new clinic
    expansion.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Attain IVF Programs.</I>&#160;&#160;We created our family of
    Attain IVF programs as innovative offerings for patients of our
    Partner and Affiliate fertility networks. Marketing for our
    Attain IVF programs facilitates recruitment and retention of
    self-pay patients, which comprise the majority of the IVF
    treatment market. We have developed a sophisticated statistical
    model and case management program, which we believe allows us to
    appropriately screen patients for our Attain IVF Refund Program
    and reduce our financial risk. Our Attain IVF programs are
    non-capital intensive and our Attain IVF Refund Program
    generated operating margins of approximately 26% for the six
    months ended June&#160;30, 2009.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>State-of-the-Art Information Systems.</I>&#160;&#160;We have
    internally developed, integrated information systems that
    collect and analyze clinical, patient, financial and marketing
    data, which we believe allow us to more effectively control
    expenses and improve cash collections at our
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Partner fertility centers and vein clinics. Our proprietary
    ARTworks<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    clinical software provides electronic medical records, treatment
    plan and success rate research capabilities, decision support
    functionality and clinical risk management services, which we
    believe makes our physicians more efficient and improves quality
    of care. We provide our vein clinics access to our proprietary
    Virtual Physician Assistant information system, which is an
    end-to-end patient and clinic operating system that provides
    decision support and revenue cycle functions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Access to Capital.</I>&#160;&#160;We provide our Partner
    fertility centers and vein clinics with efficient access to
    capital which allows them to obtain current technologies,
    equipment and facilities that enable them to provide a full
    spectrum of services to effectively compete for patients. We
    believe this access to capital helps us to recruit Partner
    practices.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Sophisticated Sales and Marketing
    Organization.</I>&#160;&#160;Our sales and marketing department
    specializes in the development of sophisticated programs that
    give our Partner and Affiliate fertility centers and vein
    clinics access to patient recruitment tools such as
    direct-to-consumer marketing, physician referral development and
    a vein care centralized call center. We believe these sales and
    marketing efforts are often too expensive for many individual
    physician practices, resulting in a competitive advantage to our
    Partner and Affiliate fertility centers and vein clinics with
    respect to patient recruitment.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Experienced Management Team.</I>&#160;&#160;Our senior
    management has extensive industry experience with average health
    care services experience of 25&#160;years. This industry
    experience, combined with extensive merger and acquisition and
    financial expertise allows us to effectively execute our
    strategy.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our mission is to strengthen our position as a leading manager
    of fertility centers and vein clinics by increasing revenues and
    improving profitability, as well as continuing to provide value
    to patients and our physician network. Our strategy to achieve
    our mission is outlined below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Make Selective Contract Acquisitions of Partner Fertility
    Centers.</I>&#160;&#160;The U.S.&#160;market for fertility
    services is highly fragmented and we believe that it is ripe for
    consolidation. We believe that our competitors&#146; ability to
    compete with us for contract acquisitions is currently limited
    due to our experience acquiring Partner center contracts, our
    position as the manager of what we believe is the largest
    network of fertility centers in the United States and our
    developed infrastructure and experience in delivering valuable
    services to support fertility center operations. Recruitment
    into our Partner Program has traditionally focused on fertility
    centers that first participate as Affiliates serviced by our
    Consumer Services Division; as such, we had an established
    pipeline of 25&#160;fertility centers as of September&#160;30,
    2009. In addition to recruiting from Affiliate centers, we have
    a development staff that targets leading physician groups with
    established practices in selected metropolitan markets. These
    candidates are then evaluated against our contract acquisition
    criteria, which includes factors such as size of practice,
    physician reputation and the physicians&#146; growth-oriented
    outlook.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Expand our Network of Affiliate Fertility
    Centers.</I>&#160;&#160;We intend to expand our network of
    Affiliate fertility centers to other metropolitan markets across
    the United States. Our development staff is focused on the top
    100 largest metropolitan markets, where we expect the highest
    demand for fertility centers to occur.
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Develop De Novo Vein Clinics.</I>&#160;&#160;We intend to
    develop new vein clinics in markets where we already have
    existing clinics that have not fully penetrated their market and
    to identify attractive contiguous markets to develop new
    clinics. Our development staff focuses on locations where there
    are attractive demographics, reasonable media costs and a
    favorable reimbursement environment. We believe our vein clinic
    model can be predictably and profitably replicated in these new
    markets. De novo vein clinics require relatively little capital
    investment, typically $300,000, and usually reach break-even in
    nine months or less after opening of the clinic. Following the
    acquisition of VCA, we made significant investments in physician
    recruiting and training, regional managers, revenue cycle
    management, sales and marketing, as well as new clinic
    development staff, all of which is designed to allow us to open
    new clinics at a more rapid and sustained pace utilizing a
    replicable model.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Increase the Total Number of Patients
    Treated.</I>&#160;&#160;We intend to work with our fertility
    centers and vein clinics to increase the total number of
    patients they treat. We expect future patient volume to be
    driven by our sales program, centralized direct-to-consumer
    advertising strategy, direct physician referrals and processes
    designed to retain patients who make contact with our call
    centers and receive an initial consultation. We intend to
    continue providing products and services to centers and clinics
    that help attract patients, including access to state-of-the-art
    equipment, access to our Attain IVF programs and access to our
    clinical and information technology applications.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Increase Penetration of Our Attain IVF
    Programs.</I>&#160;&#160;For the six months ended June&#160;30,
    2009, approximately 11.5% of self-pay patients in our Partner
    and Affiliate network utilized our Attain IVF Refund Program. We
    formally introduced our Attain IVF Multi-Cycle Program in July
    2009. We believe that the penetration of our Attain IVF programs
    can be meaningfully increased by educating patients on the
    improved success rates associated with multiple treatment cycles
    and the packaged pricing features of our Attain IVF programs,
    which allow for multiple treatment cycles and, in the case of
    our Attain IVF Refund Program, a significant financial refund if
    the treatments are unsuccessful. We also believe we can increase
    overall market penetration of our Attain IVF programs by
    demonstrating to physicians at potential Affiliate and Partner
    practices the benefit of increased patient volume and retention
    that we believe result from offering our Attain IVF programs. We
    have demonstrated the ability to increase Attain IVF Refund
    Program penetration because certain of our fertility centers had
    Attain IVF Refund Program penetration rates in excess of 25%
    during the six months ended June&#160;30, 2009.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <I>Continue Improving Operating Efficiencies.</I>&#160;&#160;We
    continuously seek opportunities to lower costs and realize
    operating efficiencies through the implementation of a
    centralized infrastructure focused on improved accounts
    receivable management, along with leveraging economies of scale
    in support functions such as procurement, finance, information
    technology, human resources, risk management and legal services.
    We expect to further leverage our corporate infrastructure as we
    expand our network of Partner fertility centers and vein clinics.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Corporate
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We were incorporated in Delaware on June&#160;4, 1985. Our
    headquarters are located at Two Manhattanville Road, Purchase,
    New York 10577. Our telephone number is
    <FONT style="white-space: nowrap">(914)&#160;253-8000.</FONT>
    Our website address is <U>www.integramed.com</U>. The
    information on our website is not incorporated as a part of this
    prospectus.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>The Offering</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Common stock offered by us</TD>
    <TD></TD>
    <TD valign="bottom">
    4,000,000&#160;shares</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    4,600,000&#160;shares if the underwriters exercise their
    over-allotment option in full</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common stock outstanding immediately after this
    offering<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD></TD>
    <TD valign="bottom">
    12,774,994&#160;shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We estimate that the net proceeds to us from this offering will
    be approximately $&#160;&#160;&#160;&#160;&#160;&#160;million,
    or approximately $&#160;&#160;&#160;&#160;&#160;&#160;million if
    the underwriters exercise their over-allotment option in full,
    based on the assumed offering price and after deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the net proceeds of this offering for general
    working capital and other corporate purposes, including funding
    potential contract acquisitions of Partner fertility centers.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    You should read the discussion in this prospectus under the
    heading &#147;Use of Proceeds&#148; for more information.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk factors</TD>
    <TD></TD>
    <TD valign="bottom">
    See &#147;Risk Factors&#148; and all other information included
    in this prospectus for a discussion of factors that you should
    carefully consider before deciding to invest in shares of our
    common stock.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Nasdaq Global Market symbol:</TD>
    <TD></TD>
    <TD valign="bottom">
    INMD</TD>
</TR>

</TABLE>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    Excludes shares issuable upon exercise of the underwriters&#146;
    over-allotment option. The number of shares of our common stock
    outstanding immediately after this offering is based on
    8,774,994&#160;shares outstanding as of June&#160;30, 2009 and
    excludes 215,841&#160;shares of common stock issuable upon
    exercise of outstanding stock options as of June&#160;30, 2009
    at a weighted average exercise price of $5.98 per share and
    464,933&#160;shares of common stock reserved for issuance under
    our 2007 Long-Term Compensation Plan.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The information in this prospectus assumes that none of our
    outstanding stock options has been exercised or forfeited since
    June&#160;30, 2009. All information in this prospectus assumes
    the issuance and sale of our common stock in this offering at an
    offering price of $9.37&#160;per share, the last reported sale
    price for our common stock on October&#160;1, 2009, as reported
    by the Nasdaq Global Market.
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    6
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<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Consolidated Financial Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth our summary consolidated
    financial data as of and for the periods presented. The summary
    consolidated financial data as of December&#160;31, 2007 and
    2008 and for each of the years ended December&#160;31, 2006,
    2007 and 2008 have been derived from our audited annual
    consolidated financial statements, which are included elsewhere
    in this prospectus. The summary consolidated financial data as
    of December&#160;31, 2006 have been derived from our audited
    annual consolidated financial statements, which have not been
    included in this prospectus. The summary consolidated financial
    data as of and for the six months ended June&#160;30, 2008 and
    2009 have been derived from our unaudited consolidated financial
    statements, which are included elsewhere in this prospectus. In
    the opinion of management, our unaudited consolidated financial
    statements include all adjustments, consisting only of normal
    recurring items, except as noted in the notes to the
    consolidated financial statements, necessary for a fair
    statement of interim periods. The financial information
    presented for the interim periods has been prepared in a manner
    consistent with our accounting policies described elsewhere in
    this prospectus, and should be read in conjunction therewith.
    Operating results for interim periods are not necessarily
    indicative of the results that may be expected for a full year
    period. You should read this data together with the consolidated
    financial statements and related notes appearing elsewhere in
    this prospectus, as well as &#147;Management&#146;s Discussion
    and Analysis of Financial Condition and Results of
    Operations&#148; and the other financial information included
    elsewhere in this prospectus. Historical results are not
    necessarily indicative of future performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We prepare our consolidated financial statements in accordance
    with U.S.&#160;generally accepted accounting principles
    (&#147;GAAP&#148;), including Financial Accounting Standards
    Board Interpretation No.&#160;46 (revised December 2003)
    (&#147;FIN&#160;No.&#160;46R&#148;), &#147;Consolidation of
    Variable Interest Entities.&#148; In accordance with
    FIN&#160;No.&#160;46R, we do not consolidate the results of the
    fertility centers to which we provide services because we do not
    have a controlling financial interest in such centers and we are
    not the primary beneficiary or obligor of such centers&#146;
    financial results. We do, however, have a controlling financial
    interest in individual vein clinics where we are the primary
    beneficiary and obligor of their financial results. As such, we
    consolidate the financial condition, results of operations and
    cash flows of those clinics&#146; operations. See
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Off-Balance
    Sheet Arrangements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Six Months Ended
    June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(dollars in thousands, except
    per share amounts)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues, net:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs of services and sales:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,315
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total costs of services and sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Six Months Ended
    June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(dollars in thousands, except
    per share amounts)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contribution:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,073
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,256
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (383
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (273
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total other expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,992
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (821
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic and diluted net earnings per share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Basic earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Diluted earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Weighted average shares&#160;&#151; basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Weighted average shares&#160;&#151; diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Balance Sheet
    Data<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>:</B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Working
    capital<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (4,520
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,958
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,697
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,258
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,323
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total indebtedness
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,163
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,851
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,691
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,655
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Our Vein Clinics Division began operations on August&#160;8,
    2007 with our purchase of VCA.
</TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    As of the last day of the reported period.
</TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Represents current assets less current liabilities.
</TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December&#160;31, 2006.
</TD>
</TR>

</TABLE>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Operating Data</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth our summary operating data for
    the years ended December&#160;31, 2006, 2007 and 2008 and for
    the six months ended June&#160;30, 2008 and 2009. This summary
    operating data is unaudited. Historical results are not
    necessarily indicative of future performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Six Months Ended
    June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Summary operating data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Partner fertility
    centers<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8 Partners
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9 Partners
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11 Partners
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10 Partners
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11 Partners
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fresh IVF cycles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,142
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,483
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,553
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Consumer Services
    Affiliates<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22 Affiliates
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20 Affiliates
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23 Affiliates
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22 Affiliates
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23 Affiliates
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vein
    clinics<SUP style="font-size: 85%; vertical-align: top">(1),(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26 clinics
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32 clinics
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30 clinics
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34 clinics
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vein clinics
    procedures<SUP style="font-size: 85%; vertical-align: top">(2),(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,273
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    As of the last day of the reported period.
</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT><FONT style="font-size: 8pt">Our
    Vein Clinics Division began operations on August&#160;8, 2007
    with our purchase of VCA.
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="font-size: 8pt"><SUP style="font-size: 85%; vertical-align: top">(3)</SUP></FONT><FONT style="font-size: 8pt">One
    vein care procedure represents a corrective procedure performed
    on a leg.
    </FONT>
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=479 -->

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    <BR>
    9
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I>Investing in our common stock involves a high degree of risk.
    Before you invest in our common stock, you should carefully
    consider the various risks of the investment, including those
    described below, together with all of the other information
    included in this prospectus. Additional risks may also impair
    our business operations and adversely affect our prospects. If
    any of the following risks actually occur, our business,
    financial condition or operating results could be adversely
    affected. In that case, the trading price of our common stock
    could decline and you could lose all or part of your
    investment.</I>
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related to Our Business</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The loss
    of one or more of our Partner fertility centers would lead to a
    decline in our revenues and profit.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The contracts that we enter into with our Partner fertility
    centers typically have terms that range from 10 to 25&#160;years
    and contain automatic renewal provisions. Some of these
    agreements also contain provisions that allow the Partner
    fertility center to terminate the agreement, upon
    12&#160;months&#146; prior notice, at any time after five years
    from the agreement&#146;s effective date. Our two largest
    Partner fertility centers provided approximately 34% of our
    Fertility Centers Division revenues for the year ended
    December&#160;31, 2008. If either of these Partner fertility
    centers, or any of our other Partner fertility centers, were to
    terminate its agreement with us, we would lose all of the
    revenues associated with such Partner fertility center, but
    would not experience any meaningful reduction in our
    infrastructure costs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We may
    not be able to find suitable Partner candidates or successfully
    integrate the operations of the fertility centers with which we
    enter into Partner contracts.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A key part of our business strategy is to enter into additional
    Partner contracts. We cannot assure you that we will be able to
    find suitable Partner candidates or that the fertility centers
    that we enter into Partner contracts with will be successful.
    Even if suitable Partner candidates are identified, negotiation
    over suitable terms and conditions may be protracted and
    unsuccessful, and we may not be able to achieve planned
    increases in the number of Partner centers. Further, achieving
    the anticipated benefits of current and possible future Partner
    contracts will depend in part upon whether we can integrate the
    operations of those fertility centers with our operations in a
    timely and cost-effective manner. The process of integrating the
    operations of Partner fertility centers with our operations is
    complex, expensive and time consuming and involves a number of
    risks, including, but not limited to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in integrating or retaining key medical providers
    of the Partner fertility center;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    difficulties in integrating the operations of the Partner
    fertility center, such as information technology resources and
    financial and operational data;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    diversion of our management&#146;s attention;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential incompatibility of cultures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We are
    dependent on the medical providers in our fertility centers and
    vein clinics to successfully execute our business
    strategy.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Although we manage our fertility centers and vein clinics, the
    medical providers at those centers and clinics provide medical
    services directly to patients and we do not have control over
    their medical activities. We cannot guarantee any medical
    provider&#146;s ability to generate positive patient outcomes,
    build a positive reputation for their practice or to comply with
    our expectations. If the medical providers in our fertility
    centers and vein clinics act negligently or unethically, allow
    their medical
</DIV>

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    <BR>
    10
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    practices to deteriorate or do not meet our growth expectations,
    it could diminish the value of our brand and our results of
    operations could be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We may
    have difficulty attracting and retaining physicians for our
    fertility centers and vein clinics.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A key part of our business strategy is to enter into additional
    Partner contracts and open new vein clinics. The success of our
    fertility centers is dependent upon our ability to retain the
    key medical providers associated with those centers. If one or
    more key medical providers were to depart from a fertility
    center, our business could suffer. Our ability to open new vein
    clinics is dependent upon identifying, recruiting and retaining
    qualified physicians to perform procedures at these clinics. We
    have had difficulties staffing new vein clinics because some
    third-party payors require that the physicians performing
    procedures at these clinics have certain specified credentials.
    We will not be able to implement successfully our business
    strategy if we are unable to properly staff our fertility
    centers and vein clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">A
    reduction in reimbursements or an inability to negotiate
    attractive reimbursement rates from third-party payors for the
    services that our Partner centers or vein clinics provide could
    adversely affect our revenues and growth.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A significant portion of our fertility Partner and vein clinic
    revenues depends on reimbursements to the underlying physician
    practices from third-party payors. These third parties include
    private health insurers and other organizations, such as health
    maintenance organizations, as well as government authorities.
    Third parties are systematically challenging prices charged for
    medical treatment. A third-party payor may deny or reduce
    reimbursement if it determines that a prescribed treatment is
    not used in accordance with cost-effective treatment methods, as
    determined by the payor, or is experimental, unnecessary or
    inappropriate. In addition, although third parties may approve
    reimbursement, such approvals may be under terms and conditions
    that discourage use of our services, even if those services are
    safer or more effective than alternative services. A reduction
    in reimbursements from third-party payors, whether in the form
    of changes to reimbursement contracts, such as by limiting
    reimbursement for certain procedures to specialists, loss of
    reimbursement contracts, solvency issues on the part of the
    payors, or in the case of our vein clinics, changes in Medicare
    reimbursement, would cause patients to reduce their treatments
    or obtain services from other providers and could reduce our
    revenues and profitability. Our ability to profitably open vein
    clinics in new markets also significantly depends on our ability
    to obtain attractive reimbursement rates from third-party payors
    in those new markets. If we are unable to obtain satisfactory
    reimbursement rates from third-party payors for vein clinics in
    new markets, our growth would suffer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In early 2009, one of our top fertility centers in the Midwest
    terminated a reimbursement contract with an important
    third-party payor. Contribution from this fertility center in
    2008 was approximately $2.3&#160;million and this third-party
    payor represented approximately 20% of this contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Health
    care reform could impact the demand for our services.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    There are currently numerous proposals on the federal and state
    levels for comprehensive reforms relating to health care that
    could affect payment and reimbursement for health care services
    in the United States. The U.S.&#160;Congress is considering
    legislation that could dramatically overhaul the health care
    system, including the possibility of a government health care
    plan. We cannot predict whether any such reforms will ultimately
    be adopted or the impact that such reforms may have on the
    demand or payment for our services. Because our Attain IVF
    programs are self-pay programs for patients that do not have
    insurance coverage for fertility treatments, health care reform
    that increases insurance coverage for fertility treatments could
    lead to a decrease in demand for our Attain IVF programs.
</DIV>

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    <BR>
    11
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We face
    competition from existing providers, as well as new providers
    entering our markets.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our business divisions operate in highly competitive areas. Our
    fertility centers compete with national, regional and local
    physician practice fertility centers, hospitals and university
    medical centers, some of which have programs that compete with
    our Attain IVF programs. Our fertility centers may also compete
    with fertility centers located outside of the United States, due
    to the self-pay nature of IVF treatment. Our vein clinics
    compete with other vein care clinic providers, dermatologist and
    surgical clinics that provide ELT and sclerotherapy as an
    ancillary offering, vascular surgeons and interventional
    radiologists. Barriers to entry in the vein care industry are
    low. New health care providers that enter our markets impact our
    market share, patient volume and growth rates. Increased
    competitive pressures require us to commit resources to
    marketing efforts, which impacts our margins and profitability.
    There can be no assurance that our fertility centers or vein
    clinics will be able to compete effectively with existing
    providers in our markets or that new competitors will not enter
    into our markets. These existing and new competitors may have
    greater financial and other resources than we or our fertility
    centers or vein clinics do. Increased competition could also
    make it more difficult for us to expand our business by entering
    into new contracts with fertility centers or opening new vein
    clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    development of alternative treatments could diminish demand for
    our services.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The fertility and vein care industries are dynamic, and new,
    technologically intensive treatments are constantly under
    development. New treatments that are more effective or provide
    better reimbursement could decrease patient demand or
    profitability for the treatments that our fertility centers or
    vein clinics currently offer. If our fertility centers or vein
    clinics do not adopt new treatments as they are developed,
    patients could seek treatment elsewhere.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">If we are
    found not to be in compliance with applicable laws and
    regulations, we could be subject to significant fines or
    penalties, be forced to curtail certain of our operations or
    rearrange material agreements to our detriment.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We, and each of our fertility centers and vein clinics, are
    subject to numerous federal and state laws and regulations,
    including, but not limited to, federal and state anti-kickback
    laws, controlled substances laws, the federal Stark law and
    state self-referral laws, false claims laws, the Health
    Insurance Portability and Accountability Act of 1996
    (&#147;HIPAA&#148;), Medicare and Medicaid regulations and laws
    regulating the business of insurance. These laws and regulations
    are extremely complex and could be subject to various
    interpretations. Our fertility centers and vein clinics are also
    subject to these statutes, but we do not oversee, nor are we
    responsible for, their compliance with these laws. Many aspects
    of our business, to date, have not been the subject of federal
    or state regulatory review and we, and any of our fertility
    centers or vein clinics, may not have been in compliance at all
    times with all applicable laws and regulations. If we, or our
    fertility centers or vein clinics, are found by a court or
    regulatory authority to have violated any applicable laws or
    regulations, we could be subject to significant fines or
    penalties or be forced to curtail certain of our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Further, the laws of many states prohibit physicians from
    splitting fees with non-physicians, or other physicians, and
    prohibit non-physician entities from practicing medicine. These
    laws vary from state to state and are enforced by the courts and
    by regulatory authorities with broad discretion. Many aspects of
    our business, to date, have not been the subject of judicial or
    regulatory interpretation; thus, a review of our business by
    courts or regulatory authorities may result in determinations
    that could adversely affect our operations. In addition, the
    health care regulatory environment could change so as to
    restrict our existing operations or their expansion. State
    corporate practice of medicine laws may be interpreted as
    prohibiting corporations or associations from exercising control
    over physicians or employing nurse practitioners or physician
    assistants and may prohibit physicians from practicing medicine
    in partnership with, or as employees of, any person not licensed
    to practice medicine.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    12
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    State regulators may seek to challenge the arrangements that we
    have with our fertility centers and vein clinics. A
    determination in any state that we are engaged in the corporate
    practice of medicine or any unlawful fee-splitting arrangement
    could render any management agreement between us and a practice
    located in such state unenforceable or subject to modification,
    which could have an adverse effect on our financial condition
    and results of operations. Regulatory authorities or other
    parties may assert that we are or a practice is engaged in the
    corporate practice of medicine or that the management fees paid
    to us by the managed practices constitute unlawful fee-splitting
    or the corporate practice of medicine. If such a claim were
    asserted successfully, we could be subject to civil and criminal
    penalties, managed physicians could have restrictions imposed
    upon their licenses to practice medicine, parts or all of our
    existing management agreements could be rendered unenforceable
    and we could be required to restructure our contractual
    arrangements with the managed practices, all of which could have
    an adverse effect on our financial condition and results of
    operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our management agreement with our Partner fertility center in
    Illinois provides that we will be paid a base fee equal to a
    fixed percentage of the revenues of the fertility center that
    declines to zero to the extent the costs relating to the
    management of the fertility center increase as a percentage of
    total revenues. There is a substantial risk that this
    compensation arrangement, being based on a percentage of
    revenues, would not be upheld if challenged under Illinois law.
    To address this, our management agreement provides that if such
    compensation arrangement is found to be illegal, unenforceable,
    against public policy or forbidden by law, the management fee
    will be an annual fixed fee to be mutually agreed upon, not less
    than $1,000,000 per year, retroactive to the effective date of
    the agreement, resulting in a reduction of our management fee.
    In such event, there is likely to be a significant decrease in
    the management fees derived from this fertility center as a
    result of the new fee structure, as well as repayment of amounts
    paid in excess of the prior management fee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Although we view our Attain IVF programs as a guaranty or
    warranty of our fertility centers&#146; performance, the Attain
    IVF programs have several characteristics that are present in an
    insurance contract. As such, an insurance regulator in a
    particular state may find that we have been and are engaged in
    the business of insurance without a license, which could subject
    us to criminal and civil liabilities and would subject our
    Attain IVF programs to substantial regulation in that state as
    an insurance contract, including burdensome reserve
    requirements. In addition, in states that prohibit physicians
    from splitting professional fees with non-physicians, we could
    be required to restructure our Attain IVF programs if a state
    concluded that our Attain IVF programs constituted fee splitting
    because we retain a portion of the payments patients pay
    directly to us for their medical treatment by our fertility
    centers. The imposition of any such liabilities and any such
    changes in our method of doing business would likely reduce
    revenues and contribution from our Consumer Services Division.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Additionally, our management agreements with our vein clinics
    provide that the vein clinics will pay us a fee equal to 150% of
    our expenses of operating and managing the vein clinics. These
    fees have historically exceeded the operating margin generated
    by any particular vein clinic prior to payment of the management
    fee. Accordingly, each vein clinic only pays the portion of the
    management fee that is equal to the amount of revenue generated
    by the clinic annually up to the 150% amount. As a result, our
    vein clinics do not generate any net profits at year end. A
    state regulator could find that such a compensation model is
    actually based on a percentage of the revenue of a particular
    vein clinic or that our management fee is not commensurate with
    the services we provide, in which case our management agreements
    would be violating fee-splitting laws of certain states where we
    operate vein clinics. We could be forced to restructure the fee
    structure under the management agreements to our material
    financial detriment or the providers affiliated with our vein
    clinics who have been found to violate the fee-splitting
    statutes or regulations may be subject to disciplinary action or
    criminal sanctions, which could lead to the closure of one or
    more of our vein clinics.
</DIV>

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    <BR>
    13
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our arrangements with our fertility centers and vein clinics may
    trigger the application of federal and various state franchise
    laws. We have never sought to comply with any such franchise
    laws, nor have we ever sought any exemptions from such laws. The
    U.S.&#160;Federal Trade Commission could bring an enforcement
    action against us for failure to comply with federal franchise
    laws and could impose significant fines against us, order us to
    pay restitution to the fertility centers and vein clinics that
    are found to be franchisees (and the physicians that own or
    operate them)
    <FONT style="white-space: nowrap">and/or</FONT> seek
    criminal sanctions against us. Under the laws of certain of the
    states in which we operate, the physicians that own or operate
    our fertility centers and vein clinics may bring private causes
    of actions against us for violating such laws. In many of these
    jurisdictions, in addition to a judgment for actual damages, a
    court could award the physicians rescission, attorney&#146;s
    fees and costs and treble damages. Additionally, we could be
    subject to fines and criminal sanctions. Even if we were to
    comply with these federal and state franchise laws, we would
    still be potentially liable for prior violations that occurred
    prior to the time we came into compliance with such laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>New or enhanced laws and regulations affecting the fertility
    industry could increase our costs of compliance and force us to
    alter certain of our operations.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A number of high profile events have occurred recently related
    to ART and fertility practices generally, such as the
    implantation of a greater than recommended number of embryos,
    resulting in extraordinarily high-order multiple births, or the
    implantation of incorrect patient embryos. Federal and state
    regulators may more carefully scrutinize the fertility industry
    as a result of these events, and may adopt more stringent laws
    and regulations that could increase our compliance costs or
    force us to alter certain of our operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We and
    our Partner fertility centers and vein clinics may not have
    sufficient liability insurance to cover potential
    claims.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The medical procedures performed by physicians and other medical
    personnel in our network of fertility centers and vein clinics
    can involve significant complications, including genetically
    defective births, embryo loss and patient death. We are likely
    to be, and from time to time have been, named as a party in
    legal proceedings involving medical malpractice or other
    injuries that occur at one of our fertility centers or vein
    clinics, particularly in those fertility centers where we
    provide the services of a physician assistant or nurse
    practitioner. A successful malpractice claim could exceed the
    limits of insurance that we maintain, in which case we would
    have to fund any settlement in excess of our insurance coverage.
    We also maintain medical malpractice insurance coverage for our
    Partner fertility centers and vein clinics, and a successful
    malpractice claim against one of those centers or clinics in
    excess of the coverage we maintain for them would adversely
    affect the revenues we derive from those centers and clinics. In
    addition, the captive insurance company that provides a portion
    of our insurance coverage does not maintain reserves in amounts
    that would be required of other, larger insurers, and therefore
    may not have adequate capital to fund a claim against us or the
    Partner fertility centers covered by the captive insurance
    company. A malpractice claim, whether or not successful, could
    be costly to defend, could consume management resources and
    could adversely affect our reputation and business and the
    reputations and businesses of our Partner fertility centers and
    vein clinics. We also cannot assure you that we or our Partner
    fertility centers or vein clinics will be able to obtain
    insurance coverage in the future on commercially reasonable
    terms, or at all.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    success depends on retaining key members of our management
    team.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The success of our business strategy depends on the continued
    contribution of key members of our management team. The loss of
    key members of this team could disrupt our growth plans and our
    ability to implement our business strategy.
</DIV>

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    <BR>
    14
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We rely
    on a limited number of third-party vendors for medicine and
    supplies.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our fertility centers and vein clinics rely on a limited number
    of third-party vendors that produce medications and supplies
    vital to patient treatment, such as AngioDynamics, Inc., which
    provides the only U.S.&#160;Food and Drug Administration
    approved solution used in sclerotherapy. If any of these vendors
    were to experience a supply shortage or cease doing business,
    and we were unable to find an alternative third-party vendor, we
    might not be able to properly serve our patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    credit agreement contains covenants that impose restrictions on
    us that may limit our operating flexibility, prevent us from
    entering into extraordinary transactions that benefit our
    stockholders and limit our growth.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our credit agreement contains covenants that restrict our
    flexibility to conduct business. These covenants prohibit or
    limit, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the payment of dividends to our stockholders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the incurrence of additional indebtedness;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the making of certain types of restricted payments and
    investments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales of assets;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    consolidations, mergers and transfers of all or substantially
    all of our assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The credit agreement also requires that we maintain certain
    leverage and fixed charge ratios and minimum levels of earnings
    before interest, taxes, depreciation and amortization. Our
    failure to comply with any of these covenants could cause the
    lenders to declare a default and accelerate amounts due to them
    under the credit agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition, our credit agreement places certain restrictions on
    our ability to acquire the business, assets or capital stock of
    fertility centers. For example, our credit agreement prevents us
    from acquiring a fertility center for a purchase price in excess
    of $5.5&#160;million (increasing to $6.0&#160;million after
    August&#160;31, 2010)&#160;without the prior written consent of
    our lender. In addition, our credit agreement prevents us from
    making acquisitions of fertility centers that aggregate in
    excess of $11&#160;million for the period from August&#160;1,
    2009 through July&#160;31, 2010, or that exceed $12&#160;million
    for the period after August&#160;1, 2010. If we identify
    fertility centers that we want to acquire in excess of limits in
    our credit agreement and do not obtain the consent of our lender
    to those acquisitions, we may not be able to execute on our
    strategy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We may
    not have adequate protection for our intellectual property
    rights.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Trade secrets and other proprietary information not protected by
    patents are critical to our business. Our sole means of
    protecting this information is to utilize confidentiality
    agreements with employees, third parties and consultants. If
    these agreements are breached, another entity could obtain our
    trade secrets and proprietary information and attempt to
    replicate our business model, which could have an adverse effect
    on our business.
</DIV>

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    <BR>
    15
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

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    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Relating to an Investment in our Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    trading price of our common stock could be subject to
    volatility.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The average daily trading volume of our shares of common stock
    on the Nasdaq Global Market for the nine months ended
    September&#160;30, 2009 was approximately 7,158&#160;shares.
    Because the shares of our common stock are lightly traded, they
    are subject to volatile price fluctuations, which may make it
    difficult for you to sell our common stock when you want or at
    prices you find attractive. In the past, following periods of
    volatility in the market price of a company&#146;s securities,
    securities class action litigation has often been instituted. A
    securities class action suit against us could result in
    substantial costs, potential liabilities and the diversion of
    management&#146;s attention and resources, and could have a
    material adverse effect on our financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Future
    sales or the potential for future sales of our common stock may
    cause the trading price of our common stock to
    decline.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Sales of a substantial number of shares of our common stock by
    our two largest stockholders, or by any of our other significant
    stockholders, or the perception that these sales may occur,
    could cause the market price of our common stock to decline.
    Approximately 40% of our outstanding common stock is held by two
    investor groups. If either of these groups, or any other
    significant stockholders, were to attempt to sell all or part of
    their positions in the public market, our stock price could fall
    substantially.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition, our directors and executive officers, who held an
    aggregate of 741,025&#160;shares of our common stock as of
    August&#160;31, 2009, are subject to
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements that restrict their ability to transfer their shares
    of our common stock for 90&#160;days following the date of this
    prospectus. The market price of shares of our common stock may
    decrease if a significant number of these shares are sold when
    the restrictions on their sale lapse.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We will
    have broad discretion in applying the net proceeds of this
    offering and may not use those proceeds in ways that will
    enhance the market value of our common stock.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have significant flexibility in applying the net proceeds we
    will receive in this offering. We will use the proceeds that we
    receive from the sale of common stock in this offering for
    working capital and general corporate purposes. As part of your
    investment decision, you will not be able to assess or direct
    how we apply these net proceeds. If we do not apply these funds
    effectively, we may lose significant business opportunities.
    Furthermore, our stock price could decline if the market does
    not view our use of the net proceeds from this offering
    favorably.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">You will
    incur immediate and substantial dilution as a result of this
    offering.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The public offering price per share of our common stock in this
    offering is substantially higher than the net tangible book
    value per share of our outstanding common stock. As a result,
    you will incur immediate and substantial dilution of
    $&#160;&#160;&#160;&#160;&#160; per share, representing the
    difference between the assumed public offering price of $9.37
    per share and our tangible net book value per share as of
    June&#160;30, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    future capital needs could result in dilution of your
    investment.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors may determine from time to time that
    there is a need to obtain additional capital through the
    issuance of additional shares of our common stock or other
    securities. These issuances would likely dilute the ownership
    interests of the investors in this offering and may dilute the
    net tangible book value per share of our common stock. Investors
    in subsequent offerings may also have
</DIV>

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    <BR>
    16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    rights, preferences and privileges senior to our current
    stockholders which may adversely impact our current stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">We do not
    intend to pay cash dividends on our common stock for the
    foreseeable future.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have not paid cash dividends on our common stock during the
    last two fiscal years, and we do not expect to pay cash
    dividends on our common stock at any time in the foreseeable
    future. The future payment of dividends directly depends upon
    our future earnings, capital requirements, financial
    requirements and other factors that our board of directors will
    consider. In addition, our credit agreement prohibits us from
    paying cash dividends on our common stock. Because we do not
    anticipate paying cash dividends on our common stock in the
    foreseeable future, the return on your investment on our common
    stock will depend solely on a change, if any, in the market
    value of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    certificate of incorporation, by-laws and Delaware law could
    limit another party&#146;s ability to acquire us, even if an
    acquisition would be beneficial to our stockholders.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A number of provisions in our certificate of incorporation and
    by-laws make it difficult for another company to acquire us,
    even if doing so would benefit our stockholders. For example,
    our certificate of incorporation authorizes our board of
    directors to issue &#147;blank check&#148; preferred stock, the
    terms of which may be established and shares of which may be
    issued without stockholder approval. The rights of holders of
    our common stock could be adversely affected by the terms of any
    preferred stock that may be issued in the future. In addition,
    our by-laws limit the ability of our stockholders to call
    special meetings or fill vacancies on the board.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Also, Section&#160;203 of the Delaware General Corporation Law
    generally limits our ability to engage in any business
    combination with certain persons who own 15% or more of our
    outstanding voting stock or any of our associates or affiliates
    who at any time in the past three years have owned 15% or more
    of our outstanding voting stock. These provisions may have the
    effect of entrenching our management team and may deprive you of
    the opportunity to sell your shares to potential acquirers at a
    premium over prevailing prices. This potential inability to
    obtain a control premium could reduce the price of our common
    stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='103'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The information included in this prospectus contains
    forward-looking statements within the meaning of
    Section&#160;27A of the Securities Act of 1933, as amended (the
    &#147;Securities Act&#148;), and Section&#160;21E of the
    Securities Exchange Act of 1934, as amended (the &#147;Exchange
    Act&#148;), the attainment of which involves various risks and
    uncertainties. All statements other than statements of
    historical fact included in this prospectus are forward-looking
    statements. Forward-looking statements may be identified by the
    use of forward-looking terminology, such as &#147;may,&#148;
    &#147;will,&#148; &#147;expect,&#148; &#147;believe,&#148;
    &#147;estimate,&#148; &#147;anticipate,&#148;
    &#147;continue&#148; or similar terms, variations of those terms
    or the negative of those terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    These forward-looking statements are based on assumptions that
    we have made in light of our experience in the industry in which
    we operate, as well as our perceptions of historical trends,
    current conditions, expected future developments and other
    factors we believe are appropriate under the circumstances. As
    you read and consider this prospectus, you should understand
    that these statements are not guarantees of performance or
    results. They involve risks, uncertainties (some of which are
    beyond our control) and assumptions. Although we believe that
    these forward-looking statements are based on reasonable
    assumptions, you should be aware that many factors could affect
    our actual financial condition or results of operations and
    cause actual results to differ materially from those in the
    forward-looking statements. These factors include, among other
    things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    termination of any of our Partner fertility center agreements
    for any reason;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to identify attractive candidates for our Partner
    Program, successfully negotiate contract acquisition terms with
    Partner candidates or effectively integrate new Partners;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to recruit or retain suitable physicians to open
    and operate our vein clinics;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    less than expected growth in the vein care market, especially
    for minimally invasive procedures in which our vein clinics
    specialize;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    termination or adverse changes to the terms of our reimbursement
    arrangements with third-party payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    decreases in reimbursement rates from third-party payors, either
    in markets where we and our Partner and Affiliate fertility
    centers and vein clinics currently operate or into which we plan
    to expand;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    adoption of new laws or regulations applicable to fertility
    centers or vein clinics, either in markets where we and our
    Partner and Affiliate fertility centers and vein clinics
    currently operate or into which we plan to expand;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changing patterns of enforcement or new interpretations of
    existing laws and regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the occurrence of adverse medical outcomes at one or more of our
    Partner or Affiliate fertility centers or vein clinics, or other
    events that adversely affect the reputation of those centers or
    clinics or the physicians who work at those centers or clinics;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    development of new technologies that our Partner or Affiliate
    fertility centers or vein clinics do not adopt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an increase in litigation against us, our Partner fertility
    centers or vein clinics or the physicians who work at those
    centers and clinics;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an inability to obtain insurance on commercially reasonable
    terms, the adequacy of insurance to address claims to which we,
    or our Partner fertility centers or vein clinics, are subject,
    or the inability of an insurer to pay amounts owed to us or our
    Partner fertility centers or vein clinics for a claim;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an increase in the competition that we and our Partners
    fertility centers or vein clinics face;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other factors discussed under the headings &#147;Risk
    Factors,&#148; &#147;Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations&#148; and
    &#147;Business.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Because of these factors, we caution that you should not place
    undue reliance on any of our forward-looking statements.
    Further, any forward-looking statement speaks only as of the
    date on which it is made. New risks and uncertainties arise from
    time to time, and it is impossible for us to predict these
    events or how they may affect us. We are under no obligation to
    update or alter any forward-looking statements, whether as a
    result of new information, future events or otherwise.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We estimate that the net proceeds to us from this offering will
    be approximately $&#160;&#160;&#160;&#160;&#160;&#160;million,
    or approximately $&#160;&#160;&#160;&#160;&#160;&#160;million if
    the underwriters exercise their over-allotment option in full,
    based on the assumed offering price and after deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We intend to use the net proceeds of this offering for general
    working capital and other corporate purposes, including funding
    potential contract acquisitions of Partner fertility centers.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRICE
    RANGE OF COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our common stock is traded on the Nasdaq Global Market under the
    symbol &#147;INMD.&#148; The following table sets forth, for the
    periods indicated, the high and low closing sales prices per
    share of our common stock, as reported on the Nasdaq Global
    Market:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">High</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Low</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fourth Quarter (through October&#160;1, 2009)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.97
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On October&#160;1, 2009, the closing sale price per share of our
    common stock was $9.37, as reported on the Nasdaq Global Market.
    On September&#160;30, 2009, there were 103&#160;holders of
    record of our common stock. This figure does not include persons
    or entities who hold their common stock in nominee or
    &#147;street&#148; name.
</DIV>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have not paid cash dividends on our common stock during the
    last two fiscal years, and we currently anticipate retaining all
    available funds for use in the operation and expansion of our
    business. In addition, our credit agreement prohibits us from
    paying cash dividends on our common stock. Therefore, we do not
    anticipate paying any cash dividends on our common stock in the
    foreseeable future.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table describes our capitalization as of
    June&#160;30, 2009 on an actual basis and as adjusted to reflect
    our sale of 4,000,000&#160;shares of common stock in this
    offering at an assumed offering price of $9.37 per share, the
    last reported sale price for our common stock on October&#160;1,
    2009, as reported by the Nasdaq Global Market, after deducting
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    You should read this capitalization table together with the
    consolidated financial statements and related notes appearing
    elsewhere in this prospectus, as well as &#147;Use of
    Proceeds,&#148; &#147;Management&#146;s Discussion and Analysis
    of Financial Condition and Results of Operations&#148; and the
    other financial information included elsewhere in this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="7%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">As of June&#160;30,
    2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Actual</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">As
    Adjusted<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited) </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(in thousands, except share
    data)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Debt:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Current portion of long-term notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Long-term notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total notes payable and other
    obligations<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Common stock, $0.01&#160;par value; 15,000,000&#160;shares
    authorized, actual and as adjusted; 8,774,994&#160;shares issued
    and outstanding, actual; 12,774,994&#160;shares issued and
    outstanding as
    adjusted<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Capital in excess of par
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Other comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Treasury stock, at cost; 46,408&#160;shares, actual and as
    adjusted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 118pt">
    <B>Total capitalization</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Assumes no exercise of the underwriters&#146; over-allotment
    option.
</TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    As of June 30, 2009, we had $2,500,000 available under our line
    of credit that was unused.
</TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Excludes 215,841 shares of common stock issuable upon exercise
    of outstanding stock options as of June&#160;30, 2009 at a
    weighted average exercise price of $5.98 per share and 464,933
    shares of common stock reserved for issuance under our 2007
    Long-Term Compensation Plan.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    CONSOLIDATED FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth our selected consolidated
    financial data as of and for the periods presented. The selected
    consolidated financial data as of December&#160;31, 2007 and
    2008 and for each of the years ended December&#160;31, 2006,
    2007 and 2008 have been derived from our audited annual
    consolidated financial statements, which are included elsewhere
    in this prospectus. The selected consolidated financial data as
    of December&#160;31, 2004, 2005 and 2006 and for each of the
    years ended December&#160;31, 2004 and 2005 have been derived
    from our audited annual consolidated financial statements, which
    have not been included in this prospectus. The selected
    consolidated financial data as of and for the six months ended
    June&#160;30, 2008 and 2009 have been derived from our unaudited
    consolidated financial statements, which are included elsewhere
    in this prospectus. In the opinion of management, our unaudited
    consolidated financial statements include all adjustments,
    consisting only of normal recurring items, except as noted in
    the notes to the consolidated financial statements, necessary
    for a fair statement of interim periods. The financial
    information presented for the interim periods has been prepared
    in a manner consistent with our accounting policies described
    elsewhere in this prospectus, and should be read in conjunction
    therewith. Operating results for interim periods are not
    necessarily indicative of the results that may be expected for a
    full year period. You should read this data together with the
    consolidated financial statements and related notes appearing
    elsewhere in this prospectus, as well as &#147;Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#148; and the other financial information included
    elsewhere in this prospectus. Historical results are not
    necessarily indicative of future performance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We prepare our consolidated financial statements in accordance
    with GAAP, including FIN&#160;No.&#160;46R. In accordance with
    FIN&#160;No.&#160;46R, we do not consolidate the results of the
    fertility centers to which we provide services because we do not
    have a controlling financial interest in such centers and we are
    not the primary beneficiary or obligor of such centers&#146;
    financial results. We do, however, have a controlling financial
    interest in individual vein clinics where we are the primary
    beneficiary and obligor of their financial results. As such, we
    consolidate the financial condition, results of operations and
    cash flows of those clinics&#146; operations. See
    &#147;Management&#146;s Discussion and Analysis of Financial
    Condition and Results of Operations&#160;&#151; Off-Balance
    Sheet Arrangements.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Six Months Ended
    June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(dollars in thousands, except
    per share amounts)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Statement of Operations Data:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Revenues, net:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    87,367
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,277
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,938
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 56pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    107,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,215
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Costs of services and sales:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78,823
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,782
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,485
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,315
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 56pt">
    Total costs of services and sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    97,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    116,385
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Contribution:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,544
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,377
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 56pt">
    Total contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,830
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Six Months Ended
    June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2004</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2005</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="26" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(dollars in thousands, except
    per share amounts)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,065
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (259
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (520
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,073
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,256
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (383
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (273
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    295
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 56pt">
    Total other expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,992
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (821
</TD>
<TD nowrap align="left" valign="bottom">
    )<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic and diluted net earnings per share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Basic earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Diluted earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Weighted average shares &#151;&#160;basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,561
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    Weighted average shares &#151;&#160;diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>Balance Sheet
    Data<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>:</B>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Working
    capital<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,157
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,721
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,973
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (4,520
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (3,958
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,697
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,258
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,119
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    76,323
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total indebtedness
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,147
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,163
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,940
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,636
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,851
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,691
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,655
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,933
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,871
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Our Vein Clinics Division began operations on August&#160;8,
    2007 with our purchase of VCA.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    As of the last day of the reported period.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Represents current assets less current liabilities.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December&#160;31, 2006.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT&#146;S
    DISCUSSION AND ANALYSIS OF<BR>
    FINANCIAL CONDITION AND RESULTS OF OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I>The following discussion and analysis should be read in
    conjunction with the historical consolidated financial
    statements and related notes and the other financial information
    appearing elsewhere in this prospectus. This discussion and
    analysis contains forward-looking statements that involve risks,
    uncertainties and assumptions. Our actual results and timing of
    events could differ materially from those anticipated in the
    forward-looking statements as a result of many factors,
    including those discussed under the caption &#147;Risk
    Factors&#148; and elsewhere in this prospectus.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Overview</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We provide services and products through our
    three operating divisions (Fertility Centers, Consumer Services
    and Vein Clinics) and shared support services for providers
    through our corporate offices. Each of our operating divisions
    is presented as a separate segment for financial reporting
    purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Fertility Centers Division is a provider network of 11
    contracted fertility centers, referred to as our Partner
    Program, serving 13 metropolitan markets across the United
    States. We offer products and services to these providers
    designed to support the fertility center&#146;s growth. All
    fertility Partners also have full access to our Consumer
    Services Division offerings. The division also sponsors a
    Council of Physicians and Scientists for fertility providers.
    Physicians affiliated with our Partner fertility centers obtain
    a portion of their malpractice insurance through
    ARTIC&#160;&#151;&#160;Assisted Reproductive Technology
    Insurance Company, a captive insurance company which we helped
    organize in 2005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Consumer Services Division offers our Attain IVF programs to
    fertility patients. The division&#146;s Attain IVF programs are
    designed to make the treatment process easier and more
    affordable for patients. Currently, this division maintains a
    contracted network of 25 independent fertility centers (23 as of
    December&#160;31, 2008)&#160;under its Affiliate Program, which
    is designed to distribute the division&#146;s products and
    services to a wider group of patients than those serviced by our
    Partner locations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division began operations on August&#160;8,
    2007, with the purchase of Vein Clinics of America, Inc.
    (&#147;VCA&#148;), a company that had been in business since
    1981. The Vein Clinics Division currently manages a network of
    34 clinics (32 as of December&#160;31, 2008)&#160;located in
    13&#160;states, which specialize in the treatment of vein
    disease and other vein disorders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The primary elements of our business strategy include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Making selective contract acquisitions of Partner fertility
    centers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Expanding our network of Affiliate fertility centers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Developing de novo vein clinics;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Increasing the total number of patients treated;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Increasing the penetration of our Attain IVF programs;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Continuing to improve operating efficiencies.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Major
    Events Impacting Financial Condition and Results of
    Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2009</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On April&#160;20, 2009, we announced the opening of a new vein
    clinic in Cleveland, Ohio. This represents the 34th&#160;clinic
    in our Vein Clinics Division, our entry into the Cleveland
    market and the expansion of our presence in the State of Ohio.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On April&#160;1, 2009, we elected to exercise the option
    contained in our business service agreement with Arizona
    Reproductive Medicine Specialists, based in Phoenix, Arizona,
    and expand our service offerings from a limited range of
    services to those offered to our other fertility Partners.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On January&#160;20, 2009, we announced the opening of a new vein
    clinic in Cincinnati, Ohio. This represents the 33rd&#160;clinic
    in our Vein Clinics Division and our first entry into the State
    of Ohio and the Cincinnati market.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2008</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    From June 2008 through March 2009, our 2007 annual and our 2008
    periodic interim Securities and Exchange Commission reports were
    the subject of a standard comment and review process by the
    Staff of the Division of Corporation Finance of the Securities
    and Exchange Commission. The application of generally accepted
    accounting principles to our Attain IVF Refund Program&#146;s
    (formerly our Shared Risk Refund Program&#146;s) multiple
    element revenue arrangements is complex and management&#146;s
    interpretation of the applicable authoritative literature
    related to the timing of the recognition of the fair value of
    revenues for the non-refundable portion of the Attain IVF Refund
    Program fees differed from that of the Securities and Exchange
    Commission, which caused us to re-evaluate our revenue
    recognition policies. As a result, we restated our prior
    financial statements with respect to the timing of revenue
    recognition for our Attain IVF Refund Program within our
    Consumer Services Division. Our previous revenue recognition
    policy had generally recognized the non-refundable patient fees
    (generally 30% of the contract amount) as revenues upon the
    completion of the first treatment cycle. We now recognize the
    non-refundable fees based on the relationship of the fair value
    of each treatment to the total fair value of the treatment
    package available to each patient. We also recognize a
    &#147;warranty reserve&#148; representing the estimated cost of
    services to be provided in the event a qualified patient
    miscarries. This restatement does not impact our cash flows from
    operations or the ultimate profits from our Attain IVF Refund
    Program, only the timing of the revenue recognition for the
    non-refundable portion of the Attain IVF Refund Program fees
    paid by patients. See Note&#160;2 of our consolidated financial
    statements included elsewhere in this prospectus. The financial
    data included in this prospectus reflects this restatement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On December&#160;17, 2008, we announced the opening of a new
    vein clinic in Skokie, Illinois. This clinic represents our
    ninth vein care clinic in the greater Chicago metropolitan area
    and benefits from the operational and marketing leverage we have
    developed in that market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On December&#160;8, 2008, we announced the opening of a new vein
    clinic in Monroeville, Pennsylvania. This clinic is our first
    vein clinic in Pennsylvania and is designed to provide
    <FONT style="white-space: nowrap">state-of-the-art</FONT>
    vein care to patients in the greater Pittsburgh area.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On July&#160;9, 2008, we entered into a business services
    agreement to provide discrete business services to Arizona
    Reproductive Medicine Specialists, based in Phoenix, Arizona.
    Under the terms of this
    <FONT style="white-space: nowrap">25-year</FONT>
    agreement, our service fees were initially comprised of a fixed
    percentage of the fertility practice&#146;s net revenues. We
    also had the exclusive option, which we exercised on
    April&#160;1, 2009, at any point during
</DIV>

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    <BR>
    26
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    the life of the contract to expand our service offerings into a
    complete range of business, marketing and financial services.
    After we exercised the option on April&#160;1, 2009, our fees
    also included a fixed percentage of the fertility
    practice&#146;s earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On June&#160;23, 2008, we announced that we entered into a new
    Affiliate services contract with the University of North
    Carolina (&#147;UNC&#148;) School of Medicine&#146;s Department
    of Obstetrics and Gynecology in Chapel Hill, North Carolina. As
    an Affiliate, UNC School of Medicine&#146;s Department of
    Obstetrics and Gynecology receives distribution rights to our
    consumer products and services. In addition, UNC School of
    Medicine&#146;s Department of Obstetrics&#160;and Gynecology has
    the right to receive other products and services uniquely
    designed to support the business needs of successful,
    high-growth fertility centers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On June&#160;5, 2008, we announced the opening of a new vein
    clinic in Marietta, Georgia. This clinic was our fourth vein
    clinic in Georgia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On April&#160;29, 2008, we announced the opening of a new vein
    clinic in Alexandria, Virginia. This addition to our Vein
    Clinics Division provides focused vein care treatment solutions
    to the Washington,&#160;D.C. metropolitan area.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On April&#160;24, 2008, we entered into a business service
    agreement to supply a complete range of business, marketing and
    facility services to Southeastern Fertility Centers, P.A.,
    located in Mount Pleasant, South&#160;Carolina. Under the terms
    of this
    <FONT style="white-space: nowrap">25-year</FONT>
    agreement, our service fees are comprised of reimbursed costs of
    services, a tiered percentage of revenues and an additional
    fixed percentage of the practice&#146;s earnings. We also
    committed up to $600,000 to fund any necessary capital needs of
    the practice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On April&#160;1, 2008, we entered into an Affiliate services
    contract with OU Physicians Reproductive Health in Oklahoma
    City, Oklahoma. As a result of this agreement, OU Physicians
    Reproductive Health provides another opportunity for our
    Consumer Services Division to distribute its product offerings.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2007</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On August&#160;30, 2007, we entered into a business service
    agreement to supply a complete range of business, marketing and
    facility services to the Center for Reproductive Medicine in
    Orlando, Florida. The Center for Reproductive Medicine is a
    fertility practice comprised of four physicians. Under the terms
    of this
    <FONT style="white-space: nowrap">25-year</FONT>
    agreement, our service fees are comprised of reimbursed costs of
    services, a tiered percentage of revenues and an additional
    fixed percentage of the Center for Reproductive Medicine&#146;s
    earnings. We also committed up to $1.0&#160;million to fund any
    necessary capital needs of the practice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On August&#160;8, 2007, we acquired all of the outstanding stock
    of VCA for a total cost of approximately $29&#160;million in
    cash and common stock. The results of VCA are included in our
    financial statements from the date of the acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Also on August&#160;8, 2007, we entered into an amended credit
    agreement with Bank of America, N.A. (&#147;Bank of
    America&#148;). The new term loan under the amended credit
    agreement is in the amount of $25&#160;million (the proceeds of
    which were applied to repay our original term loan and finance,
    in part, the VCA transaction). Interest on the new term loan is,
    at our option, at the prime rate less up to 0.50% or at LIBOR
    plus 2.00% to 2.75%, depending upon the level of the ratio of
    consolidated debt to earnings before interest, taxes
    depreciation and amortization (&#147;EBITDA&#148;). The amended
    credit agreement also contains provisions for a revolving line
    of credit in the amount of $10&#160;million. Interest on the
    revolving line of credit is at the prime rate less up to 0.50%
    or at LIBOR plus 1.5% to 2.5%, depending on the level of the
    ratio of consolidated debt to EBITDA.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    27
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Effective July&#160;1, 2007, we expanded our fertility center
    Partner service arrangement with Shady Grove Fertility
    Reproductive Science Center,&#160;P.C. (&#147;Shady Grove&#148;)
    with the addition of the Fertility Center of the Greater
    Baltimore Medical Center (the &#147;Center&#148;) in Baltimore,
    Maryland, where we now provide a full range of business,
    marketing and financial services. Under the terms of this
    agreement, we purchased the assets of the Center from Greater
    Baltimore Medical Center and have committed additional resources
    to support further growth and development of the Center. Under
    the terms of this agreement, we are paid service fees comprised
    of reimbursed costs of services and a fixed percentage of
    revenues, plus an additional fixed amount of the Center&#146;s
    earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On March&#160;19, 2007, we declared a 25% common stock split
    effected in the form of a common stock dividend for all holders
    of record as of April&#160;13, 2007. As a result of this
    dividend, 1,628,907 new shares of common stock were issued on
    the payment date of May&#160;4, 2007. No fractional shares were
    issued as all fractional amounts were rounded up to the next
    whole share. All weighted average shares outstanding and
    earnings per share calculations in this prospectus have been
    restated to reflect this common stock dividend.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">2006</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000, which reduced our overall
    tax provision and increased net income by the same amount while
    adding $0.10 to earnings per share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During October 2006, we provided notification that our financial
    statements for 2005 and the first two quarters of 2006 could not
    be relied on, and were restated due to an accounting error. The
    restatements consisted of non-cash adjustments to deferred tax
    and intangible balances and did not result in any changes to net
    income or earnings per share for any period. All periods
    affected by this error have been restated throughout this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On May&#160;22, 2006, we declared a 25% common stock split
    effected in the form of a common stock dividend for all holders
    of record as of June&#160;7, 2006. As a result of this dividend,
    1,291,368 new shares of common stock were issued on the payment
    date of June&#160;21, 2006. No fractional shares were issued as
    all fractional amounts were rounded up to the next whole share.
    All weighted average shares outstanding and earnings per share
    calculations in this prospectus have been restated to reflect
    this common stock dividend.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Significant
    Accounting Policies and Use of Estimates</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our significant accounting policies are described in Note&#160;3
    of our consolidated financial statements included elsewhere in
    this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States,
    including our significant accounting policies, requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities and disclosure of
    contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenues and expenses
    during the reporting periods. On an ongoing basis, we evaluate
    our estimates and assumptions, including those related to
    revenue recognition, allowance for uncollectible accounts and
    contractual allowance reserves, contingencies and income taxes.
    We base our estimates on historical experience and on various
    other assumptions that we believe are reasonable under the
    circumstances. The results of our analysis form the basis for
    making assumptions about the carrying values of assets and
    liabilities that are not readily apparent from other sources.
    Actual results may differ from these estimates under different
    assumptions or conditions, and the impact of such differences
    may be material to our
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    28
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    consolidated financial statements. The most significant use of
    estimates and assumptions in the preparation of our consolidated
    financial statements relates to the determination of net
    revenues and accounts receivable and reserves for estimated
    refunds due to pregnancy losses in our Attain IVF Refund Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Contractual allowance and uncollectible reserve amounts are
    determined based on historical collection performance data and
    are reviewed and adjusted monthly as necessary. We make periodic
    estimates for pregnancy loss based upon Company specific data.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Results
    of Operations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table shows the percentage of net revenues
    represented by various expenses and other income items reflected
    in our statements of operations for the six months ended
    June&#160;30, 2009 and 2008 and the years ended
    December&#160;31, 2008, 2007 and 2006:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="5%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues, net:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    80.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    89.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs of services incurred:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total costs of services incurred
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contribution:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.2
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.8
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.9
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.1
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.3
</TD>
<TD nowrap align="left" valign="bottom">
    )%
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total other expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income from operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.2
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.2
</TD>
<TD nowrap align="left" valign="bottom">
    %<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Our Vein Clinics Division began operations on August&#160;8,
    2007 with our purchase of VCA.
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December&#160;31, 2006.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Revenues</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the six months ended June&#160;30, 2009, total revenues of
    $108.5&#160;million increased approximately $13.1&#160;million,
    or 14%, from the same period in 2008. Approximately
    $5.8&#160;million of this increase was generated by our Vein
    Clinics Division, $5.8&#160;million from our Fertility Centers
    Division and $1.5&#160;million from our Consumer Services
    Division. The two new vein clinics opened during the first
    quarter of 2009 accounted for $1.1&#160;million of our Vein
    Clinics Division&#146;s increase, with the remaining
    $4.7&#160;million generated by legacy clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2008, total revenues of
    $197.4&#160;million increased approximately $46.2&#160;million,
    or 30.6%, from the year ended December&#160;31, 2007. We
    experienced
    <FONT style="white-space: nowrap">year-over-year</FONT>
    organic revenue increases in both of our fertility business
    segments. Our Fertility Centers Division revenues increased as a
    result of growth within our existing medical practices, as well
    as the addition of two new Partner arrangements and the full
    year of results of a Partner added in the third quarter of 2007.
    Expansion continued in our Consumer Services Division, driven by
    the continued expansion of our Attain IVF Refund Program. In
    addition to growth in our two fertility segments, our
    performance for the year ended December&#160;31, 2008 included
    full year results from our Vein Clinics Division which was
    purchased on August&#160;8, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2007, total revenues of
    $151.2&#160;million increased approximately $25.3&#160;million,
    or 20.1%, from the year ended December&#160;31, 2006. Our
    Fertility Centers Division revenues increased as a result of
    growth within the underlying medical practices, the addition of
    one new Partner arrangement and the expansion of the Shady Grove
    contract. Expansion continued in our Consumer Services Division,
    driven by the growth of our Attain IVF Refund Program. In
    addition to growth within our two fertility segments, on
    August&#160;8, 2007, we acquired VCA. VCA, which we believe has
    the single largest network of vein care providers in the United
    States, became our third operating segment and contributed
    $14.3&#160;million to our 2007 revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">segment-by-segment</FONT>
    discussion is presented below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fertility
    Centers Segment</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In providing clinical care to patients, each of our Partner
    fertility centers generates patient revenues which we do not
    report in our financial statements. Although we do not
    consolidate the Partner fertility center practice financials
    with our own, these financials do directly affect our revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The components of our revenues from each of the Partner
    fertility centers are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    A base service fee calculated as a percentage of patient
    revenues as reported by the Partner fertility center (this
    percentage generally varies from 6% down to 3% depending on the
    level of patient revenues);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Cost of services equal to reimbursement for the expenses which
    we advanced to the Partner fertility center during the month
    (representing substantially all of the expenses incurred by the
    center);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our additional fees which represent our share of the net income
    of the Partner fertility center (which varies from 10% to 20% or
    a fixed amount depending on the underlying center, subject to
    limits in some circumstances).
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition to these revenues generated from our fertility
    centers, we often receive miscellaneous other revenues related
    to providing services to medical practices. From the total of
    our revenues, we subtract the annual amortization of our
    business service rights under most agreements, which are the
    rights to provide business services to each of the centers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During the first six months of 2009, Fertility Centers Division
    revenues increased by $5.8&#160;million, or 9%, relative to the
    same period in the prior year. This increase was the result of a
    5.0% rise in same-center revenues as well as $2.5&#160;million
    of revenues from the addition of two new Partner contracts in
    April and July 2008. These increases are net of the reduction in
    business at one of our top fertility centers in the Midwest as a
    result of termination of a contract with one of the
    center&#146;s third-party payors, as well as a slight moderation
    in demand that we believe is attributable to the prolonged
    recession. Contribution from this facility in 2008 was
    approximately $2.3&#160;million and this third-party payor
    represented approximately 20% of this contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fertility Centers Division revenues in the year ended
    December&#160;31, 2008 increased by $17.4&#160;million, or
    14.3%, from the year ended December&#160;31, 2007. This compares
    to an increase of $8.3&#160;million, or 7.4%, for the year ended
    December&#160;31, 2007 versus the year ended December&#160;31,
    2006. During 2008 and 2007, growth was largely attributable to
    same center
    <FONT style="white-space: nowrap">year-over-year</FONT>
    growth in our network of underlying medical practices.
    Influencing this growth is our focus on increasing patient
    revenues through effective multi-faceted marketing programs, as
    well as our continued focus on expense management, which drives
    operational efficiency and higher contribution margins. Revenues
    for the year ended December&#160;31, 2008 also benefited from:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the inclusion of a new fertility Partner in Mount Pleasant,
    South Carolina, which contributed $3.5&#160;million to our net
    revenues from its addition in April 2008 through
    December&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    full year results from our Orlando, Florida Partner added in
    September 2007;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the full year impact from the expansion of Shady Grove into the
    Baltimore, Maryland market in July 2007.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In July 2008, we also entered into a
    <FONT style="white-space: nowrap">25-year</FONT>
    contract with Arizona Reproductive Medicine Specialists, based
    in Phoenix, Arizona. Under the terms of this agreement, we
    phased in the implementation of our full suite of Partner
    services over time. Under this arrangement, our fees were
    originally calculated as a fixed percentage of the center&#146;s
    revenues with an option to expand into our standard three-tiered
    fee structure, in line with expanded Partner services, based
    upon the center meeting certain performance targets. We
    exercised this option on April&#160;1, 2009.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The table below illustrates the components of the Fertility
    Centers Division revenues in relation to the Partner fertility
    center practice financials for the six months ended
    June&#160;30, 2009 and 2008 and the years ended
    December&#160;31, 2008, 2007 and 2006 (in thousands):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="52%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 34pt">
    <B>Partner Fertility Center Financials</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (a) Patient revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    192,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    168,653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    152,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    99,887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    92,264
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (b) Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    109,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,287
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61,504
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (c) Base service fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,798
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,791
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,686
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,237
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (d) Practice contribution (a-b-c)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,426
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,730
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,914
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,523
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (e) Physician compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,863
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,678
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,577
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (f) IntegraMed additional fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 34pt">
    <B>IntegraMed Financials</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (g) IntegraMed gross revenues (b+c+f)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    139,517
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121,975
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    74,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    68,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (h) Amortization of business service rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,300
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,343
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,495
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (648
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (648
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (i) Other
    revenues<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    223
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    446
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (j) IntegraMed fertility services revenues (g+h+i)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    Other revenues includes administrative fees we receive from
    ARTIC, the captive insurance company, fees from Arizona
    Reproductive Medicine Specialists as well as other miscellaneous
    fees.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 1%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following summarized quarterly data for the six months ended
    June&#160;30, 2009 and the years ended December&#160;31, 2008,
    2007 and 2006 is presented for additional analysis and
    demonstration of the slight seasonality of our Fertility Centers
    Division. New patients visits are an indicator of initial
    patient interest in fertility treatment and IVF cases completed
    are an indicator of billable charges. IVF cases completed in the
    fourth quarter of each year are typically lower, as many
    patients do not wish to undergo the IVF procedure during the
    year end holidays. Contributing to the lower number of IVF cases
    completed are voluntary laboratory closures at year end at
    several of our labs in order to undergo normal maintenance (in
    thousands, except new patient visits and IVF cases completed).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Revenues, Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contribution</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,746
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,092
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,497
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,642
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,315
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,728
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,648
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,057
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,526
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,031
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    36,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,046
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,743
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,714
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,174
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,366
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,599
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,464
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,146
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">New Patient Visits</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">IVF Cases Completed</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,917
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,303
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,038
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,433
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,452
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,547
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,314
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,088
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,186
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,930
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,474
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,069
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,279
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,971
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,068
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,993
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,733
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,190
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services Segment</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Revenues from our Consumer Services Division increased by 18.5%,
    or $1.5&#160;million, for the six months ended June&#160;30,
    2009 versus the same period in the prior year. Attain IVF Refund
    Program revenues accounted for approximately 94% of the
    division&#146;s revenues during the first six months of 2009, up
    from approximately 93% for the same period in 2008. Patients
    enrolled in our Attain IVF Refund Program pay us an up-front fee
    (deposit) in return for up to six treatment cycles (consisting
    of three fresh IVF cycles and three frozen embryo transfers).
    Any non-refundable portion of these fees is recognized as
    revenues based on the relative fair value of each treatment
    cycle completed relative to the total fair value of the
    contracted treatment package available to the patient. The
    refundable portion of the program contract amount is recognized
    as revenue when the patient becomes pregnant. At the time of
    pregnancy, we establish a reserve for future medical costs
    should the patient miscarry and require additional contracted
    treatment cycles. The two main factors that impact Attain IVF
    Refund Program financial performance are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of patients enrolled and receiving treatment,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    clinical pregnancy rates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During the second quarter of 2009, the loss of a primary
    third-party lender that provided financing programs for Attain
    IVF patients and a general tightening of credit standards and
    higher interest rates caused a decline in new patient
    enrollments that adversely affected the program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Affiliate Program generated revenues of $625,000 during the
    first half of 2009, up slightly from $587,000 for the prior year
    period. This increase in revenues is attributable to pricing
    adjustments for the program&#146;s services. Although our
    Affiliate Program produces revenues on a stand alone basis, the
    primary value of the Affiliate Program is to serve as a
    distribution channel for our Attain IVF programs and as an
    introduction to our services for medical practices that may
    become full fertility Partners. As of June&#160;30, 2009, this
    network was comprised of 23 independent fertility centers, one
    more than the year earlier period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Pharmaceutical revenues for the six months ended June&#160;30,
    2009 were $16,000 down from $68,000 for the same period in the
    prior year. Our pharmaceutical revenues are comprised of
    marketing support fees we earn based upon underlying product
    margin as reported by a third-party pharmaceutical distributor.
    Over the past several years we have seen flat or declining
    revenues due to pharmaceutical cost increases which the
    distributor has been unable to pass on to the consumer as a
    result of competitive pressures. We view these pricing and
    margin developments as longer-term structural elements within
    the pharmaceutical market and do not expect significant
    improvement during 2009. As such we did not renew our contract
    with the third-party distributor when it expired on
    June&#160;30, 2009 and we anticipate no further revenues from
    this source during the last half of 2009 and beyond.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2008, revenues of
    $17.6&#160;million from our Attain IVF Refund Program
    represented approximately 92.6% of our Consumer Services
    Division revenues. This compares to revenues of
    $14.4&#160;million, or slightly over 91.1%, of Consumer Services
    Division revenues in 2007. Revenue growth in our Attain IVF
    Refund Program of $3.2&#160;million, or 22.2%, in 2008 compared
    to 2007 was the result of enrolling more patients into the
    program and increasing patient throughput by maintaining high
    pregnancy success rates. Similarly, Attain IVF Refund Program
    revenue growth of $2.9&#160;million, or 25.2%, in 2007 versus
    2006 was also attributable to expanded enrollments relative to
    the earlier year, coupled with high pregnancy rates. From the
    beginning of 2005 through the end of 2008, while pregnancy
    success rates have either been maintained or increased,
    enrollments in our Attain IVF Refund Program grew at a compound
    annual rate of 32.8%. Because the patients in our Attain IVF
    Refund Program prepay for their suite of services, and a
    significant portion of the fees received by us
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    are not recognized until the patient achieves pregnancy, our
    Attain IVF Refund Program deposits and deferred revenue balance
    continues to grow each year the number of enrolled patients
    grows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Affiliate Program generated revenues of $1.2&#160;million
    for the year ended December&#160;31, 2008, which is
    approximately unchanged from the years ended December&#160;31,
    2007 and 2006. During 2008, four independent fertility centers
    joined our Affiliate Program and two left in Partner related
    transactions for a net increase of two centers. For the year
    ended December&#160;31, 2007, our Affiliate Program had a net
    reduction of one center as one practice moved to our Partner
    Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Pharmaceutical revenues of $200,000 for the year ended
    December&#160;31, 2008 were approximately equal to
    pharmaceutical revenues for the year ended December&#160;31,
    2007, and down from $400,000 in 2006 due to the pharmaceutical
    cost increases discussed above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following summarized Consumer Services Division quarterly
    data for the six months ended June&#160;30, 2009 and the years
    ended December&#160;31, 2008, 2007 and 2006 is presented for
    additional analysis and demonstration of the fluctuations of
    enrollments and pregnancies in our Attain IVF Refund Program (in
    thousands, except enrollments and pregnancies).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="30%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Revenues, Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contribution</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,512
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,066
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    603
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,991
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,161
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,254
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,132
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,152
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,365
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,379
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    982
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,296
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,777
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    887
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Enrollments</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Pregnancies</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    253
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    212
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    239
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    203
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    189
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    217
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    207
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    183
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    422
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinics Segment</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Revenues in this segment are generated from direct billings to
    patients or their insurer for vein disease treatment services
    and these revenues are consolidated directly into our financials.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Revenues for the six months ended June&#160;30, 2009 were
    $24.7&#160;million, up 30.5%, or $5.8&#160;million from the
    comparable period in 2008. During the first six months of 2009,
    we opened new vein clinic locations in Cincinnati and Cleveland,
    marking our entry into the State of Ohio and these two markets.
    These additional clinics brought our total number of vein
    clinics to 34, or three new clinics since the end of the second
    quarter of 2008. These three clinics accounted for
    $1.1&#160;million of the growth in revenues for the six months
    ended June&#160;30, 2009, with the remaining $4.7&#160;million
    generated by legacy clinics.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Revenues for the year ended December&#160;31, 2008 were
    approximately $40.0&#160;million versus partial year revenues of
    $14.3&#160;million in 2007. Revenues for the year ended
    December&#160;31, 2007 represent operating results only since
    VCA was purchased on August&#160;8, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We continue to target the opening of two additional new vein
    clinics in locations across the United&#160;States during the
    remainder of 2009, however this pace could be affected by
    challenges in physician recruitment. To address this issue we
    have assembled a physician recruitment task force to develop a
    strategy and plan to raise the profile of the vein care career
    opportunity to high-quality physicians across the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    New consultations, which are an indication of patient interest
    in vein care treatment, rose 43% for the first six months of
    2009 versus the year earlier period. First leg starts, which
    signify the beginning of a billable treatment cycle, rose 32%
    for the first six months of 2009 versus the year earlier period.
    We have included the results of VCA in our financial statements
    since the date of its acquisition on August&#160;8, 2007. Vein
    Clinics Division quarterly data for the six months ended
    June&#160;30, 2009 and the years ended December&#160;31, 2008
    and 2007 appear below (in thousands, except first leg starts).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="27%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=10 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=10 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=10 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=10 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Revenues, Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contribution</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">First Leg Starts</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,842
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    322
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,208
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,821
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,282
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,266
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,686
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,704
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    724
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,393
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    Includes the period from July&#160;1, 2007 through
    August&#160;7, 2007, which is prior to the VCA acquisition.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division managed 34 clinics as of June&#160;30,
    2009, 32 clinics as of December&#160;31, 2008 and 28 clinics as
    of December&#160;31, 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Contribution</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the first six months of 2009, contribution increased from
    $8.2&#160;million in the comparable period for 2008 to
    $10.4&#160;million in the 2009 period, or an increase of 26%,
    driven by growth in all three of our business segments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2008, total contribution of
    $17.5&#160;million was up approximately $3.1&#160;million, or
    21.2%, from the year ended December&#160;31, 2007. Increased
    contribution in our Fertility Centers Division in 2008 was the
    result of increased profitability in our platform of existing
    centers as well as the addition of contract acquisition related
    results. The continued growth of our Attain IVF Refund Program
    and full year results from our Vein Clinics Division were also
    major contributors to the improvement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2007, contribution growth
    was $2.4&#160;million, or 20.2%, versus the year ended
    December&#160;31, 2006. The increase in contribution in 2007,
    versus 2006, was fueled mainly by organic growth in our
    Fertility Centers Division coupled with partial year results
    from our Vein Clinics Division acquired in August 2007.
    Contribution results for our Consumer Services Division in 2007
    were essentially even with 2006, as growth in our Attain IVF
    Refund Program was offset by declining fees from pharmaceutical
    sales.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">segment-by-segment</FONT>
    discussion is presented below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Fertility
    Centers Segment</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fertility Centers Division contribution for the first six months
    of 2009 rose $800,000, or 17%, from the prior year period based
    on a 9% rise in revenues. During the first six months of 2009,
    $300,000 of contribution was attributable to our new Partners
    and $600,000 was attributable to our legacy centers, which were
    offset slightly by a $100,000 rise in division administrative
    overhead. The rise in contribution, along with improved
    operating margins, are the result of division wide cost control
    measures implemented early in 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fertility Centers Division contribution of $10.2&#160;million
    for the year ended December&#160;31, 2008 increased
    approximately $200,000, or 2.0%, from prior year levels.
    Although this segment experienced revenue growth of 14.3% in
    2008, versus the prior year, margin growth was tempered by
    additional division level infrastructure investments. These
    investments, which totaled $1.2&#160;million during 2008, were
    designed to support continuing growth and new contract
    acquisitions within this segment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fertility Centers Division contribution for 2007 increased
    approximately $1.6&#160;million, or 19.1%, from 2006. This
    increase was primarily attributable to the continued revenue and
    margin growth of our existing fertility centers, and entry into
    new fertility markets in Baltimore, Maryland and Orlando,
    Florida. Contribution growth rates for our existing Partners
    averaged 14.9% in 2007, versus the prior year. The new markets
    entered into during the second half of 2007 generated
    contribution of more than $400,000 during that year.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services Segment</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Contribution from our Consumer Services Division for the six
    months ended June&#160;30, 2009 was $2.7&#160;million versus
    $2.3&#160;million in the year earlier period. This increase is
    the result of a 10% increase in pregnancies from our Attain IVF
    Refund Program during the first six months of 2009 versus the
    same period in 2008, coupled with a 5% increase in pregnancy
    success rates during the same period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Contribution from our Consumer Services Division grew by
    $1.2&#160;million to $4.7&#160;million for the year ended
    December&#160;31, 2008 versus a contribution of
    $3.5&#160;million in the year ended December&#160;31, 2007. This
    growth was driven by our Attain IVF Refund Program in which the
    two key profitability metrics, the number of patients receiving
    treatment and pregnancy success rates, showed
    <FONT style="white-space: nowrap">year-over-year</FONT>
    improvement in 2008 versus 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Contribution from both our Affiliate and pharmaceutical programs
    in 2008 were on par with results in 2007. Although our Affiliate
    Program grew by a net of two fertility centers during 2008, the
    underlying value of this program is to serve as a distribution
    channel for our Attain IVF programs, as well as a source of
    future Partner fertility centers. Also, the market for
    pharmaceutical products in which we participate has been subject
    to external pricing pressures which have restricted revenues and
    profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2007, contribution of
    $3.5&#160;million from our Consumer Services Division was down
    slightly from the $3.6&#160;million earned in the prior year.
    While enrollments in our Attain IVF Refund Program grew in 2007
    versus 2006, pregnancy rates during 2007 were at the low end of
    our expected range and impacted the amount of revenues
    recognized as we record the bulk of our revenues at the time of
    pregnancy.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In 2007, contribution from our pharmaceutical line was down
    $400,000, or 71.3%, from 2006 due to the previously mentioned
    unfavorable pricing and reimbursement environment.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinics Segment</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the first six months of 2009, Vein Clinics Division
    contribution of $2.0&#160;million, or 8.3% of Vein Clinics
    Division revenues, compared to contribution of
    $1.0&#160;million, or 5.5% of Vein Clinics Division revenues,
    for the first six months of 2008. The improved performance for
    the six-month period is largely attributable to the additional
    operational and marketing infrastructure put in place during
    2008. This infrastructure allowed the division to conduct
    ongoing
    <FONT style="white-space: nowrap">direct-to-consumer</FONT>
    marketing initiatives and provided the resources necessary to
    service the resulting increase in patient flow.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2008, contribution from our
    Vein Clinics Division of $2.7&#160;million was up
    $1.7&#160;million from 2007. Year versus year comparisons for
    this segment are not directly comparable as 2007 results only
    include contribution generated since we acquired this segment in
    August 2007.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">General
    and Administrative Expenses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    General and administrative expenses are comprised of salaries
    and benefits, administrative, regulatory compliance and
    operational support costs defined as our Shared Services group,
    which are not specifically related to individual center or
    clinic operations or other product offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    General and administrative expenses totaled $6.6&#160;million
    for the first six months of 2009, an increase from the
    $5.1&#160;million recorded in the same period of the prior year.
    The increased general and administrative expenses in the
    six-month period is attributable to higher service and
    infrastructure activities designed to provide operational
    support to our three growing business segments. We measure our
    performance in part by relating general and administrative
    expenses to operating contribution. For the six months ended
    June&#160;30, 2009, general and administrative expenses were
    63.1% of contribution compared to a ratio of 62.0% for the six
    months ended June&#160;30, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    General and administrative expenses totaled $10.7&#160;million
    in 2008, $10.5&#160;million in 2007 and $9.4&#160;million in
    2006. For the year ended December&#160;31, 2008, general and
    administrative expenses were 60.7% of contribution which
    compares favorably to ratios of 72.7% and 77.8% in 2007 and
    2006, respectively. We continue to actively manage general and
    administrative expenses in an effort to leverage our Shared
    Services group and extract economies of scale as those
    opportunities arise.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Interest</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Net interest expense was $423,000 for the first six months of
    2009 as compared to net interest expense of $576,000 for the
    first six months of 2008. The reduction in net interest expense
    for the six-month period is the result of scheduled debt
    repayments which reduced our outstanding loan balances coupled
    with lower market interest rates on certain portions of the
    remaining balances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Net interest expense for the year ended December&#160;31, 2008
    totaled $1.2&#160;million, compared to net interest income of
    $100,000 for the year ended December&#160;31, 2007, and net
    interest income of $400,000 for the year ended December&#160;31,
    2006. The change in net interest income/expense for the three
    years ended December&#160;31, 2008 is primarily the result of
    utilizing cash on hand and additional borrowings as the
    principal means of financing our acquisition of VCA in August
    2007. This acquisition used approximately $14&#160;million of
    cash from our balance sheet in addition to $17&#160;million of
    new borrowings.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Coupled with this cash outlay is a reduction in the general
    level of interest rates as well as a slow-down in various credit
    markets which has resulted in restrictions on the interest
    income we are able to earn on our cash balances. Subject to
    interest rate fluctuations, we anticipate interest expense to
    decrease gradually in the coming quarters as scheduled debt
    repayments reduce our outstanding principal balances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Interest income of $400,000 for the year ended December&#160;31,
    2008 was below that of the prior year by $900,000, or a
    reduction of 69.5%, primarily as a result of lower market
    interest rates and conditions in the credit markets which
    limited investment opportunities. Interest expense of
    $1.6&#160;million for the year ended December&#160;31, 2008
    exceeded that of the prior year by $400,000, or 37.5%, primarily
    due to interest charges on new borrowings done in August 2007,
    associated with the VCA acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2007, interest income
    increased $200,000, or 17.1%, from the year ended
    December&#160;31, 2006, as a result of earnings on idle cash
    balances during the first seven months of 2007. Interest expense
    of $1.1&#160;million for the year ended December&#160;31, 2007
    increased by $400,000 from the year ended December&#160;31, 2006
    as a result of mid-year borrowings associated with the VCA
    acquisition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Income
    Tax Provision</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our provision for income tax was approximately $1.4&#160;million
    for the six months ended June&#160;30, 2009, or 40.5% of pre-tax
    income. This compared to $1.0&#160;million, or 40.3% of pre-tax
    income, for the six months ended June&#160;30, 2008. Our
    effective tax rates for 2009 and 2008 reflect provisions for
    both current and deferred federal and state income taxes. The
    effective tax rates for the six months ended June&#160;30, 2009
    and 2008 include additional interest for tax exposure items. We
    expect the effective tax rate to approximate 40% for the full
    year ending December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our provision for income tax was approximately
    $2.2&#160;million, $1.4&#160;million and $300,000 for the three
    years ended December&#160;31, 2008, 2007 and 2006, respectively,
    or 39.0%, 34.2% and 8.6% of pre-tax income, respectively. Our
    effective tax rates for all periods reflect provisions for both
    federal and state income taxes. The low effective tax rate of
    8.6% for the year ended December&#160;31, 2006 was mainly due to
    an $821,000 tax benefit related to the elimination of the
    valuation allowance on deferred tax assets. The lower effective
    tax rate of 34.2% for the year ended December&#160;31, 2007 was
    mainly due to benefits received from tax-exempt interest income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Effective January&#160;1, 2007, we adopted Financial Accounting
    Standards Board (&#147;FASB&#148;) Interpretation No.&#160;48
    (&#147;FIN&#160;No.&#160;48&#148;), &#147;Accounting for
    Uncertainty in Income Taxes,&#148; which clarifies the
    accounting and disclosure for uncertainty in income taxes. The
    adoption of FIN&#160;No.&#160;48 did not have a material impact
    on our financial statements. As of June&#160;30, 2009, our total
    gross unrecognized tax benefits were approximately $271,000 and
    our total unrecognized tax benefits, net of federal effect, were
    approximately $191,000, all of which would impact our effective
    tax rate if recognized. Interest on unrecognized tax benefits as
    of June&#160;30, 2009 was approximately $39,000. We do not
    anticipate that any of our net unrecognized tax benefits will
    become recognized over the next year due to expirations in the
    statute of limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We file income tax returns in the U.S.&#160;federal jurisdiction
    and various states. For federal income tax purposes, our 2007
    and 2008 tax years remain open for examination by the tax
    authorities under the normal three year statute of limitations.
    A federal income tax examination for tax years through 2006 was
    completed during 2008 resulting in no adjustment to our income
    tax liability. For state tax purposes, our 2004 through 2008 tax
    years remain open for examination.
</DIV>

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    <BR>
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    <B><FONT style="font-family: 'Times New Roman', Times">Off-Balance
    Sheet Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    FASB Interpretation No.&#160;46 (revised 2003)
    (&#147;FIN&#160;No.&#160;46R&#148;), &#147;Consolidation of
    Variable Interest Entities&#148; addresses how a business
    enterprise should evaluate whether it has a controlling
    financial interest in an entity through means other than voting
    rights and accordingly should consolidate the entity. For all
    periods subsequent to August&#160;8, 2007, as a result of our
    acquisition of VCA, we have controlling financial interests in
    individual vein clinics where we are the primary beneficiary and
    obligor of their financial results. As such, we have
    consolidated these vein clinic operations in our financial
    statements in accordance with the provisions of
    FIN&#160;No.&#160;46R. Because we do not have a controlling
    financial interest in individual fertility centers and we are
    not the primary beneficiary or obligor of their financial
    results, we do not consolidate the results of the fertility
    centers in our accounts. Also, since we do not have a
    controlling interest in the captive insurance company, and we
    are not the primary beneficiary or obligor of the captive
    insurance company&#146;s financial results, we do not
    consolidate the results of the captive insurance company in our
    accounts.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidity
    and Capital Resources</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009, we had approximately
    $31.5&#160;million in cash and cash equivalents on hand as
    compared to $28.3&#160;million as of December&#160;31, 2008. We
    had a working capital deficit of approximately $5.3&#160;million
    as of June&#160;30, 2009, versus a working capital deficit of
    $4.0&#160;million as of December&#160;31, 2008. This decrease in
    working capital from December&#160;31, 2008 levels was primarily
    due to fixed asset purchases of $3.7&#160;million and scheduled
    debt payments of $1.9&#160;million during the first six months
    of 2009, net of operating cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Attain IVF Refund Program patient deposits and other patient
    deposits, which are reflected as a current liability, represent
    funds received from patients in advance of treatment cycles and
    are an indication of future Consumer Services Division revenues.
    These deposits totaled approximately $13.0&#160;million and
    $13.9&#160;million as of June&#160;30, 2009 and
    December&#160;31, 2008, respectively. The decrease in deposits
    is a direct result of increased patient treatments, and the
    realization of the associated revenue, during the first six
    months of 2009. These deposits are a significant source of cash
    flow and represent interest-free financing for us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of both June&#160;30, 2009 and December&#160;31, 2008, we did
    not have any significant contractual commitments for the
    acquisition of fixed assets or construction of leasehold
    improvements. However, we anticipate capital expenditures of
    approximately $5.7&#160;million in 2009, of which
    $3.6&#160;million was incurred during the first six months of
    2009. These expenditures are primarily related to medical
    equipment, information system infrastructure and leasehold
    improvements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe that working capital, specifically cash and cash
    equivalents, remains at adequate levels to fund our operations
    and our commitments for fixed asset acquisitions. We also
    believe that the cash flows from our operations plus our
    available revolving line of credit will be sufficient to provide
    for our future liquidity needs over the next 12&#160;months.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In August 2007, as part of our acquisition of VCA, we entered
    into a new financing arrangement with Bank of America and
    secured a $25&#160;million five-year variable interest rate term
    loan. Our previous term loan of $7.7&#160;million was paid off
    in its entirety as part of entering into our new financing
    arrangement. After deducting the previous loan amount, interest
    and fees, our net funding from Bank of America was
    $17.0&#160;million. In order to mitigate the interest rate risk
    associated with this term loan, we also entered into an interest
    rate swap agreement on 50% of the principal amount. This swap
    transaction acts as an effective hedge fixing the interest rate
    on half of our term loan at 5.39% plus the applicable margin for
    the life of the loan. Other features of this credit facility
    include a $10&#160;million five-year revolving line of credit.
</DIV>

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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Each component of our amended credit facility bears interest by
    reference, at our option, to Bank of America&#146;s prime rate
    minus a margin or to LIBOR plus a margin. The margin is
    dependent upon a leverage test, ranging from 2.00% to 2.75% in
    the case of LIBOR-based term loans and 0.00% to 0.50% in the
    case of prime-based term loans. Interest on the revolving line
    of credit is at the prime rate less up to 0.50% or at LIBOR plus
    1.50% to 2.50%, depending on a leverage test. Interest on the
    prime-based loans became payable quarterly beginning on
    November&#160;8, 2007 and interest on LIBOR-based loans is
    payable on the last day of each applicable interest period. As
    of June&#160;30, 2009 and December&#160;31, 2008, interest on
    the term loan was payable at a rate of approximately 2.57% and
    2.71%, respectively. Unused amounts under the revolving line of
    credit bear a commitment fee of 0.25% and are payable quarterly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Availability of borrowings under the revolving line of credit is
    based on eligible accounts receivable, as defined in the amended
    credit facility. As of both June&#160;30, 2009 and
    December&#160;31, 2008, under the revolving line of credit, the
    full amount of $10.0&#160;million was available, of which
    $7.5&#160;million was outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our amended credit facility with Bank of America is
    collateralized by substantially all of our assets. As of both
    June&#160;30, 2009 and December&#160;31, 2008, we were in full
    compliance with all applicable debt covenants under our amended
    credit facility. We also continuously review our credit
    agreements and may renew, revise or enter into new agreements
    from time to time as deemed necessary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Significant
    Contractual Obligations and Other Commercial
    Commitments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following summarizes our contractual obligations and other
    commercial commitments at December&#160;31, 2008, and the effect
    such obligations are expected to have on our liquidity and cash
    flows in future periods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="35%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Payments Due by Period</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Less Than<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">After<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Total</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">1&#160;Year</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">1&#160;&#151;
    3&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">4&#160;&#151;
    5&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">5&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Notes payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,418
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,768
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,650
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Line of credit outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    83
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    218
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest on debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,972
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,905
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Operating leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,708
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,793
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,425
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fertility Partners capital and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total contractual cash obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    99,291
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,425
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="42%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Amount of Commitment Expiration
    Per Period</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Less Than<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">After<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Total</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">1&#160;Year</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">1&#160;&#151;
    3&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">4&#160;&#151;
    5&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">5&#160;Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(in thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unused lines of credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

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    <BR>
    40
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We also have commitments to provide working capital financing to
    member centers in our Fertility Centers Division that are not
    included in the above table. A significant portion of these
    commitments relate to our transactions with the medical
    practices themselves. Our responsibilities to the these medical
    practices are to provide financing for their accounts receivable
    and to hold patient deposits on their behalf, as well as
    undistributed physician earnings. Disbursements to the medical
    practices generally occur monthly. The medical practice&#146;s
    repayment hierarchy consists of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We provide a cash credit to the practice for billings to
    patients and insurance companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We reduce the cash credit for center expenses that we have
    incurred on behalf of the practice;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We reduce the cash credit for the base portion of our service
    fee which relates to the Partner revenues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We reduce the cash credit for the variable portion of our
    service fee which relates to the Partner earnings;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    We disburse to the medical practice the remaining cash amount
    which represents the physician&#146;s undistributed earnings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We are also responsible for the collection of the Partner
    accounts receivables. We continuously fund these needs from our
    cash flows from operations, the collection of prior months&#146;
    receivables and deposits from patients in advance of treatment.
    If delays in repayment are incurred, which have not as yet been
    encountered, we could draw on our existing revolving line of
    credit. We also make payments on behalf of the Partner for which
    we are reimbursed in the short-term. Other than these payments,
    as a general course, we do not make other advances to the
    medical practices. We have no other funding commitments to the
    Partner centers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quantitative
    and Qualitative Disclosures About Market Risk</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In the normal course of business our interest income and expense
    items are sensitive to changes in the general level of interest
    rates. During the third quarter of 2007 we entered into an
    interest rate swap agreement designed to hedge 50% of our
    $25&#160;million variable interest rate term loan maturing in
    2012. As a result of this swap transaction we have partially
    shielded ourselves from a portion of the interest rate risks
    associated with that portion of the term loan, as the swap
    transaction essentially converts that portion of the term loan
    to a fixed rate instrument at 5.39% plus the applicable margin.
    We are currently subject to interest rate risks associated with
    the remaining 50% of our term loan, as well as our short term
    investments and certain advances to our fertility centers, all
    of which are tied to either short term interest rates, LIBOR or
    the prime rate. As of both December&#160;31, 2008 and
    June&#160;30, 2009, a 1% change in interest rates would have
    impacted our pre-tax income by approximately $100,000 annually.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recently
    Issued Accounting Pronouncements</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Please see Note&#160;3 (under the subheading &#147;Recently
    Issued Accounting Pronouncements&#148;) of the notes to our
    consolidated financial statements included elsewhere in this
    prospectus for a discussion on recently issued accounting
    pronouncements.
</DIV>

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    <BR>
    41
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We provide services and products through our
    three operating divisions (Fertility Centers, Consumer Services
    and Vein Clinics) and shared support services for providers
    through our corporate offices. We provide our fertility centers
    and vein clinics with administrative services such as finance,
    accounting, human resources, risk management, legal and
    purchasing support; marketing and sales support; internet
    marketing and website support; access to integrated information
    systems; in some instances, non-physician practitioners; and
    access to capital for financing clinic operations and expansion.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fertility
    Centers Division</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Fertility Centers Division provides business and management
    services to a network of 11&#160;contracted fertility centers in
    our Partner Program, serving 13 metropolitan markets across the
    United States. We believe these 11 Partner centers are the
    largest managed network of fertility centers in the United
    States, with 63&#160;locations and 97&#160;physicians and PhD
    scientists, accounting for approximately 14% of the total
    in&#160;vitro fertilization (&#147;IVF&#148;) procedures
    performed in the United States in 2007, which is the latest
    period for which third-party data are available. The division
    supports fertility centers&#146; operations and growth by
    providing access to information systems such as our proprietary
    ARTworks electronic medical records software as well as medical
    equipment and facilities, non-physician personnel and marketing
    and financial support services. All fertility Partners have full
    access to our Attain IVF programs, which are described below. We
    do not employ or control the physicians who provide or direct
    the treatment of patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our fertility centers offer a range of diagnostic and fertility
    treatment options to patients. The fertility centers&#146;
    physicians perform diagnostic tests on both women and men to
    determine the cause of infertility and each fertility center has
    an endocrine and andrology laboratory on site in order to
    perform and expedite infertility analyses. Once the cause of
    infertility is identified, several treatment options are offered
    to patients, including IVF treatment, frozen embryo transfer,
    intrauterine insemination and minimally invasive surgery to
    correct anatomical reproductive problems. All of our fertility
    centers have
    <FONT style="white-space: nowrap">on-site</FONT> IVF
    laboratories in order to maintain the integrity of the IVF
    processes. Fertility centers are typically staffed by six to
    seven physicians, a scientist, embryologists, nurses, support
    staff and ultrasound technicians.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Insurance and managed care payors, depending on the plan under
    which a patient is covered, reimburse certain services that our
    Partners provide, such as diagnostic testing, surgeries and, in
    certain circumstances, fertility treatments. However, the
    charges for assisted reproduction technology (&#147;ART&#148;)
    services our Partners primarily provide are often paid directly
    by patients, including through programs such as our Attain IVF
    programs. Several states mandate offering certain benefits of
    varying degrees for ART services. For example, in Massachusetts,
    Rhode Island, Maryland and Illinois, the mandate requires
    coverage for many, but not necessarily all, ART services
    provided by our Partners. Approximately 50.3% of our Partner
    centers&#146; payments were derived from third-party payors for
    the first six months of 2009, all of which was provided by
    private payors. Contractual arrangements with third-party payors
    typically are for a term of one year, may be terminated by
    either party upon 90&#160;days&#146; notice any time after the
    initial one-year term and contain automatic annual renewal
    provisions. Contractual arrangements with third-party payors
    also typically include payment terms and schedules of rates,
    although those payment terms and schedules of rates are subject
    to renegotiation after the initial term of the contract. During
    the first six months of 2009, in accordance with the terms of
    our contractual arrangements with them, third-party payors paid
    approximately 51.2% of the charges billed to them by our Partner
    Centers. We are unaware of efforts to expand mandated coverage
    to additional states. If in
</DIV>

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    <BR>
    42
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    the future mandates are enacted by additional states, we expect
    the impact on our Partner fertility centers to be neutral to
    positive, as such mandates would likely increase the market for
    fertility center services, but at payment rates that are lower
    than the amounts typically paid directly by patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    When establishing a Partner relationship, we typically acquire
    the assets of a fertility center, enter into a long-term
    comprehensive business service agreement with the center and
    assume most administrative and financial functions of the
    center. The acquisition of a Partner agreement generally
    obligates us to pay a fixed sum for the exclusive right to
    service the fertility center. These agreements are typically for
    terms of 10 to 25&#160;years and contain automatic renewal
    provisions. Some of these agreements also contain provisions
    that allow the Partner fertility center to terminate the
    agreement, upon 12&#160;months&#146; prior notice, at any time
    after five years from the agreement&#146;s effective date.
    Partners typically have obligations upon termination in certain
    circumstances, such as purchasing the assets used in operating
    the fertility center and making payments based on recent
    revenues. Partners also agree to promote their practices by,
    among other things, participating in marketing programs we
    develop for them. Typically, the fertility center contracting
    with us is a professional corporation in which the key
    physicians are the shareholders. Generally, no shareholder of a
    Partner fertility center may assign his or her interest in the
    Partner fertility center without our written consent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We require each professional corporation operating in our
    Partner fertility centers to enter into employment agreements
    with all key physicians at that center. These employment
    agreements typically have five-year terms and contain provisions
    prohibiting the key physicians from practicing reproductive
    endocrinology, infertility medicine or assisted reproductive
    technology in competition with us, within a specified area, for
    the term of the agreement and for 12 to 24&#160;months
    thereafter. Although it is unclear whether these non-competition
    provisions would be enforceable if challenged, we have not
    experienced significant competition from physicians who formerly
    practiced at our Partner centers. We also usually enter into a
    personal responsibility agreement directly with each physician
    shareholder of the practice. The personal responsibility
    agreement obligates a physician shareholder to repay us a
    proportionate amount of the exclusive right to service fee
    payment received by that physician shareholder if he or she
    leaves the practice sooner than five years after the payment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under all 11 current Partner agreements, as compensation for our
    services we receive a three-part fee comprised of: a tiered
    percentage of net revenues, generally between 3% and 6%;
    reimbursed costs of services (costs incurred in providing
    services to a fertility center and any costs paid on behalf of
    the fertility center); and either a fixed amount or a percentage
    of the center&#146;s earnings, which currently ranges from 10%
    to 20%, but may be subject to limits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Fertility Centers Division also supports a Council of
    Physicians and Scientists (the &#147;Council&#148;) for leading
    fertility providers, which we established 14&#160;years ago. The
    Council is comprised mostly of representatives from our
    fertility network and brings together leaders in reproductive
    medicine and embryology with the goal of promoting a high
    quality clinical environment throughout our fertility center
    network. The Council meets regularly and conducts bi-monthly
    teleconferences on topics related to improving infertility
    diagnosis, treatment and success rates. Additionally, the
    Council helps to establish the principles of our culture of
    safety. We believe our centers follow the Practice and Ethics
    Guidelines for clinical practice set forth by the American
    Society for Reproductive Medicine. We have also achieved
    accreditation from the American Association for Ambulatory
    Healthcare and the College of American Pathologists, which
    demonstrates our commitment to compliance with nationally
    recognized standards for laboratory services, patient safety and
    quality patient care.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We assisted in the organization of, and obtained a minority
    equity interest in, an offshore captive insurance company called
    Assisted Reproductive Technology Insurance Company
    (&#147;ARTIC&#148;), which is
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    43
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    designed to moderate the cost of malpractice insurance to
    members of our fertility network. Most of the equity of ARTIC is
    owned by various physician practices that are members of our
    fertility network, and we have no future obligations to provide
    additional funding to ARTIC. On January&#160;1, 2005, ARTIC
    began providing malpractice insurance coverage to the majority
    of physicians within our Partner fertility network.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services Division</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Consumer Services Division offers a family of programs,
    including our Attain IVF Refund Program and our recently
    introduced Attain IVF Multi-Cycle Program, collectively referred
    to as our Attain IVF programs, which are designed to help
    patients attain their goal of starting a family. We offer our
    Attain IVF programs directly to fertility patients, including
    patients of our Partner centers and patients of the
    division&#146;s contracted network of independent medical
    providers under its Affiliate Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Affiliate Program allows fertility centers to pay fees to
    receive selected management services we provide to our Partners,
    such as internet marketing and access to the Council. We also
    provide our Affiliates with access to our Attain IVF programs.
    Historically, we provided services to our Affiliates on an
    exclusive basis in the area in which the Affiliate operates, but
    Affiliates&#146; access to our Attain IVF programs is generally
    subject to achievement of certain benchmarks, including with
    respect to Attain IVF Refund Program enrollments; however, in
    July 2009 we began allowing access to our Attain IVF programs on
    a non-exclusive basis in new markets. As of September&#160;30,
    2009, we had contracted with 25 Affiliate fertility centers.
    During 2007, our Affiliate fertility centers collectively
    provided 8% of the total IVF procedures in the United States.
    Our Consumer Services Division does not provide, nor is it
    responsible for providing, medical services or treatments to
    patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Consumer Services Division re-launched its Shared Risk
    Refund Program under the name &#147;Attain IVF&#148; in late
    2008. This re-branding was done to reflect advantages offered by
    the program beyond its packaged pricing features and to position
    the program in a leadership role among smaller, similar programs
    offered by other providers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Beginning in July 2009, we began referring to this program as
    our Attain IVF Refund Program to differentiate it from our
    Attain IVF Multi-Cycle Program. As described in more detail
    below, our Attain IVF Refund Program is an offer of packaged
    pricing for a set of fertility treatments with a refund, equal
    to 70% of the contract amount for patients using their own eggs,
    if treatment does not result in a baby. Under circumstances
    where a patient uses donor eggs, 100% of the contract amount is
    refunded if treatment does not result in a baby. For the six
    months ended June&#160;30, 2009, approximately 20% of the
    patients in our Attain IVF Refund Program used donor eggs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Patients enrolling in our Attain IVF programs can select from
    various treatment and financing options which are designed to
    appeal to patients at different stages of their reproductive
    lives and with different financial needs and resources. The
    average cost of one fresh IVF cycle as of August 2009 was
    approximately $12,000 according to Marketdata Enterprises, Inc.
    According to our estimates, the average cost of a frozen embryo
    transfer is approximately $3,000. The Attain IVF Refund Program
    allows medically cleared patients to pay an up-front deposit of
    approximately twice the average cost of a fresh IVF cycle in
    return for up to six treatment cycles (consisting of three fresh
    IVF cycles and three frozen embryo transfers) with a refund if
    treatment does not result in a baby. The refund is equal to 70%
    of the contract amount for patients using their own eggs and
    100% of the contract amount if the patient uses donor eggs. The
    Attain IVF Multi-Cycle Program allows all patients, including
    those who are not medically cleared for our Attain IVF Refund
    Program, to pay a single fee, which is slightly less than the
    average cost of two fresh IVF cycles, in return for up to four
    treatment cycles (consisting of two fresh IVF cycles and two
    frozen embryo transfers). Our Attain IVF Multi-Cycle Program
    offers a refund ranging from 10% to 85% of the contract amount
    depending on where in the process either we
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    or the patient elects to terminate the program, as long as
    termination is prior to a second fresh IVF cycle. The fertility
    treatment cycles are provided to patients by fertility centers
    with which we contract for participation in the program. The
    benefits of our Attain IVF programs to our fertility centers
    include: allowing for patients to commit to multiple fertility
    treatments which improves treatment volume and revenues;
    insulating the centers from refund risk; managing cash and
    administrative details associated with our Attain IVF programs;
    and enabling physicians to maintain a traditional fee for
    service arrangement without the appearance of conflicts of
    interest that otherwise might arise from self administering a
    refund program. The benefits of our Attain IVF programs to
    patients include: improved success rates associated with
    multiple fertility treatment cycles; increased financial
    certainty relating to the cost of the fertility treatment
    process; and, in the case of our Attain IVF Refund Program, a
    significant financial refund should the treatments be
    unsuccessful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Attain IVF programs serve as patient recruitment and case
    management vehicles where the patient contracts with us to
    provide the program services described below. We bind our
    Partners and Affiliates to abide by the terms of the program
    through participation agreements that support our packaged
    pricing. These programs are designed to make the fertility
    treatment process easier for patients by providing a continuum
    of services over an extended period, if necessary. Our Attain
    IVF programs achieve this objective by offering the following
    services:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Patient recruitment via internet web portals and search engines,
    in-clinic educational materials, in-clinic contact with
    fertility specialists and on-line contact with patient service
    specialists;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Educating patients as to the benefits of various treatment
    options offered by our network of contracted medical providers
    which have been tailored to appeal to patients at various stages
    of their reproductive lives and with various medical conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Explaining the financial costs and patient responsibilities of
    the various treatment options;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Educating patients as to the various financing options offered
    by our Attain IVF programs and referring them to sources of
    third-party financing when requested;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Coordinating an initial medical assessment required for entry
    into our Attain IVF programs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Arranging treatment with an Affiliate or a Partner center for
    all treatment cycles used by the patient;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Providing on-going case management, treatment plan monitoring
    and evaluation services.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We receive payment directly from patients who participate in our
    Attain IVF programs. By contract, 30% of the Attain IVF Refund
    Program contract amount is non-refundable (for the non-donor egg
    option) and is recognized ratably (on a fair value basis) as
    revenues over the course of the patient&#146;s treatment cycles.
    If the patient achieves pregnancy prior to the completion of the
    last available treatment cycle, then the remaining unamortized
    portion of the non-refundable fee is immediately recognized as
    income. The remaining 70% of revenues are recorded upon the
    patient becoming pregnant and achieving a fetal heartbeat. For
    the donor egg option, for which 100% of the contract amount is
    refundable, all revenues are recorded upon the patient becoming
    pregnant and achieving a fetal heartbeat. We are able to record
    income at the time of pregnancy for our Attain IVF Refund
    Program, as we have substantially completed our fertility
    obligation to the patient and we can accurately estimate the
    amount of expenses or refunds that will become due if there is a
    pregnancy loss. We are able to make these estimates for
    pregnancy loss based upon reliable Company specific data with
    respect to the large homogeneous population we have served for
    more than seven years. Expenses prior to pregnancy
</DIV>

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    related to the program are recorded as incurred. All of the
    amounts shown on the balance sheets in our consolidated
    financial statements included elsewhere in this prospectus as
    Attain IVF Refund Program deferred revenues and other patient
    deposits consist of unrecognized program enrollment/service fees
    and potentially refundable contract amounts for enrolled
    patients who have not had a successful pregnancy outcome and
    deposits received from patients who have not yet commenced
    treatment under the program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Due to the characteristics of our Attain IVF programs, we pay
    for a patient&#146;s treatment costs in excess of their contract
    amount should the initial treatment cycles be unsuccessful. In
    order to moderate and manage the likelihood that we will need to
    pay for these treatment costs, we have developed a sophisticated
    statistical model and case management program in which Attain
    IVF Refund Program patients are pre-approved prior to enrollment
    in the program. We also continuously review patients&#146;
    clinical criteria as they undergo treatment. If, while
    undergoing treatment, a patient&#146;s clinical response falls
    outside our criteria for participation in Attain IVF programs,
    we have the right to remove that individual from the program,
    with an applicable refund to the patient. To date, our case
    management process has been effective in managing the risks
    associated with our Attain IVF Refund Program within expected
    limits. A patient has the right to withdraw from our Attain IVF
    Refund Program at any time and will be issued an applicable
    refund.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinics Division</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division was formed on August&#160;8, 2007,
    with the purchase of Vein Clinics of America, Inc.
    (&#147;VCA&#148;), a company that had been in business since
    1981. Our Vein Clinics Division provides business and management
    services to a network of 34 vein clinics located in
    13&#160;states. We believe our vein clinics network is the
    largest single network of vein care providers in the United
    States. These clinics provide specialized treatment for patients
    suffering from vein diseases and other vein disorders, such as
    varicose veins, spider veins and venous ulcers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We offer vein clinics services and support, including training
    for physicians, clinical and financial information systems,
    revenue cycle management, yield management, sales and marketing
    services, group purchasing, non-physician personnel, facilities,
    site selection and development and other operational functions
    to support the clinic. The division supports vein clinics&#146;
    operations and growth by providing access to information systems
    such as our proprietary Virtual Physician Assistant
    (&#147;VPA&#148;) information system, which is an end-to-end
    patient and clinic operating system that provides decision
    support and revenue cycle functions. A typical vein clinic
    averages 2,400&#160;square feet and is located in an affluent,
    growing community. Each clinic has a standardized operational
    structure composed of a phlebologist, nurse, ultrasound
    technologist, office manager and assistant. Medical services or
    treatments are provided to vein clinic patients by physicians
    who are employed by professional corporations, whose financial
    condition, results of operations and cash flows are consolidated
    with our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division&#146;s philosophy of patient care is
    based on complete disease management, from initial screening to
    treatment to follow up. Our vein clinics view each step in this
    process as critical to the patient&#146;s successful outcome.
    Our clinics currently use Endovenous Laser Treatment
    (&#147;ELT&#148;) as well as sclerotherapy to treat varicose and
    spider veins. Our vein clinics use extensive and sophisticated
    ultrasound mapping prior to treatment, which we believe results
    in a more effective treatment plan. Rigorous post-treatment
    follow up is meant to identify any residual or emerging issues
    so that they can be quickly managed before the disease worsens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Vein Clinics Division depends upon third-party payors,
    including governmental and private insurance programs, to pay
    for most treatments provided to patients. For the first six
    months of 2009,
</DIV>

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    56% of payments received by our Vein Clinics Division were from
    managed care programs, 20% were from commercial insurers, 14%
    were from Medicare and 10% were directly from patients.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    The private third-party payors providing reimbursement to our
    vein clinics include standard indemnity insurance programs as
    well as managed care programs, such as preferred provider
    organizations and health maintenance organizations. These
    third-party payors provide reimbursement to our vein clinics at
    negotiated rates, which approximate 50% of the billed charges,
    for medically necessary treatments. Most ELT treatments for
    varicose veins and venous leg ulcers provided at our vein
    clinics are reimbursed by third-party payors. However,
    third-party payors generally do not cover sclerotherapy or
    treatments they determine are not medically necessary, such as
    the cosmetic treatment of spider veins. In some cases,
    third-party payors require prior authorization of varicose vein
    treatment to provide reimbursement. Contractual arrangements
    with third-party payors typically are for a term of one year,
    may be terminated by either party upon 60 to 90&#160;days&#146;
    notice after the initial term and contain automatic annual
    renewal provisions. Contractual arrangements with third-party
    payors also typically include payment terms and schedules of
    rates that are subject to change by the third-party payor upon
    as little as 30&#160;days&#146; notice. Payments from Medicare
    are paid in accordance with a set fee schedule and are subject
    to change or review by governmental authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Once our Vein Clinics Division has facilitated a vein
    clinic&#146;s establishment, we enter into a contract with the
    professional corporation operating in our clinic. Unlike our
    Partner fertility centers, the physicians who are employed at
    our vein clinics typically do not have an ownership interest in
    the medical practice. A &#147;friendly physician&#148; model is
    often used for ownership, pursuant to which we are the primary
    beneficiary and obligor of the vein clinic&#146;s operations;
    however, we also own and operate vein clinics through
    subsidiaries in two states where we are not prohibited from
    doing so under applicable corporate practice of medicine laws.
    Under the terms of our contracts with the vein clinics, we have
    sole and exclusive responsibility to manage the non-medical
    operations of the practice and the physicians have sole
    responsibility for the medical and clinical aspects of the
    practice. Our contracts with the vein clinics provide that we
    are responsible for the leasing of space, obtaining all
    equipment and services needed, providing all billing and
    collections functions, arranging for and supervising all
    non-physician personnel and providing services so they can
    market their own practices. In exchange for our services, our
    contracts with the vein clinics provide that the vein clinics
    pay us a fee equal to 150% of our expenses of operating and
    managing the vein clinics. These fees have historically exceeded
    the operating margin generated by any particular vein clinic
    prior to payment of the management fee. Accordingly, each vein
    clinic only pays the portion of the management fee that is equal
    to the amount of revenue generated by the clinic annually up to
    the 150% amount. As a result, our vein clinics do not generate
    any net profits at year end. Our contracts with the vein clinics
    are typically for 25&#160;years with renewal rights. In the
    event of early termination, any accrued obligations remain
    outstanding until satisfied. We also have the right at any time
    to cause the &#147;friendly physician&#148; to transfer his or
    her ownership in a vein clinic to another physician designated
    by us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We require each professional corporation operating in our vein
    clinics to enter into an employment agreement with the physician
    practicing at that clinic. The employment agreement typically
    has a term of one year and automatically renews for additional
    one-year periods unless terminated by either party. The
    physician generally is required to pay the clinic either $75,000
    or $50,000 if the agreement is terminated prior to three years
    from the physician&#146;s first employment with the clinic, with
    the amount due depending on the time of termination. This
    requirement helps defray the training expenses we incur when we
    assist the physician in establishing a practice. The physician
    also usually covenants not to compete with the clinic or provide
    medical services in the treatment of varicose veins or other
    venous diseases, within a specified area, during the
    agreement&#146;s term and for two years thereafter. Although it
    is unclear whether these non-competition provisions would be
    enforceable if challenged, we have not experienced significant
    competition from physicians who formerly practiced at our vein
    clinics.
</DIV>

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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Since our acquisition of VCA in August 2007, we have made
    significant investments in this division&#146;s infrastructure,
    which have been designed to allow us to open new clinics at a
    more rapid and sustained pace utilizing a replicable model.
    These investments include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Physician recruiting and training. </I></B>The business
    model for our Vein Clinics Division depends on being able to
    identify, recruit and train new physicians to staff new clinics.
    We have invested in additional professional personnel as well as
    other recruiting and training assets to support scaled growth in
    the future.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Regional management. </I></B>We have established a
    regional management infrastructure to manage the day-to-day
    operations of the expanding Vein Clinics Division clinical
    network and anticipate continued investment in regional
    management talent as our clinic base expands.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Revenue cycle management. </I></B>Over the past several
    years, the market for vein care has undergone a shift from
    private out of pocket payment by patients to an environment
    where most treatment is covered by insurance. This shift has
    caused us to make heavy investments in physician credentialing,
    working capital and improved billing and collections personnel,
    systems and procedures. These investments will continue as the
    business grows.
</TD>
</TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>New clinic development. </I></B>With our planned roll-out
    of new clinic openings, we are making investments in personnel
    and procedures for identifying opportunities and opening new
    clinics in existing and new markets.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Marketing and sales.</I></B> We have established more
    formal, direct-to-consumer and physician referral marketing
    programs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Shared
    Services Group</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Through our Shared Services group, we provide the following
    support to our Fertility Centers, Consumer Services and Vein
    Clinics Divisions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Administrative Services.</I></B>&#160;&#160;Our Shared
    Services group provides our contracted fertility centers and
    vein clinics with administrative services, including: accounting
    and financial services, such as accounts payable, payroll and
    financial reporting; human resources administration; legal
    services; risk management; insurance; information systems and
    services; and strategic planning.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Access to Capital.</I></B>&#160;&#160;We believe we
    provide our Partner fertility centers and vein clinics with a
    competitive advantage through access to capital for funding
    accounts receivable, expansion and growth. We provide our
    Partner fertility centers and vein clinics with efficient access
    to capital which allows them to obtain current technologies,
    equipment and facilities that enable them to provide a full
    spectrum of services to effectively compete for patients. For
    example, we have built new clinical facilities housing
    state-of-the-art fertility laboratories for several Partners,
    which enable them to expand their offerings to include a number
    of services that they had previously outsourced, and have
    acquired state-of-the-art ultrasound and laser technology for
    our vein clinics. We believe this access to capital helps us to
    recruit Partner practices.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Integrated Information Systems.</I></B>&#160;&#160;Using
    our established base of treatment providers, we are continuously
    developing integrated information systems to collect and analyze
    clinical, patient, financial and marketing data, which we
    believe allow us to more effectively
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    48
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    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    control expenses and improve cash collections at our Partner
    fertility centers and vein clinics. Our proprietary ARTworks
    clinical software provides electronic medical records, treatment
    plan and success rate research capabilities, decision support
    functionality and clinical risk management services, which we
    believe makes our physicians more efficient and improves quality
    of care. We provide our vein clinics access to our proprietary
    VPA information system, which is an end-to-end patient and
    clinic operating system that provides decision support and
    revenue cycle functions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="7%"></TD>
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    <TD width="89%"></TD>
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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    <B><I>Human Resources.</I></B>&#160;&#160;Our Shared Services
    group provides our contracted fertility centers and vein clinics
    with human resources services, including: policies and
    procedures; arranging for comprehensive benefits and managing
    the implementation of those benefits; wage and hour
    administration; performance reviews; job descriptions; and
    overall human capital management.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Industries</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Reproductive
    Medicine</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Reproductive medicine encompasses the medical discipline that
    focuses on male and female reproductive systems and processes.
    According to a recent industry estimate, approximately 10% of
    U.S.&#160;couples have trouble conceiving. There are many
    reasons why couples have difficulty conceiving, and accurate
    identification of a specific cause of infertility can be time
    consuming, expensive and requires access to specialized
    diagnostic and treatment services. Reproductive endocrinologists
    are specialized physicians who perform these more sophisticated
    medical and surgical fertility diagnoses and treatments.
    Reproductive endocrinologists generally have completed a minimum
    of four years of residency training in obstetrics and gynecology
    and have at least two years of additional training in an
    approved subspecialty fellowship program. There are
    approximately 1,400 practicing reproductive endocrinologists
    offering fertility services across 480 fertility centers in the
    United States. According to Marketdata Enterprises, Inc.,
    expenditures relating to fertility services in the U.S. market
    were estimated at approximately $4&#160;billion for 2008. The
    fertility services market is highly fragmented among providers
    in each major local market as well as on a national basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fertility services include diagnostic tests performed on both
    the female and male. Depending on the results of the diagnostic
    tests performed, treatment options may include, among others,
    fertility drug therapy, artificial insemination and fertility
    surgeries to correct anatomical problems. Procedures that
    require gametes (sperm and eggs) to be handled in&#160;vitro
    (outside the body) are classified as ART services. Current types
    of ART services include IVF, frozen embryo transfers, donor egg
    programs as well as other more specialized treatments. IVF
    treatments are the most frequently employed form of ART, with
    103,367 fresh IVF cycles performed in the United States in 2007.
    Current techniques used in connection with IVF services include
    intracytoplasmic sperm injection, assisted hatching,
    cryopreservation of embryos, pre-implantation genetic diagnosis
    and blastocyst culture and transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Although demand for advanced reproductive medicine and treatment
    is highly correlated with larger demographic trends, we believe
    the market will continue to grow in the future for the following
    reasons:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The quality of treatment is improving, increasing pregnancy
    success rates;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Improvements in embryo culture media and implantation rates are
    leading to the capability of reducing high order multiple
    births, which is one of the greatest risk factors in this
    industry;
</TD>
</TR>

</TABLE>

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    <BR>
    49
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    With improving pregnancy rates, the cost of treatment is
    decreasing thereby making these services more affordable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Demand for reproductive medical services is increasing through
    greater public awareness and acceptance of these
    treatments;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Couples are delaying child birth until later in life. In 2006,
    approximately one out of every 12 first births was to a woman
    age&#160;35 or older, compared with one out of every 100 first
    births in 1970, according to the U.S.&#160;Centers for Disease
    Control and Prevention.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    While fertility market growth has moderated recently, in line
    with a demographic trough of couples of family-bearing age, we
    believe that we are well positioned to increase our share of the
    fertility market due to the following factors:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The benefits arising from consolidation, including the economies
    of scale that can be realized by leveraging a corporate
    infrastructure like ours to minimize general and administrative
    expenses as a percentage of fertility center revenues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The need for greater efficiencies to offset rising costs and
    decreases in revenue growth;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The barriers to establishing new fertility centers, including
    the capital-intensive nature of acquiring and maintaining
    state-of-the-art medical equipment, laboratory and clinical
    facilities and the need to develop and maintain specialized
    information systems to meet the demands of patients and
    third-party payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The need for support services like those we provide to address
    the need for
    <FONT style="white-space: nowrap">seven-days-a-week</FONT>
    service to respond to patient demands and to optimize the
    outcomes of patient treatments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The increased need for marketing services like those we provide
    to address increasing competition among medical providers
    specializing in fertility treatment;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our track record of growing contracted fertility center Partners
    two to three times faster than fertility centers that are not a
    part of our network, based on the number of fresh IVF cycles
    performed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vein
    Disease</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Phlebology is the medical specialty concerned with the treatment
    of vein diseases. Common vein diseases and their symptoms can
    take many forms, including:
</DIV>

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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Varicose veins&#160;&#151; which are caused when small valves
    designed to allow blood to flow in only one direction fail or
    leak. This causes blood to flow backwards under the force of
    gravity and pool inside the vein;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Spider veins&#160;&#151; which are very small varicose veins.
    They are thin, threadlike veins that lie close to the
    skin&#146;s surface and are commonly red or purple in
    appearance. Spider veins can be hormonally induced and are often
    associated with pregnancy and menstruation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Venous Leg Ulcers&#160;&#151; which are non-healing open wounds
    that are caused by venous pump failure. It usually occurs near
    the inside of the ankle, but can be found anywhere below the
    knee. It can occur with or without visible varicose veins;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    50
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Klippel-Trenaunay Syndrome&#160;&#151; which is a rare,
    congenital disorder in which patients usually have one
    hypertrophied leg, a port wine stain and large varicose veins on
    the lateral aspect of the leg;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Restless Leg Syndrome&#160;&#151; which may occur when valves
    fail, causing blood to reflux, or flow backwards, causing it to
    pool and stagnate in the veins, leading to aching, throbbing,
    cramping and fatigue in the legs.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Although there are both surgical as well as minimally invasive
    treatment protocols for vein disease, we specialize in minimally
    invasive care. Conventional vein care treatment under both
    protocols usually begins with an ultrasound assisted mapping to
    determine the extent of the disease, generally followed by a
    surgical or minimally invasive treatment protocol. Historically,
    the most common surgical treatment has been a procedure referred
    to as vein stripping, which is the surgical removal of surface
    veins. Vein stripping is generally done as an outpatient
    procedure and is performed while the patient is under general
    anesthesia. Vein stripping may leave scarring and require an
    extended recovery time. More recent minimally invasive
    treatments include ELT and sclerotherapy, which are the
    treatments offered by our clinics. ELT is a laser treatment
    which does not involve hospitalization, general surgery or the
    potential for significant scarring that is associated with vein
    stripping. With ELT, after local anesthesia is administered, a
    small optical fiber is inserted through a needle into the
    varicose vein under ultrasound guidance. The laser is activated
    and, as the optic fiber is removed from the vein, it heats and
    closes the vein. Once the vein is closed, the blood that was
    circulating through the vein is naturally rerouted to other
    healthy veins. Over time, the varicose vein is absorbed by the
    body. Sclerotherapy involves injecting abnormal veins with a
    solution called a sclerosant. This immediately shrinks the vein
    and causes it to dissolve over a period of weeks, allowing the
    body to naturally redirect the blood flow to healthy veins. A
    typical sclerotherapy treatment may last for 15 to 20 minutes
    and consists of multiple microinjections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Various demographic trends are contributing to the growth in
    demand for vein care. Annual expenditures related to vein care
    in the United States are approximately $2&#160;billion and are
    projected to grow 12% per year through 2010, according to our
    estimates. The U.S.&#160;Food and Drug Administration&#146;s
    approval of lasers for thermal ablation of veins and subsequent
    establishment of an American Medical Association Current
    Procedural Terminology code for reimbursement by the Centers for
    Medicare and Medicaid Services has opened this market to rapid
    growth and development over the last several years. We also
    believe that the market for vein care will continue to grow in
    the future as awareness of minimally invasive treatment
    protocols grows among people with vein disease and as additional
    third-party payors recognize the medical necessity of treating
    vein disease. We believe that approximately 25&#160;million
    people are currently affected by vein disease in the United
    States, but only approximately one million receive treatment for
    such vein disease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe numerous market conditions in this industry produce
    business opportunities for us, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The level of specialized skills required for comprehensive
    patient treatment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Favorable sociological trends including a growing demographic
    wave from an aging population;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The need to develop and maintain specialized management
    information systems to meet the increasing demands of patient
    billing and third-party payors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The current fragmented nature of the market, which is comprised
    of numerous smaller, independent providers, allowing the
    opportunity for market consolidation;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    51
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    New laser and medical technologies that make access to treatment
    less painful and disfiguring, coupled with insurance company
    reimbursement for these new technologies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    The large number of people affected by vein disease in the
    United States in relation to the relatively low percentage of
    people who actually receive treatment for such vein
    disease;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Our experience recruiting and training physicians in treating
    varicose veins and the ability to produce opportunities we
    believe are financially attractive to physicians practicing in
    other areas, such as general practice or emergency medicine.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Strategy</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Make
    Selective Contract Acquisitions of Partner Fertility
    Centers</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The U.S.&#160;market for fertility services is highly fragmented
    and we believe that it is ripe for consolidation. Recruitment
    into our Partner Program has traditionally focused on fertility
    centers that first participate as Affiliates serviced by our
    Consumer Services Division; as such, we had an established
    pipeline of 25 fertility centers as of September&#160;30, 2009.
    Affiliate practices have the opportunity to become familiar with
    the offerings we provide and our commitment to customer service,
    which allows the Affiliate practices to see our value
    proposition first hand. We, in turn, have a chance to assess a
    practice&#146;s commitment to growth and utilization of our
    services without making a significant up-front financial
    commitment. In addition to recruiting from Affiliate centers, we
    have a development staff that targets leading physician groups
    with established practices in selected metropolitan markets.
    These candidates are then evaluated against our contract
    acquisition criteria, which includes factors such as size of
    practice, physician reputation and the physicians&#146;
    growth-oriented outlook. We believe that our competitors&#146;
    ability to compete with us for contract acquisitions is
    currently limited due to our experience acquiring Partner center
    contracts, our position as the manager of what we believe is the
    largest network of fertility centers in the United States and
    our developed infrastructure and experience in delivering
    valuable services to support fertility center operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Expand
    our Network of Affiliate Fertility Centers</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of September&#160;30, 2009, we had Affiliates in 24
    metropolitan markets and intend to expand our network of
    Affiliate fertility centers to other metropolitan markets across
    the United States. We primarily focus our network development
    activities on metropolitan markets with populations in excess of
    500,000. Because of the relatively low percentage of the
    population that seeks fertility treatment, a large population
    base is required to support a sophisticated fertility center.
    Our fertility centers are capable of drawing consumers from a
    large geographic area and, as such, our development staff is
    focused on the top 100 largest metropolitan markets, where we
    expect the highest demand for fertility centers to occur.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Develop
    De Novo Vein Clinics</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We intend to develop new vein clinics in targeted markets. Our
    past experience suggests that the vein clinics business can
    generally support one clinic per one million population in
    metropolitan markets. Our new clinic development staff focuses
    on the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Developing new clinics in markets where we already have existing
    clinics that have not fully penetrated their market to take
    advantage of existing investments in regional management,
    managed care contracts, personnel and marketing capabilities;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    52
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Identifying attractive new markets in states that already have a
    vein clinic location and states contiguous to existing vein
    clinic locations to leverage regional management, personnel and
    other infrastructure assets;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Identifying locations where we believe there are attractive
    demographics, reasonable media costs and a favorable
    reimbursement environment.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe our vein clinic model can be predictably and
    profitably replicated in new markets. Our ability to develop de
    novo vein clinics is demonstrated by the five new vein clinics
    we opened during 2008 and the new vein clinics we opened in
    Cincinnati and Cleveland, Ohio in 2009. We currently expect to
    open two additional vein clinics by the end of 2009 and
    accelerate and increase the number of de novo vein clinics
    opened in 2010, however this pace could be affected by
    challenges in physician recruitment. De novo vein clinics offer
    an attractive return on capital as they require relatively
    little capital investment, typically $300,000, and usually reach
    break-even in nine months or less after opening of the clinic.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increase
    the Total Number of Patients Treated</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We intend to work with our fertility centers and vein clinics to
    increase the total number of patients they treat. To achieve
    this objective we intend to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Offer products and services to centers and clinics that help
    them attract patients, including access to state-of-the-art
    equipment, access to our Attain IVF programs and access to our
    clinical and information technology applications;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Enable fertility centers to enhance their ability to provide
    superior care through use of our proprietary ARTworks software,
    which provides electronic medical records, treatment plan and
    success rate research capabilities, decision support
    functionality and clinical risk management auditing services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Enable vein clinics to enhance their ability to provide superior
    care through use of our proprietary VPA information system,
    which is an end-to-end patient and clinic operating system that
    provides decision support and revenue cycle functions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Help our fertility centers and vein clinics drive additional
    patient volume through our sales and marketing efforts,
    including our direct-to-consumer advertising, internet
    marketing, physician referral development and providing
    marketing materials and programs to our fertility centers and
    vein clinics for their use;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Convert initial potential patient contacts into patients treated
    at our centers and clinics. We believe we can accomplish this
    through the protocols we established for our call center
    professionals and contact follow up procedures our center and
    clinic staff employ to ensure patients attend their consultation
    and all scheduled treatments.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Increase
    Penetration of Our Attain IVF Programs</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Currently, many third-party payors provide limited coverage for
    the diagnosis and treatment of infertility. Our Attain IVF
    programs, which are offered directly to patients, have been
    designed to offer attractive financial options to prospective
    patients. For the six months ended June&#160;30, 2009,
    approximately 11.5% of self-pay patients in our Partner and
    Affiliate network utilized our Attain IVF Refund Program. We
    formally introduced our Attain IVF Multi-Cycle Program in July
    2009. We believe that the penetration of our Attain IVF programs
    can be meaningfully increased by educating patients on the
    improved success rates associated with multiple treatment cycles
    and the packaged pricing features of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    53
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    our Attain IVF programs, which allow for multiple treatment
    cycles and, in the case of our Attain IVF Refund Program, a
    significant financial refund if the treatments are unsuccessful.
    We also believe we can increase overall market penetration of
    our Attain IVF programs by demonstrating to physicians at
    potential Affiliate and Partner practices the benefit of
    increased patient volume and retention that we believe result
    from offering our Attain IVF programs. We have demonstrated the
    ability to increase Attain IVF Refund Program penetration
    because certain of our fertility centers had Attain IVF Refund
    Program penetration rates in excess of 25% during the six months
    ended June&#160;30, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Continue
    Improving Operating Efficiencies</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We continuously seek opportunities to lower costs and realize
    operating efficiencies through the implementation of a
    centralized infrastructure focused on improved accounts
    receivable management, along with leveraging economies of scale
    in support functions such as procurement, finance, information
    technology, human resources, risk management and legal services.
    We expect to further leverage our corporate infrastructure as we
    expand our network of Partner fertility centers and vein clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Sales and
    Marketing</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The marketing departments for our Fertility Centers, Consumer
    Services and Vein Clinics Divisions specialize in the
    development of sophisticated marketing and sales programs that
    give contracted fertility centers and vein clinics access to
    business-building techniques designed to facilitate growth and
    development. Although we believe these marketing and sales
    efforts are often too expensive for many individual physician
    practices, affiliation with us provides access to greater
    marketing and sales capabilities than would otherwise be
    available. In addition, our Consumer Services Division is
    focused on direct-to-consumer marketing, which we believe
    represents a competitive advantage over non-affiliated fertility
    centers. Our marketing services focus on referral enhancement,
    relationships with local physicians, media and public relations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We operate web portals that: allow visitors access to
    educational material concerning infertility and vein care
    issues; provide links to our fertility Partner and Affiliate
    practices; provide links to our vein clinics; allow prospective
    patients to request fertility and vein care appointments or
    follow up contact; and allow prospective patients to request
    information on our Attain IVF programs and apply for treatment
    financing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Competition</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our business divisions operate in highly competitive areas. Our
    fertility centers compete with national, regional and local
    physician practice fertility centers, hospitals and university
    medical centers, some of which have programs that compete with
    our Attain IVF programs. Our fertility centers may also compete
    with fertility centers located outside of the United States, due
    to the self-pay nature of IVF treatment. Our vein clinics
    compete with other vein care clinic providers, dermatologist and
    surgical clinics that provide ELT and sclerotherapy as an
    ancillary offering, vascular surgeons and interventional
    radiologists. Barriers to entry in the vein care industry are
    low. We do not believe that we currently face significant
    competition providing managerial services to fertility centers
    and vein clinics. We believe that the fertility centers and vein
    clinics we work with are well positioned to compete in our
    markets based on the reputations of the physicians providing
    services at those centers and clinics; however, there can be no
    assurance that these centers and clinics will be able to compete
    effectively with existing providers in our markets or that new
    competitors will not enter into our markets. These existing and
    new competitors may have greater financial and other resources
    than we or our fertility centers or vein clinics do. See
    &#147;Risk Factors&#160;&#151; We face increased competition
    from existing providers, as well as new providers entering our
    markets.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    54
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Health
    Care Regulation</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The health care industry is highly regulated. Our ability to
    operate profitably will depend in part upon our ability, and the
    ability of our affiliated physicians and physician practice
    groups, to obtain and maintain all licenses and other approvals
    necessary to comply with applicable health care regulations. We
    believe that health care regulations will continue to change.
    Therefore, we monitor developments in health care law, and we
    are likely to be required to modify our operations from time to
    time as our business and the regulatory environment changes.
    Many aspects of our current and anticipated business operations
    have not been the subject of specific judicial or regulatory
    interpretation. A review of our business by courts or regulatory
    authorities may result in a determination that could adversely
    affect our operations. In addition, the health care regulatory
    environment may change in a way that restricts our operations.
    Future changes in health care regulation are difficult to
    predict and may constrain or require us to restructure our
    operations, which could negatively impact our business and
    operating results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Physician
    Licensure Laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The practice of medicine is subject to state licensure laws,
    regulations and approvals. We have established a system designed
    to ensure that the physicians at our fertility centers and vein
    clinics are appropriately licensed under applicable state law.
    If physicians at the centers or clinics fail to renew their
    licenses on an annual basis or fail to maintain an unrestricted
    license, our business, financial condition and results of
    operations may be negatively impacted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Corporate
    Practice of Medicine</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Some states have laws that prevent business entities like us
    from practicing medicine, employing physicians and other
    individuals licensed in the healing arts or other learned
    profession and exercising control over their decisions, also
    known, collectively, as the corporate practice of medicine. In
    some states these prohibitions are expressly stated in a statute
    or regulation, whereas in other states the prohibition is a
    matter of judicial or regulatory interpretation. Additionally,
    in those states which apply such prohibitions to individuals
    licensed in the healing arts or other learned profession, it is
    not clear whether physician assistants or nurse practitioners
    would be subject to such prohibitions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In states that prohibit the corporate practice of medicine, we
    operate by maintaining long-term management contracts with
    affiliated medical practices, which are each owned and operated
    by physicians and which employ or contract with additional
    physicians. Under such an arrangement, the laws of most states
    focus on the extent to which the corporation exercises control
    over the physicians and on the ability of the physicians to use
    their own professional judgment as to diagnosis and treatment.
    We do not represent to the public that we offer medical
    services, and we do not exercise influence or control over the
    practice of medicine by physicians or by their affiliated
    medical practices. In each of these states, the affiliated
    fertility center or vein clinic is the sole employer of the
    physicians, and the affiliated fertility center or vein clinic
    retains the full authority to direct the medical, professional
    and ethical aspects of its medical practice. Our fertility
    centers and vein clinics are duly licensed or qualified as a
    medical practice or foreign corporation in the states where such
    license or qualification is required.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Corporate practice of medicine laws and their interpretations
    are continually evolving and may change in the future. Moreover,
    these laws and their interpretations are generally enforced by
    state courts and regulatory agencies that have broad discretion
    in their enforcement. Although we neither employ physicians nor
    provide medical services in those states that prohibit the
    corporate practice of medicine, a state court or enforcement
    agency may conclude that we are engaged in the corporate
    practice of medicine in those states where we employ nurse
    practitioners and physician assistants who work under the
    supervision of the physicians at our fertility centers and vein
    clinics or because we provide services
</DIV>

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    to physicians in connection with their performance of
    professional medical services through our management contracts.
</DIV>

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    Although we have not received notification from any state
    regulatory or similar authority asserting that we are engaged in
    the corporate practice of medicine, to the extent any act or
    service to be performed by us is construed by a court or
    enforcement agency as constituting the practice of medicine in a
    particular jurisdiction, we cannot be sure that such court or
    enforcement agency would not construe our arrangements as
    violating that jurisdiction&#146;s corporate practice of
    medicine doctrine. If such a claim were successful, we could be
    subject to civil and criminal penalties, could be required to
    restructure or terminate our applicable contractual arrangements
    and managed physicians could have restrictions imposed upon
    their licenses to practice medicine. Additionally, a physician
    shareholder of a managed practice might successfully avoid
    restrictions on the practice&#146;s ability to operate
    independent of our management on the grounds that the managed
    practice&#146;s management arrangement with us violates the
    state&#146;s prohibition on the corporate practice of medicine.
    Such results or the inability of us or the managed practices to
    restructure our relationships to comply with such prohibitions
    could have an adverse effect on our business, financial
    condition and results of operations.
</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">Fee
    Splitting</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    The laws of some states prohibit physicians from splitting with
    anyone, other than providers who are part of the same group
    practice, any professional fee, commission, rebate or other form
    of compensation for any services not actually and personally
    rendered. The precise language and judicial interpretation of
    fee-splitting prohibitions varies from state to state.
</DIV>

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    Courts in a number of states, including Illinois, have
    interpreted fee-splitting statutes as prohibiting all percentage
    of gross revenue and percentage of net profit management fee
    arrangements, despite the performance of legitimate management
    services. Our management agreement with our Partner fertility
    center in Illinois provides that we will be paid a base fee
    equal to a fixed percentage of the revenues of the fertility
    center that declines to zero to the extent the costs relating to
    the management of the fertility center increase as a percentage
    of total revenues. There is a substantial risk that the
    compensation arrangement, being based on a percentage of
    revenues, would not be upheld if challenged under Illinois law.
    To address this, our management agreement provides that if such
    compensation arrangement is found to be illegal, unenforceable,
    against public policy or forbidden by law, the management fee
    will be an annual fixed fee to be mutually agreed upon, not less
    than $1,000,000 per year, retroactive to the effective date of
    the agreement, resulting in a reduction of our management fee.
    In such event, there is likely to be a decrease in the
    management fees derived from this fertility center as a result
    of the new fee structure, as well as repayment of amounts paid
    in excess of the prior management fee.
</DIV>

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    Fee-splitting laws and their interpretations vary from state to
    state and are enforced by state courts and regulatory
    authorities that have broad discretion in their enforcement. For
    example, our Attain IVF Refund Program could be interpreted by
    one or more state regulators as a prohibited fee split to the
    extent that we retain a portion of the payments patients pay
    directly to us for their medical treatment by our fertility
    centers. There can be no assurance that these laws will be
    interpreted in a manner consistent with our practices or that
    other laws or regulations will not be enacted in the future that
    could have a material adverse effect on our business, financial
    condition and operating results. Penalties for violating
    fee-splitting statutes or regulations may include the medical
    license revocation, suspension, probation or other disciplinary
    action of the providers affiliated with our fertility centers or
    vein clinics who have been found to violate the fee-splitting
    statutes or regulations.
</DIV>

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    In addition, courts have refused to enforce contracts found to
    violate state fee-splitting prohibitions. To the extent any of
    our contractual arrangements are construed by a court or
    enforcement agency as violating a jurisdiction&#146;s
    fee-splitting laws, there is a possibility that some provisions
    of our agreements
</DIV>

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    may not be enforceable. For example, a physician shareholder of
    a managed practice might successfully avoid payment of a
    management fee on the grounds that the management arrangement
    violates the state&#146;s fee-splitting prohibition. We also may
    be required to redesign or terminate our arrangements, including
    our Attain IVF programs, and our relationships with our
    fertility centers or vein clinics in order to bring their
    activities into compliance with such laws. The termination of,
    or our failure to, successfully restructure, any such
    relationship could have a material adverse affect on our
    business, financial condition and operating results. In
    particular, a forced restructuring of our management fee could
    have a material impact on us. In addition, expansion of our
    operations to new jurisdictions could require structural and
    organizational modifications of our relationships with our
    fertility centers in order to comply with additional statutes.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Further, although our management agreements with our vein
    clinics provide that each vein clinic pay us a fee equal to 150%
    of our expenses of operating and managing the vein clinic, these
    fees have historically exceeded the operating margin generated
    by any particular vein clinic prior to payment of the management
    fee. Accordingly, each vein clinic only pays the portion of the
    management fee that is equal to the amount of revenue generated
    by the clinic annually up to the 150% amount. As a result, our
    vein clinics do not generate any net profits at year end. In
    those states that have interpreted fee-splitting statutes as
    prohibiting a percentage of net revenue management fee
    arrangements where we have vein clinics, there is material risk
    that a regulator could recharacterize our management fee as 100%
    of net revenue in violation of such states&#146; fee-splitting
    statutes which would subject physicians affiliated with our vein
    clinics to disciplinary actions or civil penalties.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Courts in other states, including Maryland, where we have two
    vein clinics, have interpreted their fee-splitting statutes to
    prohibit non-physicians from receiving fees in connection with
    the management of a physician practice that do not bear a
    reasonable relationship to the services being rendered based on
    the fair market value of such services. A state regulator could
    conclude that 150% of our expenses does not bear a reasonable
    relationship to the services being rendered because none of our
    vein clinics generate sufficient revenues to pay the full
    management fee. If our management fee were to be challenged in a
    state such as Maryland, there is substantial risk that this
    compensation method would not be upheld, which could subject the
    providers who are affiliated with the vein clinics in Maryland
    to disciplinary action as well as civil penalties. We also have
    vein clinics in Wisconsin, Tennessee and Kansas which have a
    similar requirement that the management fee reflect the fair
    market value of the services being rendered and impose
    disciplinary actions, civil penalties and criminal penalties on
    the physicians who are affiliated with our vein clinics in those
    locations if such fee does not reflect the fair market value of
    the services being rendered.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Other state statutes only prohibit fee splitting in return for
    referrals or certain practice expansion or marketing activities.
    Although we provide technical assistance to help our fertility
    centers and vein clinics expand their practice and engage in
    marketing, such practice expansion or marketing activities are
    conducted by our fertility centers and vein clinics and not by
    us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Federal
    and State Anti-Kickback Prohibitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Various federal and state laws govern financial arrangements
    among health care providers. The federal anti-kickback law
    prohibits the knowing and willful offer, payment, solicitation
    or receipt of any form of remuneration in return for, or with
    the purpose to induce, the referral of Medicare, Medicaid or
    other federal health care program patients, or in return for, or
    with the purpose to induce, the purchase, lease or order of
    items or services that are covered by Medicare, Medicaid or
    other federal health care programs. Similarly, many state laws
    prohibit the solicitation, payment or receipt of remuneration in
    return for, or to induce, the referral of patients to private as
    well as government programs in violation of these statutes.
</DIV>

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    <BR>
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    Federal and state anti-kickback statutes are very broad and it
    is possible that a court could conclude that the marketing
    services we offer in exchange for a management fee based on a
    percentage of net profits constitutes a payment in violation of
    these statutes. Our fertility centers and vein clinics are also
    subject to these statutes, but we do not oversee and are not
    responsible for their compliance with these laws.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Violations of these anti-kickback laws may result in substantial
    civil or criminal penalties for individuals or entities. These
    laws may be enforced by the government or by private individual
    whistleblowers. If we or our fertility centers or vein clinics
    are found to have violated federal or state anti-kickback laws,
    our business, operations or financial condition could be
    adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Physician
    Self-Referral Prohibitions</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The federal physician self-referral statute, known as the
    &#147;Stark&#148; statute, prohibits a physician from making a
    referral for certain designated health services to any entity
    with which the physician has a financial relationship, unless
    there is an exception in the statute that allows the referral.
    The entity that receives a prohibited referral from a physician
    may not submit a bill to Medicare for that service. Federal
    courts have ruled that a violation of the Stark statute, as well
    as a violation of the federal anti-kickback law described above,
    can serve as the basis for a Federal False Claims Act suit. Many
    state laws prohibit physician referrals to entities with which
    the physician has a financial interest, or require that the
    physician provide the patient notice of the physician&#146;s
    financial relationship before making the referral. Violation of
    the Stark statute and state laws prohibiting physician referrals
    can result in substantial civil penalties for both the referring
    physician and any entity that submits a claim for a health care
    service made pursuant to a prohibited referral. Although we have
    structured our arrangements with our fertility centers and vein
    clinics to comply with the Stark statute and state laws
    prohibiting certain physician referrals, because of the
    complexity of these laws, these laws could be interpreted in a
    manner inconsistent with our operations. In addition, our
    fertility centers and vein clinics are themselves subject to
    these laws, but we do not oversee and are not responsible for
    their compliance with these laws. Federal or state self-referral
    regulation could adversely impact our arrangements with certain
    customers, and our ability to market our services directly to
    physicians in a position to refer patients to our fertility
    centers and vein clinics.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">False
    Claims</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under separate federal statutes, submission of false or
    fraudulent claims to government payors may lead to civil
    monetary penalties, criminal fines and imprisonment
    <FONT style="white-space: nowrap">and/or</FONT>
    exclusion from participation in the Medicare, Medicaid and other
    federally-funded health care programs. These false claims
    statutes include the Federal False Claims Act, which allows any
    person to bring suit alleging false or fraudulent Medicare or
    Medicaid claims or other violations of the statute and to share
    in any amounts paid by the entity to the government in fines or
    settlement. In some jurisdictions, even claims that were
    accurately submitted for medically necessary health care
    services have been held by courts to be &#147;false&#148; where
    the provider was not in compliance with federal anti-kickback or
    Stark laws, or applicable Medicare regulations. These private
    actions have increased significantly in recent years and have
    increased the risk that we or our vein clinics will have to
    defend a false claims action, pay fines or be excluded from
    participation in the Medicare
    <FONT style="white-space: nowrap">and/or</FONT>
    Medicaid programs as a result of an investigation involving our
    fertility centers or vein clinics arising out of such an action.
</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">Business
    of Insurance</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Laws and regulatory approaches to insurance are state specific
    and vary widely from state to state. Although most states supply
    statutory definitions of &#147;insurance,&#148; these
    definitions are subject to disparate interpretation by state
    courts, attorney generals and regulators. Our Attain IVF
    programs have
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    several characteristics that are present in an insurance
    contract. We view our Attain IVF programs as guaranties or
    warranties of our fertility centers&#146; performance; however,
    it is possible that an insurance regulator in a state where we
    conduct business could take the position that our Attain IVF
    programs are insurance and should be regulated as such by the
    state. If we are found to have engaged in the business of
    insurance without a license, we could be subject to criminal and
    civil penalties or be forced to comply with burdensome reserve
    requirements or restructure the programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">Health
    Insurance Portability and Accountability Act of
    1996</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Health care providers, health care clearinghouses and operators
    of health plans (collectively, &#147;covered entities&#148;) are
    significantly affected by certain health information
    requirements contained in HIPAA. HIPAA and its implementing
    regulations established national standards for, among other
    things, certain electronic health care transactions, the use and
    disclosure of certain individually identifiable patient health
    information and the security of the electronic systems
    maintaining this information. These are commonly known as the
    HIPAA transaction and code set standards, privacy standards and
    security standards, respectively.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    HIPAA allows covered entities to disclose protected health
    information to &#147;business associates&#148; if the covered
    entities obtain satisfactory assurances that the business
    associate will use the information only for the purposes for
    which it was engaged by the covered entity, will safeguard the
    information from misuse and will help the covered entity comply
    with some of the covered entity&#146;s duties under HIPAA. We
    are a &#147;business associate&#148; under HIPAA because we
    perform services for or on behalf of covered entities, such as
    our fertility centers or vein clinics, that involve the use or
    disclosure of protected health information. We enter into
    business associate agreements with covered entities and are
    contractually obligated to comply with the requirements of those
    agreements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The American Recovery and Reinvestment Act of 2009, specifically
    the portion known as the Health Information Technology for
    Economic and Clinical Health Act (the &#147;HITECH Act&#148;),
    expanded the scope and application of HIPAA, including, among
    other things, applying the security and certain privacy
    provisions of HIPAA directly to business associates. Application
    of these rules to business associates is a significant change.
    Previously, liability under HIPAA rested exclusively with the
    covered entity. Under the HITECH Act, the business associate now
    has responsibility and liability directly for a breach.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Beginning on February&#160;17, 2010, certain administrative,
    physical and technical safeguards and policy, procedure, and
    documentation requirements of the security standards under HIPAA
    will apply to a business associate in the same manner that they
    apply to a covered entity. For example, breaches of the security
    of electronic health records may require disclosure to affected
    individuals, news media and the Secretary of the
    U.S.&#160;Department of Health and Human Services. Such
    requirements must be incorporated into the business associate
    agreement between the business associate and the covered entity.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under the HITECH Act, business associates will face criminal and
    civil liabilities for failure to comply with HIPAA. Criminal
    penalties may be imposed against persons who obtain or disclose
    protected health information without authorization. In addition,
    a state&#146;s attorney general can bring civil actions against
    a person on behalf of residents of the state that are adversely
    affected by violations of either HIPAA or the HITECH Act. The
    attorney general can either seek to enjoin further violations or
    obtain money damages on behalf of the residents harmed. The
    U.S.&#160;Department of Health and Human Services is also
    beginning to perform periodic audits of health care providers to
    ensure that required policies under the HITECH Act are in place.
    In addition, individuals harmed by violations will be able to
    recover a percentage of monetary penalties or a monetary
    settlement based upon methods established by the
    U.S.&#160;Department of Health and Human Services for this
    private recovery. HIPAA also authorizes the imposition of civil
    monetary penalties against entities that employ or enter into
    contracts with
</DIV>

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    individuals or entities that have been excluded from
    participation in the Medicare or Medicaid programs, which means
    that we could be subject to penalties if our fertility centers,
    vein clinics or employees are excluded from participation in the
    Medicare or Medicaid programs. Any failure to comply with these
    laws could have an adverse impact on our business, operations or
    financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">Antitrust
    Laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In connection with the corporate practice of medicine laws
    referred to above, our fertility centers and vein clinics are
    organized as separate legal entities. As such, our fertility
    centers and vein clinics may be deemed to be persons separate
    from both us and each other under antitrust laws and,
    accordingly, subject to a wide range of laws that prohibit
    anti-competitive conduct among separate legal entities. There
    can be no assurance that a review of our business by courts or
    regulatory authorities would not have a material adverse effect
    on our operation or the operation of our fertility centers or
    vein clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Future
    Legislation and Regulation</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Health care providers are subject to federal, state and local
    laws and regulations, and sanctions imposed under or changes to
    such laws or regulations could adversely affect our operations
    or financial results. The federal fiscal year 2010 budget
    establishes a reserve fund of more than $630&#160;billion over
    the next 10&#160;years to finance fundamental reform of the
    United States&#146; health care system, in an effort to reduce
    costs and expand health care coverage. The fund will be paid for
    by a combination of tax revenue and reductions in Medicare and
    Medicaid spending.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition, the White House announced in July 2009 that it had
    reached agreement with leading hospital groups, including the
    American Hospital Association, to cut federal payments under
    Medicare and Medicaid by $155&#160;billion over 10&#160;years as
    part of a plan to offset a portion of the cost of a national
    health insurance and health reform proposal. Much of these
    savings are reported to be derived from across-the-board cuts in
    Medicare hospital payments, with at least $50&#160;billion in
    the cuts linked directly to increases in the number of uninsured
    who would be provided coverage under the proposed national
    health insurance proposal.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    There are currently numerous proposals on the federal and state
    levels for comprehensive reforms relating to health care that
    could affect payment and reimbursement for health care services
    in the United States. The U.S.&#160;Congress is considering
    legislation that could dramatically overhaul the health care
    system, including the possibility of a government health care
    plan. If national reform legislation is enacted, we may benefit
    from certain provisions thereof, and, conversely, may be
    adversely affected by other provisions. For example, because our
    Attain IVF programs are self-pay programs for patients that do
    not have insurance coverage for fertility treatments, health
    care reform that increases insurance coverage for fertility
    treatments could lead to a decrease in demand for our Attain IVF
    programs. We cannot predict whether any such reforms will
    ultimately be adopted or the impact that such reforms may have
    on the demand or payment for our services.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employees</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009, we had 1,301&#160;employees. Of these,
    1,055 were employed by our Fertility Centers Division, 14 by our
    Consumer Services Division, 194 by our Vein Clinics Division and
    38 were employed at our corporate headquarters, including 8 who
    were executive management. Of the 1,301&#160;employees, 135 were
    employed on a part-time basis and 95 were employed on a per diem
    basis. We are not a party to any collective bargaining agreement
    and we believe that our employee relationships are good.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    60
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Our
    Fertility Centers and Vein Clinics</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the years ended December&#160;31, 2008, 2007 and 2006 and
    the six months ended June&#160;30, 2009, the following
    contracted fertility centers each individually provided greater
    than 10% of our Fertility Centers Division revenues, net
    <FONT style="white-space: nowrap">and/or</FONT>
    contribution as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="32%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Percent of Revenues,
    Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Percent of
    Contribution</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Year Ended<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    RSC of New England
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Fertility Centers of Illinois, S.C. (&#147;FCI&#148;)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Shady Grove Fertility Reproductive Science Center,&#160;P.C.
    (&#147;Shady Grove&#148;)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of: a
    tiered percentage of the fertility center&#146;s net revenues;
    reimbursed costs of services (costs incurred in servicing a
    fertility center and any costs paid on behalf of the fertility
    center); and either a fixed percentage, or a fixed dollar
    amount, of the fertility center&#146;s earnings after services
    fees, which may be subject to further limits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The third tier of our fee structure under these significant
    Partner agreements is as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    RSC of New England&#160;&#151; a fixed annual percentage of the
    center&#146;s earnings.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    FCI&#160;&#151; a fixed percentage of the center&#146;s earnings
    subject to a fixed dollar amount, $1,865,000, as an upper
    boundary and a fixed dollar amount, $932,000. as a lower
    boundary subject to a fixed percentage of the center&#146;s
    earnings limitation.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Shady Grove&#160;&#151; a fixed dollar amount of the
    center&#146;s earnings subject to a fixed percentage of the
    center&#146;s earnings limitation. The upper boundary of the
    calculation is $1,071,000 and the lower boundary of the
    calculation is $540,000.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A complete listing of our fertility Partner agreements and vein
    clinic locations is presented below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    61
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fertility
    Partner Agreements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Remaining<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Year Contract<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Contract<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">No. of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">No. of<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">State</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Acquired</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Years</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">M.D.s</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">PhDs</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Arizona Reproductive Medicine Specialists, Ltd.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    AZ
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    July 2008
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Southeastern Fertility Centers, P.A.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    SC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 2008
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Center for Reproductive Medicine, P.A.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    FL
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    August 2007
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Reproductive Partners Medical Group, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    CA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 2005
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Seattle Reproductive Medicine, Inc., P.S.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    WA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 2004
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Reproductive Endocrine Associates of Charlotte,&#160;P.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    NC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    September 2003
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Northwest Center for Infertility&#160;&#038; Reproductive
    Endocrinology
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    FL
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 2002
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Shady Grove Fertility Reproductive Science
    Center,&#160;P.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    MD, VA &#038; DC
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 1998
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Fertility Centers of Illinois, S.C.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    IL
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    February 1997
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Bay Area Fertility&#160;&#038; Gynecology Medical Group,
    Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    CA
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 1997
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    MPD Medical Associates (MA),&#160;P.C. (doing business as RSC of
    New England)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    MA, NH &#038; RI
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    July 1988
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    62
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinic Locations</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="18%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Location</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Date Clinic Opened</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cleveland, OH
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 2009
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cincinnati, OH
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 2009
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pittsburgh, PA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    December 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Skokie, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    December 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Marietta, GA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    June 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alexandria, VA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 2008
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Boca Raton, FL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    February 2008
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sterling, VA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    December 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ft.&#160;Lauderdale, FL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    July 2007
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    St.&#160;Louis, MO
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 2007
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Merrillville, IN
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    August 2006
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kansas City, MO
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    June 2006
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    West Palm Beach, FL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    December 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alpharetta, GA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    October 2005
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gurnee, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    September 2005
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Naperville, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    September 2004
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrenceville, GA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    September 2001
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Indianapolis, IN
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 2001
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Knoxville, TN
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 2001
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Raleigh, NC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 2000
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Greensboro, NC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    January 2000
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Madison, WI
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 1999
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Rockville, MD
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    November 1998
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Milwaukee, WI
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 1998
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Charlotte, NC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    February 1998
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Orland Park, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    November 1996
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fairfax, VA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    March 1992
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Overland Park, KS
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    April 1991
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Owings Mills, MD
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    July 1990
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Buffalo Grove, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    August 1989
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Atlanta, GA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    June 1988
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Oak Brook, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pre-1985
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Chicago, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pre-1985
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Schaumburg, IL
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Pre-1985
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Properties</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our headquarters and executive offices are located at Two
    Manhattanville Road in Purchase, New York, where we occupy
    approximately 18,500&#160;square feet under a lease expiring in
    2012. Future lease payments for our headquarters and executive
    offices will approximate $51,100 per month.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We also lease or sublease the locations set forth in the two
    preceding tables for our Partner fertility centers and vein
    clinics. Costs associated with our Partner fertility centers are
    reimbursed to us as part of our fee agreement with the
    applicable center, whereas costs associated with vein clinic
    locations are not reimbursed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe that our executive offices and the space occupied by
    our fertility centers and vein clinics are adequate for our
    operations.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    63
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Legal
    Proceedings and Insurance</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    From time to time, we and our Partner fertility centers and vein
    clinics and their physicians are parties to legal proceedings in
    the ordinary course of business. We are exposed to claims of
    professional negligence based on services performed by our
    employees, including physician assistants and nurse
    practitioners, as well as based on our relationships with
    physicians providing treatments at our Partner fertility centers
    and vein clinics. None of these proceedings is expected to have
    a material adverse effect on our financial position, results of
    operations or cash flow. We maintain medical malpractice
    insurance with limits of $1&#160;million per claim, regardless
    of the number of the covered defendants, and $10&#160;million
    per year in the aggregate, with respect to our Partner fertility
    centers, and with limits generally equal to $1&#160;million per
    physician and $10&#160;million per year in the aggregate, with
    respect to our vein clinics. Our Partner fertility centers, vein
    clinics and their physicians are additional named insureds under
    our policies. All of our insurance policies are subject to
    deductibles or a self-insured retention. A portion of the
    insurance we maintain for certain of our fertility centers is
    provided by ARTIC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    64
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MANAGEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Directors
    and Executive Officers</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth information regarding our
    principal executive officers and directors, including their ages:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="38%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="54%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Age</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Position</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President, Chief Executive Officer and Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Executive Vice President and Chief Financial Officer
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel P. Doman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President of Vein Clinics Division
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Angela Gizinski
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Human Resources
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vijay Reddy
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, Information Systems
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pamela Schumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President of Consumer Services Division
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Scott Soifer
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Executive Vice President, Operations and Administration
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    President of Fertility Centers Division
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Claude E. White
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Vice President, General Counsel and Secretary
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerardo Canet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="bottom">
    Chairman of the Board of Directors
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kush K. Agarwal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wayne R.
    Moon<SUP style="font-size: 85%; vertical-align: top">(1)(2)(3)(4)(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence J.
    Stuesser<SUP style="font-size: 85%; vertical-align: top">(1)(2)(3)(5)(6)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Elizabeth E.
    Tallett<SUP style="font-size: 85%; vertical-align: top">(1)(2)(3)(5)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Yvonne S. Thornton,&#160;M.D.,
    M.P.H.<SUP style="font-size: 85%; vertical-align: top">(1)(2)(3)(5)(7)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    61
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Director
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Member of the audit committee.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    Member of the compensation committee.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Member of the nominating and governance committee.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    Chairperson of the nominating and governance committee.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
    <TD align="left">    Independent director.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
    <TD align="left">    Chairperson of the audit committee.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
    <TD align="left">    Chairperson of the compensation committee.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    JAY HIGHAM became our President and Chief Executive Officer,
    effective January&#160;1, 2006, and had been our President and
    Chief Operating Officer since June 2004. He was appointed as a
    director, effective January&#160;24, 2006. In October 1994,
    Mr.&#160;Higham joined us as Vice President of Marketing and
    Development and, in January 1999, was promoted to Senior Vice
    President of Marketing and Development. He earned a B.S. in
    Psychology from the University of Rochester and an M.H.S.A. from
    George Washington University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    JOHN W. HLYWAK, JR. joined us in July 1999 as our Senior Vice
    President and Chief Financial Officer and was named Executive
    Vice President and Chief Financial Officer in March 2006.
    Mr.&#160;Hlywak is a certified public accountant and has a B.S.
    in Accounting from Widener University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    DANIEL P. DOMAN joined us in August of 2007 with the acquisition
    of VCA. Since May 2008, he has served as President of our Vein
    Clinics Division. Previously, Mr.&#160;Doman was the Chief
    Financial Officer of VCA. Prior to joining VCA in April 2006, he
    was a Managing Director at Health Dimensions Group, a national,
    integrated senior living and health care management consulting
    firm, from April 2003 to March 2006. Prior to that,
    Mr.&#160;Doman was a Partner with BDO Seidman, LLP, an
    accounting and consulting firm, from July 1998 to March 2003. He
    has a Bachelor&#146;s degree in Accounting and Finance from
    Loyola University of Chicago.
</DIV>

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    ANGELA GIZINSKI joined us in April 2006 as our Vice President,
    Human Resources. For more than three years prior to joining us,
    Ms.&#160;Gizinski was Director, Human Resources with Sara Lee
    Branded Apparel, now known as Hanesbrands, Inc.
    Ms.&#160;Gizinski has an Associates Degree from Bay Path Junior
    College and a B.A. in Human Resource Management from Fairfield
    University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    VIJAY REDDY serves as our Vice President, Information Systems.
    Before joining us in 2003 as Manager of Technical Operations,
    Mr.&#160;Reddy was Director of Infrastructure&#160;&#038;
    Technology for Lifetime Television in New York. He also has held
    management positions in information systems with Martha Stewart
    Living Omnimedia, Conde Nast Publications, Viacom and
    Schlumberger. Mr.&#160;Reddy has a Bachelor&#146;s degree in
    Computer Science from St. John&#146;s University, and he is a
    certified Institute of Electrical and Electronics Engineers
    Computer Systems Engineer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    PAMELA SCHUMANN was appointed President of our Consumer Services
    Division in September 2007. Prior to that, she served as our
    Vice President, Consumer Services. She joined us in 2001 to help
    launch our consumer services initiative. Ms.&#160;Schumann
    received her B.A. in Marketing from the University of
    Maryland&#146;s Robert H. Smith School of Business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    SCOTT SOIFER joined us in January 2005 as our Vice President,
    Marketing and Development and was promoted to Executive Vice
    President, Operations and Administration in July 2008. For more
    than 12&#160;years prior to joining us, Mr.&#160;Soifer was an
    Associate Partner at Accenture (formerly Andersen Consulting),
    specializing in health care strategy, focused primarily on the
    health insurance sector. Mr.&#160;Soifer has a Bachelor&#146;s
    degree in Computer Science from the University of California at
    Santa&#160;Barbara and an M.B.A. from the Kellogg School of
    Management at Northwestern University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    JOSEPH J. TRAVIA, JR. was appointed President of our Fertility
    Centers Division in September 2007. Prior to that, he served as
    our Senior Vice President, Operations, Eastern Region. He joined
    us in 2000 as Vice President and Executive Director of our
    Reproductive Science Center in New England. Mr.&#160;Travia is a
    certified public accountant and earned a B.S. in Management from
    Boston College and an M.B.A. from Babson College.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    CLAUDE E. WHITE joined us in March 1995 as General Counsel and
    Assistant Secretary. In January 1998, Mr.&#160;White became
    Corporate Secretary, in addition to General Counsel, and in May
    2002 became a Vice President. Mr.&#160;White received his B.A.
    in Political Science from Rutgers College and his J.D. from
    Rutgers School of Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    GERARDO CANET served as our Chief Executive Officer from
    February&#160;14, 1994 to December&#160;31, 2005 and has been a
    director since February&#160;14, 1994. Mr.&#160;Canet resigned
    as our Chief Executive Officer effective December&#160;31, 2005,
    but continues to serve as chairman of the board and a consultant
    to the Company. Mr.&#160;Canet has been a director of Dendreon
    Corporation since December 1996. He earned a B.A. in Economics
    from Tufts University and an M.B.A. from Suffolk University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    KUSH K. AGARWAL became a director effective August&#160;8, 2007.
    He served as President of VCA, which we acquired on
    August&#160;8, 2007, from August 1987 until he resigned on
    May&#160;15, 2008. Mr.&#160;Agarwal has a Master of Science in
    Industrial Administration from Carnegie-Mellon University, a
    Master of Science in Applied Analysis and Operations Research
    from the State University of New York and a Bachelor of
    Technology in Mechanical Engineering from Indian Institute of
    Technology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    WAYNE R. MOON became a director in May 2001. Mr.&#160;Moon
    joined Kaiser Foundation Health Plan, Inc. in 1970 and was
    subsequently elected President, Chief Operating Officer and
    director. In September 1993, Mr.&#160;Moon was appointed
    President and Chief Executive Officer of Blue Shield of
    California and a member of its board of directors and, later,
    chairman. Mr.&#160;Moon retired from Blue Shield of California
    in January 2000. Until recently, he served as chairman of the
    board of RelayHealth, Inc. He
</DIV>

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    serves on various corporate and civic boards, including Varian,
    Inc. and the California State Automobile Association.
    Mr.&#160;Moon earned a B.B.A. and a Masters in Hospital
    Administration from the University of Michigan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    LAWRENCE J. STUESSER became a director in April 1994. Since June
    1999, Mr.&#160;Stuesser has been a private investor. From June
    1996 to May 1999, Mr.&#160;Stuesser was the President and Chief
    Executive Officer and a director of Computer People Inc., the
    U.S. subsidiary of London-based Delphi Group plc, of which he
    was also a director. Mr.&#160;Stuesser was a director of
    American Retirement Corporation from May 1997 to July 2006.
    Early in his career, Mr.&#160;Stuesser qualified as a certified
    public accountant and served as an audit manager with Alexander
    Grant&#160;&#038; Company, an accounting firm. Mr.&#160;Stuesser
    holds a B.B.A. in Accounting from St.&#160;Mary&#146;s
    University.
</DIV>

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    ELIZABETH E. TALLETT became a director in June 1998. Since July
    2002, Ms.&#160;Tallett has been a Principal of Hunter Partners,
    LLC, which provides management services to developing life
    sciences companies. Ms.&#160;Tallett is a director of The
    Principal Financial Group, Inc., Varian, Inc., Coventry Health
    Care, Inc. and Meredith Corp. Inc. Ms.&#160;Tallett graduated
    from Nottingham University with degrees in Mathematics and
    Economics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    YVONNE S. THORNTON,&#160;M.D., M.P.H. became a director in
    January 2006. Dr.&#160;Thornton is a double board-certified
    specialist in obstetrics, gynecology and maternal-fetal
    medicine. Currently, Dr.&#160;Thornton is a perinatal consultant
    at Westchester Medical Center in New York. Dr.&#160;Thornton is
    a former Professor of Clinical Obstetrics and Gynecology at
    Cornell (Weill) Medical College and Vice-Chair of the Department
    of OB/GYN and Director of Maternal-Fetal Medicine at Jamaica
    Hospital Medical Center in New York City, where she served from
    2002 to 2005. Dr.&#160;Thornton is a Diplomate of the American
    Board of Obstetrics and Gynecology, a Fellow of the American
    College of Surgeons and an Oral Examiner for the American Board
    of Obstetrics and Gynecology. After graduating with honors from
    Monmouth College in New Jersey, she received her M.D. with
    honors from Columbia University College of Physicians and
    Surgeons. Dr.&#160;Thornton also received her Executive Masters
    (M.P.H.) degree in Health Policy and Management from Columbia
    University.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Independence</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors has determined that Messrs.&#160;Moon and
    Stuesser, Ms.&#160;Tallett and Dr.&#160;Thornton are independent
    directors, in accordance with Nasdaq Marketplace
    Rule&#160;5605(a)(2), because none of them is believed to have
    any relationships that, in the opinion of our board of
    directors, would interfere with the exercise of independent
    judgment in carrying out their responsibilities as a director.
    In addition, our board of directors has also determined that
    Mr.&#160;Sarason Liebler, who ceased being a member of our board
    of directors on May&#160;12, 2009 because he had reached the
    mandatory retirement age of 72 under our corporate governance
    guidelines, was an independent director in accordance with
    Nasdaq Marketplace Rule&#160;5605(a)(2). Our board of directors
    considered the $57,533 of consulting fees that were paid by us
    to Mr.&#160;Liebler in 2008 when determining his independence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Committees
    of the Board of Directors</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors maintains an audit committee, a
    compensation committee and a nominating and governance committee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Audit
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The audit committee is charged by our board of directors to
    (a)&#160;study, review and evaluate our accounting, auditing and
    financial reporting practices, including the internal controls
    and audit functions, (b)&#160;assess our compliance with legal
    and regulatory requirements and (c)&#160;select the independent
    auditors and review their qualifications, independence and
    performance, while being the focal
</DIV>

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    point for communications between our board of directors, our
    management and the independent auditors. More specifically, the
    audit committee pre-approves all audit and non-audit services to
    be performed by the independent auditors, reviews the scope and
    results of the audit of our financial statements, reviews
    financial statements and periodic filings with the Securities
    and Exchange Commission and discusses the same with our
    management.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Each audit committee member is an independent director, as
    defined in Nasdaq Marketplace Rule&#160;5605(a)(2). Our board of
    directors has determined that in addition to being independent,
    Mr.&#160;Stuesser is an &#147;audit committee financial
    expert&#148; as such term is defined in Item&#160;407 of
    <FONT style="white-space: nowrap">Regulation&#160;S-K</FONT>
    promulgated by the Securities and Exchange Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The compensation committee, under a delegation of authority from
    our board of directors, reviews and makes decisions with respect
    to salaries, wages, bonuses, equity awards and other benefits
    and incentives for our executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Nominating
    and Governance Committee</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors maintains a nominating and governance
    committee consisting of independent directors, as defined in
    Nasdaq Marketplace Rule&#160;5605(a)(2). The primary purpose of
    the nominating and governance committee is to provide oversight
    on the broad range of issues surrounding the composition and
    operation of our board of directors, including identifying
    individuals qualified to become members of our board of
    directors, recommending to our board of directors director
    nominees for the next annual meeting of stockholders and
    recommending to our board of directors a set of corporate
    governance principles applicable to us. The nominating and
    governance committee also provides assistance to our board of
    directors in the areas of committee selection, evaluation of the
    overall effectiveness of our board of directors and management
    and review and consideration of developments in corporate
    governance practices. The nominating and governance
    committee&#146;s goal is to assure that the composition,
    practices, and operation of our board of directors contribute to
    value creation and effective representation of our stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Committee Interlocks and Insider Participation</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During 2008, the members of the compensation committee were
    Ms.&#160;Tallett (chairperson), Messrs.&#160;Liebler, Moon and
    Stuesser and Dr.&#160;Thornton. Mr.&#160;Liebler ceased being a
    member of our board of directors and the compensation committee
    on May&#160;12, 2009 because he had reached the mandatory
    retirement age of 72 under our corporate governance guidelines.
    All of the individuals listed above are, or, in the case of
    Mr.&#160;Liebler, were, independent directors, as defined in
    Nasdaq Marketplace Rule&#160;5605(a)(2). None of the individuals
    listed above has ever been an officer or employee of us or any
    of our subsidiaries. During 2008, none of our executive officers
    served on the compensation committee or board of directors of
    any other entity that had any executive officer who also served
    on the compensation committee of our board of directors or our
    board of directors.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Compensation
    Discussion and Analysis</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Overview
    and Objectives</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The objective of our compensation program, consisting of base
    salary, executive incentive compensation (performance-based
    compensation), stock options, restricted stock and restricted
    stock unit (&#147;RSU&#148;) grants, is to ensure that in our
    effort to create stockholder value, we attract, motivate and
    retain executives capable of assisting in the creation of such
    stockholder value.
</DIV>

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    Our compensation program is designed to be competitive by
    providing base salaries that are market driven; rewarding for
    our performance and individual performance through annual
    incentive compensation awards; and retaining executives through
    grants of stock option, restricted stock and RSU awards that
    provide for vesting over time, and upon the obtainment of
    certain performance targets in the case of RSUs. Commencing in
    2008, we awarded senior executives with stock option awards that
    vest over a four-year period and, commencing in 2009, we are
    awarding senior executives with grants of performance-based
    RSUs. In order to be market competitive with salaries for senior
    executives, the compensation committee annually assesses market
    salaries and attempts to ensure that salaries for our senior
    executives fall within the mid to upper range of salaries for
    comparable positions, taking into consideration experience,
    background and annual individual performance reviews for
    individual executives, but qualified to comparable size
    companies within comparable industries. With respect to
    executive incentive compensation, our executives are expected to
    accomplish individual goals annually that contribute to our
    overall growth. To the extent the goals are accomplished, such
    executives are rewarded. Additionally, our executives are
    rewarded if we achieve certain revenue and bottom-line goals
    each year, with greater reward being provided based on higher
    level of achievement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe that linking executive compensation to corporate
    performance results in a better alignment of compensation with
    our goals and the interests of our stockholders. As performance
    goals are met or exceeded, most probably resulting in increased
    value to stockholders, executives are rewarded commensurately.
    We believe the compensation levels during 2008 for our
    executives and our Chief Executive Officer adequately reflect
    our compensation goals and philosophy.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Elements
    of Our Compensation Program</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have chosen these four elements of compensation because of
    the belief that, taken together, (a)&#160;base salary,
    (b)&#160;executive incentive compensation, (c)&#160;stock option
    awards and (d)&#160;restricted stock and RSU grants represent
    the fairest way to compensate for services, provide a financial
    incentive to achieve long-term goals and objectives and help
    align an executive&#146;s interest with that of our
    stockholders. Short-term compensation is typically in the form
    of base salary and annual incentive bonuses and long-term
    compensation is typically in the form of equity. Each
    individual&#146;s base salary is determined based on years of
    experience and market rates for similar positions with other
    companies of comparable size. While the compensation committee
    does not believe that it is appropriate to establish
    compensation levels based solely on market comparisons or
    industry practices, it believes that information regarding pay
    practices at other companies is useful in assessing the
    reasonableness of compensation and recognizes that we need to be
    competitive for executive talent in our industry. A significant
    part of an executive&#146;s compensation is the incentive bonus
    compensation program. This program provides a cash bonus which
    targets 75% of base salary for our President and Chief Executive
    Officer, 50% of base salary for the division Presidents and
    Executive Vice Presidents, 40% of base salary for Senior Vice
    Presidents and 30% of salary for Vice Presidents. The program
    has been designed to (a)&#160;reward executives who have
    achieved specific business and financial success during our most
    recent fiscal year, (b)&#160;give executives the incentive to
    strive for higher productivity, efficiency and quality of
    services and (c)&#160;encourage the &#147;best&#148; people to
    join us and stay with us. The program is based on achieving
    specific goals and results set by our President and Chief
    Executive Officer, and approved by the compensation committee.
    Our executive incentive compensation program consists of two
    parts: part one is based on our performance versus budget and
    part two is based on the achievement of individual performance
    goals. The maximum amount earned under part one is 60% of an
    individual&#146;s total maximum incentive compensation which, as
    stated above, ranges from 30% to 75% of base salary. Part two of
    our incentive compensation program is based on the achievement
    of certain common milestones related to our achievements and
    specific milestones established for each executive. The common
    milestones are applicable to all eligible employees and the
    specific milestones apply to each eligible employee and are
    determined by each executive&#146;s individual supervisor with
    the approval of our President and Chief Executive Officer. For
    Mr.&#160;Higham, our President and Chief Executive Officer,
    whose milestones are
</DIV>

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    approved by the compensation committee, the common milestones
    represented 10% of his bonus eligibility and the specific
    milestones represented 30% of his bonus eligibility for 2008.
    For Mr.&#160;Hlywak, our Executive Vice President and Chief
    Financial Officer, 10% of his eligible bonus was based on the
    common milestones and the specific milestones represented 30% of
    his bonus eligibility for 2008.
</DIV>

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    Our President and Chief Executive Officer recommends to, and
    consults with, the compensation committee with respect to the
    base salaries of our executive officers. In order to assure that
    executive compensation is both competitive and appropriate, the
    compensation committee reviews executive compensation in its
    entirety before determining compensation level adjustments. The
    overall compensation of our senior executives is intended to
    fall within an appropriate range for comparable positions in our
    industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The compensation committee may retain the services of a
    compensation consultant to advise and assist it in the
    performance of its functions. During 2008, the compensation
    committee engaged Frederic W. Cook&#160;&#038; Co.
    (&#147;Cook&#148;), which received instructions from, and
    reported directly to, the compensation committee. The
    compensation committee requested Cook&#146;s advice on a variety
    of issues, including compensation strategy, market comparisons,
    pay and performance alignment versus industry peers, executive
    pay trends and potential compensation plan design and
    modifications.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Historically, our executive compensation structure emphasized
    cash components over long-term incentive components, due
    primarily to the low trading volume of our common stock. As we
    have grown, it has become more feasible to increase the emphasis
    on long-term incentives, making our executive compensation more
    competitive with comparable companies by increasing the equity
    portion of our overall compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Allocation
    of Compensation Among the Four Elements</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In determining what portion or percentage of an executive&#146;s
    compensation is to be allocated among the four elements
    discussed above, we have determined that the largest portion
    should be allocated to base salary, the next largest portion to
    executive incentive compensation and the smallest portion to
    stock option awards and restricted stock and RSU grants. We
    recognize that in order to attract, motivate and retain
    executives, there must be a connection among each element of
    compensation that accomplishes the objectives stated above. Base
    salary serves to attract competent executives in what is an
    increasingly competitive marketplace. Executive incentive
    compensation serves as a good motivator for executives to strive
    for the highest level of productivity, which results in
    stockholder value. Stock option awards and restricted stock and
    RSU grants serve to retain executives because the vesting of the
    stock options, shares of restricted stock and RSUs granted is
    over a period of time and with the growth of our common stock,
    each executive&#146;s incentives are aligned with those of our
    stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Perquisites</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We provide our President and Chief Executive Officer, Jay
    Higham, with a leased vehicle that is maintained at our expense.
    The total 2008 expenses related to the leased vehicle were
    $12,463. Mr.&#160;Doman, the President of our Vein Clinics
    Division, received an automobile allowance for a portion of the
    year ended December&#160;31, 2008 in an aggregate amount of
    $2,564.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">401(k)
    Defined Contribution Plan</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We maintain a 401(k) Plan that allows executives, as well as our
    other employees, to make elective salary deferrals in accordance
    with Internal Revenue Service (&#147;IRS&#148;) regulations. We
    provide a discretionary match of 25% of an individual&#146;s
    maximum contribution of $15,500, up to 1.5% of an
    individual&#146;s compensation of $230,000 or less for the year,
    for a maximum match of $3,450 per individual. For our President
    and Chief Executive Officer, our Executive Vice President and
    Chief
</DIV>

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    <BR>
    70
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    Executive and our other Named Executive Officers (as defined
    below), we contributed the maximum match of $3,450 in 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Retirement
    Benefits</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    No retirement benefits are provided to our executives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <B><I><FONT style="font-family: 'Times New Roman', Times">Severance
    and Change of Control Arrangements</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Jay
    Higham Employment Agreement</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On October&#160;10, 2005, we entered into an employment
    agreement with Jay Higham to serve as our President and Chief
    Executive Officer, effective January&#160;1, 2006. Pursuant to
    the employment agreement, Mr.&#160;Higham was appointed as one
    of our directors on January&#160;24, 2006. The employment
    agreement provides that Mr.&#160;Higham receive an annual base
    salary of $275,000, subject to increases. Under the employment
    agreement, Mr.&#160;Higham was granted shares of our common
    stock with a value of $400,000 based on the closing price of our
    common stock as reported on the Nasdaq Global Market on the
    first trading day of January 2006. The number of shares of our
    common stock granted to Mr.&#160;Higham was 32,000 and such
    shares of common stock vest over a
    <FONT style="white-space: nowrap">10-year</FONT>
    period. Pursuant to the employment agreement, we may terminate
    Mr.&#160;Higham&#146;s employment without cause on
    30&#160;days&#146; prior notice, in which event Mr.&#160;Higham
    will receive, as severance pay, 12&#160;months&#146; base
    salary, plus Mr.&#160;Higham&#146;s annual bonus, without regard
    to the condition precedents established for the bonus payment,
    in one lump sum payment. Under the employment agreement, if we
    had terminated Mr.&#160;Higham effective December&#160;31, 2008,
    based on his 2008 compensation, he would have been paid an
    aggregate of $545,000, $330,000 of which represents his 2008
    base salary and $215,000 of which represents his accrued 2008
    bonus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The employment agreement further provides that if, within one
    year after our &#147;Change of Control&#148; (as defined in the
    employment agreement), Mr.&#160;Higham&#146;s employment is
    terminated by Mr.&#160;Higham for &#147;Good Reason&#148; (as
    defined in the employment agreement) or by us without cause,
    Mr.&#160;Higham will be paid a lump sum amount equal to his base
    salary for a
    <FONT style="white-space: nowrap">24-month</FONT>
    period, plus twice the full amount of Mr.&#160;Higham&#146;s
    annual bonus based on his then current base salary, without
    regard to the condition precedents established for the bonus
    payment. Based on this change of control provision, if we had
    experienced a &#147;Change of Control&#148; in 2008 and
    Mr.&#160;Higham&#146;s employment had been terminated effective
    December&#160;31, 2008, for either &#147;Good Reason&#148; by
    Mr.&#160;Higham or without cause by us, Mr.&#160;Higham would
    have been entitled to termination pay equal to an aggregate of
    $1,089,000, $660,000 of which represents his then annualized
    base salary for
    <FONT style="white-space: nowrap">24-months</FONT>
    and $429,000 of which represents twice the full amount of his
    annual bonus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under the employment agreement, Mr.&#160;Higham has agreed not
    to compete with us while employed by us and for a period of two
    years thereafter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <I><FONT style="font-family: 'Times New Roman', Times">Executive
    Retention Agreements</FONT></I>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We are also a party to executive retention agreements with our
    executive officers, including Mr.&#160;Hlywak, our Executive
    Vice President and Chief Financial Officer, and the other Named
    Executive Officers (as defined below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The executive retention agreements provide for certain severance
    payments and benefits to the Named Executive Officers in the
    event of a termination of their employment, either by us without
    cause or by the executive for &#147;Good Reason&#148; (as
    defined in the executive retention agreement), at any time
    within 18&#160;months after we experience a &#147;Change in
    Control&#148; (as defined in the executive retention agreement)
    (any such termination, a &#147;Qualifying Termination&#148;).
    More specifically, the executive retention
</DIV>

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    agreements provide the Named Executive Officers with one
    additional year of base salary, bonus (if applicable) and
    benefits (or equivalent) more than they would previously have
    been entitled to receive upon a termination without cause.
    Accordingly, pursuant to the executive retention agreements, in
    the event of a Qualifying Termination, the Named Executive
    Officers will be paid one year&#146;s severance. Pursuant to the
    terms of the executive retention agreements, all incentive stock
    options granted to a Named Executive Officer will become fully
    vested upon a Qualifying Termination, subject to certain terms
    and conditions. Also, pursuant to the executive retention
    agreements, we would be required to pay each Named Executive
    Officer for all reasonable fees and expenses incurred by them in
    litigating their rights under the executive retention
    agreements, to the extent a Named Executive Officer is
    successful in any such litigation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under the executive retention agreements, in the event a Named
    Executive Officer, other than Mr.&#160;Higham, who would be paid
    in accordance with the terms of his employment agreement, is
    terminated without cause under circumstances outside a
    &#147;Change in Control,&#148; each Named Executive Officer
    would be paid 90&#160;days base salary continuation. In the
    event Mr.&#160;Hlywak had been terminated without cause
    effective December&#160;31, 2008 as a result of a &#147;Change
    in Control&#148; that occurred in 2008, Mr.&#160;Hlywak would
    have been paid an aggregate of $484,000, $256,000 of which
    represents his 2008 annual base salary and $128,000 of which
    represents the bonus amount Mr.&#160;Hlywak would have been
    eligible to receive. For each of the other Named Executive
    Officers, had they been terminated without cause effective
    December&#160;31, 2008 as a result of a &#147;Change in
    Control&#148; that occurred in 2008, he or she would have been
    paid his or her 2008 annual base salary and bonus amount which
    he or she would have been eligible to receive. For
    Mr.&#160;Doman, the payment would have been an aggregate of
    $310,520, $221,880 of which represents annual base salary and
    $88,720 of which represents bonus. For Mr.&#160;Travia, the
    payment would have been an aggregate of $343,000, $245,000 of
    which represents annual base salary and $98,000 of which
    represents bonus. For Ms.&#160;Schumann, the payment would have
    been an aggregate of $294,000, $210,000 of which represents
    annual base salary and $84,000 of which represents bonus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Finally, in certain circumstances, Section&#160;162(m) of the
    Internal Revenue Code of 1986, as amended
    (&#147;Section&#160;162(m)&#148;), limits to $1&#160;million the
    deductibility of compensation, including stock-based
    compensation, paid to executives by public companies. None of
    the compensation paid to our executive officers in 2008 exceeded
    the threshold for deductibility under Section&#160;162(m).
</DIV>

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    <BR>
    72
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    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    Compensation Table</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth a summary of the compensation
    paid or accrued by us during the years ended December&#160;31,
    2008, 2007 and 2006 for our President and Chief Executive
    Officer, our Executive Vice President and Chief Financial
    Officer and our next three most highly compensated executive
    officers (the &#147;Named Executive Officers&#148;):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
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</TR>
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&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Option<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">All Other<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Salary<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Bonus<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Awards<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Awards<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Compensation<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Total<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name and Principal
    Position</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Year</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    330,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    128,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    70,949
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,516
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,913
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    658,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>President and Chief</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    300,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    195,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    154,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>Executive Officer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    275,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    148,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    441,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    880,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    256,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38,252
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    430,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>Executive Vice President</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    245,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    84,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    455,607
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>and Chief Financial Officer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    234,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    371,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Daniel P.
    Doman<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    221,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,014
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    420,198
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>President of Vein Clinics</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,167
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,670
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135,837
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>Division</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Pamela
    Schumann<SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    210,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    84,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    381,209
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>President of Consumer</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    122,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,863
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    111,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    268,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>Services Division</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    97,231
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,770
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,576
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    245,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    110,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    452,459
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>President of Fertility Centers</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2007
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    222,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    87,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    124,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    437,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 32pt">
    <I>Division</I>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2006
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    201,076
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    63,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,015
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    287,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    See Note&#160;19 of our consolidated financial statements
    included elsewhere in this prospectus for a discussion of the
    assumptions made in the valuation of the stock awards and the
    option awards.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    This column includes the amounts of $12,463, $10,255 and $12,528
    for the years ended December&#160;31, 2008, 2007 and 2006,
    respectively, paid by us in connection with a vehicle leased for
    Mr.&#160;Higham, $2,564 for the year ended December&#160;31,
    2008 paid by us in connection with a vehicle leased for
    Mr.&#160;Doman, plus amounts representing our matches made for
    the Named Executive Officers under our 401(k) Plan.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Mr.&#160;Doman joined us on August&#160;8, 2007 with our
    acquisition of VCA.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    Ms.&#160;Schumann worked on a part-time basis from
    January&#160;1, 2006 through November&#160;14, 2007.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    73
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Grants of
    Plan-Based Awards for the Fiscal Year Ended December&#160;31,
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth certain information concerning
    the Named Executive Officers with respect to grants of
    plan-based awards for the fiscal year ended December&#160;31,
    2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="29%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">All Other<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Option Awards:<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">All Other<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock Awards:<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Securities<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Exercise or<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Grant Date<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of Shares<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Underlying<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Base Price of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Fair Value of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">of Stock or Units<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Options<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Option  Awards<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock and<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Grant Date</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">(#)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">(#)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($/Sh)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Option Awards</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1/02/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    56,761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,188
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7/22/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    99,100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1/02/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,709
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,605
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,647
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7/22/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel P. Doman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,038
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,004
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7/22/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pamela Schumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1/02/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,709
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7/22/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1/02/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,709
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    828
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,502
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5/13/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7/22/08
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,550
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Represents grants of restricted stock.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    Options were issued with an exercise price equal to $11.20 per
    share with respect to the January&#160;2, 2008 grants and $6.15
    per share with respect to the July&#160;22, 2008 grants, which,
    in each case, represented the last reported sale price for our
    common stock on the date of grant, as reported by the Nasdaq
    Global Market.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Granted pursuant to our 2000 Long-Term Compensation Plan.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    Granted pursuant to our 2007 Long-Term Compensation Plan.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    74
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Outstanding
    Equity Awards at December&#160;31, 2008</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth outstanding equity awards with
    respect to the Named Executive Officers at December&#160;31,
    2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Option Awards</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Stock Awards</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Market<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Securities<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Value of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Underlying<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Shares or<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Shares or<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Unexercised<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Units of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Units of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Options<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Option<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Option<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock That<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock That<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(#)<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Exercise<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Expiration<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Have Not<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Have Not<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Unexercisable</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Price($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Date</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Vested
    (#)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Vested
    ($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/02/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,461
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,862
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/22/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/02/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,582
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/22/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel P. Doman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/22/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57,976
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pamela Schumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/02/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/22/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    01/02/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,568
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="color: #000000; background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    07/22/2018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Restricted stock awards granted May&#160;13, 2005 to the Named
    Executive Officers vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period. Restricted stock awards granted January&#160;4, 2006 to
    Mr.&#160;Higham vest over a
    <FONT style="white-space: nowrap">120-month</FONT>
    period at the rate of 2.5% every 90&#160;days of the
    <FONT style="white-space: nowrap">120-month</FONT>
    period. Restricted stock awards granted May&#160;23, 2006 to the
    Named Executive Officers vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period. Restricted stock awards granted May&#160;15, 2007 to the
    Named Executive Officers vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period. Twenty-five percent of the restricted stock awards
    granted to Messrs.&#160;Higham and Hlywak on September&#160;24,
    2007 vested immediately with the balance vesting over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period. Restricted stock awards granted September&#160;24, 2007
    to Ms.&#160;Schumann and Mr.&#160;Travia vest over a
    <FONT style="white-space: nowrap">60-month</FONT>
    period at the rate of 5% every 90&#160;days of the
    <FONT style="white-space: nowrap">60-month</FONT>
    period. The Named Executive Officers received two restricted
    stock awards on May&#160;13, 2008; the first restricted stock
    award vests over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period and the second restricted stock award vests on
    May&#160;12, 2011. Of the total 7,831&#160;shares of restricted
    stock granted to Mr.&#160;Higham, 6,265 vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period and 1,566&#160;shares vest on May&#160;12, 2011. Of the
    total 4,222&#160;shares of restricted stock granted to
    Mr.&#160;Hlywak, 3,378 vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period and 844&#160;shares vest on May&#160;12, 2011. All of the
    11,038&#160;shares of restricted stock granted to Mr.&#160;Doman
    vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period. Of the total 4,139&#160;shares of restricted stock
    granted to Ms.&#160;Schumann, 3,311 vest over a
    <FONT style="white-space: nowrap">36-month</FONT>
    period at the rate of 8.33% every 90&#160;days of the
    <FONT style="white-space: nowrap">36-month</FONT>
    period and 828&#160;shares vest on May&#160;12, 2011.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    The market value of the restricted stock awards is based on the
    last reported sale price for our common stock on
    December&#160;31, 2008, as reported by the Nasdaq Global Market,
    which was $6.75.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    75
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Option
    Exercises and Stock Vested for the Fiscal Year Ended
    December&#160;31, 2008</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table shows option exercises and stock award
    vesting with respect to the Named Executive Officers for the
    year ended December&#160;31, 2008:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="16%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Stock Awards</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of Shares<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Value Realized<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Acquired on Vesting<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">on Vesting<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">(#)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,831
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    70,448
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel P. Doman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,038
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    79,032
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pamela Schumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,580
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Reflects shares of restricted stock that vested during the year
    ended December&#160;31, 2008.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    The value realized on vesting is based on the last reported sale
    price for our common stock on the vesting date, as reported by
    the Nasdaq Global Market.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Pension
    Benefits</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We do not have any pension plans.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Nonqualified
    Deferred Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We do not have a deferred compensation plan.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In 2008, our non-employee directors were paid an annual retainer
    of $30,000 and a fee of $2,000 for each regularly scheduled
    meeting of the board of directors attended and for any special
    or committee meeting not coinciding with a regularly scheduled
    board of directors meeting. The chairpersons of the compensation
    committee and the nominating and governance committee were paid
    $5,000 each for serving as chairperson and the chairperson of
    the audit committee was paid $8,000 for serving as chairperson.
    Directors were also reimbursed for reasonable travel expenses
    incurred in attending meetings. Additionally, our non-employee
    directors (other than Mr.&#160;Agarwal) were granted, as part
    compensation for services rendered, 4,415&#160;shares of our
    common stock, with a market value of $9.06 per share, or
    $40,000, based on the last reported sale price for our common
    stock on the date of the grant, which was May&#160;13, 2008, as
    reported by the Nasdaq Global Market, with vesting upon grant.
    Directors who are also executive officers are not compensated
    for their services as directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our philosophy regarding director compensation is to recognize
    that in order to attract and retain directors who are willing to
    contribute time and talent to us, it is important to
    competitively compensate such persons. With that philosophy in
    mind, we attempt to provide fair cash compensation for a company
    of our size and also provide directors with &#147;skin in the
    game&#148; by awarding, as part compensation, shares of our
    common stock. By making grants of our common stock a component
    of a director&#146;s compensation, we enable directors to align
    their interests with stockholders and appreciate the importance
    of improving stock performance and providing investors with
    long-term gains. Directors are not paid for their roles on
    committees, other than as serving as chairperson and for
    attending meetings of a committee not coinciding with a
    regularly scheduled meeting of our board of directors.
    Committees meet in conjunction with board of directors meetings
    and, accordingly, we do not believe there should be additional
    compensation for committee involvement, unless a meeting of a
    committee does not
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    76
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    coincide with a regularly scheduled meeting of our board of
    directors. Because committee chairpersons are expected to
    interact more with management, they are compensated for the
    additional time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During 2006, our board of directors established a requirement
    that directors own shares of our common stock with a value equal
    to five times the annual director retainer fee paid by us to
    directors for the year the director was first appointed or
    elected. A director has five years to achieve this requirement.
    Once this requirement is met, a director need not adjust the
    number of shares of our common stock he or she owns based on
    fluctuations in the market price of our common stock. As of the
    date of this prospectus, all directors have met this requirement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth a summary of the compensation
    paid or accrued by us during the year ended December&#160;31,
    2008 for our directors, but excludes any management director
    whose compensation is reflected on the Summary Compensation
    Table for Named Executive Officers:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Director
    Compensation for the Fiscal Year Ended December&#160;31,
    2008</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Fees Earned or<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">All Other<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Paid in Cash<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock Awards<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Compensation<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Total<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Name</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">($)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kush K. Agarwal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    93,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerardo Canet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    203,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sarason
    Liebler<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    135,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wayne R. Moon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    83,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence J. Stuesser
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    86,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Elizabeth E. Tallett
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    85,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Yvonne Thornton,&#160;M.D., M.P.H.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    80,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    Represents grants of 4,415&#160;shares of our common stock to
    each of the directors on May&#160;13, 2008, with a fair market
    value of $9.06 per share. All of these grants vested immediately.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    The amounts in &#147;All Other Compensation&#148; for
    Messrs.&#160;Canet and Liebler include consulting fees in the
    amount of $125,000 and $57,533, respectively, paid or accrued
    for by us in 2008. Pursuant to his consulting agreement, dated
    February&#160;2, 2009, effective January&#160;1, 2009,
    Mr.&#160;Canet has agreed to provide us with consulting services
    two days per month during the period from January&#160;1, 2009
    through December&#160;31, 2009 and will receive an amount from
    us equal to $36,000 in 12&#160;equal installments of $3,000 per
    month. The amount in &#147;All Other Compensation&#148; for
    Mr.&#160;Agarwal represents compensation paid by us to
    Mr.&#160;Agarwal for his service as President of VCA.
    Mr.&#160;Agarwal resigned as President of VCA on May&#160;15,
    2008.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Mr.&#160;Liebler ceased being a member of our board of directors
    on May&#160;12, 2009 because he had reached the mandatory
    retirement age of 72 under our corporate governance guidelines.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    At December&#160;31, 2008, our directors, as a group, held
    outstanding options to purchase 56,876&#160;shares of our common
    stock and also held an aggregate of 30,905&#160;shares of our
    common stock pursuant to stock awards made during 2008.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    77
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PRINCIPAL
    STOCKHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth, as of August&#160;31, 2009,
    certain information concerning the beneficial stock ownership of
    all persons known by us to beneficially own 5% or more of the
    shares of our common stock outstanding, each director, certain
    of our executive officers and all of our directors and executive
    officers as a group. Except as indicated in the footnotes to the
    below table, we believe that each stockholder named in such
    table has sole voting and dispositive power with respect to all
    shares of common stock attributable to such stockholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Shares of Common<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock Beneficially<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Percent of Common<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Beneficial Owner</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Owned<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Stock Outstanding</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Principal Stockholders:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Peter R. Kellogg
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,641,286
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 36pt">
    IAT Reinsurance Company Ltd.<BR>
    120 Broadway<BR>
    New York, New York 10271
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Blue TSV&#160;I, LTD.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,172,094
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 36pt">
    <FONT style="white-space: nowrap">c/o&#160;Maple</FONT>
    Corporate Services Limited<BR>
    P.O.&#160;Box&#160;309, Ugland House<BR>
    Grand Cayman, E9 KY1&#160;&#151; 1104
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gruber and McBaine Capital Management, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    633,850
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 36pt">
    50 Osgood Place<BR>
    San&#160;Francisco, California 94133
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dimensional Fund&#160;Advisors LP
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    487,625
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: 0pt; margin-left: 36pt">
    1299 Ocean Avenue<BR>
    Santa Monica, California 90401
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Directors and Certain Executive Officers:</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay Higham
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    153,981
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    John W. Hlywak, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,043
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pamela Schumann
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,974
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Joseph J. Travia, Jr.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35,326
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Daniel P. Doman
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kush K. Agarwal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    141,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Gerardo Canet
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    41,117
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wayne R. Moon
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,345
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Lawrence J. Stuesser
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65,740
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Elizabeth E. Tallett
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82,747
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Yvonne S. Thornton,&#160;M.D., M.P.H
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,891
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>All directors and executive officers as a group
    (15&#160;persons)</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    741,025
</TD>
<TD nowrap align="left" valign="bottom">
    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    &#160;*
</TD>
    <TD align="left">    Represents less than 1% of outstanding shares of our common
    stock.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
    <TD align="left">    For purposes of this prospectus, beneficial ownership is defined
    in accordance with the rules and regulations of the Securities
    and Exchange Commission and generally means the power to vote
    <FONT style="white-space: nowrap">and/or</FONT> to
    dispose of securities regardless of any economic interest
    therein.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
    <TD align="left">    Based on a Form&#160;4 filed with the Securities and Exchange
    Commission on August&#160;15, 2008.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
    <TD align="left">    Based on a Form&#160;4 filed with the Securities and Exchange
    Commission on August&#160;31, 2009.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(4)</SUP>

</TD>
    <TD align="left">    Represents 491,530&#160;shares of our common stock held by
    Gruber and McBaine Capital Management, LLC as investment
    advisor, plus 78,605&#160;shares of our common stock held by
    Jon&#160;D. Gruber and 63,714&#160;shares of our common stock
    held by J.&#160;Patterson McBaine individually based on a
    Schedule&#160;13G, dated January&#160;27, 2009, filed with the
    Securities and Exchange Commission by Gruber and McBaine Capital
    Management, LLC, Jon&#160;D. Gruber, J.&#160;Patterson McBaine
    and Eric&#160;B. Swergold.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <I>footnotes continued on following page</I>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    78
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(5)</SUP>

</TD>
    <TD align="left">    Represents securities reported on an amendment to a
    Schedule&#160;13G, dated February&#160;9, 2009, as being owned
    by various funds for which Dimensional Fund&#160;Advisors LP has
    sole voting and dispositive power, but disclaims beneficial
    ownership.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(6)</SUP>

</TD>
    <TD align="left">    Includes exercisable options to purchase shares of our common
    stock within 60&#160;days of August&#160;31, 2009 as follows:
    Wayne&#160;R. Moon&#160;&#151; 10,156; Lawrence&#160;J.
    Stuesser&#160;&#151; 20,312; Elizabeth&#160;E.
    Tallett&#160;&#151; 20,312; Jay Higham&#160;&#151; 2,437;
    John&#160;W. Hlywak,&#160;Jr.&#160;&#151; 1,219; Pamela
    Schumann&#160;&#151; 1,219; and Joseph&#160;J.
    Travia,&#160;Jr.&#160;&#151; 1,219.
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(7)</SUP>

</TD>
    <TD align="left">    Includes 51,553 exercisable options to purchase shares of our
    common stock within 60&#160;days of August&#160;31, 2009,
    including 835 exercisable options held by an executive officer
    not named above. The address for each of our directors and
    executive officers is
    <FONT style="white-space: nowrap">c/o&#160;IntegraMed</FONT>
    America, Inc., Two Manhattanville Road, Purchase, New
    York&#160;10577.
</TD>
</TR>

</TABLE>

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    <BR>
    79
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RELATED
    PARTY TRANSACTIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Consulting
    Agreement</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have and have had consulting agreements with Gerardo Canet,
    the chairman of our board of directors. The previous consulting
    agreement provided for compensation of $125,000 for the year
    ended December&#160;31, 2008. The consulting agreement expired
    on December&#160;31, 2008 and was replaced with a new one-year
    consulting agreement providing for $36,000 in compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Policies
    and Procedures for Related Party Transactions</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We do not have written policies and procedures for the review,
    approval or ratification of related party transactions. However,
    any related party transaction is reviewed and discussed by our
    board of directors or an appropriate committee of our board of
    directors with responsibility for the subject matter. For
    example, the consulting agreement with Mr.&#160;Canet was
    reviewed and approved by the compensation committee of our board
    of directors.
</DIV>

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    <BR>
    80
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF CAPITAL STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following description of our capital stock summarizes the
    provisions of our restated certificate of incorporation and
    by-laws.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following description of the material provisions of our
    capital stock and restated certificate of incorporation and
    by-laws is only a summary, does not purport to be complete and
    is qualified by applicable law and the full provisions of our
    restated certificate of incorporation and by-laws, which have
    been filed with the Securities and Exchange Commission as
    exhibits to the registration statement of which this prospectus
    is a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Authorized
    Capitalization</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of the date of this prospectus, our authorized capital stock
    consists of 15,000,000&#160;shares of common stock, par value
    $0.01 per share, and 5,000,000&#160;shares of preferred stock,
    par value $1.00 per share. Immediately after the completion of
    this offering, 12,774,994&#160;shares of our common stock, or
    13,374,994&#160;shares of our common stock if the underwriters
    exercise their over-allotment option in full, and no shares of
    our preferred stock will be issued and outstanding.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    All shares of our common stock to be outstanding immediately
    after completion of this offering will be validly issued, fully
    paid and nonassessable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Dividends.</I></B>&#160;&#160;Holders of shares of our
    common stock are entitled to receive dividends and other
    distributions in cash, property or capital stock of ours as may
    be declared by our board of directors from time to time out of
    our assets or funds legally available for dividends or other
    distributions. We have not paid cash dividends on our common
    stock during the last two fiscal years, and we currently
    anticipate retaining all available funds for use in the
    operation and expansion of our business. In addition, our credit
    agreement prohibits us from paying cash dividends on our common
    stock. Therefore, we do not anticipate paying any cash dividends
    on our common stock in the foreseeable future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Liquidation Rights.</I></B>&#160;&#160;In the event of our
    voluntary or involuntary liquidation, dissolution or winding up,
    holders of shares of our common stock will be entitled to share
    in our assets remaining after payment of all debts and other
    liabilities, subject to the liquidation preference of any
    outstanding shares of our preferred stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Voting Rights.</I></B>&#160;&#160;Shares of our common
    stock carry one vote per share. All shares of common stock rank
    equally as to voting and all other matters. Except as otherwise
    required by law, holders of our common stock are not entitled to
    vote on any amendment to our restated certificate of
    incorporation that relates solely to the terms of one or more
    outstanding series of preferred stock if the holders of the
    affected shares are entitled to vote on the amendment. Shares of
    our common stock have no conversion rights, no redemption or
    sinking fund provisions, are not liable for further call or
    assessment and are not entitled to cumulative voting rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Except as otherwise required by the Delaware General Corporation
    Law and our restated certificate of incorporation and by-laws,
    action requiring stockholder approval may be taken by a vote of
    the holders of a majority of our common stock at a meeting at
    which a quorum is present. See &#147;&#151;&#160;Anti-Takeover
    Effects of Various Provisions of Delaware Law and Our Restated
    Certificate of Incorporation and By-laws.&#148;
</DIV>

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    <BR>
    81
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Other Rights.</I></B>&#160;&#160;Holders of shares of our
    common stock have no preemptive rights. The holders of our
    common stock are subject to, and may be adversely affected by,
    the rights of the holders of shares of any series of preferred
    stock that we may designate and issue in the future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Preferred
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our restated certificate of incorporation provides that we may
    issue up to 5,000,000&#160;shares of our preferred stock in one
    or more series as may be determined by our board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors has broad discretionary authority with
    respect to the rights of issued series of our preferred stock
    and may take several actions without any vote or action of the
    holders of our common stock, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    determining the number of shares to be included in each series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fixing the designation, powers, preferences and relative rights
    of the shares of each series and any qualifications, limitations
    or restrictions with respect to each series, including
    provisions related to dividends, conversion, voting, redemption
    and liquidation, which may be superior to those of our common
    stock;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increasing or decreasing the number of shares of any series.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our board of directors may authorize, without approval of
    holders of our common stock, the issuance of preferred stock
    with voting and conversion rights that could adversely affect
    the voting power and other rights of holders of our common
    stock. For example, our preferred stock may rank prior to our
    common stock as to dividend rights, liquidation preferences or
    both, may have full or limited voting rights and may be
    convertible into shares of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our preferred stock could be issued quickly with terms designed
    to delay or prevent a change of control of our Company or to
    make the removal of our management more difficult. This could
    have the effect of discouraging third-party bids for our common
    stock or may otherwise adversely affect the market price of our
    common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We believe that the ability of our board of directors to issue
    one or more series of our preferred stock provides us with
    flexibility in structuring possible future financings and
    acquisitions, and in meeting other corporate needs that might
    arise. The authorized shares of our preferred stock, as well as
    authorized and unissued shares of our common stock, will be
    available for issuance without action by holders of our common
    stock, unless such action is required by applicable law or the
    rules of any stock exchange or automated quotation system on
    which our securities may be listed or traded.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Although our board of directors has no intention at the present
    time of doing so, it could issue a series of our preferred stock
    that could, depending on the terms of such series, be used to
    implement a stockholder rights plan or otherwise impede the
    completion of a merger, tender offer or other takeover attempt
    of our Company. Our board of directors could issue preferred
    stock having terms that could discourage an acquisition attempt
    through which an acquirer may be able to change the composition
    of our board of directors, including a tender offer or other
    transaction that some, or a majority, of our stockholders might
    believe to be in their best interest or in which stockholders
    might receive a premium for their stock over the market price.
</DIV>

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    <BR>
    82
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Takeover
    Effects of Various Provisions of Delaware Law and Our Restated
    Certificate of Incorporation and By-laws</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The Delaware General Corporation Law, our restated certificate
    of incorporation and our by-laws contain provisions that may
    have some anti-takeover effects and may delay, defer or prevent
    a tender offer or takeover attempt that a stockholder might
    consider in his, her or its best interest, including those
    attempts that might result in a premium over the market price
    for the shares held by stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Delaware
    Anti-Takeover Statute</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We are subject to Section&#160;203 of the Delaware General
    Corporation Law (&#147;Section&#160;203&#148;). Subject to
    specific exceptions, Section&#160;203 prohibits a publicly held
    Delaware corporation from engaging in a &#147;business
    combination&#148; with an &#147;interested stockholder&#148; for
    a period of three years after the time the stockholder becomes
    an interested stockholder, unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the business combination, or the transaction in which the
    stockholder became an interested stockholder, is approved by our
    board of directors prior to the time the interested stockholder
    attained that status;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    upon consummation of the transaction that resulted in the
    stockholder becoming an interested stockholder, the interested
    stockholder owned at least 85% of our voting stock outstanding
    at the time the transaction commenced, excluding those shares
    owned by persons who are directors and also officers and
    employee stock plans in which employee participants do not have
    the right to determine confidentially whether shares held
    subject to the plan will be tendered in a tender or exchange
    offer;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at or after the time a stockholder became an interested
    stockholder, the business combination is approved by our board
    of directors and authorized at an annual or special meeting of
    stockholders by the affirmative vote of at least two-thirds of
    our outstanding voting stock that is not owned by the interested
    stockholder.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    &#147;Business combinations&#148; include mergers, asset sales
    and other transactions resulting in a financial benefit to the
    interested stockholder. Subject to various exceptions, in
    general, an &#147;interested stockholder&#148; is a stockholder
    who, together with his, her or its affiliates and associates,
    owns, or within three years did own, 15% or more of the shares
    of our outstanding voting stock. These restrictions could
    prohibit or delay the accomplishment of mergers or other
    takeover or change of control attempts with respect to us and,
    therefore, may discourage attempts to acquire us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Restated
    Certificate of Incorporation and By-laws</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Provisions of our restated certificate of incorporation and
    by-laws, which are summarized in the following paragraphs, may
    also have an anti-takeover effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Quorum Requirements.</I></B>&#160;&#160;Our by-laws
    provide for a minimum quorum of a majority in voting power of
    the issued and outstanding shares of our capital stock entitled
    to vote.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>No Cumulative Voting.</I></B>&#160;&#160;The Delaware
    General Corporation Law provides that stockholders are denied
    the right to cumulate votes in the election of directors unless
    a company&#146;s certificate of incorporation provides
    otherwise. Our restated certificate of incorporation does not
    expressly address cumulative voting.
</DIV>

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    <BR>
    83
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Calling of Special Meeting of
    Stockholders.</I></B>&#160;&#160;Our by-laws provide that
    special meetings of our stockholders may be called only by
    (a)&#160;the chairman of our board of directors, (b)&#160;our
    board of directors or (c)&#160;our President.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Advance Notice Requirements for Stockholder Proposals and
    Director Nominations.</I></B>&#160;&#160;Our by-laws provide
    that stockholders seeking to bring business before or to
    nominate candidates for election as directors at an annual
    meeting of stockholders must provide us with timely notice of
    their proposal in writing. To be timely, a stockholder&#146;s
    notice must be delivered to or mailed and received at our
    principal executive offices not less than 90 nor more than
    120&#160;days prior to the first anniversary of the preceding
    year&#146;s annual meeting of stockholders. Stockholder
    proposals or nominations for the election of directors at a
    meeting held more than 30&#160;days from such anniversary date
    must be received no later than the close of business on the
    10th&#160;day following the earlier of the day on which notice
    of the date of the meeting was mailed or public disclosure was
    made.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our by-laws also specify requirements as to the form and content
    of a stockholder&#146;s notice. These provisions may impede
    stockholders&#146; ability to bring matters before an annual
    meeting of stockholders or make nominations for directors at an
    annual meeting of stockholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Limitations on Liability and Indemnification of Officers
    and Directors.</I></B>&#160;&#160;The Delaware General
    Corporation Law authorizes corporations to limit or eliminate
    the personal liability of directors to corporations and their
    stockholders for monetary damages for breaches of
    directors&#146; fiduciary duties as directors. Our restated
    certificate of incorporation includes a provision that
    eliminates the personal liability of our directors to us and our
    stockholders for monetary damages for breaches of their
    fiduciary duties as our directors to the fullest extent
    permitted by the Delaware General Corporation Law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our by-laws provide that we must indemnify our directors and
    officers to the fullest extent authorized by the Delaware
    General Corporation Law and that such indemnitees will also
    generally be entitled to an advancement of expenses. We are also
    expressly authorized to, and do, carry directors&#146; and
    officers&#146; insurance for our directors, officers and certain
    employees for some liabilities. We believe that these
    indemnification provisions and insurance are useful to attract
    and retain qualified directors and executive officers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The limitation of liability and indemnification provisions in
    our by-laws may discourage stockholders from bringing lawsuits
    against our directors for breaches of their fiduciary duties.
    These provisions may also have the effect of reducing the
    likelihood of derivative litigation against our directors and
    officers, even though such an action, if successful, might
    otherwise benefit us and our stockholders. In addition, your
    investment may be adversely affected to the extent that, in a
    class action or direct suit, we pay the costs of settlement and
    damage awards against our directors and officers pursuant to
    these indemnification provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    There is currently no pending material litigation or proceeding
    involving any of our directors, officers or employees for which
    indemnification is sought.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Authorized but Unissued Shares.</I></B>&#160;&#160;Our
    authorized but unissued shares of common stock and preferred
    stock will be available for future issuance without your
    approval. We may use additional shares for a variety of
    corporate purposes, including future public offerings to raise
    additional capital, corporate acquisitions and employee benefit
    plans. The existence of authorized but unissued shares of our
    common stock and preferred stock could render more difficult or
    discourage an attempt to obtain control of us by means of a
    proxy contest, tender offer, merger or otherwise.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    84
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>Amendments.</I></B>&#160;&#160;Our restated certificate of
    incorporation grants our board of directors the authority to
    make, alter, amend and repeal our by-laws without a stockholder
    vote in any manner not inconsistent with the laws of the State
    of Delaware or our restated certificate of incorporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Listing</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our common stock is listed on the Nasdaq Global Market under the
    symbol &#147;INMD.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Transfer
    Agent and Registrar</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The transfer agent and registrar for our common stock is
    American Stock Transfer&#160;&#038; Trust&#160;Company, LLC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    85
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    U.S. FEDERAL TAX CONSIDERATIONS<BR>
    FOR <FONT style="white-space: nowrap">NON-U.S.</FONT>
    HOLDERS OF OUR COMMON STOCK</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following discussion summarizes certain material
    U.S.&#160;federal income and estate tax considerations relating
    to the acquisition, ownership and disposition of our common
    stock purchased pursuant to this offering by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    (as defined below). This discussion is based on the provisions
    of the U.S.&#160;Internal Revenue Code of 1986, as amended,
    final, temporary and proposed U.S.&#160;Treasury regulations
    promulgated thereunder and current administrative rulings and
    judicial decisions, all as in effect as of the date hereof. All
    of these authorities may be subject to differing interpretations
    or repealed, revoked or modified, possibly with retroactive
    effect, which could materially alter the tax consequences to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    described in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    There can be no assurance that the IRS will not take a contrary
    position to the tax consequences described herein or that such
    position will not be sustained by a court. No ruling from the
    IRS or opinion of counsel has been obtained with respect to the
    U.S.&#160;federal income or estate tax consequences to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of the purchase, ownership or disposition of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><I>This discussion is for general information only and is not
    tax advice. All prospective
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    of our common stock should consult their own tax advisors with
    respect to the U.S.&#160;federal, state, local and
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    consequences of the purchase, ownership and disposition of our
    common stock.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As used in this discussion, the term
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;holder&#148;</FONT>
    means a beneficial owner of our common stock that is not any of
    the following for U.S.&#160;federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual who is a citizen or a resident of the United
    States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation or other entity taxable as a corporation for
    U.S.&#160;federal income tax purposes that was created or
    organized in or under the laws of the United States, any state
    thereof or the District of Columbia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate whose income is subject to U.S.&#160;federal income
    taxation regardless of its source;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust (a)&#160;if a U.S.&#160;court is able to exercise
    primary supervision over the trust&#146;s administration and one
    or more U.S.&#160;persons have the authority to control all of
    the trust&#146;s substantial decisions or (b)&#160;that has a
    valid election in effect under applicable U.S.&#160;Treasury
    regulations to be treated as a U.S.&#160;person;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an entity that is disregarded as separate from its owner if all
    of its interests are owned by a single person described above.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    An individual may be treated, for U.S.&#160;federal income tax
    purposes, as a resident of the United States in any calendar
    year by being present in the United States on at least
    31&#160;days in that calendar year and for an aggregate of at
    least 183&#160;days during a three-year period ending in the
    current calendar year. The
    <FONT style="white-space: nowrap">183-day</FONT> test
    is determined by counting all of the days the individual is
    treated as being present in the current year, one-third of such
    days in the immediately preceding year and one-sixth of such
    days in the second preceding year. Residents are subject to
    U.S.&#160;federal income tax as if they were U.S.&#160;citizens.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This discussion assumes that a prospective
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will hold shares of our common stock as a capital asset
    (generally, property held for investment). This discussion does
    not address all aspects of U.S.&#160;federal income and estate
    taxation that may be relevant to a particular
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    in light of that
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    individual circumstances. In addition, this discussion does not
    address any aspect
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    86
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    of U.S.&#160;state or local or
    <FONT style="white-space: nowrap">non-U.S.&#160;taxes,</FONT>
    or the special tax rules applicable to particular
    <FONT style="white-space: nowrap">non-U.S.&#160;holders,</FONT>
    such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insurance companies and financial institutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    controlled foreign corporations and passive foreign investment
    companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    partnerships or other pass-through entities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    regulated investment companies or real estate investment trusts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pension plans;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons who received our common stock as compensation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    brokers and dealers in securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    owners that hold our common stock as part of a straddle, hedge,
    conversion transaction, synthetic security or other integrated
    investment;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    former citizens or residents of the United States subject to tax
    as expatriates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    If a partnership or other entity treated as a partnership for
    U.S.&#160;federal income tax purposes is a beneficial owner of
    our common stock, the treatment of a partner in the partnership
    generally will depend on the status of the partner and the
    activities of the partnership. We urge any beneficial owner of
    our common stock that is a partnership and partners in that
    partnership to consult their tax advisors regarding the
    U.S.&#160;federal income tax consequences of acquiring, owning
    and disposing of our common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    on Our Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Any distribution on our common stock paid to
    <FONT style="white-space: nowrap">non-U.S.&#160;holders</FONT>
    will generally constitute a dividend for U.S.&#160;federal
    income tax purposes to the extent paid from our current or
    accumulated earnings and profits, as determined under
    U.S.&#160;federal income tax principles. Distributions in excess
    of our current and accumulated earnings and profits will
    generally constitute a return of capital to the extent of the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    adjusted tax basis in our common stock, and will be applied
    against and reduce the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    adjusted tax basis. Any remaining excess will be treated as
    capital gain, subject to the tax treatment described below in
    &#147;Gain on Sale, Exchange or Other Disposition of Our Common
    Stock.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Dividends paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that are not treated as effectively connected with the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    conduct of a trade or business in the United States generally
    will be subject to withholding of U.S.&#160;federal income tax
    at a rate of 30% on the gross amount paid, unless the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is entitled to an exemption from or reduced rate of withholding
    under an applicable income tax treaty. In order to claim the
    benefit of a tax treaty or to claim an exemption from
    withholding, a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    must provide a properly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or successor form) prior to the payment of dividends. A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    eligible for a reduced rate of withholding pursuant to an income
    tax treaty may be eligible to obtain a refund of any excess
    amounts withheld by timely filing an appropriate claim for a
    refund with the IRS.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    87
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Dividends paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that are treated as effectively connected with a trade or
    business conducted by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    within the United States (and, if an applicable income tax
    treaty so provides, are also attributable to a permanent
    establishment or a fixed base maintained within the United
    States by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder)</FONT>
    are generally exempt from the 30% withholding tax if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    satisfies applicable certification and disclosure requirements.
    To obtain the exemption, a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    must provide us with a properly executed IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    (or successor form) prior to the payment of the dividend.
    Dividends received by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that are treated as effectively connected with a U.S.&#160;trade
    or business generally are subject to U.S.&#160;federal income
    tax at rates applicable to U.S.&#160;persons. A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    that is a corporation may, under certain circumstances, be
    subject to an additional &#147;branch profits tax&#148; imposed
    at a rate of 30%, or such lower rate as specified by an
    applicable income tax treaty between the United States and such
    holder&#146;s country of residence.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    who provides us with an IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    must update the form or submit a new form, as applicable, if
    there is a change in circumstances that makes any information on
    such form incorrect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Gain On
    Sale, Exchange or Other Disposition of Our Common
    Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In general, a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will not be subject to any U.S.&#160;federal income tax or
    withholding on any gain realized from the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    sale, exchange or other disposition of shares of our common
    stock unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the gain is effectively connected with a U.S.&#160;trade or
    business (and, if an applicable income tax treaty so provides,
    is also attributable to a permanent establishment or a fixed
    base maintained within the United States by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder),</FONT>
    in which case the gain will be taxed on a net income basis
    generally in the same manner as if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    were a U.S.&#160;person, and, if the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a corporation, the additional branch profits tax described
    above in &#147;Distributions on Our Common Stock&#148; may also
    apply;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is an individual who is present in the United States for
    183&#160;days or more in the taxable year of the disposition and
    certain other conditions are met, in which case the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will be subject to a 30% tax on the net gain derived from the
    disposition, which may be offset by
    <FONT style="white-space: nowrap">U.S.-source</FONT>
    capital losses of the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    if any;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we are, or have been at any time during the five-year period
    preceding such disposition (or the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    holding period, if shorter), a &#147;United States real property
    holding corporation.&#148;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Generally, we will be a &#147;United States real property
    holding corporation&#148; if the fair market value of our
    U.S.&#160;real property interests equals or exceeds 50% of the
    sum of the fair market values of our worldwide real property
    interests and other assets used or held for use in a trade or
    business, all as determined under applicable U.S.&#160;Treasury
    regulations. We believe that we have not been and are not
    currently, and do not anticipate becoming in the future, a
    &#147;United States real property holding corporation&#148; for
    U.S.&#160;federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding and Information Reporting</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We must report annually to the IRS and to each
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    the amount of distributions paid to such holder and the amount
    of tax withheld, if any. Copies of the information returns filed
    with the IRS to report the distributions and withholding may
    also be made available to the tax authorities in a country in
    which the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a resident under the provisions of an applicable income tax
    treaty or agreement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    88
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The United States imposes a backup withholding tax on the gross
    amount of dividends and certain other types of payments
    (currently at a rate of 28%). Dividends paid to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    will not be subject to backup withholding if proper
    certification of foreign status (usually on IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN)</FONT>
    is provided, and we do not have actual knowledge or reason to
    know that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a U.S.&#160;person. In addition, no backup withholding or
    information reporting will be required regarding the proceeds of
    a disposition of our common stock made by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    within the United States or conducted through certain
    U.S.&#160;financial intermediaries if we receive the
    certification of foreign status described in the preceding
    sentence and we do not have actual knowledge or reason to know
    that such
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a U.S.&#160;person or the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    otherwise establishes an exemption.
    <FONT style="white-space: nowrap">Non-U.S.&#160;holders</FONT>
    should consult their own tax advisors regarding the application
    of the information reporting and backup withholding rules to
    them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Backup withholding is not an additional tax. Amounts withheld
    under the backup withholding rules from a payment to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    can be refunded or credited against the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    U.S.&#160;federal income tax liability, if any, provided that
    certain required information is furnished to the IRS in a timely
    manner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Estate Tax</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    An individual
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    who is treated as the owner, or who has made certain lifetime
    transfers, of an interest in our common stock will be required
    to include the value of the common stock in his or her gross
    estate for U.S.&#160;federal estate tax purposes, and may be
    subject to U.S.&#160;federal estate tax unless an applicable
    estate tax treaty provides otherwise.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    89
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The underwriters named below have agreed to purchase, subject to
    the terms and conditions of an underwriting agreement among us
    and the underwriters, the number of shares listed opposite their
    names below. The underwriters are committed to purchase all of
    the shares if any are purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="80%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Underwriters</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Number of Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Piper&#160;Jaffray&#160;&#038;&#160;Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cowen and Company, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The underwriters have advised us that they propose to offer the
    shares to the public at $&#160;&#160;&#160;&#160;&#160; per
    share. The underwriters propose to offer the shares to certain
    dealers at the same price less a concession of not more than
    $&#160;&#160;&#160;&#160;&#160; per share. The underwriters may
    allow and the dealers may reallow a concession of not more than
    $&#160;&#160;&#160;&#160;&#160; per share on sales to certain
    other brokers and dealers. After the offering, these figures may
    be changed by the underwriters. Sales of shares made outside of
    the United States may be made by affiliates of the underwriters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have granted the underwriters an option to purchase up to
    600,000&#160;additional shares of common stock from us at the
    public offering price less the underwriting discount set forth
    in the table below. The underwriters may exercise this option at
    any time and from time to time during the
    <FONT style="white-space: nowrap">30-day</FONT>
    period from the date of this prospectus to cover
    over-allotments, if any. To the extent any shares are purchased
    with this over-allotment option, the underwriters will purchase
    shares in approximately the same proportion as shown in the
    table above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table shows the underwriting fees to be paid by us
    to the underwriters in connection with this offering. These
    amounts are shown assuming both no exercise and full exercise of
    the underwriters&#146; option to purchase additional shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">No Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Full Exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We estimate that the total fees and expenses of this offering
    payable by us, including registration, filing and listing fees,
    printing fees and legal and accounting expenses, but excluding
    underwriting discounts, will be approximately
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    which includes
    $&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    that we estimate we will pay pursuant to our agreement to
    reimburse the underwriters for the fees and expenses incurred by
    them in connection with this offering. The fees and expenses of
    the underwriters that we have agreed to reimburse are not
    included in the underwriting discounts set forth in the table
    above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act, and
    to contribute to payments that the underwriters may be required
    to make in respect of those liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We and each of our directors and executive officers are subject
    to <FONT style="white-space: nowrap">lock-up</FONT>
    agreements that prohibit us and them from offering, pledging,
    announcing the intention to sell, selling, contracting to sell,
    selling any option or contract to purchase, purchasing any
    option or contract to sell, granting any option, right or
    warrant to purchase, making any short sale or otherwise
    transferring or disposing of, directly or indirectly, any shares
    of our common stock or any securities convertible into,
    exercisable or exchangeable for or that represent the right to
    receive our common stock or entering into any swap or other
    agreement that transfers, in whole or in part, any of the
    economic consequences of ownership of our
</DIV>

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    <BR>
    90
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    common stock, for a period of at least 90&#160;days following
    the date of this prospectus without the prior written consent of
    Piper&#160;Jaffray. The
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement does not prohibit our directors or executive officers
    from transferring shares of our common stock as a bona fide gift
    or to certain trusts, subject to certain requirements, including
    that the transferee be subject to the same
    <FONT style="white-space: nowrap">lock-up</FONT>
    terms, or pursuant to trading plans adopted in accordance with
    the guidelines specified by
    <FONT style="white-space: nowrap">Rule&#160;10b5-1</FONT>
    under the Exchange Act in existence as of the date of this
    prospectus. The
    <FONT style="white-space: nowrap">lock-up</FONT>
    provisions do not prevent us from selling shares to the
    underwriters pursuant to the underwriting agreement, or from
    granting options to acquire securities under our existing equity
    compensation plans or issuing shares upon the exercise or
    conversion of securities outstanding on the date of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The <FONT style="white-space: nowrap">90-day</FONT>
    <FONT style="white-space: nowrap">lock-up</FONT>
    period in all of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements is subject to extension if (a)&#160;during the last
    17&#160;days of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period we issue an earnings release or material news or a
    material event relating to us occurs or (b)&#160;prior to the
    expiration of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period, we announce that we will release earnings results during
    the <FONT style="white-space: nowrap">16-day</FONT>
    period beginning on the last day of the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period, in which case the restrictions imposed in these
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements shall continue to apply until the expiration of the
    <FONT style="white-space: nowrap">18-day</FONT>
    period beginning on the issuance of the earnings release or the
    occurrence of the material news or material event, unless
    Piper&#160;Jaffray waives the extension in writing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our shares are listed on the Nasdaq Global Market under the
    symbol &#147;INMD.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    To facilitate the offering, the underwriters may engage in
    transactions that stabilize, maintain or otherwise affect the
    price of our common stock during and after the offering.
    Specifically, the underwriters may over-allot or otherwise
    create a short position in our common stock for their own
    account by selling more shares of common stock than we have sold
    to them. The underwriters may close out any short position by
    either exercising their option to purchase additional shares or
    purchasing shares in the open market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition, the underwriters may stabilize or maintain the
    price of our common stock by bidding for or purchasing shares of
    common stock in the open market and may impose penalty bids. If
    penalty bids are imposed, selling concessions allowed to
    syndicate members or other broker-dealers participating in the
    offering are reclaimed if shares of common stock previously
    distributed in the offering are repurchased, whether in
    connection with stabilization transactions or otherwise. The
    effect of these transactions may be to stabilize or maintain the
    market price of our common stock at a level above that which
    might otherwise prevail in the open market. The imposition of a
    penalty bid may also affect the price of our common stock to the
    extent that it discourages resales of our common stock. The
    magnitude or effect of any stabilization or other transactions
    is uncertain. These transactions may be effected on the Nasdaq
    Global Market or otherwise and, if commenced, may be
    discontinued at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In connection with this offering, some underwriters (and selling
    group members) may also engage in passive market making
    transactions in our common stock. Passive market making consists
    of displaying bids on the Nasdaq Global Market limited by the
    prices of independent market makers and effecting purchases
    limited by those prices in response to order flow. Rule&#160;103
    of Regulation&#160;M promulgated by the Securities and Exchange
    Commission limits the amount of net purchases that each passive
    market maker may make and the displayed size of each bid.
    Passive market making may stabilize the market price of our
    common stock at a level above that which might otherwise prevail
    in the open market and, if commenced, may be discontinued at any
    time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    From time to time in the ordinary course of their respective
    businesses, the underwriters and certain of their respective
    affiliates have engaged, and may in the future engage, in
    commercial banking or investment banking transactions with us
    and our affiliates.
</DIV>

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    <BR>
    91
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This prospectus may be made available on the websites maintained
    by the underwriters and the underwriters may distribute
    prospectuses electronically.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Selling
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">European
    Economic Area</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive (each, a
    &#147;Relevant Member State&#148;), with effect from and
    including the date on which the Prospectus Directive is
    implemented in that Relevant Member State, no offer of our
    common stock has been made or will be made to the public in that
    Relevant Member State, except that, with effect from and
    including such date, an offer of our common stock may be made to
    the public in the Relevant Member State at any time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to legal entities which are authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to any legal entity which has two or more of (1)&#160;an average
    of at least 250&#160;employees during the last financial year;
    (2)&#160;a total balance sheet of more than &#128;43,000,000;
    and (3)&#160;an annual net turnover of more than
    &#128;50,000,000, as shown in its last annual or consolidated
    accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive);&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in any other circumstances which do not require the publication
    by us of a prospectus pursuant to Article&#160;3 of the
    Prospectus Directive.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the purposes of this provision, the expression an
    &#147;offer of our common stock to the public&#148; in any
    Relevant Member State means the communication in any form and by
    any means of sufficient information on the terms of the offer
    and the shares to be offered so as to enable an investor to
    decide to purchase any such shares, as the same may be varied in
    that Relevant Member State by any measure implementing the
    Prospectus Directive in that Relevant Member State, and the
    expression &#147;Prospectus Directive&#148; means Directive
    2003/71/EC and includes any relevant implementing measure in
    each Relevant Member State.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Belgium</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This offering is exclusively addressed to Qualified Investors
    within the meaning of article&#160;10, &#167;&#167;&#160;1 and 2
    of the Belgian Prospectus Law of 16&#160;June 2006 and
    article&#160;2 of the Royal Decree of 26&#160;September 2006
    extending the notion of Qualified Investor and of institutional
    and professional investor; or this offering is addressed to
    fewer than 100&#160;natural or legal persons on the Belgian
    territory. Therefore, this prospectus has not been and will not
    be submitted for approval to the Belgian Banking, Finance and
    Insurance Commission.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Federal
    Republic of Germany</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This prospectus is not a Securities Selling Prospectus
    (Verkaufsprospekt) within the meaning of the German Securities
    Prospectus Act (Verkaufsprospektgesetz) of 9&#160;September
    1998, as amended, and has not been filed with and approved by
    the German Federal Supervisory Authority (Bundesanstalt fur
    Finanzdienstleistungsaufsicht) or any other German governmental
    authority, and shares of our common stock may not be offered or
    sold in this offering and copies of this prospectus or any
    website relating to
</DIV>

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    <BR>
    92
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    the shares may not be distributed, directly or indirectly, in
    Germany except to persons falling within the scope of
    paragraph&#160;2 numbers&#160;1, 2 and 3 of the German
    Securities Prospectus Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Hong
    Kong</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our common stock may not be offered or sold by means of any
    document other than: (a)&#160;in circumstances which do not
    constitute an offer to the public within the meaning of the
    Companies Ordinance (Cap. 32, Laws of Hong Kong); (b)&#160;to
    &#147;professional investors&#148; as defined in the Securities
    and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any
    rules thereunder; or (c)&#160;in other circumstances which do
    not result in the document being a &#147;prospectus&#148; within
    the meaning of the Companies Ordinance. No advertisement,
    invitation or other document relating to our common stock may be
    issued, whether in Hong Kong or elsewhere, where such document
    is directed at, or the contents are likely to be accessed or
    read by, the public of Hong Kong (except if permitted to do so
    under the laws of Hong Kong), other than with respect to such
    common stock that is intended to be disposed of only to persons
    outside of Hong Kong or only to &#147;professional
    investors&#148; as defined in the Securities and Futures
    Ordinance and any rules thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Netherlands</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The shares may not be offered, sold, transferred or delivered in
    or from within The Netherlands as part of their initial
    distribution or at any time thereafter, directly or indirectly,
    nor may any other website in respect of the shares be
    distributed or circulated in The Netherlands, other than to
    individuals who are legal entities which trade or invest in
    securities in the conduct of their profession or business within
    the meaning of The Netherlands Securities Transactions
    Supervision Act of 1995 (Vrijstellingsregeling wet foezicht
    effectenverkeer 1995)&#160;and its implementing regulations
    (which includes banks, brokers, pension funds, insurance
    companies, securities institutions, investment institutions and
    other institutional investors, including, among others,
    treasuries of large enterprises, who or which are regularly
    active in the financial markets in a professional manner).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Norway</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This prospectus has not been approved by or registered with any
    authority in Norway. Accordingly, the shares have not been
    offered or sold, and will not be offered or sold, to any persons
    in Norway in any way that would constitute an offer to the
    public, other than to persons that are &#147;qualified
    investors&#148; within the meaning of Article&#160;2(1)(e) of
    the Prospectus Directive as implemented in the Norwegian
    Securities Trading Act of 2007 (the &#147;Norwegian Securities
    Trading Act&#148;), or otherwise only in circumstances where an
    exemption from the duty to publish a prospectus under the
    Prospectus Directive as implemented in the Norwegian Securities
    Trading Act shall be applicable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Singapore</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This prospectus has not been registered as a prospectus with the
    Monetary Authority of Singapore. Accordingly, this prospectus
    and any other document or material in connection with the offer
    or sale, or invitation for subscription or purchase, of shares
    of our common stock may not be circulated or distributed, nor
    may the shares be offered or sold, or be made the subject of an
    invitation for subscription or purchase, whether directly or
    indirectly, to persons in Singapore other than (a)&#160;to an
    institutional investor under Section&#160;274 of the Securities
    and Futures Act, Chapter&#160;289 of Singapore (the
    &#147;SFA&#148;), (b)&#160;to a relevant person, or any person
    pursuant to Section&#160;275(1A) of the SFA, and in accordance
    with the conditions, specified in Section&#160;275 of the SFA or
    (c)&#160;otherwise pursuant to, and in accordance with the
    conditions of, any other applicable provision of the SFA.
</DIV>

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    <BR>
    93
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Where shares of our common stock are subscribed or purchased
    under Section&#160;275 of the SFA by a relevant person which is:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    (a)&#160;a corporation (which is not an accredited investor) the
    sole business of which is to hold investments and the entire
    share capital of which is owned by one or more individuals, each
    of whom is an accredited investor;&#160;or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    (b)&#160;a trust (where the trustee is not an accredited
    investor) whose sole purpose is to hold investments and each
    beneficiary is an accredited investor,
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    shares, debentures and units of shares and debentures of that
    corporation or the beneficiaries&#146; rights and interest in
    that trust shall not be transferable for six months after that
    corporation or that trust has acquired the shares of our common
    stock under Section&#160;275 of the SFA except:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    (1)&#160;to an institutional investor or to a relevant person,
    or to any person pursuant to an offer that is made on terms that
    such rights or interest are acquired at a consideration of not
    less than $200,000 (or its equivalent in a foreign currency) for
    each transaction, whether such amount is to be paid for in cash
    or by exchange of securities or other assets;
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    (2)&#160;where no consideration is given for the
    transfer;&#160;or
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    (3)&#160;by operation of law.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sweden</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This document has not been prepared in accordance with the
    prospectus requirements provided for in the Swedish Financial
    Instruments Trading Act (lagen (1991:980) om handel med
    finansiella instrument) nor any other Swedish enactment. Neither
    the Swedish Financial Supervisory Authority (Finansinspek
    tionen) nor any other Swedish public body has examined, approved
    or registered this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    No shares of our common stock will be offered or sold to any
    investor in Sweden except in circumstances that will not result
    in a requirement to prepare a prospectus pursuant to the
    provisions of the Swedish Financial Instruments Trading Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Switzerland</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The shares offered pursuant to this prospectus will not be
    offered, directly or indirectly, to the public in Switzerland
    and this prospectus does not constitute a public offering
    prospectus as that term is understood pursuant to
    Article&#160;652a or Article&#160;1156 of the Swiss Federal Code
    of Obligations. We have not applied for a listing of the shares
    being offered pursuant to this prospectus on the SWX Swiss
    Exchange, and, consequently, the information presented in this
    prospectus does not necessarily comply with the information
    standards set out in the relevant listing rules. The shares
    being offered pursuant to this prospectus have not been
    registered with the Swiss Federal Banking Commission as foreign
    investment funds, and the investor protection afforded to
    acquirers of investment fund certificates does not extend to
    acquirers of securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">United
    Kingdom</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In the United Kingdom this document is being distributed only
    to, and is directed only at, Qualified Investors who are
    permitted to carry on regulated activity in the United Kingdom
    by the U.K. Financial Services Authority under the Financial
    Services and Markets Act 2000 (as amended), persons whose
    ordinary activities for the purpose of their businesses involve
    them in buying, selling, subscribing for or underwriting such
    securities or making arrangements for another person to do so
    (whether as principal or agent) or advising on investments or
    other persons who are Investment Professionals within the
    meaning given in paragraph&#160;19(5) of the Financial Services
    and Markets Act 2000 (Financial Promotion) Order 2005. Persons
    who are not permitted to carry on such regulated activity may
    not rely on this document.
</DIV>

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    <BR>
    94
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The validity of the shares of common stock offered by this
    prospectus will be passed upon for us by Dorsey&#160;&#038;
    Whitney LLP, New York, New York. Certain legal matters relating
    to this offering will be passed upon for the underwriters by
    Faegre&#160;&#038; Benson LLP, Minneapolis, Minnesota.
</DIV>
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The consolidated financial statements and schedules of
    IntegraMed America, Inc. as of December&#160;31, 2008 and 2007,
    and for each of the years in the three-year period ended
    December&#160;31, 2008, included in this prospectus and the
    registration statement of which this prospectus is a part, have
    been so included in reliance on the audit reports of Amper,
    Politziner&#160;&#038; Mattia, LLP, an independent registered
    public accounting firm, included in this prospectus and the
    registration statement of which this prospectus is a part, given
    on the authority of that firm as experts in accounting and
    auditing.
</DIV>

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    <BR>
    95
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission. These reports, proxy statements and the other
    information we file with the Securities and Exchange Commission
    contain additional information about us. Our Securities and
    Exchange Commission filings are available to the public at the
    Securities and Exchange Commission&#146;s website at
    www.sec.gov. You may also read and copy these reports, proxy
    statements and other information at the Securities and Exchange
    Commission&#146;s Public Reference Room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549. You
    can also request copies of these reports, proxy statements and
    other information, upon payment of a duplicating fee, by writing
    the Public Reference Room. Please call the Securities and
    Exchange Commission at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for more information about the operation of the Public Reference
    Room. You can also inspect these materials at the offices of The
    Nasdaq Global Market, at 1735&#160;K&#160;Street, N.W.,
    Washington,&#160;D.C. 20006.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have filed with the Securities and Exchange Commission a
    registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    under the Securities Act with respect to the securities that may
    be offered by this prospectus. This prospectus does not contain
    all the information set forth in the registration statement,
    certain parts of which are omitted in accordance with the rules
    and regulations of the Securities and Exchange Commission. For
    more information about us and the securities covered by this
    prospectus, you should see the registration statement and its
    exhibits and schedules. Any statement made in this prospectus
    concerning the provisions of documents may be incomplete, and
    you should refer to the copy of such documents filed as an
    exhibit to the registration statement with the Securities and
    Exchange Commission.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    96
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.</FONT></B>
</DIV>
<A name='120'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INDEX TO
    FINANCIAL STATEMENTS</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#301'>Report of Independent Registered Public
    Accounting Firm</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#302'>Consolidated Balance Sheets as of
    December&#160;31, 2008 and 2007 and June&#160;30, 2009
    (unaudited)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#303'>Consolidated Statements of Operations for the
    years ended December&#160;31, 2008, 2007 and 2006 and the six
    months ended June&#160;30, 2009 and 2008 (unaudited)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#304'>Consolidated Statements of Shareholders&#146;
    Equity for the years ended December&#160;31, 2008, 2007 and 2006
    and the six months ended June&#160;30, 2009 (unaudited)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#305'>Consolidated Statements of Cash Flows for the
    years ended December&#160;31, 2008, 2007 and 2006 and the six
    months ended June&#160;30, 2009 and 2008 (unaudited)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#306'>Notes to Consolidated Financial Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    F-8
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='301'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></B>
</DIV>
</A>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    To the Board of Directors and
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Shareholders of IntegraMed America, Inc.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have audited the accompanying consolidated balance sheets of
    IntegraMed America, Inc. as of December&#160;31, 2008 and 2007
    and the related consolidated statements of operations,
    shareholders&#146; equity and cash flows for each of the years
    in the three-year period ended December&#160;31, 2008. We also
    have audited IntegraMed America, Inc.&#146;s internal control
    over financial reporting as of December&#160;31, 2008, based on
    criteria established in <I>Internal Control-Integrated Framework
    </I>issued by the Committee of Sponsoring Organizations of the
    Treadway Commission (COSO). IntegraMed America, Inc.&#146;s
    management is responsible for these financial statements, for
    maintaining effective internal control over financial reporting,
    and for its assessment of the effectiveness of internal control
    over financial reporting, included in the accompanying
    consolidated financial statements. Our responsibility is to
    express an opinion on these financial statements and an opinion
    on the company&#146;s internal control over financial reporting
    based on our audits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audits to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement and whether effective internal
    control over financial reporting was maintained in all material
    respects. Our audits of the financial statements included
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. Our audit of internal control over financial
    reporting included obtaining an understanding of internal
    control over financial reporting, assessing the risk that a
    material weakness exists, and testing and evaluating the design
    and operating effectiveness of internal control based on the
    assessed risk. Our audits also included performing such other
    procedures as we considered necessary in the circumstances. We
    believe that our audits provide a reasonable basis for our
    opinions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A company&#146;s internal control over financial reporting is a
    process designed to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    financial statements for external purposes in accordance with
    generally accepted accounting principles. A company&#146;s
    internal control over financial reporting includes those
    policies and procedures that (1)&#160;pertain to the maintenance
    of records that, in reasonable detail, accurately and fairly
    reflect the transactions and dispositions of the assets of the
    company; (2)&#160;provide reasonable assurance that transactions
    are recorded as necessary to permit preparation of financial
    statements in accordance with generally accepted accounting
    principles, and that receipts and expenditures of the company
    are being made only in accordance with authorizations of
    management and directors of the company; and (3)&#160;provide
    reasonable assurance regarding prevention or timely detection of
    unauthorized acquisition, use, or disposition of the
    company&#146;s assets that could have a material effect on the
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Because of its inherent limitations, internal control over
    financial reporting may not prevent or detect misstatements.
    Also, projections of any evaluation of effectiveness to future
    periods are subject to the risk that controls may become
    inadequate because of changes in conditions, or that the degree
    of compliance with the policies or procedures may deteriorate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of IntegraMed America, Inc. as of December&#160;31, 2008 and
    2007, and the results of its operations and its cash flows for
    each of the years in the three-year period ended
    December&#160;31, 2008 in conformity with accounting principles
    generally accepted in the United States of America. Also in our
    opinion, IntegraMed America, Inc. maintained, in all material
    respects, effective internal control over
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    financial reporting as of December&#160;31, 2008, based on
    criteria established in <I>Internal Control-Internal Framework
    </I>issued by the Committee of Sponsoring Organizations of the
    Treadway Commission (COSO).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As discussed in Note&#160;2 and Note&#160;3 to the consolidated
    financial statements, the Company restated its consolidated
    financial statements as of December&#160;31, 2007 and 2006 as a
    result of a change in its revenue recognition policy for its
    Attain IVF Refund Program, net of the related income tax effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As discussed in Note&#160;16 to the consolidated financial
    statements, effective January&#160;1, 2007, the Company adopted
    the provisions of Financial Interpretation (FIN) No.&#160;48
    &#147;Accounting for Uncertainty in Income Taxes- an
    interpretation of Statement of Financial Accounting Standards
    No.&#160;109.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    /s/ Amper, Politziner&#160;&#038; Mattia, LLP
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Edison, New Jersey
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    March&#160;30, 2009
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-3
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <A name='302'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    BALANCE SHEETS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(all
    dollars in thousands, except share amounts)</FONT></B></A>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">December&#160;31,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">December&#160;31,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(restated)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD colspan="13" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>ASSETS</B>
</DIV>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current assets:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Patient and other receivables, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,646
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Deferred taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,352
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,468
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,669
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,463
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,485
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,915
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fixed assets, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Intangible assets, Business Service Rights, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Goodwill
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,359
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Trademarks
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,781
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,619
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,274
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="13">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="13" align="center" valign="bottom">
    <B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B>
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,853
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,895
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,864
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Current portion of long-term notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,661
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Due to Fertility Medical Practices
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,354
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,043
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Attain IVF Refund Program deferred revenue and other Patient
    Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,432
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    44,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,173
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred and other tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,819
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    271
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70,690
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    72,280
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Commitments and Contingencies
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Common Stock, $.01&#160;par value&#160;&#151;
    15,000,000&#160;shares authorized on December&#160;31, 2008 and
    2007 and June&#160;30, 2009, respectively, 8,645,694, 8,558,083
    and 8,774,994&#160;shares issued and outstanding on
    December&#160;31, 2008 and 2007 and June&#160;30, 2009,
    respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Capital in excess of par
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Other comprehensive loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (82
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Treasury stock, at cost&#160;&#151; 22,682, 14,175 and
    46,408&#160;shares on December&#160;31, 2008 and 2007 and
    June&#160;30, 2009, respectively
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (211
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (165
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Accumulated deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,691
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total liabilities and shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    See accompanying notes to the consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <A name='303'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    STATEMENTS OF OPERATIONS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">(all
    amounts in thousands, except per share amounts)</FONT></B></A>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="46%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Six-Month Period<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Ended June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(restated)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(restated)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenues, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    108,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    95,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Costs of services and sales:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,315
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
      22,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total costs of services and sales
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     136,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
      98,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Fertility Centers
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Consumer Services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Vein Clinics
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
        2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
     12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    General and administrative expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (383
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,256
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,073
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (143
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (273
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,563
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,136
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
          695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    566
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    849
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total other expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,002
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,992
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,674
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax benefit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (821
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic and diluted net earnings per share:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Basic earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Diluted earnings per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Weighted average shares&#160;&#151; basic
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Weighted average shares&#160;&#151; diluted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    See accompanying notes to the consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    <BR>
    <A name='304'>CONSOLIDATED STATEMENTS OF SHAREHOLDERS&#146;
    EQUITY<BR>
    (all amounts in thousands)<BR>
    (Restated)</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="34%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Accumulated<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Common Stock</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Capital in<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Comprehensive<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Treasury Stock</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Accumulated<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Total<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Amount</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Excess of Par</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Income</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Shares</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Amount</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Deficit</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Equity</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    BALANCE AT DECEMBER 31, 2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,008
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    49,364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    133
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (937
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (12,635
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,872
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grants issued, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grant compensation expense amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    405
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Exercise of common stock options and related tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    498
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Amortization of common stock option compensation expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Unrealized loss on hedging transaction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Retirement of Treasury stock, net of shares issued upon exercise
    of options or issuance of stock grants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (153
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,167
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (133
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    937
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (231
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income for the year ended 12/31/06
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    BALANCE AT DECEMBER 31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,245
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,851
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grants issued, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (228
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (228
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grant compensation expense amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Exercise of common stock options and related tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    155
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Treasury stock transactions, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (63
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Issuance of common stock upon acquisition of Vein Clinics of
    America, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    337
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,996
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Unrealized loss on hedging transaction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income for the year ended 12/31/07
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    BALANCE AT DECEMBER 31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (82
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (165
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grants issued, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock grant compensation expense amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Exercise of common stock options and related tax benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    338
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Treasury stock transactions, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (23
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (188
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Unrealized loss on hedging transaction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income for the year ended 12/31/08
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    BALANCE AT DECEMBER 31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,668
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (211
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,691
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock awards granted, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (164
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Restricted stock award and stock option expense amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Stock options exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Unrealized gain on hedging transaction
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net income for the six months ended June&#160;30, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    BALANCE AT JUNE 30, 2009 (unaudited)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,821
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    88
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    55,702
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (375
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,657
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,465
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    See accompanying notes to the consolidated financial statements
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <A name='305'><B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    STATEMENTS OF CASH FLOWS<BR>
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    </A><B><FONT style="font-family: 'Times New Roman', Times">(all
    amounts in thousands)</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six-Month Period<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Ended
    December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Ended June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(restated)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(restated)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">(unaudited)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash flows from operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 12pt">
    Adjustments to reconcile net income to net cash provided by
    operating activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,288
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,623
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Deferred income tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,068
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (799
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (590
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (284
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Deferred or stock-based compensation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    858
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Changes in assets and liabilities&#160;&#151;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Decrease (increase) in assets, net of assets acquired from VCA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Patient and other accounts receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,170
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (378
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (965
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (885
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Prepaids and other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (643
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,040
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (403
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (162
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (122
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (99
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (180
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    (Decrease) increase in liabilities, net of liabilities acquired
    from VCA
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Accounts payable
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    958
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (271
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    590
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (989
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    960
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,421
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,890
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    567
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (195
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Due to medical practices
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,689
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,744
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (650
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,787
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,718
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Attain IVF Refund Program deferred revenue and other patient
    deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 36pt">
    Net cash provided by operating activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,867
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,963
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash flows from investing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of business service rights
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (950
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,653
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (950
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash paid to purchase VCA, net of cash acquired
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (119
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (25,409
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (119
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of other intangibles
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (40
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (94
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Purchase of fixed assets and leasehold improvements, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (5,695
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,222
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,233
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,660
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,608
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net cash used in investing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,714
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (34,324
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,245
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,660
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,771
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash flows from financing activities:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Proceeds from issuance of debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Debt repayments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,648
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (15,163
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,382
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,921
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,436
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Common Stock transactions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net cash provided by (used in) financing activities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,924
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,055
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,901
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Net increase (decrease) in cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,535
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (8,444
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,663
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,469
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents at beginning of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,521
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Cash and cash equivalents at end of period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,271
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Supplemental Information:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Interest paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,632
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,024
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    472
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 24pt">
    Income taxes paid
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,526
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    See accompanying notes to the consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <A name='306'><B><FONT style="font-family: 'Times New Roman', Times">NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS</FONT></B></A>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;1&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">THE
    COMPANY:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    IntegraMed America, Inc. is a specialty healthcare services
    company offering products and services to patients and providers
    in the fertility and vein care segments of the health industry.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of December&#160;31, 2008 and June&#160;30, 2009, our
    fertility line of business encompassed two of our reporting
    segments and was comprised of 34 contracted fertility centers
    serving major markets across the United States, with products
    and services designed to support fertility center growth, assist
    patients with treatment financing, an Attain IVF Refund
    (formerly Shared Risk Refund) Program and captive insurance
    offerings. As of June&#160;30, 2009, we offered defined business
    services to 11 of these contracted fertility centers under our
    Partner Program, and a more discrete menu of services to 23
    other fertility centers under our Affiliate Program. All 34
    centers have access to our consumer services offerings which are
    comprised of our Attain IVF Refund Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In late 2008, our Consumer Services division re-launched its
    Shared Risk Refund Program under the name &#147;Attain
    IVF.&#148; This re-branding was done to reflect advantages
    offered by the program beyond its packaged pricing features and
    to seek to position the program in a leadership role among
    smaller, similar programs offered by other providers. We have
    also modified our revenue recognition model for this program as
    described in Note&#160;2 and Note&#160;3. All amounts presented
    for 2007 and 2006 have been restated to reflect this change in
    revenue recognition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our vein clinics division, which began operations in August,
    2007, was, as of June&#160;30, 2009, comprised of 34 (32 as of
    December&#160;31, 2008)&#160;vein clinics serving major markets,
    which primarily provide minimally invasive advanced treatment
    for vein diseases. We offer defined business services to these
    clinics which are designed to support their operations and
    growth.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;2&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">RESTATEMENT
    OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL
    STATEMENTS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The accompanying 2007 and 2006 consolidated financial statements
    have been restated to reflect a change in the revenue
    recognition policy for our Attain IVF Refund Program. Our
    previous revenue recognition policy had generally recognized the
    non-refundable patient fees (generally 30% of the contract
    amount) as revenue upon the completion of the first treatment
    cycle and we now recognize the non-refundable fees based on the
    relationship of the relative fair value of each treatment to the
    total fair value of the treatment package available to each
    patient. We also recognize a &#147;warranty reserve&#148;
    representing the estimated cost of services to be provided in
    the event a qualified patient miscarries. This restatement does
    not impact the cash flows from the operations of this program or
    the ultimate profits to be recognized, only the timing of the
    revenue recognition for a portion of the fees that we collect
    from our customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The cumulative effect of this change in policy as of
    December&#160;31, 2008, is to defer approximately
    $3.5&#160;million of revenue into 2009 which would have been
    recognized in 2008. Similarly we recognized a substantial amount
    of revenue in 2008 which had been deferred from 2007. The change
    in revenue on
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    our financial statements for the years ended December&#160;31,
    2008, 2007 and 2006 is illustrated below (000&#146;s):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Twelve Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue recognized from prior year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,964
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,344
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue deferred to future year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,477
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,796
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,964
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -36pt; margin-left: 72pt">
    Net change in annual revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (681
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (832
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our new revenue recognition policy, as more fully described in
    Note&#160;3&#160;&#151; &#147;Summary of Significant Accounting
    Policies,&#148; changes the timing of the revenue recognition
    for the non-refundable fees, and aligns it more closely to the
    underlying treatment cycles delivered to the patient.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The change in the timing related to revenue recognition had the
    following effects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    198,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    151,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    126,438
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,473
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Change in reported revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (681
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (832
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (137
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revenue as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,720
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net change in reported revenue
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (681
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (832
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (620
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (137
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net change in reserve for medical costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (64
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (28
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income before income taxes as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,514
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    507
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,094
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net change in income taxes from above adjustments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (288
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (304
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (244
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (64
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax provision as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,940
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,626
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Summary of above adjustments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (451
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (586
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (440
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (101
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted earnings per share as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.19
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in earnings per share from above adjustments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.07
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.01
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted earnings per share as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    47,329
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,687
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41,023
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cumulative effect of restatement on liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,169
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current liabilities as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    51,126
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,005
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    27,856
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,247
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; Equity as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    53,158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48,503
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40,834
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,453
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cumulative effect of restatement on Shareholders&#146; Equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,405
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,954
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,368
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,055
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shareholders&#146; Equity as restated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    50,753
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48,398
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;3&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Unaudited
    Interim Financial Information&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The interim consolidated financial statements and related
    disclosures as of June&#160;30, 2009 and for the six months
    ended June&#160;30, 2009 and 2008 are unaudited and have been
    prepared in accordance with the rules and regulations of the
    Securities and Exchange Commission (&#147;SEC&#148;). The
    unaudited interim consolidated financial statements have been
    prepared on the same basis as the audited consolidated financial
    statements, and in the opinion of management, reflect all
    adjustments of a normal recurring nature considered necessary to
    present the Company&#146;s financial position as of
    June&#160;30, 2009 and the results of its operations and its
    cash flows for the six months ended June&#160;30, 2009 and 2008.
    The results of operations for the six months ended June&#160;30,
    2009 are not necessarily indicative of the results that may be
    expected for the year ending December&#160;31, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Basis of
    consolidation&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The consolidated financial statements comprise the accounts of
    IntegraMed America, Inc. and its wholly owned subsidiaries. With
    the acquisition of Vein Clinics of America, Inc. (VCA) in the
    third quarter of 2007, we reorganized our service offerings into
    three major product lines, Fertility Centers, Consumer Services
    and Vein Clinics. In our Fertility Centers Segment, we derive
    our revenues from business service contracts with independent
    fertility centers. Our Consumer Services Segment derives its
    revenues from fees assessed to patients enrolling in our Attain
    IVF Refund Program, fees assessed to affiliated fertility
    clinics, and fees derived from fertility patient financing
    products. Our Vein Clinics Segment derives revenues from
    billings to patients and third party payors for treatment
    services rendered based upon the amount billed to the patient or
    their payor less any expected contractual allowances resulting
    from specified rates contained within payor contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We evaluate whether we should report the results of the clinical
    operations in which we have management service contracts in
    accordance with Financial Accounting Standards Board (FASB)
    Interpretation (FIN) No.&#160;46 (revised December 2003)
    (FIN&#160;46R) &#147;Consolidation of Variable Interest
    Entities.&#148; Since we do not have a controlling financial
    interest in any of the fertility medical practices to which we
    provide services, and we are not the primary beneficiary or
    obligor of their financial results (our contracts provide for
    the physician owners of the clinics to receive any excess or
    deficit of profits) we do not consolidate their results. This is
    further supported by the facts that the physician owners of the
    clinics have voting control with respect to such entities and
    sufficient equity interests to fund such entities. We do have
    effective voting control and a controlling financial interest in
    the operations of each of the vein clinics, where we are the
    primary beneficiary and obligor of their financial results and
    therefore consolidate the results of those clinic operations.
    Accordingly, we report the revenue for patient services only
    from the vein clinic segment and those fertility patients who
    enroll in the Attain IVF Refund Program (included in our
    consumer services segment).
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    F-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reclassifications&#160;&#151;</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    With the addition of VCA, we have realigned the way we operate
    our business into three segments. As a result, we have
    reclassified certain costs for all years presented within the
    three divisions to reflect this change in our operating
    structure and to provide a clearer view of each division&#146;s
    operating performance and efficiency. The result of this change
    is to reduce overall contribution margins and unallocated
    General and Administrative costs, as reported in previous
    periods.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    split effected in the form of a stock dividend&#160;&#151;
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In May 2007 and June 2006, we effected a 25% stock split in the
    form of a stock dividend. Where applicable, we have restated our
    capital accounts, shares outstanding, weighted average shares
    and earnings per share calculations for all years in these
    financial statements and related footnotes to reflect these
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Revenue
    Recognition&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Fertility
    Centers&#160;&#151; Partner service fees</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of:
    (i)&#160;a tiered percentage of the fertility center&#146;s net
    revenues, (ii)&#160;reimbursed costs of services (costs incurred
    in servicing a fertility center and any costs paid on behalf of
    the fertility center) and (iii)&#160;either a fixed percentage
    ranging from 10% to 20%, or a fixed dollar amount (limited to
    $1,071,000 and $1,865,000 for the year ended December&#160;31,
    2008 at our two largest fertility centers) of the fertility
    center&#146;s earnings after service fees, which may be subject
    to further limits. All revenues from Partner contracts are
    recorded in the period services are rendered. Direct costs
    incurred by us in performing our services and costs incurred on
    behalf of the medical practices are reported as costs of
    services. Revenue and costs are recognized in the same period in
    which the related services have been performed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services&#160;&#151; Affiliate Service Fee</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under our Affiliate agreements, we receive as compensation for
    our services a fixed fee dependent upon the level of service
    provided. All revenues and costs from Affiliate contracts are
    recorded in the period services are rendered.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services&#160;&#151; Attain IVF Refund Program</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The Attain IVF Refund Program consists of a fertility treatment
    package that includes a fixed number of treatment cycles for one
    fixed price with a significant refund if treatment is
    unsuccessful. We receive payment directly from consumers who
    qualify for the program and the patient contracts with us for
    the provision of medical services. We arrange for patient
    treatment by contracting with affiliated fertility clinics for
    the provision of patient care. We pay contracted fertility
    centers a defined reimbursement for each treatment cycle
    performed. Since the Company is the primary obligor in the
    arrangement, the Company has latitude in establishing the price,
    the Company performs a portion of the contracted service, the
    Company has discretion in supplier selection, the amount earned
    by the Company per transaction is not fixed and the patient
    looks to the Company as the contracting party, these
    arrangements qualify for gross accounting under
    <FONT style="white-space: nowrap">EITF&#160;99-19.</FONT>
    We have revised our revenue recognition policy and have restated
    all periods presented to reflect the revised revenue recognition
    policy described below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    By contract, a portion of the contract amount (generally 30%) is
    non-refundable and is recognized as revenue based on the
    relative fair value of each treatment cycle completed relative
    to the total fair value of the contracted treatment package
    available to the patient, following the guidance of Emerging
    Issues Task Force statement
    <FONT style="white-space: nowrap">00-21.</FONT> The
    remaining revenue, which consists of the 70% refundable portion
    as well as any part of the 30% non-refundable portion not yet
    recognized as revenue, is recorded upon the patient becoming
    pregnant and achieving a fetal heartbeat (most of the patients
    that are pregnant at this point go on to deliver a baby). We are
    able to record income at the time of pregnancy as we have
    substantially completed our obligation to the patient,
    discharged the patient from the care of the fertility
    specialists, and can accurately estimate the amount of expenses
    and refunds that will become due if there is a pregnancy loss.
    We are able to make these estimates for pregnancy loss based
    upon reliable Company specific data with respect to the large
    homogeneous population we have served for more than seven years.
    Expenses prior to pregnancy related to the program and
    principally paid to the affiliated fertility clinic are recorded
    as incurred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Accordingly, at each balance sheet date, we have established a
    liability for patients in the Attain IVF Refund Program for the
    following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    1. Deposits for customers who have not yet begun treatment and
    for whom no revenue has been recognized (we expect such amounts
    to be recognized as income or refunded within twelve to eighteen
    months).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    2. Refund reserve for those patients who became pregnant, but
    may not deliver a baby. (See Note&#160;12)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    3. Medical costs associated with additional treatments to a
    patient who became pregnant, did not deliver a baby and still
    has additional treatments available under their treatment
    package. (See Note&#160;12)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The table below presents the balances of each of these
    liabilities as of the respective dates (000&#146;s):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deposits or refundable fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,636
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,254
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,952
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Refund reserve for pregnant patients
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Medical cost reserve
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    347
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Due to the characteristics of the program, we assume the risk
    for a patient&#146;s treatment cost in excess of their
    enrollment fee should initial treatment cycles be unsuccessful.
    In order to moderate and manage this risk, we have developed a
    sophisticated statistical model and case management program in
    which Attain IVF Refund Program patients are medically
    pre-approved prior to enrollment in the program. We also
    continuously review their clinical criteria as they undergo
    treatment. If, while undergoing treatment, a patient&#146;s
    clinical response falls outside our criteria for participation
    in the Attain IVF Refund Program, we have the right to remove
    that individual from the program, with an applicable refund to
    the patient. To date, our case management process has been
    effective in managing the risks associated with our Attain IVF
    Refund Program within expected limits. A patient may withdraw
    from the program at any time and will be issued a refund.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-12
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The Attain IVF Refund Program is available to the self-pay
    patient. Approximately 11.5%, 12.9%, 11.6% and 9.6% of the
    self-pay patients served by our network chose to enroll in the
    Attain IVF Refund Program in the six months ended June&#160;30,
    2009, and the years ended December&#160;31, 2008, 2007 and 2006,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services&#160;&#151; Pharmaceutical Sales</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Marketing fees associated with third-party pharmaceutical sales
    are recorded upon shipment to customers. Our revenues for the
    periods presented are comprised of these marketing fees and not
    from the sales of actual pharmaceuticals.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Consumer
    Services&#160;&#151; Patient Financing</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A fertility treatment cycle can be an expensive process for
    which many patients do not have full medical insurance coverage.
    As a service to these patients, we can arrange financing to
    qualified patients of our network at rates significantly lower
    than credit cards and other finance companies. Our financing
    operations are administered by a third-party vendor and loans
    are made to qualified patients by an independent bank or finance
    organization. We are not at risk for loan losses and receive a
    placement fee from the lender involved. Since many financing
    transactions are closely associated with our Attain IVF Refund
    Program, financing revenues, which we receive and record at the
    time the loans are closed, are reported as part of that program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinics&#160;&#151; Patient Revenues and Accounts Receivable and
    Allowance for Uncollectible Accounts</FONT></I></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our relationship with the individual medical practices
    comprising our vein clinics division meets the test for
    consolidation under FIN&#160;46R &#147;Consolidation of Variable
    Interest Entities.&#148; Among these tests is the fact that we
    hold a controlling financial interest in the medical practices,
    we are the primary beneficiary of the results of the practices
    and we absorb any losses of the practices. As a result of these
    relationships, we consolidate the medical practice&#146;s
    patient revenues in our financial statements. These revenues are
    derived from the treatment of individual patients and revenue is
    recognized when the services are performed, net of estimated
    contractual allowances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The medical practices have agreements with third-party payors
    that provide for payments at amounts different from established
    rates. Payment arrangements include prospectively determined
    rates for reimbursed cost and discounted charges. Revenue is
    reported at the estimated net realizable amounts from patients
    and third-party payors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A summary of the payment arrangements with major third-party
    payors follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Medicare: All outpatient services related to Medicare
    beneficiaries are paid based on a fixed physician fee schedule
    per service which is updated annually.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Other: Estimates for contractual allowances under managed care
    health plans are based primarily on the payment terms of
    contractual arrangements, such as predetermined rates per
    diagnosis, per diem rates or discounted fee for service rates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Approximately 17% of gross patient revenues of the Vein Clinics
    Division for the year ended December&#160;31, 2008, related to
    services rendered to patients covered by the Medicare program.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-13
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Laws and regulations governing the Medicare program are complex
    and subject to interpretation. Management is not aware of any
    pending or threatened investigations involving allegations of
    potential wrongdoing. While no such regulatory inquiries have
    been made, compliance with such laws and regulations can be
    subject to future government review and interpretation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our accounts receivable are primarily comprised of patient and
    third-party receivables arising from services provided by our
    vein care division. Receivables due from third-party payors are
    carried at an estimated collectible value determined by the
    original charge for the service provided, less an estimate for
    contractual allowances or discounts provided to the third-party
    payors. Receivables due directly from patients are carried at
    the original charge for the service provided less an estimated
    allowance for uncollectible amounts. Contractual allowance and
    uncollectible reserve amounts are determined based on historical
    collection performance data and are reviewed and adjusted
    monthly as necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Vein
    Clinics&#160;&#151; Deferred Compensation Arrangements</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The Professional Corporations providing medical services at the
    clinics have entered into employment agreements with physicians
    at clinic sites providing for multi-year bonus compensation to
    be accumulated over a physician&#146;s first five years of
    employment. Accumulated balances are paid out during the years
    following this period, or after specific performance targets
    have been met. These obligations are funded in physician
    designated investment accounts on a quarterly basis. At
    December&#160;31, 2008, these balances totaled approximately
    $938,000 and at June&#160;30, 2009, these balances totaled
    approximately $922,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Intangible
    and Long-Lived Assets&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our intangible assets are comprised of Business Service Rights
    associated with our fertility Partner contracts, Goodwill
    associated with our acquisition of VCA, and Trademarks, also
    principally associated with our VCA acquisition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Business Service Rights represent payments we made for the right
    to service certain fertility centers. We amortize our
    non-refundable Business Service Rights on a straight-line basis
    over the life of the underlying contract, usually ten to twenty
    five years. Our refundable Business Service Rights are not
    amortized as they are contractually reimbursable from the
    medical practice upon termination of the underlying contract.
    Our Goodwill and Trademark assets associated with the VCA
    acquisition are deemed to have indefinite lives and are
    therefore not amortized.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We test all of our intangible and long-lived assets for
    impairment on a regular basis in accordance with Financial
    Accounting Standards (FAS) 144 &#147;Accounting for the
    Impairment or Disposal of Long-Lived Assets&#148;
    (FAS&#160;144). If we record an impairment loss, it may have a
    material adverse effect on our results of operations for the
    year in which the impairment is recorded. As of June&#160;30,
    2009 and December&#160;31, 2008, none of our long lived assets
    were deemed to be impaired.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Use of
    Estimates&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States
    requires management to make estimates and assumptions that
    affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of
    the financial statements and the reported amounts of revenues
    and expenses during the reporting periods. Actual results could
    differ from those estimates. The use of estimates and
    assumptions in the preparation of the accompanying consolidated
    financial statements is most significant with respect to the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-14
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    determination of net revenues and accounts receivable and
    reserves for estimated refunds due to pregnancy losses in our
    Attain IVF Refund Program.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Due to
    Medical Practices&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Due to Medical Practices represents the net amounts owed by us
    to contracted medical practices in our Partner Program. This
    balance is comprised of amounts due to us by the medical
    practices for funds which we advanced for use in financing their
    accounts receivable, less balances owed to the medical practices
    by us for undistributed physician earnings and patient deposits
    we hold on behalf of the medical practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Cash and
    cash equivalents&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Cash and cash equivalents primarily include all highly liquid
    debt instruments with original maturities of three months or
    less, recorded at cost, which approximates market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Concentrations
    of credit risk&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Financial instruments, which potentially expose us to
    concentrations of credit risk, consist primarily of trade
    receivables from patients and third-party payors which totaled
    approximately $14.5&#160;million at June&#160;30, 2009 and
    $13.2&#160;million and $12.2&#160;million as of
    December&#160;31, 2008 and 2007, respectively. Our related
    reserves for uncollectible accounts and contractual allowances
    totaled $6.8&#160;million, $6.5&#160;million and
    $6.7&#160;million as of June&#160;30, 2009 and December&#160;31,
    2008 and 2007, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Income
    taxes&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We account for income taxes utilizing the asset and liability
    approach in accordance with FAS&#160;109, &#147;Accounting For
    Income Taxes.&#148; Deferred tax assets and liabilities are
    recognized on differences between the book and tax basis of
    assets and liabilities using presently enacted tax rates. The
    income tax provision is the sum of the amount of income tax paid
    or payable for the year as determined by applying the provisions
    of enacted tax laws to the taxable income for that year and the
    net change during the year in our deferred tax assets and
    liabilities. (See Note&#160;16).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Earnings
    per share&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We determine earnings per share in accordance with FAS&#160;128
    &#147;Earnings Per Share.&#148; Basic earnings per share is
    calculated by dividing net income by the weighted average number
    of common shares outstanding during the reporting period.
    Diluted earnings per share is calculated by dividing net income
    by the weighted average number of common shares, and potential
    common shares, outstanding during the reporting period. (See
    Note&#160;17).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Fair
    value of financial instruments&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The fair value of a financial instrument, such as a note
    payable, represents the amount at which the instrument could be
    exchanged in a current transaction between willing parties,
    other than in a forced sale or liquidation. Significant
    differences can arise between the fair value and carrying
    amounts of financial instruments that are recorded at historical
    cost amounts. We believe that the carrying amounts of cash and
    cash equivalents, our accounts receivable and accounts payable
    approximate fair value due to their short-term nature.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-15
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of December&#160;31, 2008 and 2007, the carrying amount of
    our long-term liabilities approximates the fair value of such
    instruments based upon our best estimate of interest rates that
    would be available to us for similar debt obligations with
    similar maturities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Recently
    issued accounting pronouncements&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U><FONT style="white-space: nowrap">FAS&#160;157-3</FONT></U>:&#160;In
    October 2008, the FASB issued FASB Staff Position (FSP)
    <FONT style="white-space: nowrap">FAS&#160;157-3,</FONT>
    &#147;Determining the Fair Value of a Financial Asset When the
    Market for That Asset Is Not Active.&#148; The FSP clarifies the
    application of FAS&#160;157, &#147;Fair Value
    Measurements,&#148; in a market that is not active and provides
    an example to illustrate key considerations in determining the
    fair value of a financial asset when the market for that
    financial asset is not active. The FSP is effective for prior
    periods for which financial statements have not been issued. We
    currently believe that
    <FONT style="white-space: nowrap">FAS&#160;157-3</FONT>
    will not have a material impact on our consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U><FONT style="white-space: nowrap">FAS&#160;142-3</FONT></U>:&#160;In
    April 2008, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;142-3,</FONT>
    &#147;Determination of the Useful Life of Intangible
    Assets.&#148; This FSP amends the factors that should be
    considered in developing renewal or extension assumptions used
    to determine the useful life of a recognized intangible asset
    under FAS&#160;142, &#147;Goodwill and Other Intangible
    Assets&#148; (FAS&#160;142). The intent of this FSP is to
    improve the consistency between the useful life of a recognized
    intangible asset under FAS&#160;142 and the period of expected
    cash flows used to measure the fair value of the asset under
    FAS&#160;141R, and other U.S.&#160;generally accepted accounting
    principles. This FSP is effective for financial statements
    issued for fiscal years beginning after December&#160;15, 2008,
    and interim periods within those fiscal years. We currently
    believe that
    <FONT style="white-space: nowrap">FAS&#160;142-3</FONT>
    will have no material impact on our consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;161</U>:&#160;In March 2008, the FASB issued
    FAS&#160;161, &#147;Disclosures about Derivative Instruments and
    Hedging Activities&#160;&#151; an amendment of FASB Statement
    No.&#160;133&#148; (FAS&#160;161). FAS&#160;161 changes the
    disclosure requirements for derivative instruments and hedging
    activities. Entities are required to provide enhanced
    disclosures about (a)&#160;how and why an entity uses derivative
    instruments, (b)&#160;how derivative instruments and related
    hedged items are accounted for under FAS&#160;133 and its
    related interpretations, and (c)&#160;how derivative instruments
    and related hedge items affect an entity&#146;s financial
    position, financial performance, and cash flows. This statement
    is effective for fiscal years after November&#160;15, 2008. We
    currently believe that FAS&#160;161 will have no material impact
    on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;160</U>:&#160;In December 2007, the FASB issued
    FAS&#160;160, &#147;Non-controlling Interests in Consolidated
    Financial Statements&#160;&#151; an amendment of ARB
    No.&#160;51&#148; (FAS&#160;160). FAS&#160;160 requires a
    company to clearly identify and present ownership interests in
    subsidiaries held by parties other than the company in the
    consolidated financial statements within the equity section but
    separate from the company&#146;s equity. It also requires the
    amount of consolidated net income attributable to the parent and
    to the non-controlling interest be clearly identified and
    presented on the face of the consolidated statement of income;
    changes in ownership interest be accounted for similarly, as
    equity transactions; and when a subsidiary is deconsolidated,
    any retained non-controlling equity investment in the former
    subsidiary and the gain or loss on the deconsolidation of the
    subsidiary be measured at fair value. FAS&#160;160 is effective
    for fiscal years after December&#160;15, 2008. We currently
    believe that FAS&#160;160 will have no material impact on our
    consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;141R</U>:&#160;In December 2007, the FASB issued
    FAS&#160;141 (Revised 2007), &#147;Business Combinations&#148;
    (FAS&#160;141R). The objective of FAS&#160;141R is to improve
    the relevance, representational faithfulness, and comparability
    of the information that a reporting entity provides in its
    financial reports about a business
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-16
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    combination and its effects. To accomplish that, FAS&#160;141R
    establishes principles and requirements for how the acquirer:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    a. Recognizes and measures in its financial statements the
    identifiable assets acquired, the liabilities assumed, and any
    non-controlling interest in the acquiree
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    b. Recognizes and measures the goodwill acquired in the business
    combination or a gain from a bargain purchase
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    c. Determines what information to disclose to enable users of
    the financial statements to evaluate the nature and financial
    effects of the business combination
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    This statement is effective for fiscal years beginning on or
    after December&#160;15, 2008. We currently believe that
    FAS&#160;141R will not have a material impact on our
    consolidated financial statements
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;157</U>:&#160;In September 2006, the FASB issued
    FAS&#160;157, &#147;Fair Value Measurements&#148;
    (FAS&#160;157). FAS&#160;157 defines fair value, establishes a
    framework for measuring fair value, and expands disclosures
    about fair value measurements. FAS&#160;157 is effective for
    financial statements issued for fiscal years beginning after
    November&#160;15, 2007 and became effective for us on
    January&#160;1, 2008.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fair value is defined as the price at which an asset could be
    exchanged in a current transaction between knowledgeable,
    willing parties. A liability&#146;s fair value is defined as the
    amount that would be paid to transfer the liability to a new
    obligor, not the amount that would be paid to settle the
    liability with the creditor. The FASB establishes a three-level
    hierarchy for fair value measurements based upon the
    transparency of inputs to the valuation as of the measurement
    date and expands disclosures about financial instruments
    measured at fair value. Assets and liabilities recorded at fair
    value are categorized based upon the level of judgment
    associated with the inputs used to measure their fair value.
    Hierarchical levels defined by FAS&#160;157 and directly related
    to the amount of subjectivity associated with the inputs to fair
    valuation of these assets and liabilities are as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Level&#160;1:&#160;Inputs are unadjusted, quoted prices in
    active markets for identical assets or liabilities at the
    measurement date. The types of assets and liabilities carried at
    this level are equities listed in active markets, investments in
    publicly traded mutual funds with quoted market prices and
    listed derivatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Level&#160;2:&#160;Inputs (other than quoted prices included in
    Level&#160;1)&#160;are either directly or indirectly observable
    for the asset or liability through correlation with market data
    of the instrument&#146;s anticipated life. Fair value assets and
    liabilities that are generally included in this category are
    municipal bonds and certain derivatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Level&#160;3:&#160;Financial assets and financial liabilities
    whose values are based on prices or valuation techniques that
    require inputs that are both unobservable and significant to the
    overall fair value measurement. Consideration is given to the
    risk inherent in the valuation method and the risk inherent in
    the inputs to the model. Generally, assets and liabilities
    carried at fair value and included in this category are certain
    derivatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The adoption of FAS&#160;157 did not have a material impact on
    our consolidated financial statements.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FSP&#160;141(R)-1</U>:&#160;In April 2009, the FASB issued
    FSP FAS&#160;141(R)-1, &#147;Accounting for Assets Acquired and
    Liabilities Assumed in a Business combination That Arise from
    Contingencies&#148; (FSP&#160;141(R)-1). FSP&#160;141(R)-1
    requires that assets acquired and liabilities assumed in a
    business combination that arise from pre-acquisition
    contingencies, be recognized at fair value at the acquisition
    date, if fair value can be determined during the measurement
    period. If the acquisition date fair value cannot be determined,
    the guidance in FASB Statement No.&#160;5, &#147;Accounting for
    Contingencies&#148; (FASB ASC 450), and FIN&#160;No.&#160;14,
    &#147;Reasonable Estimation of the Amount of a Loss&#148; (FASB
    ASC <FONT style="white-space: nowrap">450-20),</FONT>
    should be applied. FSP&#160;141(R)-1 also eliminates the
    requirement to disclose an estimate of the range of outcomes of
    recognized contingencies at the acquisition date and requires
    that contingent consideration arrangements of an acquiree
    assumed by the acquirer in a business combination be treated as
    contingent consideration of the acquirer and should be initially
    and subsequently measured at fair value in accordance with
    FAS&#160;141(R)-1. FSP&#160;141(R)-1 is effective prospectively
    for business combinations for which the acquisition date is on
    or after the beginning of the first annual reporting period
    beginning on or after December&#160;15, 2008. Adoption of
    FSP&#160;141(R)-1 did not have a material impact on our
    financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U><FONT style="white-space: nowrap">FSP&#160;157-4</FONT></U>:&#160;In
    April 2009, the FASB also issued FSP
    <FONT style="white-space: nowrap">FAS&#160;157-4,</FONT>
    &#147;Determining Fair Value When the Volume and Level of
    Activity for the Asset or Liability Have Significantly Decreased
    and Identifying Transactions That Are Not Orderly&#148;
    <FONT style="white-space: nowrap">(FSP&#160;157-4).</FONT>
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    provides additional guidance for estimating fair value in
    accordance with FAS&#160;157 when the volume and level of
    activity for the asset or liability have significantly
    decreased.
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    also includes guidance on identifying circumstances that
    indicate a transaction is not orderly.
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    is effective for interim and annual reporting periods after
    June&#160;15, 2009. Adoption of
    <FONT style="white-space: nowrap">FSP&#160;157-4</FONT>
    did not have a material impact on our financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U><FONT style="white-space: nowrap">FSP&#160;107-1</FONT>
    and APB
    <FONT style="white-space: nowrap">28-1</FONT></U>:&#160;In
    April 2009, the FASB issued FSP
    <FONT style="white-space: nowrap">FAS&#160;107-1</FONT>
    and APB
    <FONT style="white-space: nowrap">No.&#160;28-1,</FONT>
    &#147;Interim Disclosures about Fair Value of Financial
    Instruments&#148;
    <FONT style="white-space: nowrap">(FSP&#160;107-1</FONT>
    and APB
    <FONT style="white-space: nowrap">28-1),</FONT> which
    requires quarterly disclosure of information about the fair
    value of financial instruments within the scope of FAS&#160;107,
    &#147;Disclosures about Fair Value of Financial
    Instruments.&#148;
    <FONT style="white-space: nowrap">FSP&#160;107-1</FONT>
    and APB <FONT style="white-space: nowrap">28-1</FONT>
    has an effective date requiring adoption by the third quarter of
    2009 with early adoption permitted. The adoption of
    <FONT style="white-space: nowrap">FSP&#160;107-1</FONT>
    and APB <FONT style="white-space: nowrap">28-1</FONT>
    will not have a material impact on our consolidated financial
    statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;165</U>:&#160;In May 2009, the FASB issued
    FAS&#160;165, &#147;Subsequent Events&#148; (FAS&#160;165),
    which sets forth general standards of accounting for and
    disclosure of events that occur after the balance sheet date but
    before financial statements are issued or are available to be
    issued. FAS&#160;165 will become effective in the third quarter
    of 2009. The adoption of FAS&#160;165 will not have a material
    impact on our consolidated financial statements. In accordance
    with FAS&#160;165, the Company evaluated all events and
    transactions that occurred after June&#160;30, 2009 up through
    August&#160;7, 2009, the date the Company issued its unaudited
    consolidated financial statements for the six-month period ended
    June&#160;30, 2009. During this period, the Company did not have
    any material recognizable subsequent events.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;166</U>:&#160;In June 2009, the FASB issued
    FAS&#160;166, &#147;Accounting for Transfers of Financial
    Assets&#160;&#151; an amendment of FASB Statement
    No.&#160;140&#148; (FAS&#160;166). FAS&#160;166 amends
    FAS&#160;140, &#147;Accounting for Transfers and Servicing of
    Financial Assets and Extinguishments of Liabilities&#148; (FASB
    ASC 860)&#160;and will significantly change how entities account
    for transfers of financial assets. FAS&#160;166 eliminates the
    qualifying special purpose entity (QSPE) concept. All
    QSPE&#146;s will be subject to the consolidation considerations
    of FAS&#160;167. The new standard also includes a number of
    changes and clarifications that restrict the ability of
    companies to derecognize financial assets. A transfer of
    financial assets that does
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-18
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    not meet the criteria for derecognition is treated as a secured
    financing rather than a sale. In addition, the new standard
    requires disclosures aimed at improving the transparency of any
    continuing involvement with transfers of financial assets, the
    nature of any restrictions on the transferor&#146;s assets that
    relate to a transferred financial asset, and how a transfer of
    financial assets affects the company&#146;s balance sheet,
    earnings, and cash flows. FAS&#160;166 applies to all transfers
    of financial assets occurring in the first fiscal year beginning
    after November&#160;15, 2009 and in interim periods in those
    years. Adoption of FAS&#160;166 will not have a material impact
    on our financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;167</U>:&#160;In June 2009, the FASB issued
    FAS&#160;167, &#147;Amendments to FASB Interpretation
    No.&#160;46(R)&#148; (FAS&#160;167), which amends FIN&#160;46
    (revised December 2003)&#160;to address the elimination of the
    concept of a QSPE. FAS&#160;167 also replaces the
    quantitative-based risks and rewards calculation for determining
    which enterprise has a controlling financial interest in a
    variable interest entity with an approach focused on identifying
    which enterprise has the power to direct the activities of a
    variable interest entity and the obligation to absorb losses of
    the entity or the right to receive benefits from the entity.
    Additionally, FAS&#160;167 provides more timely and useful
    information about an enterprise&#146;s involvement with a
    variable interest entity. FAS&#160;167 will become effective in
    the first quarter of 2010. The adoption of FAS&#160;167 will not
    have a material impact on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <U>FAS&#160;168</U>:&#160;In June 2009, the FASB issued
    FAS&#160;168, &#147;The FASB <I>Accounting Standards
    Codification<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP></I>

    and the Hierarchy of Generally Accepted Accounting Principles, a
    replacement of FASB Statement No.&#160;162&#148; (FAS&#160;168),
    which establishes the FASB Accounting Standards Codification as
    the source of authoritative accounting principles recognized by
    the FASB to be applied in the preparation of financial
    statements in conformity with generally accepted accounting
    principles. FAS&#160;168 explicitly recognizes rules and
    interpretive releases of the Securities and Exchange Commission
    (SEC) under federal securities laws as authoritative generally
    accepted accounting principles for SEC registrants. FAS&#160;168
    will become effective in the fourth quarter of 2009 and will not
    have a material impact on our consolidated financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;4&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SIGNIFICANT
    SERVICE CONTRACTS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the six months ended June&#160;30, 2009 and the years ended
    December&#160;31, 2008, 2007, and 2006, the following contracted
    fertility centers each individually provided greater than 10% of
    our revenues, net
    <FONT style="white-space: nowrap">and/or</FONT>
    contribution as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="40%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Percent of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Percent of<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Company Revenues, Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contribution</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Months<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Months<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Year Ended<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June 30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December 31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June 30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    RSC of New England
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fertility Centers of Illinois
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Shady Grove Fertility Center
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21.2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.7
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of:
    (i)&#160;a tiered percentage of the fertility centers net
    revenues, (ii)&#160;reimbursed costs of services (costs incurred
    in servicing a fertility center and any costs paid on behalf of
    the fertility center)
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    and (iii)&#160;a either a fixed percentage, or a fixed dollar
    amount of the fertility centers earnings after services fees,
    which may be subject to further limits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The third tier of our fee structure with these significant
    contracts contains provisions as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="7%"></TD>
    <TD width="4%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    RSC of New England&#160;&#151; a fixed annual percentage of the
    center&#146;s earnings.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Fertility Centers of Illinois&#160;&#151; a fixed percentage of
    the center&#146;s earnings subject to a fixed dollar amount as
    an upper boundary ($1,865,000) and a fixed dollar amount as a
    lower boundary ($932,000) subject to a fixed percentage of the
    center&#146;s earnings limitation.
</TD>
</TR>

<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Shady Grove Fertility Center&#160;&#151; a fixed dollar amount
    of the center&#146;s earnings subject to a fixed percentage of
    the center&#146;s earnings limitation ($1,071,000 is the upper
    boundary and $540,000 is the lower boundary of this calculation).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;5&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SEGMENT
    INFORMATION:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We follow the requirements contained in FAS&#160;131,
    &#147;Disclosures about Segments of an Enterprise and Related
    Information&#148; (FAS&#160;131), with respect to identifying
    and reporting business segments. FAS&#160;131 requires that
    segment reporting reflect our organizational structure, major
    revenue sources, lines of responsibility and senior
    management&#146;s perspective of our organization. With the
    acquisition of VCA during the third quarter of 2007, we
    reorganized our service offerings into three product lines:
    Fertility Centers, Consumer Services and Vein Clinics. Each of
    the operating segments includes an element of overhead
    specifically associated with it. Such overhead costs were
    previously reported as General and Administrative costs, and
    have been reclassified in all periods presented to better
    reflect the operating results of our business segments.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Performance by segment, for the three years ended
    December&#160;31, 2008, 2007 (restated) and 2006 (restated) and
    the six months ended June&#160;30, 2009 and 2008 are presented
    below (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Fertility<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Consumer<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Vein<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Centers</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Services</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Clinics<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Corp G&#038;A</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Consolidated</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>For the Year ended December&#160;31, 2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    138,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,013
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    128,224
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179,854
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,216
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,651
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.4
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Interest (income) expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (181
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,180
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,397
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (12,007
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,715
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Depreciation expense included above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,327
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    761
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    898
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,989
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Capital expenditures, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,053
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,057
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    585
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,695
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,885
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    331
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    46,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    37,477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,443
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>For the Year ended December&#160;31, 2007</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,078
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,804
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,284
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,304
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    136,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,019
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    980
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,536
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Interest (income) expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (203
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (120
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,479
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    978
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (10,617
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Depreciation expense included above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,003
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Capital expenditures, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,654
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    662
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,222
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42,586
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    888
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    44,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>For the Year ended December&#160;31, 2006</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    112,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    13,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104,357
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113,769
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Interest (income) expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (279
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (99
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (378
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,689
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,639
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (9,281
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,047
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Depreciation expense included above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    614
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Capital expenditures, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,075
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,233
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41,458
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    995
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,870
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    76,323
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="45%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Fertility<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Consumer<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Vein<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Centers</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Services</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Clinics<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Corp G&#038;A</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Consolidated</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>For the Six Months ended June&#160;30, 2009</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    73,574
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    24,667
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    108,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,631
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.1
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,569
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Interest (income) expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    423
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    423
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,673
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (6,992
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Depreciation expense included above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    441
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,950
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Capital expenditures, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    383
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    560
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36,916
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    48,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39,796
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,745
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 6pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>For the Six Months ended June&#160;30, 2008</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Revenues
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    67,797
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    95,336
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Cost of services
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62,923
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,315
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,869
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,107
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Contribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,874
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,035
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,229
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Operating margin
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7.2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26.9
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5.5
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8.6
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    General and administrative
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,098
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Interest (income) expense, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (109
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    683
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    576
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Income (loss) before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,983
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,033
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (5,781
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,555
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Depreciation expense included above
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    373
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,975
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Capital expenditures, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,718
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    597
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    293
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,608
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 22pt">
    Total assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    43,101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,101
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,658
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,705
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    114,565
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    Acquired August&#160;8, 2007.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;6&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">CASH AND
    CASH EQUIVALENTS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Cash and short term investments consist of cash and short term
    marketable securities. To the extent that cash balances exceed
    short term operating needs, excess cash is invested in short
    term interest bearing instruments. It is our policy to restrict
    our investments to high-quality securities with fixed maturity
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    F-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    dates and principal amounts. The composition of our cash and
    short term investments is as follows (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26,807
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,156
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,934
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Money market funds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Certificates of deposit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Total cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,275
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23,740
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;7&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">PATIENT
    AND OTHER RECEIVABLES, NET:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Patient and other receivables are principally comprised of gross
    patient and insurance receivables from our Vein Clinics segment
    which represent outstanding balances due for patient treatments
    less estimated allowances for insurance contractual agreements
    and uncollectible balances. Insurance contractual allowances are
    calculated based on recent allowance trends stratified by major
    payor category and uncollectible reserves are based on both
    historical trends and specific identification of specific
    accounts. For the periods ended December&#160;31, 2008 and 2007
    and June&#160;30, 2009, we believe that our receivable reserves
    were adequate to provide for any contractual or collection
    issues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The composition of our patient and other receivables is as
    follows (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vein Clinic patient and insurance receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,865
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,966
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Reserve for insurance contractual allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,866
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,339
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,704
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Reserve for uncollectible accounts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,648
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,386
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,891
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Subtotal Vein Clinic receivables, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,241
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,454
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    192
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Total Patient and other receivables, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,681
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,511
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    7,646
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;8&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">FIXED
    ASSETS, NET:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Fixed assets, net at December&#160;31, 2008 and 2007 and
    June&#160;30, 2009 consisted of the following (000&#146;s
    omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Furniture, office and computer equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,311
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,158
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,922
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Medical equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,259
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,419
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Leasehold improvements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,059
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,091
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Construction in progress
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    148
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    701
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Assets under capital leases
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    427
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,256
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43,083
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,914
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less&#160;&#151; Accumulated depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (30,638
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (26,171
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33,586
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,912
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,328
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our fixed assets are depreciated on a straight line basis. We
    generally assign useful lives of five years to assets classified
    as furniture, fixtures, office and medical equipment. Assets
    classified as computer hardware and software are generally
    assigned a three year useful life and leasehold improvements are
    depreciated over the lesser of their useful life, or the term of
    the lease.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Depreciation expense on fixed assets for the six months ended
    June&#160;30, 2009 and the years ended December&#160;31, 2008
    and 2007 was $2,948,000, $5,989,000, and $5,107,000,
    respectively. Assets under capital leases are comprised of
    various medical equipment. Accumulated amortization related
    specifically to capital leases at June&#160;30, 2009 and
    December&#160;31, 2008 and 2007 was $167,000, $126,000 and
    $59,000, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="11%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;9&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">BUSINESS
    SERVICE RIGHTS, NET:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Business Service Rights, net at December&#160;31, 2008 and 2007
    and June&#160;30, 2009 consisted of the following (000&#146;s
    omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December 31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Business Service rights, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    33,255
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less accumulated amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,249
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10,950
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (12,897
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,956
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,305
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Business Service Rights are negotiated one-time payments we
    generally make to physician practices joining our fertility
    Partner Program. These payments are made to secure the right to
    provide business services to the practices for contracted terms
    generally ranging from ten to twenty five years. Depending upon
    the negotiated terms, these payments may be refundable at the
    termination of the contract or non-refundable. We amortize our
    non-refundable Business Service Rights over the life of the
    applicable contract. Refundable Business Service Rights, which
    totaled approximately $6.1&#160;million as of
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    December&#160;31, 2008 and $6.1&#160;million as of June&#160;30,
    2009, are not amortized because these amounts will be repaid to
    us upon termination of the contract.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the six months ended June&#160;30, 2009 and the twelve
    months ended December&#160;31, 2008 and 2007, amortization
    expense related to our Business Service Rights totaled
    approximately $0.6&#160;million, $1.3&#160;million and
    $1.3&#160;million, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of December&#160;31, 2008, amortization expense of our
    Business Service Rights in future years are as follows
    (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,356
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,856
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We test our Business Service Rights for impairment on a regular
    basis in accordance with FAS&#160;144. To date, no impairment
    charges have been recognized.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;10&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">GOODWILL:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    On August&#160;8, 2007, IntegraMed acquired 100&#160;percent of
    the outstanding common shares of VCA. With this acquisition
    IntegraMed became a leading provider of services to the vein
    disease segment in the health care market. At the date of
    acquisition, VCA operated 27 clinics in 11&#160;states. This
    acquisition also provided the opportunity for operational
    efficiencies in the form of cost reductions through economies of
    scale and resource sharing for both organizations. Purchase
    accounting principles in accordance with FAS&#160;141,
    &#147;Business Combinations&#148; were applied and accordingly,
    only the results of VCA operations subsequent to its acquisition
    are included in the accompanying financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The goodwill of $29.5&#160;million arising from this acquisition
    consists largely of the market potential expected from the
    operations and enhanced resources of VCA. All of this goodwill
    was assigned to VCA&#146;s vein care operations, with none of
    the goodwill expected to be deductible for income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following pro forma data reflects the consolidated revenue
    and earnings of IntegraMed America, Inc, and Subsidiaries had
    the VCA acquisition date been January&#160;1, 2006 (000&#146;s
    omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Basic<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Earnings<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Revenue</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Net Income</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">per Share</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental pro forma for 01/01/2007 to 12/31/2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171,269
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.37
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Supplemental pro forma for 01/01/2006 to 12/31/2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    154,299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We test our goodwill for impairment in accordance with the
    provisions of FAS&#160;142. This test consists of a two-step
    process. The first step is to identify potential impairment by
    comparing the fair value of the underlying asset with its
    carrying amount. If the fair value, which is based on future
    cash flows, exceeds the carrying amount, the intangible asset is
    not considered impaired. If the carrying amount exceeds the fair
    value, the second step must be performed to measure the amount
    of the impairment loss, if any. The second step compares the
    implied fair value of the intangible with the carrying amount of
    that intangible. If the implied fair value is less than the
    carrying amount, an impairment loss would be recognized in an
    amount equal to the excess of the carrying amount of the
    intangible over its implied fair value. To date we have not
    recorded any impairment losses.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;11&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">TRADEMARKS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Trademarks and other intangibles, net at December&#160;31, 2008
    and 2007 and June&#160;30, 2009 consisted of the following
    trademark items (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="69%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    IntegraMed America, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    92
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vein Clinics of America, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,492
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We do not amortize our trademarks as they have an indefinite
    useful life. We do test our trademarks for impairment on a
    regular basis in accordance with FAS&#160;144. To date, no
    impairment charges have been recognized.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;12&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ACCRUED
    LIABILITIES:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Accrued liabilities as of December&#160;31, 2008 and 2007
    (restated) and June&#160;30, 2009 consisted of the following
    (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="59%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued payroll
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,665
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,286
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,873
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued employee incentives and benefits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,072
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,062
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,774
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued vacation
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    151
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    168
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued physician incentives (VCA)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,754
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,542
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,594
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    New physician recruitment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    113
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    103
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    121
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued costs on behalf of medical practices
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,894
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,884
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,444
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued rent
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    892
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,137
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued professional fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    390
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    213
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued insurance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    412
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Reserves for estimated Attain IVF Refund Program patient refunds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    294
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Reserve for Attain IVF Refund Program post-pregnancy expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    347
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accrued federal and state taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    170
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other accrued taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    350
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,578
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,847
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -12pt; margin-left: 36pt">
    Total accrued liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,676
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,941
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    Individually represents less than 5% of total accrued
    liabilities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;13&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">DUE TO
    MEDICAL PRACTICES:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Due to Medical Practices is comprised of the net amounts owed by
    us to fertility medical practices contracted as Partners. This
    balance is comprised of amounts due to us by the medical
    practices for funds which we advanced for use in financing their
    accounts receivable, less balances owed to the medical practices
    by us for undistributed physician earnings and patient deposits
    we hold on behalf of the medical practices.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    While we are responsible for the management and collection of
    the Partner&#146;s accounts receivable, as part of the business
    services we provide, the credit and collection risk for these
    receivables remains with the medical practice. We finance the
    receivables with full recourse. Amounts financed relating to
    uncollectible accounts are recovered from the medical practice
    in the month uncollectible reserves are established or accounts
    are written-off.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of December&#160;31, 2008 and 2007 and June&#160;30, 2009,
    Due to Medical Practices was comprised of the following balances
    (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Advances to Partners for receivable financing
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (17,121
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (15,585
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (16,285
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Undistributed Physician Earnings
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,205
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,338
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,690
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Physician practice patient Deposits
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,270
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,290
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21,736
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Due to Medical Practices, net
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    6,354
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,043
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,141
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our responsibilities to the these medical practices are to
    provide financing for their accounts receivable and to hold
    patient deposits on their behalf as well as undistributed
    physician earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We are also responsible for the collection of the Partner
    accounts receivables, which we finance with full recourse. We
    have no other funding commitments to the Partner.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;14&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTES&#160;PAYABLE
    AND OTHER OBLIGATIONS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Notes payable and other obligations at December&#160;31, 2008
    and 2007 and June&#160;30, 2009 consisted of the following
    (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">June&#160;30,<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Note payable to bank
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    29,309
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19,928
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Revolving Line of Credit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Derivative Fair valuation adjustment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    477
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Obligations under capital lease
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    378
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    260
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25,460
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28,165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less&#160;&#151; Current portion
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,351
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,661
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,329
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term notes payable and other obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    21,799
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    16,836
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Note
    Payable to Bank&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In August 2007, as part of our acquisition of VCA, we secured a
    new $25&#160;million
    <FONT style="white-space: nowrap">5-year</FONT> term
    loan. Our previous term loan of $7.7&#160;million was paid off
    in its entirety as part of this agreement. After deducting the
    previous loan amount, interest and fees, our net funding from
    Bank of America was $17.0&#160;million. Other features of this
    credit facility include a $10&#160;million three-year revolving
    line of credit. Availability of borrowings under the working
    capital revolver is based on eligible accounts receivable, as
    defined in the credit agreement. As of June&#160;30, 2009 and
    December&#160;31, 2008 under the revolving line of credit the
    full amount of $10.0&#160;million was available, of which
    $7.5&#160;million was outstanding.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Each component of our amended credit facility bears interest by
    reference, at our option, to Bank of America&#146;s prime rate
    minus a margin or to LIBOR plus a margin. The margin is
    dependent upon a leverage test, ranging from 2.00% to 2.75% in
    the case of LIBOR-based term loans and 0.0% to 0.50% in the case
    of prime-based term loans. Interest on the revolving line of
    credit is at the prime rate less up to 0.50% or at LIBOR plus
    1.50% to 2.50% depending on a leverage test. Interest on the
    prime-based loans is payable quarterly beginning
    November&#160;8, 2007 and interest on LIBOR-based loans is
    payable on the last day of each applicable interest period. As
    of December&#160;31, 2008 and June&#160;30, 2009, interest on
    the term loan was payable at a rate of approximately 2.71% and
    2.57%, respectively. Unused amounts under the working capital
    revolver bear a commitment fee of 0.25% and are payable
    quarterly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In order to mitigate the interest rate risk associated with our
    new term loan, we entered into an interest rate swap agreement
    with Bank of America in August 2007 for 50% of the loan amount,
    or $12.5&#160;million. The effect of this swap transaction was
    to effectively fix the interest rate on our term loan at 5.39%
    plus the applicable margin for the life of the loan. See
    Note&#160;15.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Bank of America credit facility is collateralized by
    substantially all of our assets. As of June&#160;30, 2009 and
    December&#160;31, 2008, we were in full compliance with all
    applicable debt covenants. We also continuously review our
    credit agreements and may renew, revise or enter into new
    agreements from time to time as deemed necessary.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Maturities&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    At December&#160;31, 2008, aggregate note payments, including
    capital lease obligation payments, in future years were as
    follows (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11,351
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,868
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,139
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Total payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Leases&#160;&#151;
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our capital lease obligation relates to medical equipment
    acquired for certain vein care clinics.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We maintain operating leases for our corporate headquarters and
    for medical office space for our Partner fertility centers and
    our vein clinics. We also have operating leases covering certain
    medical equipment. Aggregate rental expense under operating
    leases was approximately $11.5&#160;million, $10.7&#160;million,
    and $9.3&#160;million, for the years ended December&#160;31,
    2008, 2007 and 2006, respectively.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    At December&#160;31, 2008, the minimum lease payments for assets
    under capital and non-cancelable operating leases in future
    years were as follows (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Capital</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Operating</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9,416
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,520
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,701
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,964
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total minimum lease payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    339
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    60,353
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Less&#160;&#151; Amount representing interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Present value of minimum lease payments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    301
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;15&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">OTHER
    COMPREHENSIVE LOSS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    IntegraMed is exposed to the risk that its earnings and cash
    flows could be adversely impacted by market driven fluctuations
    in the level of interest rates. It is our policy to manage these
    risks by using a mix of fixed and floating rate debt and
    derivative instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During the third quarter of 2007, we entered into a revised
    financing agreement with Bank of America. This agreement
    contained an interest rate swap provision designed to hedge
    risks associated with $12.5&#160;million of our then
    $25.0&#160;million term loan. As a result of this agreement, our
    net income for the twelve months ended December&#160;31, 2008
    and the six months ended June&#160;30, 2009 includes additional
    financing costs of approximately $260,000 and $163,000,
    respectively, and we expect to record additional financing costs
    of approximately $300,000 related to the swap agreement over the
    coming twelve months given current interest rate forecasts
    (these financing costs are expected to be offset by lower
    interest expense on the portion of the term loan that was not
    hedged over this same time frame).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In addition to the costs included in our reported net income,
    recording this hedge at fair value also generated a
    non-recognized tax-effected loss of approximately $293,000 for
    the twelve months ended December&#160;31, 2008, a tax-effected
    gain of approximately $82,000 for the six months ended June 30,
    2009 and a tax-effected loss totaling $293,000 over the life of
    the hedge as of June&#160;30, 2009, which is reported as part of
    our Other Comprehensive Income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The fair value of this hedge was calculated in accordance with
    FAS&#160;157, utilizing Level&#160;2 inputs of quoted prices for
    similar liabilities in active markets, specifically
    <FONT style="white-space: nowrap">three-month</FONT>
    Eurodollar LIBOR rates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We deem this hedge to be highly effective as it shares the same
    termination date and amortization schedule as the underlying
    debt subject to the hedge and any change in fair value inversely
    mimics the appropriate portion of the hedged item. As of
    June&#160;30, 2009 and December&#160;31, 2008, we had no other
    hedge or derivative transactions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table summarizes total comprehensive income (loss)
    for the applicable periods (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net income as reported
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net non-recognized gain (loss) on derivative transactions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (293
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (73
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (139
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total comprehensive income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,196
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,598
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,775
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,116
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;16&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">INCOME
    TAXES:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The provision for income taxes consisted of the following
    (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="53%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Current taxes:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,699
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,579
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    151
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    644
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    575
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    341
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total current tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,343
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,440
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,386
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    206
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred taxes:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Federal
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (903
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (703
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (443
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    710
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    State
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (214
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (220
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (420
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (95
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total deferred tax expense (benefit)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,117
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (49
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (1,123
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    (538
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    824
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total tax provision
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The financial statement income tax provision differed from
    income taxes determined by applying the statutory federal income
    tax rate to the financial statement income before income taxes
    for the years ended December&#160;31, 2008, 2007 and 2006 and
    the six months ended June&#160;30, 2009 and 2008 primarily as a
    result of the following (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Provision at U.S. federal statutory rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,943
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,381
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,036
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,159
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    878
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    State income taxes, net of federal tax effect
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    244
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    81
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    160
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    118
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Non-deductible expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    57
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax-exempt interest income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (14
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (199
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (129
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Adjustment to deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (33
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in FIN&#160;48 liability
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Change in deferred tax asset valuation allowance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (768
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Income tax expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,226
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,391
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    263
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,382
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,030
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Significant components of the deferred tax assets (liabilities)
    as of December&#160;31, 2008 and 2007 and June&#160;30, 2009 and
    2008 were as follows (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="58%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Net operating loss carry forwards
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    109
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Temporary book to tax differences
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,513
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total deferred tax assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,622
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,785
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Depreciation and amortization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (737
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,613
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (333
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,516
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (18
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (58
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 82pt">
    Total deferred tax liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (755
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,671
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (333
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,574
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net total deferred tax asset
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,951
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5,862
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,211
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The uncertainties that existed prior to December&#160;31, 2006
    related to our ability to generate sufficient taxable income to
    fully utilize our deferred tax asset valuation allowance related
    to our net operating loss (NOL) carry-forward deductions. The
    utilization of the NOL was further complicated by a
    Section&#160;382 of the tax code limitation as a result of a
    change in control from ten years earlier. While in one year we
    could generate significant taxable earnings, our ability to
    utilize our NOL was capped by the Section&#160;382 limit leaving
    NOLs to be realized by future taxable income. Each year future
    projected taxable earnings were evaluated and as it became clear
    that a certain amount of NOLs would be utilized we released that
    part of the allowance. When it became clear that projections of
    taxable income
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    would be sufficient to utilize the remaining NOLs, we released
    the balance of the valuation allowance. At no time prior to the
    final release did we believe the realization of all the
    remaining NOL was assured.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We assess the realizability of our deferred tax assets at each
    interim and annual balance sheet date based on actual and
    forecasted operating results in order to determine the proper
    amount, if any, required for a valuation allowance. As a result
    of this assessment, we believe that it is more likely than not,
    given the weight of available evidence, that all of our deferred
    tax assets will be realized. We will continue to assess the
    realizability of our deferred tax assets at each interim and
    annual balance sheet date in order to determine the proper
    amount, if any, required for a valuation allowance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Effective January&#160;1, 2007, we adopted FIN&#160;48,
    &#147;Accounting for Uncertainty in Income Taxes&#148;
    (FIN&#160;48), which clarifies the accounting and disclosure for
    uncertainty in income taxes. The adoption of FIN&#160;48 did not
    have a material impact on our financial statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We file income tax returns in the U.S.&#160;federal jurisdiction
    and various states. For federal income tax purposes, our 2007
    and 2008 tax years remain open for examination by the tax
    authorities under the normal three year statute of limitations.
    A federal income tax examination for tax years through 2006 was
    completed during 2008 resulting in no adjustment to our income
    tax liability. For state tax purposes, our 2004 through 2008 tax
    years remain open for examination by the tax authorities under a
    four year statute of limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    A reconciliation of the unrecognized tax benefits for the years
    ended December&#160;31, 2008 and 2007 and the six months ended
    June&#160;30, 2009 and 2008 follow:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="67%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Unrecognized<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Tax Benefits
    (000&#146;s)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Beginning balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    188
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Additions for current year tax positions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Additions for prior year tax positions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Reductions for prior year tax positions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (31
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Settlements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (66
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Reductions related to expirations of statute of limitations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (10
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    Additional interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Ending balance
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    175
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    149
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    191
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of December&#160;31, 2008 and 2007, all of the unrecognized
    tax benefits could affect our tax provision and effective tax
    rate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In accordance with our accounting policy, both before and after
    adoption of FIN&#160;48, interest expense and penalties related
    to income taxes are included in the income tax expense line of
    our consolidated statement of operations. For the years ended
    December&#160;31, 2008 and 2007, we recognized $11,000 and
    $2,000, respectively, for interest expense related to uncertain
    tax positions. As of December&#160;31, 2008 and 2007, we had
    recorded liabilities for interest expense related to uncertain
    tax positions in the
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    amounts of $26,000 and $33,000, respectively. We made no accrual
    for penalties related to income tax positions. For the six
    months ended June&#160;30, 2009 and 2008, we recognized $9,000
    and $8,000, respectively, for interest expense related to
    uncertain tax positions. As of June&#160;30, 2009 and 2008, we
    had recorded liabilities for interest expense related to
    uncertain tax positions in the amounts of $39,000 and $23,000,
    respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;17&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">EARNINGS
    PER SHARE:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The reconciliation of the numerators and denominators of the
    basic and diluted earnings per share computations for the years
    ended December&#160;31, 2008, 2007 (restated) and 2006
    (restated) and the six months ended June&#160;30, 2009 and 2008
    is as follows (000&#146;s omitted, except for per share amounts):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Year Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Numerator</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Income
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,525
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Denominator</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average shares outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,618
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,310
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,090
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,767
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Effect of dilutive options and warrants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    100
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    104
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    62
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    82
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Weighted average shares and dilutive potential common shares
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,410
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,194
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,829
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Basic earnings per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Diluted earnings per common share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the year ended December&#160;31, 2008, options to purchase
    approximately 124,000&#160;shares of common stock were excluded
    from the computation of diluted earnings per share as the
    exercise price of the options was above the average market price
    of the shares of common stock. For the years ended
    December&#160;31, 2007 and 2006, there were no outstanding
    options to purchase shares of common stock which were excluded
    from the computation of the diluted earnings per share amount as
    the exercise price of all outstanding options was less than the
    average market price of the shares of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the years ended December&#160;31, 2008, 2007 and 2006, there
    were no outstanding warrants to purchase shares of common stock
    which were excluded from the computation of the diluted earnings
    per share amount as the exercise prices of any outstanding
    warrants were less than the average market price of the shares
    of common stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    For the six-month periods ended June&#160;30, 2009 and 2008,
    there were 121,054 and 123,252, respectively, outstanding
    options to purchase shares of common stock which were excluded
    from the computation of the diluted earnings per share amount as
    the exercise prices of these outstanding options were greater
    than the average market price of the shares of common stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;18&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SHAREHOLDERS&#146;
    EQUITY:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During the six months ended June&#160;30, 2009 and the twelve
    months ended December&#160;31, 2008, 2007 and 2006, we issued
    approximately 142,000, 99,000, 78,000 and 106,000&#160;shares,
    respectively, of restricted common stock as deferred
    compensation to several officers and directors with an aggregate
    value of $978,000, $899,000, $956,000 and $887,000,
    respectively. These shares were valued at their fair value on
    the date of grant, and are amortized to expense over their
    vesting period which generally is a three year period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During 2008, we issued incentive stock options to purchase
    approximately 128,000&#160;shares of common stock to several
    officers of the company with an aggregate fair value of
    approximately $741,000 on the date of issue. These options have
    a term of ten years and vest ratably over a four year period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During 2006, we received approximately 19,000&#160;shares of our
    common stock in consideration for the exercise of common stock
    options on behalf of various officers and individuals. These
    shares were received in lieu of cash for the exercise price of
    the options pursuant to terms allowed under our stock option
    plans. As of the dates the underlying options were exercised,
    these shares were valued at approximately $187,000 and were
    accounted for as Treasury Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our Board of Directors has authorized the retirement of common
    stock held as Treasury Stock on a periodic basis. As such we
    retired approximately 14,000, 5,000 and 191,000&#160;shares of
    Treasury Stock during the years ended December&#160;31, 2008,
    2007 and 2006 respectively. As of June&#160;30, 2009 and
    December&#160;31, 2008 there were approximately 46,000 and
    22,000&#160;shares, respectively, of common stock held as
    Treasury Stock.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In May 2007 and June 2006 we effected a 25% stock split in the
    form of a stock dividend. Where applicable we have restated our
    capital accounts, shares outstanding, weighted average shares
    and earnings per share calculations for all years in these
    financial statements and related footnotes to reflect these
    transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;19&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">STOCK-BASED
    EMPLOYEE COMPENSATION:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We account for our stock based employee compensation plans under
    FAS&#160;123 (revised 2004), &#147;Share-Based Payment&#148;
    (FAS&#160;123R). FAS&#160;123R addresses the accounting for
    share based payment transactions in which an enterprise receives
    employee services in exchange for equity instruments of the
    enterprise or liabilities that are based on the fair value of
    the enterprise&#146;s equity instruments or that may be settled
    by the issuance of such equity instruments. FAS&#160;123R
    requires that such transactions be accounted for using a fair
    value based method.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In considering the fair value of the underlying stock when we
    grant options or issue restricted stock, we consider several
    factors including the fair values established by market
    transactions. Stock-based compensation includes significant
    estimates and judgments of when stock options might be
    exercised, forfeiture rates and stock price volatility. The
    timing of option exercises is out of our control and depends
    upon a number of factors including our market value and the
    financial objectives of the option holders. These estimates can
    have a material impact on our stock compensation expense but
    will have no impact on our cash flows.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We currently have three stock option plans which have been
    previously approved by the stockholders. Under the 1992
    Incentive and Non-Incentive Stock Option Plan (1992 Plan), the
    2000 Long-term
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Compensation Plan (2000 Plan) and the 2007 Long-term
    Compensation Plan (2007 Plan), 500,000, 700,000 and
    500,000&#160;shares, subject to adjustment, of common stock,
    respectively, were reserved for issuance of incentive and
    non-incentive stock options and stock grants. The 1992 Plan
    expired in May 2002, and although some options are still
    outstanding, no further awards may be made under that plan.
    Under the 2000 and 2007 Plans, stock options and stock grants
    may be awarded to employees, directors and such other persons as
    the Board of Directors determines will contribute to our
    success. Vesting periods are set by the Board of Directors and
    stock options are generally exercisable during a ten-year period
    following the date of award, with stock grants generally vesting
    in three to five years. The Board of Directors has the authority
    to accelerate the maturity of any stock option or grant at its
    discretion, and all stock options and grants have anti-dilution
    provisions. Under all of our plans, options expire three months
    from the date of the holder&#146;s termination of employment or
    twelve months in the event of disability or death. As of
    December&#160;31, 2008, there were 356,784&#160;shares available
    for granting under these plans. As of June&#160;30, 2009, there
    were 464,933&#160;shares available for granting under these
    plans. We recognize compensation cost for stock option plans
    over the vesting period based on the fair value of the option as
    of the date of the grant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The following table sets forth information about the
    weighted-average fair value of options granted during the
    periods below, and the assumptions used for each grant:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="57%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="6%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Twelve Months<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fair Value of Options
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Dividend yield
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected volatility
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51.8
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk free interest rate
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.0
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expected term in years
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our dividend yield assumptions on the underlying common stock
    upon which the options were granted anticipate that all earnings
    will be retained for use in the operation and expansion of the
    Company and no dividends will be paid to shareholders. Our
    expected volatility is based on historic trading patterns of our
    common stock. The risk free interest rate is based on the yield
    of short term U.S.&#160;Treasury securities in effect at the
    time of the grant. The expected term of the options reflects our
    historic exercise and forfeiture experience with similar option
    grants.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Stock option activity under these plans is summarized below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="64%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Number of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Shares of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Common Stock<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Underlying<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Options</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Exercise Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at December&#160;31, 2005
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    391,178
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (240,721
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.12
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Canceled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,063
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (42,146
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.38
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Canceled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,029
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.94
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,844
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (3,047
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cancelled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Granted
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Exercised
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (11,175
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.84
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cancelled
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options outstanding at June&#160;30, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Options exercisable at:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    146,394
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    102,219
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    June&#160;30, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009 and December&#160;31, 2008, stock
    options outstanding and exercisable by price range were as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">OPTIONS OUTSTANDING</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">OPTIONS EXERCISABLE</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Outstanding<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Exercisable<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="color: #3F6075">Range of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">as of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Remaining<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">as of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Exercise Prices</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">06/30/09</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contractual Life</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Exercise Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">06/30/2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Exercise Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $0.00&#160;&#151; $2.55
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.6
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    58,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $2.56&#160;&#151; $4.00
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.8
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $4.01&#160;&#151; $20.00
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,845
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.0
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    11.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    215,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.1
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,944
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.87
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="28%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">OPTIONS OUTSTANDING</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">OPTIONS EXERCISABLE</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Outstanding<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Exercisable<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="color: #3F6075">Range of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">as of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Remaining<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">as of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Weighted-Average<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #3F6075; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3F6075">Exercise Prices</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">12/31/2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contractual Life</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Exercise Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">12/31/2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Exercise Price</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $0.00&#160;&#151; $2.55
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.9
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    69,906
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $2.56&#160;&#151; $5.00
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    29,265
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    $5.01&#160;&#151; $20.00
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    127,845
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9.5
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    8.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    227,016
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6.3
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    5.78
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    99,171
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The total intrinsic value of options exercised during the years
    ended December&#160;31, 2008, 2007 and 2006 was approximately
    $57,000, $100,000 and $499,000 respectively. The aggregate
    intrinsic value of options outstanding and exercisable as of
    December&#160;31, 2008, 2007 and 2006 was approximately
    $333,000, $238,000, and $344,000, respectively. The aggregate
    intrinsic value of options outstanding and exercisable as of
    June&#160;30, 2009 was approximately $408,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    During the years ended December&#160;31, 2008, 2007 and 2006, we
    issued restricted stock grants to selected officers and members
    of the Board of Directors. These stock grants vest over a three,
    five or ten year period for officers, with grants to directors
    vesting immediately. These grants are valued at the closing
    market price on the date granted with the associated
    compensation expense recognized ratably over the applicable
    period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Compensation expense recognized in connection with stock options
    for the years ended December&#160;31, 2008, 2007 and 2006 was
    $105,000, $0 and $0, respectively, and $95,000 and $6,000,
    respectively, for the six-month periods ended June&#160;30, 2009
    and 2008. Compensation expense recognized in connection with
    stock grants for the years ended December&#160;31, 2008, 2007
    and 2006 was $753,000, $558,000 and $405,000 respectively. As of
    December&#160;31, 2008, remaining unamortized stock compensation
    expense for both stock options and stock grants was
    approximately $2.0&#160;million and will be recognized as
    follows (000&#146;s):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="79%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Stock<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Options</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Grants</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    396
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    145
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    179
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2012
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    2013
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Unamortized stock compensation costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    637
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,321
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009, we had approximately $542,000 of
    unrecognized compensation costs related to stock options which
    will be recognized over the remaining vesting period, which
    approximates the service period. As of June&#160;30, 2009, we
    had approximately recognized $1,653,000 of unrecognized
    compensation costs related to stock grants which will be
    recognized over the vesting periods, which approximates the
    service period.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    F-38
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;20&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">QUARTERLY
    FINANCIAL DATA (UNAUDITED):</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Summarized quarterly financial data for 2009, 2008 (restated for
    first three quarters), 2007 (restated) and 2006 (restated)
    appear below (in thousands, except per share data):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Revenues, Net</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Contribution</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    52,355
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    45,611
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32,176
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30,402
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    4,908
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,691
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,918
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,998
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    56,115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    49,725
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    33,786
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,638
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,538
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,532
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52,018
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40,099
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,635
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,780
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,225
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45,105
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,143
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,540
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,067
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    108,470
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    197,403
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    151,166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    125,818
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    10,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    17,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    14,478
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    12,049
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="31%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=07 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=07 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=07 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=07 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=08 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=08 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=08 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=08 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=09 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=09 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=09 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=09 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Diluted Net<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Net Income</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="14" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">Income Per
    Share<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    920
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    621
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    469
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    445
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,114
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    904
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    659
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    413
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.08
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    979
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    811
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    431
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.06
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Fourth quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    985
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    732
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,495
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.11
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total year
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,034
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,489
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    2,784
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD style="border-top: 3px double #3F6075">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3F6075"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top">(1)</SUP></TD>

    <TD align="left">
    The sum of the quarterly earnings per share may not equal the
    full year earnings per share as the computations of the weighted
    average shares outstanding for each quarter and the full year
    are made independently.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;21&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">COMMITMENTS
    AND CONTINGENCIES:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Capital
    Leases&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Refer to Note&#160;14 for a summary of capital lease commitments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reliance
    on Third Party Vendors&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Our fertility and vein clinics are dependent on a limited number
    of primary third-party vendors that produce supplies and
    medications vital to treating infertility and vein disease.
    Should any of these vendors experience a supply shortage, it may
    have an adverse impact on the operations of our clinical
    locations and network members. To date, no shortage or
    disruption has been experienced.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Employment
    Agreements</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have an employment agreement with our President and Chief
    Executive Officer. Pursuant to that agreement, we may terminate
    the President and Chief Executive Officer&#146;s employment
    without cause on thirty days&#146; notice, in which event
    severance pay equal to twelve months&#146; base salary plus an
    annual bonus, calculated without regard to the condition
    precedents established under the bonus plan, will be payable in
    a lump sum.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The employment agreement further provides that in the event that
    within one year after a &#147;Change of Control&#148; (as
    defined therein) of the Company occurs, and the President and
    Chief Executive Officer&#146;s
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-39
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    employment is terminated, the President and Chief Executive
    Officer will be paid a lump sum amount equal to his base salary
    for a
    <FONT style="white-space: nowrap">24-month</FONT>
    period following termination, plus twice the full amount of his
    annual bonus based on his then current salary, without regard to
    the condition precedents established for the bonus payment.
    Based on this change of control provision, if there had been a
    change of control of the Company in 2008, or during the six
    months ended June&#160;30, 2009, and the President and Chief
    Executive Officer&#146;s employment was terminated effective
    December&#160;31, 2008 or June&#160;30, 2009, either for
    &#147;Good Reason&#148; or without cause, then the President and
    Chief Executive Officer would be entitled to termination pay
    equal to $660,000 or $750,000, respectively, representing his
    then annualized base salary for
    <FONT style="white-space: nowrap">24-months,</FONT>
    plus $429,000 or $487,500, respectively, representing twice the
    amount to which he was eligible under our Executive Incentive
    Compensation Plan for 2008 or 2009, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    We have also entered into indemnification and change in control
    severance agreements with certain of our management employees,
    which include, among other terms, noncompetition provisions and
    salary and benefits continuation. Our minimum aggregate
    commitment under these agreements at December&#160;31, 2008 and
    June&#160;30, 2009 was approximately $3.2&#160;million and
    $3.3&#160;million, respectively.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Commitments
    to Partners&#160;&#151; </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In accordance with the majority of our Partner agreements, we
    are obligated to: (i)&#160;on an ongoing basis, advance funds to
    the fertility centers to fund operations and provide services;
    and (ii)&#160;on a monthly basis, transfer to the fertility
    centers funds equal to the net accounts receivable generated
    that month to finance those receivables less any amounts owed to
    us for services fees
    <FONT style="white-space: nowrap">and/or</FONT>
    advances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Litigation
    and Compliance with Health Care Regulations&#160;&#151;
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    From time to time, we are party to legal proceedings in the
    ordinary course of business and are required to maintain
    compliance with extensive health care regulations. None of these
    proceedings or potential issues associated with health care
    regulation compliance are expected to have a material adverse
    effect on our financial position, results of operations or cash
    flow.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Insurance&#160;&#151;
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009, December&#160;31, 2008 and
    December&#160;31, 2007, we and our affiliated fertility centers
    and vein clinics were insured with respect to medical
    malpractice risks on a claims made basis. We believe, either
    through the captive insurance company, or on the open market, we
    will be able to obtain renewal coverage for both our fertility
    and vein care physicians in the future. We are not aware of any
    claims against us or our affiliated medical practices, which
    would expose us, or our affiliated medical practices to
    liabilities in excess of insured amounts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    As of June&#160;30, 2009, December&#160;31, 2008 and 2007, we
    also carried policies to insure against liability, theft,
    property loss, business interruption and a variety of other
    business risks. We also maintain an appropriate insurance
    reserve to cover estimated deductible amounts should a claim be
    filed under our policies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;22&#160;&#151;
    RELATED PARTY TRANSACTIONS:</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In accordance with our Partner agreement with Shady Grove,
    Michael J. Levy,&#160;M.D., an employed shareholder physician of
    the P.C., became a member of our Board of Directors in March
    1998. In 2004, Dr.&#160;Levy became an advisory director and was
    no longer a voting member of the Board of Directors. The medical
    practice at Shady Grove paid us service fees of $1,735,000,
    $3,145,000, $2,916,000 and
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-40
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEGRAMED
    AMERICA, INC.<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS&#160;&#151;&#160;(Continued)</FONT></B>
</DIV>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    $2,572,000 in the six months ended June&#160;30, 2009 and the
    years ended December&#160;31, 2008, 2007 and 2006, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    In accordance with our Partner agreement with FCI (the Illinois
    practice), Aaron Lifchez,&#160;M.D., an employed shareholder
    physician of FCI, became a member of our Board of Directors in
    August 1997. In 2004, Dr.&#160;Lifchez became an advisory
    director and was no longer a voting member of the Board of
    Directors. The medical practice FCI paid us service fees of
    $1,331,000, $2,787,000, $2,649,000 and $2,413,000 in the six
    months ended June&#160;30, 2009 and the years ended
    December&#160;31, 2008, 2007 and 2006, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    The Company has a Consulting Agreement with its Chairman of the
    Board. The agreement provided for compensation of $125,000 for
    the twelve months ended December&#160;31, 2008. This consulting
    agreement expired on December&#160;31, 2008 and was replaced
    with a new one-year agreement providing for $36,000 in
    compensation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

<TR>
    <TD width="12%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;23&#160;&#151;
    </FONT></B>
</TD>
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">SUPPLEMENTAL
    DISCLOSURES OF CASH FLOW INFORMATION AND NON-CASH
    TRANSACTIONS:</FONT></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    Equity transactions related to common stock, principally arising
    from stock grants, option exercises and related tax benefits
    disclosed on our Consolidated Statements of Cash Flows are
    comprised of the following (000&#146;s omitted):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="61%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">For the<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Twelve Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3F6075">Six Months Ended<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">December&#160;31,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">June&#160;30,</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2006</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3F6075">
    <B><FONT style="color: #3F6075">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common stock options and grants
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Tax benefit related to stock transactions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    332
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    67
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Treasury Stock, net and other
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (211
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (67
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (231
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#151;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (165
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    F-41
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">4,000,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">INTEGRAMED AMERICA,
    INC.</FONT></B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <IMG src="y79264y7926403.gif" alt="INTEGRAMED LOGO"><B><FONT style="font-size: 16pt">
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #3F6075"></CENTER><!-- callerid=999 iwidth=456 length=68 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">PROSPECTUS</FONT></B>
</DIV>

<CENTER style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #3F6075"></CENTER><!-- callerid=999 iwidth=456 length=68 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Piper&#160;Jaffray</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Cowen and Company</FONT></B>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <B>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">INFORMATION
    NOT REQUIRED IN PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">Item&#160;13.&#160;Other
    Expenses of Issuance and Distribution.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">The following table sets forth all
    expenses, other than underwriting discounts and commissions,
    payable by us in connection with the sale of the common stock
    being registered. All of such expenses are estimates, except the
    fees payable to the Securities and Exchange Commission and the
    Financial Industry Regulatory Authority.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Securities and Exchange Commission registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    2,367
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Financial Industry Regulatory Authority fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    4,741
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing and mailing expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent and registrar fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="color: #3D332B">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Miscellaneous fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD style="border-top: 1px solid #3D332B">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
    $
</TD>
<TD nowrap align="right" valign="bottom" style="color: #3D332B">
    *
</TD>
<TD nowrap align="left" valign="bottom" style="color: #3D332B">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD style="border-top: 3px double #3D332B">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 0pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=999 iwidth=456 length=60 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <FONT style="color: #3D332B">*&#160;
    </FONT></TD>
    <TD align="left">
    <FONT style="color: #3D332B">To be provided by amendment.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">Item&#160;14.&#160;Indemnification
    of Directors and Officers.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Article&#160;VII of our amended and
    restated certificate of incorporation provides that we shall, to
    the fullest extent permitted by Section&#160;145 of the Delaware
    General Corporation Law (the &#147;DGCL&#148;), indemnify any
    and all persons whom we shall have the power to indemnify under
    said Section from and against any and all expenses, liabilities
    or other matters referred to in or covered by said Section.
    Article&#160;VII of our amended and restated certificate of
    incorporation also provides that no director shall be personally
    liable to us or our stockholders for any monetary damages for
    breach of fiduciary duty as a director; provided, however, that
    nothing contained in such Article shall eliminate the liability
    of a director (a)&#160;for any breach of such director&#146;s
    duty of loyalty to us or our stockholders, (b)&#160;for acts or
    omissions that are not in good faith or involve intentional
    misconduct or a knowing violation of the law, (c)&#160;under
    Section&#160;174 of the DGCL or (d)&#160;for any transaction
    from which such director derived an improper personal benefit.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Article&#160;VII of our by-laws, as
    amended, and our directors&#146; and officers&#146; liability
    insurance policy provide for indemnification of our directors
    and officers against certain liabilities.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Section&#160;145 of the DGCL
    empowers a corporation to indemnify any person who was or is a
    party or is threatened to be made a party to any threatened,
    pending or completed action, suit or proceeding, whether civil,
    criminal, administrative or investigative (other than an action
    by or in the right of the corporation) by reason of the fact
    that he or she is or was a director, officer, employee or agent
    of the corporation or is or was serving at the request of the
    corporation as a director, officer, employee or agent of another
    corporation or other enterprise, against expenses (including
    attorneys&#146; fees), judgments, fines and amounts paid in
    settlement actually and reasonably incurred by him or her in
    connection with such action, suit or proceeding if he or she
    acted in good faith and in a manner he or she reasonably
    believed to be in, or not opposed to, the best interests of the
    corporation, and, with respect to any criminal action or
    proceeding, had no reasonable cause to believe his or her
    conduct was unlawful.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Section&#160;145 of the DGCL also
    empowers a corporation to indemnify any person who was or is a
    party or is threatened to be made a party to any threatened,
    pending or completed action or suit by or in the right of the
    corporation to procure a judgment in its favor by reason of the
    fact that such person acted
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-1
    </FONT>
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">in any of the capacities set forth
    above, against expenses (including attorneys&#146; fees)
    actually and reasonably incurred by him or her in connection
    with the defense or settlement of such action or suit if he or
    she acted under similar standards, except that no
    indemnification may be made in respect of any claim, issue or
    matter as to which such person shall have been adjudged to be
    liable to the corporation unless, and only to the extent that,
    the Delaware Court of Chancery or the court in which such action
    was brought shall determine that despite the adjudication of
    liability such person is fairly and reasonably entitled to
    indemnity, for such expenses which the Delaware Court of
    Chancery or such other court shall deem proper.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Section&#160;145 of the DGCL
    further provides that to the extent a director, officer,
    employee or agent of a corporation has been successful in the
    defense of any action, suit or proceeding referred to above or
    in the defense of any claim, issue or matter therein, he or she
    shall be indemnified against expenses (including attorneys&#146;
    fees) actually and reasonably incurred by him or her in
    connection therewith; that indemnification provided for by
    Section&#160;145 of the DGCL shall not be deemed exclusive of
    any other rights to which the indemnified party may be entitled;
    and that the corporation is empowered to purchase and maintain
    insurance on behalf of any person who is or was a director,
    officer, employee or agent of the corporation against any
    liability asserted against him or her in any such capacity or
    arising out of his or her status as such, whether or not the
    corporation would have the power to indemnify him or her against
    such liability under Section&#160;145 of the DGCL.
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">Item&#160;15.&#160;Recent
    Sales of Unregistered Securities.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">On August&#160;8, 2007, we issued
    an aggregate of 336,700 unregistered restricted shares of common
    stock, in reliance upon the exemption from registration provided
    by Section&#160;4(2) of the Securities Act, to Kush K. Agarwal
    and Brian D. McDonagh in connection with our acquisition of VCA.
    These shares were exchanged for a portion of
    Messrs.&#160;Agarwal&#146;s and McDonagh&#146;s interests in
    VCA. These shares had a market value of $4&#160;million on the
    date of issuance. Other than the foregoing issuance, we have not
    sold any unregistered securities during the previous three years.
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">Item&#160;16.&#160;Exhibits
    and Financial Statement Schedules.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">(a)&#160;See the Exhibit&#160;Index
    for a complete list of all exhibits filed as part of this
    registration statement, which Exhibit&#160;Index is incorporated
    herein by reference.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">(b)&#160;Below is
    Schedule&#160;II&#160;&#151; Valuation and Qualifying Accounts.
    All other consolidated financial statement schedules have been
    omitted because they are either inapplicable or the required
    information has been given in the consolidated financial
    statements or the notes thereto included elsewhere in this
    registration statement.
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-2
    </FONT>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM<BR>
    ON FINANCIAL STATEMENT SCHEDULE</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">To the Board of Directors and
    Stockholders
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">of IntegraMed America, Inc.:
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Our audits of the consolidated
    financial statements referred to in our report dated
    March&#160;30, 2009 appearing in this registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    of IntegraMed America, Inc. also included an audit of the
    financial statement schedule listed in Schedule&#160;II of this
    registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-1.</FONT>
    In our opinion, this financial statement schedule presents
    fairly, in all material respects, the information set forth
    therein when read in conjunction with the related consolidated
    financial statements.
    </FONT>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">/s/ Amper, Politziner&#160;&#038;
    Mattia, LLP
    </FONT>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Edison, New Jersey
    </FONT>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">March&#160;30, 2009
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-3
    </FONT>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">SCHEDULE&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">VALUATION
    AND QUALIFYING ACCOUNTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="62%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Balance at<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Beginning<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">End of<BR>
    </FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3D332B">
    <B><FONT style="color: #3D332B">of Period</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3D332B">
    <B><FONT style="color: #3D332B">Additions</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3D332B">
    <B><FONT style="color: #3D332B">Deductions</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #3D332B">
    <B><FONT style="color: #3D332B">Period</FONT></B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="15" align="center" valign="bottom">
    <B><FONT style="color: #3D332B">(in thousands)</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="color: #3D332B">Six Months Ended June&#160;30, 2009
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Allowance for doubtful accounts
    receivable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">2,648
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">1,068
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">1,043
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">2,673
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program refunds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">386
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">71
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">163
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">294
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program medical costs
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">321
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">27
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">1
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">347
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="color: #3D332B">Year Ended December&#160;31, 2008
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Allowance for doubtful accounts
    receivable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">3,386
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">3,613
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">4,351
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">2,648
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program refunds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">403
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">492
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">509
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">386
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program medical costs
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">262
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">322
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">263
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">321
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="color: #3D332B">Year Ended December&#160;31, 2007
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Allowance for doubtful accounts
    receivable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">13
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">3,524
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
<FONT style="color: #3D332B"><SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">151
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">3,386
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program refunds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">281
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">461
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">339
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">403
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program medical costs
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">204
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">291
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">233
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">262
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="color: #3D332B">Year Ended December&#160;31, 2006
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Allowance for doubtful accounts
    receivable
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">116
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">72
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
<FONT style="color: #3D332B"><SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">31
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">$
    </FONT>
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">13
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program refunds
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">293
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">143
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">155
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">281
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Reserve for Attain IVF Refund
    Program medical costs
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">141
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">427
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">364
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">204
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 46pt">
    <FONT style="color: #3D332B">Deferred tax valuation allowance
    </FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">768
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">&#151;
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">768
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <FONT style="color: #3D332B">&#151;
    </FONT>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">(1)</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">Includes $3,224 acquired in
    connection with our acquisition of VCA.
    </FONT>
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">(2)</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">Represents the reversal of unused
    reserves for uncollectible accounts receivable associated with
    our discontinuation of pharmaceutical product sales in 2005, and
    the transition to a marketing fee arrangement with our
    third-party pharmaceutical distributor.
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">Item&#160;17.&#160;Undertakings.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Insofar as indemnification for
    liabilities arising under the Securities Act of 1933&#160;may be
    permitted to directors, officers and controlling persons of the
    registrant pursuant to the foregoing provisions, or otherwise,
    the registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-4
    </FONT>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">The undersigned registrant hereby
    undertakes that:
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">1.&#160;For purposes of determining
    any liability under the Securities Act of 1933, the information
    omitted from the form of prospectus filed as part of this
    registration statement in reliance upon Rule&#160;430A and
    contained in a form of prospectus filed by the registrant
    pursuant to Rule&#160;424(b) (1)&#160;or (4)&#160;or 497(h)
    under the Securities Act shall be deemed to be part of this
    registration statement as of the time it was declared effective.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 7%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">2.&#160;For the purpose of
    determining any liability under the Securities Act of 1933, each
    post-effective amendment that contains a form of prospectus
    shall be deemed to be a new registration statement relating to
    the securities offered therein, and the offering of such
    securities at that time shall be deemed to be the initial bona
    fide offering thereof.
    </FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-5
    </FONT>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Pursuant to the requirements of the
    Securities Act of 1933, the registrant has duly caused this
    registration statement to be signed on its behalf by the
    undersigned, thereunto duly authorized, in the City of Purchase,
    State of New York, on October&#160;2, 2009.
    </FONT>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">INTEGRAMED AMERICA, INC.
    </FONT>
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="3%"></TD>
    <TD width="48%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT style="color: #3D332B">By&#160;
    </FONT>
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;"><FONT style="color: #3D332B">/s/&#160;&#160;Jay
    Higham</FONT></DIV><FONT style="color: #3D332B">
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 52%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=999 iwidth=456 length=0 -->

<DIV align="left" style="margin-left: 52%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Name:&#160;&#160;&#160;&#160;&#160;Jay
    Higham
    </FONT>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="52%"></TD>
    <TD width="8%"></TD>
    <TD width="40%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    <FONT style="color: #3D332B">Title:&#160;
    </FONT>
</TD>
    <TD align="left">
    <FONT style="color: #3D332B">Chief Executive Officer
    </FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <FONT style="color: #3D332B">Pursuant to the requirements of the
    Securities Act of 1933, this registration statement has been
    signed by the following persons in the capacities and on the
    dates indicated.
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="37%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Signature</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Title</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Date</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 12pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Jay
    Higham</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Jay
    Higham
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="color: #3D332B">President, Chief Executive Officer
    and<BR>
    Director (principal executive officer)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">John
    W. Hlywak,
    Jr.</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->John
    W. Hlywak, Jr.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="color: #3D332B">Executive Vice President and<BR>
    Chief Financial Officer<BR>
    (principal financial officer and<BR>
    principal accounting officer)
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Gerardo
    Canet</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Gerardo
    Canet
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="color: #3D332B">Chairman of the Board of Directors
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Kush
    K. Agarwal</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Kush
    K. Agarwal
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Wayne
    R. Moon</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Wayne
    R. Moon
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Lawrence
    J. Stuesser</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Lawrence
    J. Stuesser
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Elizabeth
    E. Tallett</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Elizabeth
    E. Tallett
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" align="center" valign="top">
    <DIV style="display:inline; text-align:center; width:90%"><FONT style="color: #3D332B">/s/&#160;&#160;<FONT style="font-variant: SMALL-CAPS">Yvonne
    S. Thornton</FONT></FONT></DIV><FONT style="color: #3D332B"><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=201 iwidth=184 length=0 -->Yvonne
    S. Thornton,&#160;M.D., M.P.H.
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <FONT style="color: #3D332B">Director
    </FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <FONT style="color: #3D332B">October&#160;2, 2009
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <BR>
    <FONT style="color: #3D332B">II-6
    </FONT>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #3F6075; background: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times; color: #3D332B">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Number</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Description</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    1
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Underwriting Agreement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    3
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Restated Certificate of Incorporation of IntegraMed filed as an
    Exhibit to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2004 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    3
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    By-laws of IntegraMed filed as an Exhibit to IntegraMed&#146;s
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2009 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    4
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Specimen certificate for shares of common stock
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    5
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Opinion of Dorsey&#160;&#038; Whitney LLP regarding the validity
    of the securities being registered
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Stock Purchase Agreement, dated August&#160;8, 2007 by and among
    IntegraMed, IDVC Acquisition Co., the Sellers named therein, the
    Guarantors named therein and VCA filed as an Exhibit to
    IntegraMed&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated August&#160;8, 2007 and incorporated herein by reference
    thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    1992 Stock Option Plan, including form of option, filed as an
    Exhibit to IntegraMed&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    (Registration
    <FONT style="white-space: nowrap">No.&#160;333-47046)</FONT>
    filed with the Securities and Exchange Commission on
    April&#160;9, 1992 and incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amended and Restated 1992 Incentive and Non-Incentive Stock
    Option Plan, dated April&#160;16, 1998 filed as an Exhibit to
    IntegraMed&#146;s Definitive Proxy Statement on
    Schedule&#160;14A filed with the Securities and Exchange
    Commission on May&#160;5, 1998 and incorporated herein by
    reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .4
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Agreement of Lease, dated September&#160;27, 1994, between
    Purchase Corporate Park Associates and IntegraMed filed as an
    Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 1994 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .5&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment, dated January 1995, to Agreement of Lease between
    Purchase Corporate Park Associates and Integramed
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .6&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Second Amendment, dated August&#160;23, 1999, to Agreement of
    Lease between Purchase Corporate Park Associates, L.P. and
    IntegraMed
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .7&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Third Amendment, dated October&#160;15, 2002, to Agreement of
    Lease between Purchase Corporate Park Associates, L.P. and
    IntegraMed
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .8
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Business Service Agreement, dated August&#160;30, 2007, by and
    between IntegraMed and the Center for Reproductive Medicine,
    P.A. filed as an Exhibit to IntegraMed&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated September&#160;6, 2007 and incorporated herein by
    reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .9
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Consulting Agreement, dated December&#160;24, 2008, between
    Gerardo Canet and IntegraMed filed as an Exhibit to
    IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .10
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Employment Agreement, dated October&#160;10, 2005, between
    IntegraMed and Jay Higham filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2005 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .11
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Management Agreement, dated January&#160;7, 1997, by and between
    IntegraMed and Bay Area Fertility and Gynecology Medical Group,
    Inc. filed as an Exhibit to IntegraMed&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated January&#160;20, 1997 and incorporated herein by reference
    thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .12
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;1, dated April&#160;5, 1998, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 1998 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .13
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;2, dated July&#160;21, 1998, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 1999 and
    incorporated herein by reference thereto
</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Number</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Description</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .14
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;3, dated April&#160;1, 2000, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Group, Inc. filed as an Exhibit to IntegraMed&#146;s
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2000 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .15
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;4, dated January&#160;1, 2001, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .16
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;5, dated September&#160;19, 2001, to
    Management Agreement between IntegraMed and Bay Area Fertility
    and Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .17
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;6, dated December 2003, to Service Agreement
    between IntegraMed and Reproductive Science Center of the
    San&#160;Francisco Bay Area, a California medical corporation
    filed as an Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2003 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .18
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Management Agreement, dated February&#160;28, 1997, between
    IntegraMed and Fertility Centers of Illinois, S.C. filed as an
    Exhibit to IntegraMed&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    (Registration
    <FONT style="white-space: nowrap">No.&#160;333-26551)</FONT>
    filed with the Securities and Exchange Commission on May&#160;6,
    1997 and incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .19
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment, dated May&#160;2, 1997, to Management Agreement
    between IntegraMed and Fertility Centers of Illinois, S.C. filed
    as an Exhibit to Amendment No.&#160;1 to IntegraMed&#146;s
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    (Registration
    <FONT style="white-space: nowrap">No.&#160;333-26551)</FONT>
    filed with the Securities and Exchange Commission on
    June&#160;20, 1997 and incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .20
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;2, dated June&#160;18, 1997, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to Amendment No.&#160;1 to
    IntegraMed&#146;s Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-1</FONT>
    (Registration
    <FONT style="white-space: nowrap">No.&#160;333-26551)</FONT>
    filed with the Securities and Exchange Commission on
    June&#160;20, 1997 and incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .21
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;3, dated August&#160;19, 1997, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed&#146;s Quarterly Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 1997 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .22
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;4, dated January&#160;9, 1998, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to a Schedule&#160;13D dated
    February&#160;11, 1998 filed with the Securities and Exchange
    Commission by Gerardo Canet and incorporated herein by reference
    thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .23
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;5, dated March&#160;5, 1998, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 1997 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .24
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;6, dated July&#160;1, 1999, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed&#146;s Quarterly Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 1999 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .25
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;7, dated April&#160;1, 2000, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed&#146;s Quarterly Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2000 and
    incorporated herein by reference thereto
</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Number</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Description</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .26
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;8, dated September&#160;24, 2001, to
    Management Agreement between IntegraMed and Fertility Centers of
    Illinois, S.C. filed as an Exhibit to IntegraMed&#146;s
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .27
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;9, dated December 2003, to Service Agreement
    between IntegraMed and Fertility Centers of Illinois, S.C. filed
    as an Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2003 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .28
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;10, dated January&#160;1, 2005, to Service
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .29
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Service Agreement, dated May&#160;25, 2001, between IntegraMed
    and MPD Medical Associates (MA),&#160;P.C. filed as an Exhibit
    to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .30
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;1, dated March&#160;5, 2002, to Service
    Agreement between IntegraMed and MPD Medical Associates
    (MA),&#160;P.C. filed as an Exhibit to IntegraMed&#146;s Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2001 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .31
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Management Agreement, dated March&#160;11, 1998, between Shady
    Grove Fertility Centers,&#160;P.C. and Levy, Sagoskin and
    Stillman,&#160;M.D.,&#160;P.C. filed as an Exhibit to
    IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 1997 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .32
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;1, dated April&#160;16, 1998, to Management
    Agreement between Shady Grove Fertility Centers, Inc. and Levy,
    Sagoskin and Stillman,&#160;M.D., P.C filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 1998 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .33
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;2, dated May&#160;6, 1998, to Management
    Agreement between Shady Grove Fertility Centers, Inc. and Levy,
    Sagoskin and Stillman,&#160;M.D.,&#160;P.C. filed as an Exhibit
    to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 1998 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .34
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;3, dated September&#160;1, 1999, to the
    Management Agreement between IntegraMed and Shady Grove
    Reproductive Science Center,&#160;P.C. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 1999 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .35
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;4, dated April&#160;1, 2000, to Management
    Agreement between IntegraMed and Shady Grove Reproductive
    Science Center,&#160;P.C. filed as am Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2000 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .36
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;5 to Management Agreement between IntegraMed
    and Shady Grove Reproductive Science Center,&#160;P.C. filed as
    an Exhibit to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .37
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;6, dated September&#160;18, 2001, to
    Management Agreement between IntegraMed and Shady Grove
    Reproductive Science Center,&#160;P.C. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2001 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .38
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;7, dated November 2003, to Service Agreement
    between IntegraMed and Shady Grove Reproductive Science
    Center,&#160;P.C. filed as an Exhibit to IntegraMed&#146;s
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2003 and incorporated
    herein by reference thereto
</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Number</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Description</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .39
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;8, dated February&#160;16, 2006, to Service
    Agreement between IntegraMed and Shady Grove Reproductive
    Science Center,&#160;P.C. filed as an Exhibit to
    IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2005 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .40
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;9, dated March&#160;22, 2007, to Service
    Agreement between IntegraMed and Shady Grove Fertility
    Reproductive Science Center,&#160;P.C. filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 2007 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .41
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Second Amended and Restated Loan Agreement, dated August&#160;8,
    2007, by and among IntegraMed and Bank of America, N.A. filed as
    an Exhibit to IntegraMed&#146;s Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    dated August&#160;8, 2007 and incorporated herein by reference
    thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .42
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Retention Agreement filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 1999 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .43
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Amendment to Retention Agreement relating to
    Section&#160;409A of the U.S. Internal Revenue Code of 1986, as
    amended, filed as an Exhibit to IntegraMed&#146;s Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .44
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Indemnification Agreement filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2000 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .45
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Amendment to Indemnification Agreement relating to
    Section&#160;409A of the U.S. Internal Revenue Code of 1986, as
    amended, filed as an Exhibit to IntegraMed&#146;s Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .46
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Service Agreement, dated April&#160;26, 2002, between IntegraMed
    and Northwest Center for Infertility and Reproductive
    Endocrinology filed as an Exhibit to IntegraMed&#146;s Quarterly
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 2002 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .47
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;1, dated June&#160;14, 2002, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2002 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .48
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;2, dated November&#160;1, 2002, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2002 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .49
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Amendment No.&#160;3, dated January&#160;1, 2003, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2003 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .50
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    2000 Long-Term Compensation Plan filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2002 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .51
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Incentive Stock Option Agreement filed as an Exhibit to
    IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2005 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .52
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Non-Qualified Stock Option Agreement filed as an Exhibit
    to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended June&#160;30, 2005 and
    incorporated herein by reference thereto
</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="3%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="89%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B><FONT style="color: #3D332B">Exhibit<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Number</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #3D332B; width: 1%; padding-bottom: 1px">
    <B><FONT style="color: #3D332B">Description</FONT></B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .53
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Form of Restricted Stock Unit Award Agreement filed as an
    Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .54
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Service Agreement, dated September&#160;1, 2003, between
    IntegraMed and Reproductive Endocrine Associates of
    Charlotte,&#160;P.C. filed as an Exhibit to IntegraMed&#146;s
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended September&#160;30, 2003 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .55
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Service Agreement, dated January&#160;1, 2004, between
    IntegraMed and Seattle Reproductive Medicine, Inc., P.S. filed
    as an Exhibit to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 2004 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .56
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Submanagement Agreement, dated January&#160;1, 2005, between
    Reproductive Partners, Inc. and IntegraMed filed as an Exhibit
    to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 2005 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .57
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    2007 Long-Term Compensation Plan filed as an Exhibit to
    IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .58
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Business Service Agreement, dated April&#160;24, 2008, between
    IntegraMed and Southeastern Fertility Centers, P.A. filed as an
    Exhibit to IntegraMed&#146;s Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarterly period ended March&#160;31, 2008 and
    incorporated herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    10
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .59
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Business Service Agreement, dated July&#160;9, 2008, between
    IntegraMed and Arizona Reproductive Medicine Specialists Ltd.
    filed as an Exhibit to IntegraMed&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and incorporated
    herein by reference thereto
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    21
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    List of subsidiaries of IntegraMed America, Inc.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    23
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Consent of Amper, Politziner&#160;&#038; Mattia, LLP,
    Independent Registered Public Accounting Firm
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    23
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .2*
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Consent of Dorsey&#160;&#038; Whitney LLP (included in
    Exhibit&#160;5.1)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top" style="color: #3D332B">
&nbsp;
</TD>
<TD nowrap align="right" valign="top" style="color: #3D332B">
    24
</TD>
<TD nowrap align="left" valign="top" style="color: #3D332B">
    .1&#134;
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top" style="color: #3D332B">
    Powers of Attorney
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 39%;  align: left; border-bottom: 1pt solid #3D332B"></DIV><!-- callerid=999 iwidth=456 length=180 -->



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>

<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">*</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">To be filed by amendment.
    </FONT>
</TD>
</TR>





<TR valign="top" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">
    <TD>    <SUP style="font-size: 85%; vertical-align: top"><FONT style="color: #3D332B">&#134;</FONT></SUP>

</TD>
    <TD align="left">    <FONT style="color: #3D332B">Filed herewith.
    </FONT>
</TD>
</TR>

</TABLE>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #3F6075; background: #FFFFFF">

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sv1
Table of Contents
As
    filed with the Securities and Exchange Commission on
    October 2, 2009
Registration
No. 333-
UNITED STATES
    SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
    20549
FORM
    S-1
REGISTRATION
    STATEMENT UNDER THE SECURITIES ACT OF 1933
IntegraMed
    America, Inc.
(Exact name of
    registrant as specified in its charter)
Delaware
8011
06-1150326
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification No.)
Two
    Manhattanville Road
Purchase, New
    York 10577
(914) 253-8000
(Address,
    including zip code, and telephone number, including area code,
    of registrant's principal executive offices)
Jay
    Higham
Chief Executive
    Officer
Two
    Manhattanville Road
Purchase, New
    York 10577
(914) 253-8000
(Name, address,
    including zip code, and telephone number, including area code,
    of agent for service)
With copies
    to:
Steven Khadavi, Esq.
Dorsey & Whitney LLP
250 Park Avenue
New York, New York 10177
Telephone: (212) 415-9200
Facsimile: (212) 953-7201
David B. Miller, Esq.
Michael K. Coddington, Esq.
Faegre & Benson LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402
Telephone: (612) 766-7000
Facsimile: (612) 766-1600
Approximate date of commencement
    of proposed sale to the
    public
: As soon as
    practicable after this registration statement becomes effective.
If any of the securities being
    registered on this Form are to be offered on a delayed or
    continuous basis pursuant to Rule 415 under the Securities
    Act of 1933, check the following
    box.
o
If this Form is filed to register
    additional securities for an offering pursuant to
    Rule 462(b) under the Securities Act, check the following
    box and list the Securities Act registration statement number of
    the earlier effective registration statement for the same
    offering.
o
If this Form is a post-effective
    amendment filed pursuant to Rule 462(c) under the
    Securities Act, check the following box and list the Securities
    Act registration statement number of the earlier effective
    registration statement for the same
    offering.
o
If this Form is a post-effective
    amendment filed pursuant to Rule 462(d) under the
    Securities Act, check the following box and list the Securities
    Act registration statement number of the earlier effective
    registration statement for the same
    offering.
o
Indicate by check mark whether the
    registrant is a large accelerated filer, an accelerated filer, a
    non-accelerated filer, or a smaller reporting company. See the
    definitions of "large accelerated filer,"
    "accelerated filer" and "smaller reporting
    company" in
Rule 12b-2
of the Exchange Act. (Check one):
Large
    accelerated
    filer
o
Accelerated
    filer
þ
Non-accelerated
    filer
o
Smaller reporting
    company
o
(Do not check if a
    smaller reporting
    company)
CALCULATION
    OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Title of Each Class of
Amount to be
Offering
Aggregate Offering
Amount of
Securities to be
    Registered
Registered
(1)
Price Per
    Share
(2)
Price
(1)(2)
Registration Fee
Common stock, $0.01 par value per share
4,600,000
$
9.22
$
42,412,000
$
2,367
(1)
Includes common stock issuable upon
    exercise of the underwriters' over-allotment option.
(2)
Estimated solely for the purpose of
    calculating the registration fee pursuant to Rule 457(c)
    under the Securities Act of 1933 and based on the average of the
    high and low sale prices for such common stock on
    September 28, 2009, as reported on the Nasdaq Global Market.
The registrant hereby amends
    this registration statement on such date or dates as may be
    necessary to delay its effective date until the registrant shall
    file a further amendment which specifically states that this
    registration statement shall thereafter become effective in
    accordance with Section 8(a) of the Securities Act of 1933
    or until the registration statement shall become effective on
    such date as the Commission, acting pursuant to said
    Section 8(a), may determine.
Table of Contents
The information in
this prospectus is not complete and may be changed. We may not
sell these securities until the Securities and Exchange
Commission declares our registration statement effective. This
prospectus is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where
the offer or sale is not permitted.
Subject to completion, dated
    October 2, 2009
4,000,000 Shares
INTEGRAMED AMERICA,
    INC.
Common Stock
$     
    per share
•
IntegraMed America, Inc. is
    offering           shares.
•
The last reported sale price of our common stock on
    October 1, 2009 was $9.37 per share.
•
Trading symbol: Nasdaq Global Market — INMD
This investment involves risk. See "Risk Factors"
    beginning on page 10.
Per Share
Total
Public offering price
$
$
Underwriting discount
$
$
Proceeds, before expenses, to IntegraMed America, Inc.
$
$
The underwriters have a
30-day
option to purchase up to 600,000 additional shares of
    common stock from us to cover over-allotments, if any.
Neither the Securities and Exchange Commission nor any state
    securities commission has approved of anyone's investment
    in these securities or determined if this prospectus is truthful
    or complete. Any representation to the contrary is a criminal
    offense.
Piper Jaffray
Cowen and Company
The date of this prospectus
    is          ,
    2009.
Table of Contents
IntegraMed Partner Fertility Centers IntegraMed Affiliate Fertility Centers IntegraMed Vein Clinics
TABLE OF
    CONTENTS
Page
Summary
1
Risk Factors
10
Cautionary Statement Regarding Forward-Looking
    Statements
18
Use of Proceeds
20
Price Range of Common Stock
21
Dividend Policy
21
Capitalization
22
Selected Consolidated Financial Data
23
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
25
Business
42
Management
65
Principal Stockholders
78
Related Party Transactions
80
Description of Capital Stock
81
Material U.S. Federal Tax Considerations for
Non-U.S.
Holders of Our Common Stock
86
Underwriting
90
Legal Matters
95
Experts
95
Where You Can Find More Information
96
Index to Financial Statements
F-1
EX-4.1
EX-10.5
EX-10.6
EX-10.7
EX-21.1
EX-23.1
EX-24.1
You should rely only on the information contained in this
    prospectus. We have not, and the underwriters have not,
    authorized any other person to provide you with different
    information. If anyone provides you with different information,
    you should not rely on it. We are not, and the underwriters are
    not, making an offer to sell these securities in any
    jurisdiction where the offer or sale is not permitted. You
    should assume that the information appearing in this prospectus
    is accurate only as of the date on the front cover of this
    prospectus. Our business, financial condition, results of
    operations and prospects may have changed since that date.
Table of Contents
SUMMARY
The items in the following summary are described in more
    detail later in this prospectus. This summary does not contain
    all the information you should consider before investing in our
    common stock. You should carefully read the more detailed
    information set out in this prospectus, especially the risks
    related to our business and investing in our common stock that
    we discuss under the heading "Risk Factors," as well
    as the consolidated financial statements and related notes
    appearing elsewhere in this prospectus. References in this
    prospectus to "we," "us," "our,"
    "the Company," "our Company" and
    "IntegraMed" refer to IntegraMed America, Inc. and its
    consolidated subsidiaries, unless the context requires
    otherwise.
Our
    Business
We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We believe our network of Partner fertility
    centers is the largest managed network of fertility centers in
    the United States, with 63 locations and 97 physicians
    and PhD scientists, accounting for approximately 14% of the
    total in vitro fertilization ("IVF") procedures
    performed in the United States in 2007, which is the latest
    period for which third-party data are available. We also believe
    our vein clinics are the single largest network of vein care
    providers in the United States. We have a centralized corporate
    infrastructure that provides clinical and financial information
    systems, revenue cycle management, sales and marketing services,
    group purchasing and other operational support functions to our
    fertility centers and vein clinics. These services remove
    administrative burdens from the physicians, allowing them more
    time to practice medicine, which we believe results in increased
    patient treatment volumes and improved patient care. We also
    provide physicians access to capital to finance fertility center
    and vein clinic operations, including access to current
    technologies and facilities, which we believe aids in patient
    and physician recruitment. We deliver these services through
    three operating divisions: Fertility Centers, Consumer Services
    and Vein Clinics.
Our Fertility Centers Division is comprised of 11 contracted
    fertility centers, referred to as our Partner Program, serving
    13 metropolitan markets across the United States. The centers
    provide a wide range of fertility services to patients,
    including diagnostic testing and fertility treatments such as
    IVF, intrauterine insemination and surgical correction of
    anatomical reproductive problems. We receive fees and cost
    reimbursement from these fertility centers for providing the
    technology, equipment, facilities, non-physician personnel and
    support necessary to operate the fertility centers, but we do
    not employ or control the physicians who provide or direct the
    treatment of patients. For the six months ended June 30,
    2009, our Fertility Centers Division generated approximately 68%
    of our revenues and 54% of our contribution.
Our Consumer Services Division offers services directly to
    fertility patients. The division offers a family of programs,
    including our
    Attain
tm
IVF Refund Program and our recently introduced Attain IVF
    Multi-Cycle Program, collectively referred to as our Attain IVF
    programs, which are designed to help patients attain their goal
    of starting a family. IVF treatments are typically paid for
    out-of-pocket by the patient and a patient usually requires more
    than one IVF treatment cycle. The average cost of one fresh IVF
    cycle as of August 2009 was approximately $12,000 according to
    Marketdata Enterprises, Inc. and, in 2007, the likelihood of a
    live birth occurring after one fresh IVF cycle was 31% according
    to the Society for Assisted Reproductive Technology. Our Attain
    IVF Refund Program allows medically cleared patients to pay an
    up-front deposit of approximately twice the average cost of a
    fresh IVF cycle in return for up to six treatment cycles
    (consisting of three fresh IVF cycles and three frozen embryo
    transfers) with a specified percentage refund if treatment does
    not result in a baby. Our Attain IVF Multi-Cycle Program allows
    all patients, including those who are not medically cleared for
    our Attain
1
Table of Contents
IVF Refund Program, to pay a single fee, which is slightly less
    than the average cost of two fresh IVF cycles, in return for up
    to four treatment cycles (consisting of two fresh IVF cycles and
    two frozen embryo transfers). Our Attain IVF Multi-Cycle Program
    offers a partial refund under certain circumstances. We provide
    Attain IVF patients with the improved success rates associated
    with multiple fertility treatment cycles, as well as increased
    financial certainty for the IVF process. Additionally, we
    provide Attain IVF patients with a roadmap for treatment,
    including patient education, on-going case management and
    treatment plan monitoring, which provide visibility and ease to
    the process.
In addition to being offered to our Partner fertility centers,
    the division offers our Attain IVF programs through a contracted
    network that consisted of 25 independent fertility centers as of
    September 30, 2009, referred to as our Affiliate Program.
    Our Affiliate Program allows fertility centers to pay fees to
    receive selected management and consumer services we provide.
    The benefits that our fertility centers realize from offering
    our Attain IVF programs include: allowing patients to commit to
    multiple fertility treatments, which improves treatment volume
    and revenues; insulating the centers from refund risk; managing
    cash and administrative details associated with our Attain IVF
    programs; and enabling physicians to maintain a traditional fee
    for service arrangement without the appearance of conflicts of
    interest that otherwise might arise from self administering a
    refund program. We bind our Partner and Affiliate fertility
    centers, which provide the IVF treatments, to abide by the terms
    of the program through participation agreements that support our
    packaged pricing model, but we do not employ or control the
    physicians who provide or direct the treatment of patients. For
    the six months ended June 30, 2009, our Consumer Services
    Division generated approximately 9% of our revenues and 26% of
    our contribution.
Our Vein Clinics Division began operations on August 8,
    2007, with the purchase of Vein Clinics of America, Inc.
    ("VCA"), a company that had been in business since
    1981. Our Vein Clinics Division currently operates a network of
    34 clinics located in 13 states. These vein clinics provide
    specialized outpatient treatment for patients suffering from
    vein diseases and other vein disorders. Our current treatment
    options are alternatives to more invasive outpatient surgical
    procedures and include Endovenous Laser Treatment
    ("ELT"), a minimally invasive laser treatment, and
    sclerotherapy, which involves injecting veins with a solution
    designed to immediately shrink and then dissolve such veins over
    a period of weeks. We offer business services and support to the
    vein clinics and have a controlling financial interest in their
    operations. Medical services or treatments are provided to vein
    clinic patients by physicians who are employed by professional
    corporations, whose financial condition, results of operations
    and cash flows are consolidated with our consolidated financial
    statements. For the six months ended June 30, 2009, our
    Vein Clinics Division generated approximately 23% of our
    revenues and 20% of our contribution.
Our
    Industries
We are currently focused on the following industries:
•
Reproductive Medicine.
According to a recent
    industry estimate, approximately 10% of U.S. couples have
    trouble conceiving. In addition, women are increasingly delaying
    starting families. In 2006, approximately one out of every 12
    first births was to a woman age 35 or older, compared with
    one out of every 100 first births in 1970, according to the
    U.S. Centers for Disease Control and Prevention. There are
    approximately 1,400 practicing reproductive endocrinologists
    offering fertility services across 480 fertility centers in the
    United States. Fertility services include diagnostic tests
    performed on both the female and the male, as well as fertility
    treatments. Treatment options may include fertility drug
    therapy, artificial insemination, fertility surgeries to correct
    anatomical problems and assisted reproduction technology
    ("ART") services. Current types of ART services
    include IVF, frozen embryo
2
Table of Contents
transfers and donor egg programs, as well as more specialized
    treatments. IVF treatments are the most frequently employed form
    of ART, with 103,367 fresh IVF cycles performed in the United
    States in 2007. Expenditures relating to fertility services in
    the U.S. market are estimated at approximately
    $4 billion for 2008, according to Marketdata Enterprises,
    Inc.
•
Vein Disease.
Common venous diseases and their
    symptoms can take many forms, including varicose veins, spider
    veins and venous leg ulcers. We believe that approximately
    25 million people are currently affected by vein disease in
    the United States, but only approximately one million receive
    treatment for such vein disease. Historically, the most common
    treatment for vein disease was vein stripping, which is the
    surgical removal of surface veins that is generally done as an
    outpatient procedure while the patient is under general
    anesthesia and which requires an extended recovery time. More
    recently, minimally invasive alternatives such as ELT and
    sclerotherapy have been growing as alternatives to invasive
    surgical options. Annual expenditures related to vein care in
    the United States are approximately $2 billion and
    projected to grow 12% per year through 2010, according to our
    estimates. The U.S. Food and Drug Administration's
    approval of lasers for thermal ablation of veins and subsequent
    establishment of an American Medical Association Current
    Procedural Terminology code for reimbursement by the Centers for
    Medicare and Medicaid Services has opened this market to rapid
    growth and development over the last several years.
Our
    Strengths
We believe that our strengths include:
•
Leading Network of Fertility Centers.
We
    believe our network of 11 Partner fertility centers is the
    largest managed network of fertility centers in the United
    States, with 63 locations and 97 physicians and PhD
    scientists, accounting for approximately 14% of the total IVF
    procedures performed in the United States in 2007, which is the
    latest period for which third-party data are available.
    Additionally, we are affiliated with four of the top five
    fertility practices in the United States, based on volume of
    procedures. Our centralized infrastructure and ability to
    leverage economies of scale result in our Partner fertility
    centers demonstrating faster growth than the industry average,
    based on volume of procedures.
•
Strong and Replicable Vein Clinic Model.
We
    believe our 34 vein clinics are the single largest network of
    vein care providers in the United States. This network allows
    for marketing, operational and revenue cycle efficiencies by
    leveraging resources, knowledge and infrastructure as well as
    providing a strong base and replicable model for new clinic
    expansion.
•
Attain IVF Programs.
We created our family of
    Attain IVF programs as innovative offerings for patients of our
    Partner and Affiliate fertility networks. Marketing for our
    Attain IVF programs facilitates recruitment and retention of
    self-pay patients, which comprise the majority of the IVF
    treatment market. We have developed a sophisticated statistical
    model and case management program, which we believe allows us to
    appropriately screen patients for our Attain IVF Refund Program
    and reduce our financial risk. Our Attain IVF programs are
    non-capital intensive and our Attain IVF Refund Program
    generated operating margins of approximately 26% for the six
    months ended June 30, 2009.
•
State-of-the-Art Information Systems.
We have
    internally developed, integrated information systems that
    collect and analyze clinical, patient, financial and marketing
    data, which we believe allow us to more effectively control
    expenses and improve cash collections at our
3
Table of Contents
Partner fertility centers and vein clinics. Our proprietary
    ARTworks
®
clinical software provides electronic medical records, treatment
    plan and success rate research capabilities, decision support
    functionality and clinical risk management services, which we
    believe makes our physicians more efficient and improves quality
    of care. We provide our vein clinics access to our proprietary
    Virtual Physician Assistant information system, which is an
    end-to-end patient and clinic operating system that provides
    decision support and revenue cycle functions.
•
Access to Capital.
We provide our Partner
    fertility centers and vein clinics with efficient access to
    capital which allows them to obtain current technologies,
    equipment and facilities that enable them to provide a full
    spectrum of services to effectively compete for patients. We
    believe this access to capital helps us to recruit Partner
    practices.
•
Sophisticated Sales and Marketing
    Organization.
Our sales and marketing department
    specializes in the development of sophisticated programs that
    give our Partner and Affiliate fertility centers and vein
    clinics access to patient recruitment tools such as
    direct-to-consumer marketing, physician referral development and
    a vein care centralized call center. We believe these sales and
    marketing efforts are often too expensive for many individual
    physician practices, resulting in a competitive advantage to our
    Partner and Affiliate fertility centers and vein clinics with
    respect to patient recruitment.
•
Experienced Management Team.
Our senior
    management has extensive industry experience with average health
    care services experience of 25 years. This industry
    experience, combined with extensive merger and acquisition and
    financial expertise allows us to effectively execute our
    strategy.
Our
    Strategy
Our mission is to strengthen our position as a leading manager
    of fertility centers and vein clinics by increasing revenues and
    improving profitability, as well as continuing to provide value
    to patients and our physician network. Our strategy to achieve
    our mission is outlined below.
•
Make Selective Contract Acquisitions of Partner Fertility
    Centers.
The U.S. market for fertility
    services is highly fragmented and we believe that it is ripe for
    consolidation. We believe that our competitors' ability to
    compete with us for contract acquisitions is currently limited
    due to our experience acquiring Partner center contracts, our
    position as the manager of what we believe is the largest
    network of fertility centers in the United States and our
    developed infrastructure and experience in delivering valuable
    services to support fertility center operations. Recruitment
    into our Partner Program has traditionally focused on fertility
    centers that first participate as Affiliates serviced by our
    Consumer Services Division; as such, we had an established
    pipeline of 25 fertility centers as of September 30,
    2009. In addition to recruiting from Affiliate centers, we have
    a development staff that targets leading physician groups with
    established practices in selected metropolitan markets. These
    candidates are then evaluated against our contract acquisition
    criteria, which includes factors such as size of practice,
    physician reputation and the physicians' growth-oriented
    outlook.
•
Expand our Network of Affiliate Fertility
    Centers.
We intend to expand our network of
    Affiliate fertility centers to other metropolitan markets across
    the United States. Our development staff is focused on the top
    100 largest metropolitan markets, where we expect the highest
    demand for fertility centers to occur.
4
Table of Contents
•
Develop De Novo Vein Clinics.
We intend to
    develop new vein clinics in markets where we already have
    existing clinics that have not fully penetrated their market and
    to identify attractive contiguous markets to develop new
    clinics. Our development staff focuses on locations where there
    are attractive demographics, reasonable media costs and a
    favorable reimbursement environment. We believe our vein clinic
    model can be predictably and profitably replicated in these new
    markets. De novo vein clinics require relatively little capital
    investment, typically $300,000, and usually reach break-even in
    nine months or less after opening of the clinic. Following the
    acquisition of VCA, we made significant investments in physician
    recruiting and training, regional managers, revenue cycle
    management, sales and marketing, as well as new clinic
    development staff, all of which is designed to allow us to open
    new clinics at a more rapid and sustained pace utilizing a
    replicable model.
•
Increase the Total Number of Patients
    Treated.
We intend to work with our fertility
    centers and vein clinics to increase the total number of
    patients they treat. We expect future patient volume to be
    driven by our sales program, centralized direct-to-consumer
    advertising strategy, direct physician referrals and processes
    designed to retain patients who make contact with our call
    centers and receive an initial consultation. We intend to
    continue providing products and services to centers and clinics
    that help attract patients, including access to state-of-the-art
    equipment, access to our Attain IVF programs and access to our
    clinical and information technology applications.
•
Increase Penetration of Our Attain IVF
    Programs.
For the six months ended June 30,
    2009, approximately 11.5% of self-pay patients in our Partner
    and Affiliate network utilized our Attain IVF Refund Program. We
    formally introduced our Attain IVF Multi-Cycle Program in July
    2009. We believe that the penetration of our Attain IVF programs
    can be meaningfully increased by educating patients on the
    improved success rates associated with multiple treatment cycles
    and the packaged pricing features of our Attain IVF programs,
    which allow for multiple treatment cycles and, in the case of
    our Attain IVF Refund Program, a significant financial refund if
    the treatments are unsuccessful. We also believe we can increase
    overall market penetration of our Attain IVF programs by
    demonstrating to physicians at potential Affiliate and Partner
    practices the benefit of increased patient volume and retention
    that we believe result from offering our Attain IVF programs. We
    have demonstrated the ability to increase Attain IVF Refund
    Program penetration because certain of our fertility centers had
    Attain IVF Refund Program penetration rates in excess of 25%
    during the six months ended June 30, 2009.
•
Continue Improving Operating Efficiencies.
We
    continuously seek opportunities to lower costs and realize
    operating efficiencies through the implementation of a
    centralized infrastructure focused on improved accounts
    receivable management, along with leveraging economies of scale
    in support functions such as procurement, finance, information
    technology, human resources, risk management and legal services.
    We expect to further leverage our corporate infrastructure as we
    expand our network of Partner fertility centers and vein clinics.
Corporate
    Information
We were incorporated in Delaware on June 4, 1985. Our
    headquarters are located at Two Manhattanville Road, Purchase,
    New York 10577. Our telephone number is
(914) 253-8000.
Our website address is
www.integramed.com
. The
    information on our website is not incorporated as a part of this
    prospectus.
5
Table of Contents
The Offering
Common stock offered by us
4,000,000 shares
4,600,000 shares if the underwriters exercise their
    over-allotment option in full
Common stock outstanding immediately after this
    offering
(1)
12,774,994 shares
Use of proceeds
We estimate that the net proceeds to us from this offering will
    be approximately $      million,
    or approximately $      million if
    the underwriters exercise their over-allotment option in full,
    based on the assumed offering price and after deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.
We intend to use the net proceeds of this offering for general
    working capital and other corporate purposes, including funding
    potential contract acquisitions of Partner fertility centers.
You should read the discussion in this prospectus under the
    heading "Use of Proceeds" for more information.
Risk factors
See "Risk Factors" and all other information included
    in this prospectus for a discussion of factors that you should
    carefully consider before deciding to invest in shares of our
    common stock.
Nasdaq Global Market symbol:
INMD
(1)
Excludes shares issuable upon exercise of the underwriters'
    over-allotment option. The number of shares of our common stock
    outstanding immediately after this offering is based on
    8,774,994 shares outstanding as of June 30, 2009 and
    excludes 215,841 shares of common stock issuable upon
    exercise of outstanding stock options as of June 30, 2009
    at a weighted average exercise price of $5.98 per share and
    464,933 shares of common stock reserved for issuance under
    our 2007 Long-Term Compensation Plan.
The information in this prospectus assumes that none of our
    outstanding stock options has been exercised or forfeited since
    June 30, 2009. All information in this prospectus assumes
    the issuance and sale of our common stock in this offering at an
    offering price of $9.37 per share, the last reported sale
    price for our common stock on October 1, 2009, as reported
    by the Nasdaq Global Market.
6
Table of Contents
Summary
    Consolidated Financial Data
The following table sets forth our summary consolidated
    financial data as of and for the periods presented. The summary
    consolidated financial data as of December 31, 2007 and
    2008 and for each of the years ended December 31, 2006,
    2007 and 2008 have been derived from our audited annual
    consolidated financial statements, which are included elsewhere
    in this prospectus. The summary consolidated financial data as
    of December 31, 2006 have been derived from our audited
    annual consolidated financial statements, which have not been
    included in this prospectus. The summary consolidated financial
    data as of and for the six months ended June 30, 2008 and
    2009 have been derived from our unaudited consolidated financial
    statements, which are included elsewhere in this prospectus. In
    the opinion of management, our unaudited consolidated financial
    statements include all adjustments, consisting only of normal
    recurring items, except as noted in the notes to the
    consolidated financial statements, necessary for a fair
    statement of interim periods. The financial information
    presented for the interim periods has been prepared in a manner
    consistent with our accounting policies described elsewhere in
    this prospectus, and should be read in conjunction therewith.
    Operating results for interim periods are not necessarily
    indicative of the results that may be expected for a full year
    period. You should read this data together with the consolidated
    financial statements and related notes appearing elsewhere in
    this prospectus, as well as "Management's Discussion
    and Analysis of Financial Condition and Results of
    Operations" and the other financial information included
    elsewhere in this prospectus. Historical results are not
    necessarily indicative of future performance.
We prepare our consolidated financial statements in accordance
    with U.S. generally accepted accounting principles
    ("GAAP"), including Financial Accounting Standards
    Board Interpretation No. 46 (revised December 2003)
    ("FIN No. 46R"), "Consolidation of
    Variable Interest Entities." In accordance with
    FIN No. 46R, we do not consolidate the results of the
    fertility centers to which we provide services because we do not
    have a controlling financial interest in such centers and we are
    not the primary beneficiary or obligor of such centers'
    financial results. We do, however, have a controlling financial
    interest in individual vein clinics where we are the primary
    beneficiary and obligor of their financial results. As such, we
    consolidate the financial condition, results of operations and
    cash flows of those clinics' operations. See
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations — Off-Balance
    Sheet Arrangements."
Year Ended
    December 31,
Six Months Ended
    June 30,
2006
2007
(1)
2008
2008
2009
(unaudited)
(dollars in thousands, except
    per share amounts)
Statement of Operations Data:
Revenues, net:
Fertility Centers
$
112,767
$
121,078
$
138,440
$
67,797
$
73,574
Consumer Services
13,051
15,804
19,013
8,635
10,229
Vein Clinics
N/A
14,284
39,950
18,904
24,667
Total revenues
125,818
151,166
197,403
95,336
108,470
Costs of services and sales:
Fertility Centers
104,357
111,059
128,224
62,923
67,875
Consumer Services
9,412
12,325
14,331
6,315
7,556
Vein Clinics
N/A
13,304
37,299
17,869
22,631
Total costs of services and sales
113,769
136,688
179,854
87,107
98,062
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Table of Contents
Year Ended
    December 31,
Six Months Ended
    June 30,
2006
2007
(1)
2008
2008
2009
(unaudited)
(dollars in thousands, except
    per share amounts)
Contribution:
Fertility Centers
8,410
10,019
10,216
4,874
5,699
Consumer Services
3,639
3,479
4,682
2,320
2,673
Vein Clinics
N/A
980
2,651
1,035
2,036
Total contribution
12,049
14,478
17,549
8,229
10,408
General and administrative expenses
9,380
10,536
10,654
5,098
6,569
Interest income
(1,073
)
(1,256
)
(383
)
(273
)
(143
)
Interest expense
695
1,136
1,563
849
566
Total other expenses
9,002
10,416
11,834
5,674
6,992
Income before income taxes
3,047
4,062
5,715
2,555
3,416
Income tax provision
1,084
1,391
2,226
1,030
1,382
Income tax benefit
(821
)
(4)
—
—
—
—
Net income
$
2,784
(4)
$
2,671
$
3,489
$
1,525
$
2,034
Basic and diluted net earnings per share:
Basic earnings per share
$
0.34
$
0.32
$
0.40
$
0.18
$
0.23
Diluted earnings per share
$
0.34
$
0.32
$
0.40
$
0.18
$
0.23
Weighted average shares — basic
8,090
8,310
8,618
8,570
8,767
Weighted average shares — diluted
8,194
8,410
8,691
8,652
8,829
Balance Sheet
    Data
(2)
:
Working
    capital
(3)
$
10,973
$
(4,520
)
$
(3,958
)
$
(5,697
)
$
(5,258
)
Total assets
76,323
114,172
121,443
114,565
125,745
Total indebtedness
8,774
25,460
30,219
24,163
28,165
Accumulated deficit
(9,851
)
(7,180
)
(3,691
)
(5,655
)
(1,657
)
Shareholders' equity
39,466
46,549
50,753
48,398
53,465
(1)
Our Vein Clinics Division began operations on August 8,
    2007 with our purchase of VCA.
(2)
As of the last day of the reported period.
(3)
Represents current assets less current liabilities.
(4)
In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December 31, 2006.
8
Table of Contents
Summary
    Operating Data
The following table sets forth our summary operating data for
    the years ended December 31, 2006, 2007 and 2008 and for
    the six months ended June 30, 2008 and 2009. This summary
    operating data is unaudited. Historical results are not
    necessarily indicative of future performance.
Year Ended
    December 31,
Six Months Ended
    June 30,
2006
2007
2008
2008
2009
Summary operating data:
Partner fertility
    centers
(1)
8 Partners
9 Partners
11 Partners
10 Partners
11 Partners
Fresh IVF cycles
11,142
12,483
13,553
6,650
7,210
Consumer Services
    Affiliates
(1)
22 Affiliates
20 Affiliates
23 Affiliates
22 Affiliates
23 Affiliates
Vein
    clinics
(1),(2)
N/A
26 clinics
32 clinics
30 clinics
34 clinics
Vein clinics
    procedures
(2),(3)
N/A
7,865
9,273
4,669
6,256
(1)
As of the last day of the reported period.
(2)
Our
    Vein Clinics Division began operations on August 8, 2007
    with our purchase of VCA.
(3)
One
    vein care procedure represents a corrective procedure performed
    on a leg.
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RISK
    FACTORS
Investing in our common stock involves a high degree of risk.
    Before you invest in our common stock, you should carefully
    consider the various risks of the investment, including those
    described below, together with all of the other information
    included in this prospectus. Additional risks may also impair
    our business operations and adversely affect our prospects. If
    any of the following risks actually occur, our business,
    financial condition or operating results could be adversely
    affected. In that case, the trading price of our common stock
    could decline and you could lose all or part of your
    investment.
Risks
    Related to Our Business
The loss
    of one or more of our Partner fertility centers would lead to a
    decline in our revenues and profit.
The contracts that we enter into with our Partner fertility
    centers typically have terms that range from 10 to 25 years
    and contain automatic renewal provisions. Some of these
    agreements also contain provisions that allow the Partner
    fertility center to terminate the agreement, upon
    12 months' prior notice, at any time after five years
    from the agreement's effective date. Our two largest
    Partner fertility centers provided approximately 34% of our
    Fertility Centers Division revenues for the year ended
    December 31, 2008. If either of these Partner fertility
    centers, or any of our other Partner fertility centers, were to
    terminate its agreement with us, we would lose all of the
    revenues associated with such Partner fertility center, but
    would not experience any meaningful reduction in our
    infrastructure costs.
We may
    not be able to find suitable Partner candidates or successfully
    integrate the operations of the fertility centers with which we
    enter into Partner contracts.
A key part of our business strategy is to enter into additional
    Partner contracts. We cannot assure you that we will be able to
    find suitable Partner candidates or that the fertility centers
    that we enter into Partner contracts with will be successful.
    Even if suitable Partner candidates are identified, negotiation
    over suitable terms and conditions may be protracted and
    unsuccessful, and we may not be able to achieve planned
    increases in the number of Partner centers. Further, achieving
    the anticipated benefits of current and possible future Partner
    contracts will depend in part upon whether we can integrate the
    operations of those fertility centers with our operations in a
    timely and cost-effective manner. The process of integrating the
    operations of Partner fertility centers with our operations is
    complex, expensive and time consuming and involves a number of
    risks, including, but not limited to:
•
difficulties in integrating or retaining key medical providers
    of the Partner fertility center;
•
difficulties in integrating the operations of the Partner
    fertility center, such as information technology resources and
    financial and operational data;
•
diversion of our management's attention; and
•
potential incompatibility of cultures.
We are
    dependent on the medical providers in our fertility centers and
    vein clinics to successfully execute our business
    strategy.
Although we manage our fertility centers and vein clinics, the
    medical providers at those centers and clinics provide medical
    services directly to patients and we do not have control over
    their medical activities. We cannot guarantee any medical
    provider's ability to generate positive patient outcomes,
    build a positive reputation for their practice or to comply with
    our expectations. If the medical providers in our fertility
    centers and vein clinics act negligently or unethically, allow
    their medical
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practices to deteriorate or do not meet our growth expectations,
    it could diminish the value of our brand and our results of
    operations could be adversely affected.
We may
    have difficulty attracting and retaining physicians for our
    fertility centers and vein clinics.
A key part of our business strategy is to enter into additional
    Partner contracts and open new vein clinics. The success of our
    fertility centers is dependent upon our ability to retain the
    key medical providers associated with those centers. If one or
    more key medical providers were to depart from a fertility
    center, our business could suffer. Our ability to open new vein
    clinics is dependent upon identifying, recruiting and retaining
    qualified physicians to perform procedures at these clinics. We
    have had difficulties staffing new vein clinics because some
    third-party payors require that the physicians performing
    procedures at these clinics have certain specified credentials.
    We will not be able to implement successfully our business
    strategy if we are unable to properly staff our fertility
    centers and vein clinics.
A
    reduction in reimbursements or an inability to negotiate
    attractive reimbursement rates from third-party payors for the
    services that our Partner centers or vein clinics provide could
    adversely affect our revenues and growth.
A significant portion of our fertility Partner and vein clinic
    revenues depends on reimbursements to the underlying physician
    practices from third-party payors. These third parties include
    private health insurers and other organizations, such as health
    maintenance organizations, as well as government authorities.
    Third parties are systematically challenging prices charged for
    medical treatment. A third-party payor may deny or reduce
    reimbursement if it determines that a prescribed treatment is
    not used in accordance with cost-effective treatment methods, as
    determined by the payor, or is experimental, unnecessary or
    inappropriate. In addition, although third parties may approve
    reimbursement, such approvals may be under terms and conditions
    that discourage use of our services, even if those services are
    safer or more effective than alternative services. A reduction
    in reimbursements from third-party payors, whether in the form
    of changes to reimbursement contracts, such as by limiting
    reimbursement for certain procedures to specialists, loss of
    reimbursement contracts, solvency issues on the part of the
    payors, or in the case of our vein clinics, changes in Medicare
    reimbursement, would cause patients to reduce their treatments
    or obtain services from other providers and could reduce our
    revenues and profitability. Our ability to profitably open vein
    clinics in new markets also significantly depends on our ability
    to obtain attractive reimbursement rates from third-party payors
    in those new markets. If we are unable to obtain satisfactory
    reimbursement rates from third-party payors for vein clinics in
    new markets, our growth would suffer.
In early 2009, one of our top fertility centers in the Midwest
    terminated a reimbursement contract with an important
    third-party payor. Contribution from this fertility center in
    2008 was approximately $2.3 million and this third-party
    payor represented approximately 20% of this contribution.
Health
    care reform could impact the demand for our services.
There are currently numerous proposals on the federal and state
    levels for comprehensive reforms relating to health care that
    could affect payment and reimbursement for health care services
    in the United States. The U.S. Congress is considering
    legislation that could dramatically overhaul the health care
    system, including the possibility of a government health care
    plan. We cannot predict whether any such reforms will ultimately
    be adopted or the impact that such reforms may have on the
    demand or payment for our services. Because our Attain IVF
    programs are self-pay programs for patients that do not have
    insurance coverage for fertility treatments, health care reform
    that increases insurance coverage for fertility treatments could
    lead to a decrease in demand for our Attain IVF programs.
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We face
    competition from existing providers, as well as new providers
    entering our markets.
Our business divisions operate in highly competitive areas. Our
    fertility centers compete with national, regional and local
    physician practice fertility centers, hospitals and university
    medical centers, some of which have programs that compete with
    our Attain IVF programs. Our fertility centers may also compete
    with fertility centers located outside of the United States, due
    to the self-pay nature of IVF treatment. Our vein clinics
    compete with other vein care clinic providers, dermatologist and
    surgical clinics that provide ELT and sclerotherapy as an
    ancillary offering, vascular surgeons and interventional
    radiologists. Barriers to entry in the vein care industry are
    low. New health care providers that enter our markets impact our
    market share, patient volume and growth rates. Increased
    competitive pressures require us to commit resources to
    marketing efforts, which impacts our margins and profitability.
    There can be no assurance that our fertility centers or vein
    clinics will be able to compete effectively with existing
    providers in our markets or that new competitors will not enter
    into our markets. These existing and new competitors may have
    greater financial and other resources than we or our fertility
    centers or vein clinics do. Increased competition could also
    make it more difficult for us to expand our business by entering
    into new contracts with fertility centers or opening new vein
    clinics.
The
    development of alternative treatments could diminish demand for
    our services.
The fertility and vein care industries are dynamic, and new,
    technologically intensive treatments are constantly under
    development. New treatments that are more effective or provide
    better reimbursement could decrease patient demand or
    profitability for the treatments that our fertility centers or
    vein clinics currently offer. If our fertility centers or vein
    clinics do not adopt new treatments as they are developed,
    patients could seek treatment elsewhere.
If we are
    found not to be in compliance with applicable laws and
    regulations, we could be subject to significant fines or
    penalties, be forced to curtail certain of our operations or
    rearrange material agreements to our detriment.
We, and each of our fertility centers and vein clinics, are
    subject to numerous federal and state laws and regulations,
    including, but not limited to, federal and state anti-kickback
    laws, controlled substances laws, the federal Stark law and
    state self-referral laws, false claims laws, the Health
    Insurance Portability and Accountability Act of 1996
    ("HIPAA"), Medicare and Medicaid regulations and laws
    regulating the business of insurance. These laws and regulations
    are extremely complex and could be subject to various
    interpretations. Our fertility centers and vein clinics are also
    subject to these statutes, but we do not oversee, nor are we
    responsible for, their compliance with these laws. Many aspects
    of our business, to date, have not been the subject of federal
    or state regulatory review and we, and any of our fertility
    centers or vein clinics, may not have been in compliance at all
    times with all applicable laws and regulations. If we, or our
    fertility centers or vein clinics, are found by a court or
    regulatory authority to have violated any applicable laws or
    regulations, we could be subject to significant fines or
    penalties or be forced to curtail certain of our operations.
Further, the laws of many states prohibit physicians from
    splitting fees with non-physicians, or other physicians, and
    prohibit non-physician entities from practicing medicine. These
    laws vary from state to state and are enforced by the courts and
    by regulatory authorities with broad discretion. Many aspects of
    our business, to date, have not been the subject of judicial or
    regulatory interpretation; thus, a review of our business by
    courts or regulatory authorities may result in determinations
    that could adversely affect our operations. In addition, the
    health care regulatory environment could change so as to
    restrict our existing operations or their expansion. State
    corporate practice of medicine laws may be interpreted as
    prohibiting corporations or associations from exercising control
    over physicians or employing nurse practitioners or physician
    assistants and may prohibit physicians from practicing medicine
    in partnership with, or as employees of, any person not licensed
    to practice medicine.
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State regulators may seek to challenge the arrangements that we
    have with our fertility centers and vein clinics. A
    determination in any state that we are engaged in the corporate
    practice of medicine or any unlawful fee-splitting arrangement
    could render any management agreement between us and a practice
    located in such state unenforceable or subject to modification,
    which could have an adverse effect on our financial condition
    and results of operations. Regulatory authorities or other
    parties may assert that we are or a practice is engaged in the
    corporate practice of medicine or that the management fees paid
    to us by the managed practices constitute unlawful fee-splitting
    or the corporate practice of medicine. If such a claim were
    asserted successfully, we could be subject to civil and criminal
    penalties, managed physicians could have restrictions imposed
    upon their licenses to practice medicine, parts or all of our
    existing management agreements could be rendered unenforceable
    and we could be required to restructure our contractual
    arrangements with the managed practices, all of which could have
    an adverse effect on our financial condition and results of
    operations.
Our management agreement with our Partner fertility center in
    Illinois provides that we will be paid a base fee equal to a
    fixed percentage of the revenues of the fertility center that
    declines to zero to the extent the costs relating to the
    management of the fertility center increase as a percentage of
    total revenues. There is a substantial risk that this
    compensation arrangement, being based on a percentage of
    revenues, would not be upheld if challenged under Illinois law.
    To address this, our management agreement provides that if such
    compensation arrangement is found to be illegal, unenforceable,
    against public policy or forbidden by law, the management fee
    will be an annual fixed fee to be mutually agreed upon, not less
    than $1,000,000 per year, retroactive to the effective date of
    the agreement, resulting in a reduction of our management fee.
    In such event, there is likely to be a significant decrease in
    the management fees derived from this fertility center as a
    result of the new fee structure, as well as repayment of amounts
    paid in excess of the prior management fee.
Although we view our Attain IVF programs as a guaranty or
    warranty of our fertility centers' performance, the Attain
    IVF programs have several characteristics that are present in an
    insurance contract. As such, an insurance regulator in a
    particular state may find that we have been and are engaged in
    the business of insurance without a license, which could subject
    us to criminal and civil liabilities and would subject our
    Attain IVF programs to substantial regulation in that state as
    an insurance contract, including burdensome reserve
    requirements. In addition, in states that prohibit physicians
    from splitting professional fees with non-physicians, we could
    be required to restructure our Attain IVF programs if a state
    concluded that our Attain IVF programs constituted fee splitting
    because we retain a portion of the payments patients pay
    directly to us for their medical treatment by our fertility
    centers. The imposition of any such liabilities and any such
    changes in our method of doing business would likely reduce
    revenues and contribution from our Consumer Services Division.
Additionally, our management agreements with our vein clinics
    provide that the vein clinics will pay us a fee equal to 150% of
    our expenses of operating and managing the vein clinics. These
    fees have historically exceeded the operating margin generated
    by any particular vein clinic prior to payment of the management
    fee. Accordingly, each vein clinic only pays the portion of the
    management fee that is equal to the amount of revenue generated
    by the clinic annually up to the 150% amount. As a result, our
    vein clinics do not generate any net profits at year end. A
    state regulator could find that such a compensation model is
    actually based on a percentage of the revenue of a particular
    vein clinic or that our management fee is not commensurate with
    the services we provide, in which case our management agreements
    would be violating fee-splitting laws of certain states where we
    operate vein clinics. We could be forced to restructure the fee
    structure under the management agreements to our material
    financial detriment or the providers affiliated with our vein
    clinics who have been found to violate the fee-splitting
    statutes or regulations may be subject to disciplinary action or
    criminal sanctions, which could lead to the closure of one or
    more of our vein clinics.
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Our arrangements with our fertility centers and vein clinics may
    trigger the application of federal and various state franchise
    laws. We have never sought to comply with any such franchise
    laws, nor have we ever sought any exemptions from such laws. The
    U.S. Federal Trade Commission could bring an enforcement
    action against us for failure to comply with federal franchise
    laws and could impose significant fines against us, order us to
    pay restitution to the fertility centers and vein clinics that
    are found to be franchisees (and the physicians that own or
    operate them)
and/or
seek
    criminal sanctions against us. Under the laws of certain of the
    states in which we operate, the physicians that own or operate
    our fertility centers and vein clinics may bring private causes
    of actions against us for violating such laws. In many of these
    jurisdictions, in addition to a judgment for actual damages, a
    court could award the physicians rescission, attorney's
    fees and costs and treble damages. Additionally, we could be
    subject to fines and criminal sanctions. Even if we were to
    comply with these federal and state franchise laws, we would
    still be potentially liable for prior violations that occurred
    prior to the time we came into compliance with such laws.
New or enhanced laws and regulations affecting the fertility
    industry could increase our costs of compliance and force us to
    alter certain of our operations.
A number of high profile events have occurred recently related
    to ART and fertility practices generally, such as the
    implantation of a greater than recommended number of embryos,
    resulting in extraordinarily high-order multiple births, or the
    implantation of incorrect patient embryos. Federal and state
    regulators may more carefully scrutinize the fertility industry
    as a result of these events, and may adopt more stringent laws
    and regulations that could increase our compliance costs or
    force us to alter certain of our operations.
We and
    our Partner fertility centers and vein clinics may not have
    sufficient liability insurance to cover potential
    claims.
The medical procedures performed by physicians and other medical
    personnel in our network of fertility centers and vein clinics
    can involve significant complications, including genetically
    defective births, embryo loss and patient death. We are likely
    to be, and from time to time have been, named as a party in
    legal proceedings involving medical malpractice or other
    injuries that occur at one of our fertility centers or vein
    clinics, particularly in those fertility centers where we
    provide the services of a physician assistant or nurse
    practitioner. A successful malpractice claim could exceed the
    limits of insurance that we maintain, in which case we would
    have to fund any settlement in excess of our insurance coverage.
    We also maintain medical malpractice insurance coverage for our
    Partner fertility centers and vein clinics, and a successful
    malpractice claim against one of those centers or clinics in
    excess of the coverage we maintain for them would adversely
    affect the revenues we derive from those centers and clinics. In
    addition, the captive insurance company that provides a portion
    of our insurance coverage does not maintain reserves in amounts
    that would be required of other, larger insurers, and therefore
    may not have adequate capital to fund a claim against us or the
    Partner fertility centers covered by the captive insurance
    company. A malpractice claim, whether or not successful, could
    be costly to defend, could consume management resources and
    could adversely affect our reputation and business and the
    reputations and businesses of our Partner fertility centers and
    vein clinics. We also cannot assure you that we or our Partner
    fertility centers or vein clinics will be able to obtain
    insurance coverage in the future on commercially reasonable
    terms, or at all.
Our
    success depends on retaining key members of our management
    team.
The success of our business strategy depends on the continued
    contribution of key members of our management team. The loss of
    key members of this team could disrupt our growth plans and our
    ability to implement our business strategy.
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We rely
    on a limited number of third-party vendors for medicine and
    supplies.
Our fertility centers and vein clinics rely on a limited number
    of third-party vendors that produce medications and supplies
    vital to patient treatment, such as AngioDynamics, Inc., which
    provides the only U.S. Food and Drug Administration
    approved solution used in sclerotherapy. If any of these vendors
    were to experience a supply shortage or cease doing business,
    and we were unable to find an alternative third-party vendor, we
    might not be able to properly serve our patients.
Our
    credit agreement contains covenants that impose restrictions on
    us that may limit our operating flexibility, prevent us from
    entering into extraordinary transactions that benefit our
    stockholders and limit our growth.
Our credit agreement contains covenants that restrict our
    flexibility to conduct business. These covenants prohibit or
    limit, among other things:
•
the payment of dividends to our stockholders;
•
the incurrence of additional indebtedness;
•
the making of certain types of restricted payments and
    investments;
•
sales of assets; and
•
consolidations, mergers and transfers of all or substantially
    all of our assets.
The credit agreement also requires that we maintain certain
    leverage and fixed charge ratios and minimum levels of earnings
    before interest, taxes, depreciation and amortization. Our
    failure to comply with any of these covenants could cause the
    lenders to declare a default and accelerate amounts due to them
    under the credit agreement.
In addition, our credit agreement places certain restrictions on
    our ability to acquire the business, assets or capital stock of
    fertility centers. For example, our credit agreement prevents us
    from acquiring a fertility center for a purchase price in excess
    of $5.5 million (increasing to $6.0 million after
    August 31, 2010) without the prior written consent of
    our lender. In addition, our credit agreement prevents us from
    making acquisitions of fertility centers that aggregate in
    excess of $11 million for the period from August 1,
    2009 through July 31, 2010, or that exceed $12 million
    for the period after August 1, 2010. If we identify
    fertility centers that we want to acquire in excess of limits in
    our credit agreement and do not obtain the consent of our lender
    to those acquisitions, we may not be able to execute on our
    strategy.
We may
    not have adequate protection for our intellectual property
    rights.
Trade secrets and other proprietary information not protected by
    patents are critical to our business. Our sole means of
    protecting this information is to utilize confidentiality
    agreements with employees, third parties and consultants. If
    these agreements are breached, another entity could obtain our
    trade secrets and proprietary information and attempt to
    replicate our business model, which could have an adverse effect
    on our business.
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Risks
    Relating to an Investment in our Common Stock
The
    trading price of our common stock could be subject to
    volatility.
The average daily trading volume of our shares of common stock
    on the Nasdaq Global Market for the nine months ended
    September 30, 2009 was approximately 7,158 shares.
    Because the shares of our common stock are lightly traded, they
    are subject to volatile price fluctuations, which may make it
    difficult for you to sell our common stock when you want or at
    prices you find attractive. In the past, following periods of
    volatility in the market price of a company's securities,
    securities class action litigation has often been instituted. A
    securities class action suit against us could result in
    substantial costs, potential liabilities and the diversion of
    management's attention and resources, and could have a
    material adverse effect on our financial condition.
Future
    sales or the potential for future sales of our common stock may
    cause the trading price of our common stock to
    decline.
Sales of a substantial number of shares of our common stock by
    our two largest stockholders, or by any of our other significant
    stockholders, or the perception that these sales may occur,
    could cause the market price of our common stock to decline.
    Approximately 40% of our outstanding common stock is held by two
    investor groups. If either of these groups, or any other
    significant stockholders, were to attempt to sell all or part of
    their positions in the public market, our stock price could fall
    substantially.
In addition, our directors and executive officers, who held an
    aggregate of 741,025 shares of our common stock as of
    August 31, 2009, are subject to
lock-up
agreements that restrict their ability to transfer their shares
    of our common stock for 90 days following the date of this
    prospectus. The market price of shares of our common stock may
    decrease if a significant number of these shares are sold when
    the restrictions on their sale lapse.
We will
    have broad discretion in applying the net proceeds of this
    offering and may not use those proceeds in ways that will
    enhance the market value of our common stock.
We have significant flexibility in applying the net proceeds we
    will receive in this offering. We will use the proceeds that we
    receive from the sale of common stock in this offering for
    working capital and general corporate purposes. As part of your
    investment decision, you will not be able to assess or direct
    how we apply these net proceeds. If we do not apply these funds
    effectively, we may lose significant business opportunities.
    Furthermore, our stock price could decline if the market does
    not view our use of the net proceeds from this offering
    favorably.
You will
    incur immediate and substantial dilution as a result of this
    offering.
The public offering price per share of our common stock in this
    offering is substantially higher than the net tangible book
    value per share of our outstanding common stock. As a result,
    you will incur immediate and substantial dilution of
    $      per share, representing the
    difference between the assumed public offering price of $9.37
    per share and our tangible net book value per share as of
    June 30, 2009.
Our
    future capital needs could result in dilution of your
    investment.
Our board of directors may determine from time to time that
    there is a need to obtain additional capital through the
    issuance of additional shares of our common stock or other
    securities. These issuances would likely dilute the ownership
    interests of the investors in this offering and may dilute the
    net tangible book value per share of our common stock. Investors
    in subsequent offerings may also have
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rights, preferences and privileges senior to our current
    stockholders which may adversely impact our current stockholders.
We do not
    intend to pay cash dividends on our common stock for the
    foreseeable future.
We have not paid cash dividends on our common stock during the
    last two fiscal years, and we do not expect to pay cash
    dividends on our common stock at any time in the foreseeable
    future. The future payment of dividends directly depends upon
    our future earnings, capital requirements, financial
    requirements and other factors that our board of directors will
    consider. In addition, our credit agreement prohibits us from
    paying cash dividends on our common stock. Because we do not
    anticipate paying cash dividends on our common stock in the
    foreseeable future, the return on your investment on our common
    stock will depend solely on a change, if any, in the market
    value of our common stock.
Our
    certificate of incorporation, by-laws and Delaware law could
    limit another party's ability to acquire us, even if an
    acquisition would be beneficial to our stockholders.
A number of provisions in our certificate of incorporation and
    by-laws make it difficult for another company to acquire us,
    even if doing so would benefit our stockholders. For example,
    our certificate of incorporation authorizes our board of
    directors to issue "blank check" preferred stock, the
    terms of which may be established and shares of which may be
    issued without stockholder approval. The rights of holders of
    our common stock could be adversely affected by the terms of any
    preferred stock that may be issued in the future. In addition,
    our by-laws limit the ability of our stockholders to call
    special meetings or fill vacancies on the board.
Also, Section 203 of the Delaware General Corporation Law
    generally limits our ability to engage in any business
    combination with certain persons who own 15% or more of our
    outstanding voting stock or any of our associates or affiliates
    who at any time in the past three years have owned 15% or more
    of our outstanding voting stock. These provisions may have the
    effect of entrenching our management team and may deprive you of
    the opportunity to sell your shares to potential acquirers at a
    premium over prevailing prices. This potential inability to
    obtain a control premium could reduce the price of our common
    stock.
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CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The information included in this prospectus contains
    forward-looking statements within the meaning of
    Section 27A of the Securities Act of 1933, as amended (the
    "Securities Act"), and Section 21E of the
    Securities Exchange Act of 1934, as amended (the "Exchange
    Act"), the attainment of which involves various risks and
    uncertainties. All statements other than statements of
    historical fact included in this prospectus are forward-looking
    statements. Forward-looking statements may be identified by the
    use of forward-looking terminology, such as "may,"
    "will," "expect," "believe,"
    "estimate," "anticipate,"
    "continue" or similar terms, variations of those terms
    or the negative of those terms.
These forward-looking statements are based on assumptions that
    we have made in light of our experience in the industry in which
    we operate, as well as our perceptions of historical trends,
    current conditions, expected future developments and other
    factors we believe are appropriate under the circumstances. As
    you read and consider this prospectus, you should understand
    that these statements are not guarantees of performance or
    results. They involve risks, uncertainties (some of which are
    beyond our control) and assumptions. Although we believe that
    these forward-looking statements are based on reasonable
    assumptions, you should be aware that many factors could affect
    our actual financial condition or results of operations and
    cause actual results to differ materially from those in the
    forward-looking statements. These factors include, among other
    things:
•
termination of any of our Partner fertility center agreements
    for any reason;
•
an inability to identify attractive candidates for our Partner
    Program, successfully negotiate contract acquisition terms with
    Partner candidates or effectively integrate new Partners;
•
an inability to recruit or retain suitable physicians to open
    and operate our vein clinics;
•
less than expected growth in the vein care market, especially
    for minimally invasive procedures in which our vein clinics
    specialize;
•
termination or adverse changes to the terms of our reimbursement
    arrangements with third-party payors;
•
decreases in reimbursement rates from third-party payors, either
    in markets where we and our Partner and Affiliate fertility
    centers and vein clinics currently operate or into which we plan
    to expand;
•
adoption of new laws or regulations applicable to fertility
    centers or vein clinics, either in markets where we and our
    Partner and Affiliate fertility centers and vein clinics
    currently operate or into which we plan to expand;
•
changing patterns of enforcement or new interpretations of
    existing laws and regulations;
•
the occurrence of adverse medical outcomes at one or more of our
    Partner or Affiliate fertility centers or vein clinics, or other
    events that adversely affect the reputation of those centers or
    clinics or the physicians who work at those centers or clinics;
•
development of new technologies that our Partner or Affiliate
    fertility centers or vein clinics do not adopt;
•
an increase in litigation against us, our Partner fertility
    centers or vein clinics or the physicians who work at those
    centers and clinics;
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•
an inability to obtain insurance on commercially reasonable
    terms, the adequacy of insurance to address claims to which we,
    or our Partner fertility centers or vein clinics, are subject,
    or the inability of an insurer to pay amounts owed to us or our
    Partner fertility centers or vein clinics for a claim;
•
an increase in the competition that we and our Partners
    fertility centers or vein clinics face; and
•
other factors discussed under the headings "Risk
    Factors," "Management's Discussion and Analysis
    of Financial Condition and Results of Operations" and
    "Business."
Because of these factors, we caution that you should not place
    undue reliance on any of our forward-looking statements.
    Further, any forward-looking statement speaks only as of the
    date on which it is made. New risks and uncertainties arise from
    time to time, and it is impossible for us to predict these
    events or how they may affect us. We are under no obligation to
    update or alter any forward-looking statements, whether as a
    result of new information, future events or otherwise.
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Table of Contents
USE OF
    PROCEEDS
We estimate that the net proceeds to us from this offering will
    be approximately $      million,
    or approximately $      million if
    the underwriters exercise their over-allotment option in full,
    based on the assumed offering price and after deducting the
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.
We intend to use the net proceeds of this offering for general
    working capital and other corporate purposes, including funding
    potential contract acquisitions of Partner fertility centers.
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Table of Contents
PRICE
    RANGE OF COMMON STOCK
Our common stock is traded on the Nasdaq Global Market under the
    symbol "INMD." The following table sets forth, for the
    periods indicated, the high and low closing sales prices per
    share of our common stock, as reported on the Nasdaq Global
    Market:
High
Low
2009
Fourth Quarter (through October 1, 2009)
$
9.37
$
9.37
Third Quarter
$
10.25
$
7.03
Second Quarter
$
7.99
$
5.81
First Quarter
$
7.45
$
5.60
2008
Fourth Quarter
$
6.97
$
4.80
Third Quarter
$
8.17
$
6.01
Second Quarter
$
10.23
$
7.07
First Quarter
$
11.95
$
8.50
2007
Fourth Quarter
$
14.20
$
11.32
Third Quarter
$
12.43
$
10.06
Second Quarter
$
13.05
$
10.70
First Quarter
$
12.30
$
11.27
On October 1, 2009, the closing sale price per share of our
    common stock was $9.37, as reported on the Nasdaq Global Market.
    On September 30, 2009, there were 103 holders of
    record of our common stock. This figure does not include persons
    or entities who hold their common stock in nominee or
    "street" name.
DIVIDEND
    POLICY
We have not paid cash dividends on our common stock during the
    last two fiscal years, and we currently anticipate retaining all
    available funds for use in the operation and expansion of our
    business. In addition, our credit agreement prohibits us from
    paying cash dividends on our common stock. Therefore, we do not
    anticipate paying any cash dividends on our common stock in the
    foreseeable future.
21
Table of Contents
CAPITALIZATION
The following table describes our capitalization as of
    June 30, 2009 on an actual basis and as adjusted to reflect
    our sale of 4,000,000 shares of common stock in this
    offering at an assumed offering price of $9.37 per share, the
    last reported sale price for our common stock on October 1,
    2009, as reported by the Nasdaq Global Market, after deducting
    estimated underwriting discounts and commissions and offering
    expenses payable by us related to this offering.
You should read this capitalization table together with the
    consolidated financial statements and related notes appearing
    elsewhere in this prospectus, as well as "Use of
    Proceeds," "Management's Discussion and Analysis
    of Financial Condition and Results of Operations" and the
    other financial information included elsewhere in this
    prospectus.
As of June 30,
    2009
Actual
As
    Adjusted
(1)
(unaudited)
(in thousands, except share
    data)
Debt:
Current portion of long-term notes payable and other obligations
$
11,329
$
Long-term notes payable and other obligations
16,836
Total notes payable and other
    obligations
(2)
28,165
Shareholders' equity:
Common stock, $0.01 par value; 15,000,000 shares
    authorized, actual and as adjusted; 8,774,994 shares issued
    and outstanding, actual; 12,774,994 shares issued and
    outstanding as
    adjusted
(3)
88
Capital in excess of par
55,702
Other comprehensive loss
(293
)
Treasury stock, at cost; 46,408 shares, actual and as
    adjusted
(375
)
Accumulated deficit
(1,657
)
Total shareholders' equity
53,465
Total capitalization
$
81,630
$
(1)
Assumes no exercise of the underwriters' over-allotment
    option.
(2)
As of June 30, 2009, we had $2,500,000 available under our line
    of credit that was unused.
(3)
Excludes 215,841 shares of common stock issuable upon exercise
    of outstanding stock options as of June 30, 2009 at a
    weighted average exercise price of $5.98 per share and 464,933
    shares of common stock reserved for issuance under our 2007
    Long-Term Compensation Plan.
22
Table of Contents
SELECTED
    CONSOLIDATED FINANCIAL DATA
The following table sets forth our selected consolidated
    financial data as of and for the periods presented. The selected
    consolidated financial data as of December 31, 2007 and
    2008 and for each of the years ended December 31, 2006,
    2007 and 2008 have been derived from our audited annual
    consolidated financial statements, which are included elsewhere
    in this prospectus. The selected consolidated financial data as
    of December 31, 2004, 2005 and 2006 and for each of the
    years ended December 31, 2004 and 2005 have been derived
    from our audited annual consolidated financial statements, which
    have not been included in this prospectus. The selected
    consolidated financial data as of and for the six months ended
    June 30, 2008 and 2009 have been derived from our unaudited
    consolidated financial statements, which are included elsewhere
    in this prospectus. In the opinion of management, our unaudited
    consolidated financial statements include all adjustments,
    consisting only of normal recurring items, except as noted in
    the notes to the consolidated financial statements, necessary
    for a fair statement of interim periods. The financial
    information presented for the interim periods has been prepared
    in a manner consistent with our accounting policies described
    elsewhere in this prospectus, and should be read in conjunction
    therewith. Operating results for interim periods are not
    necessarily indicative of the results that may be expected for a
    full year period. You should read this data together with the
    consolidated financial statements and related notes appearing
    elsewhere in this prospectus, as well as "Management's
    Discussion and Analysis of Financial Condition and Results of
    Operations" and the other financial information included
    elsewhere in this prospectus. Historical results are not
    necessarily indicative of future performance.
We prepare our consolidated financial statements in accordance
    with GAAP, including FIN No. 46R. In accordance with
    FIN No. 46R, we do not consolidate the results of the
    fertility centers to which we provide services because we do not
    have a controlling financial interest in such centers and we are
    not the primary beneficiary or obligor of such centers'
    financial results. We do, however, have a controlling financial
    interest in individual vein clinics where we are the primary
    beneficiary and obligor of their financial results. As such, we
    consolidate the financial condition, results of operations and
    cash flows of those clinics' operations. See
    "Management's Discussion and Analysis of Financial
    Condition and Results of Operations — Off-Balance
    Sheet Arrangements."
Year Ended
    December 31,
Six Months Ended
    June 30,
2004
2005
2006
2007
(1)
2008
2008
2009
(unaudited)
(dollars in thousands, except
    per share amounts)
Statement of Operations Data:
Revenues, net:
Fertility Centers
$
87,367
$
105,277
$
112,767
$
121,078
$
138,440
$
67,797
$
73,574
Consumer Services
19,937
22,938
13,051
15,804
19,013
8,635
10,229
Vein Clinics
N/A
N/A
N/A
14,284
39,950
18,904
24,667
Total revenues
107,304
128,215
125,818
151,166
197,403
95,336
108,470
Costs of services and sales:
Fertility Centers
78,823
95,900
104,357
111,059
128,224
62,923
67,875
Consumer Services
18,782
20,485
9,412
12,325
14,331
6,315
7,556
Vein Clinics
N/A
N/A
N/A
13,304
37,299
17,869
22,631
Total costs of services and sales
97,605
116,385
113,769
136,688
179,854
87,107
98,062
Contribution:
Fertility Centers
8,544
9,377
8,410
10,019
10,216
4,874
5,699
Consumer Services
1,155
2,453
3,639
3,479
4,682
2,320
2,673
Vein Clinics
N/A
N/A
N/A
980
2,651
1,035
2,036
Total contribution
9,699
11,830
12,049
14,478
17,549
8,229
10,408
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Table of Contents
Year Ended
    December 31,
Six Months Ended
    June 30,
2004
2005
2006
2007
(1)
2008
2008
2009
(unaudited)
(dollars in thousands, except
    per share amounts)
General and administrative expenses
8,065
9,973
9,380
10,536
10,654
5,098
6,569
Interest income
(259
)
(520
)
(1,073
)
(1,256
)
(383
)
(273
)
(143
)
Interest expense
295
328
695
1,136
1,563
849
566
Total other expenses
8,101
9,781
9,002
10,416
11,834
5,674
6,992
Income before income taxes
1,598
2,049
3,047
4,062
5,715
2,555
3,416
Income tax provision
642
744
1,084
1,391
2,226
1,030
1,382
Income tax benefit
—
—
(821
)
(4)
—
—
—
—
Net income
$
956
$
1,305
$
2,784
(4)
$
2,671
$
3,489
$
1,525
$
2,034
Basic and diluted net earnings per share:
Basic earnings per share
$
0.13
$
0.17
$
0.34
$
0.32
$
0.40
$
0.18
$
0.23
Diluted earnings per share
$
0.13
$
0.17
$
0.34
$
0.32
$
0.40
$
0.18
$
0.23
Weighted average shares — basic
7,219
7,561
8,090
8,310
8,618
8,570
8,767
Weighted average shares — diluted
7,549
7,818
8,194
8,410
8,691
8,652
8,829
Balance Sheet
    Data
(2)
:
Working
    capital
(3)
$
1,157
$
5,721
$
10,973
$
(4,520
)
$
(3,958
)
$
(5,697
)
$
(5,258
)
Total assets
54,119
67,190
76,323
114,172
121,443
114,565
125,745
Total indebtedness
5,239
10,147
8,774
25,460
30,219
24,163
28,165
Accumulated deficit
(13,940
)
(12,636
)
(9,851
)
(7,180
)
(3,691
)
(5,655
)
(1,657
)
Shareholders' equity
33,933
35,871
39,466
46,549
50,753
48,398
53,465
(1)
Our Vein Clinics Division began operations on August 8,
    2007 with our purchase of VCA.
(2)
As of the last day of the reported period.
(3)
Represents current assets less current liabilities.
(4)
In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December 31, 2006.
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Table of Contents
MANAGEMENT'S
    DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in
    conjunction with the historical consolidated financial
    statements and related notes and the other financial information
    appearing elsewhere in this prospectus. This discussion and
    analysis contains forward-looking statements that involve risks,
    uncertainties and assumptions. Our actual results and timing of
    events could differ materially from those anticipated in the
    forward-looking statements as a result of many factors,
    including those discussed under the caption "Risk
    Factors" and elsewhere in this prospectus.
Overview
We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We provide services and products through our
    three operating divisions (Fertility Centers, Consumer Services
    and Vein Clinics) and shared support services for providers
    through our corporate offices. Each of our operating divisions
    is presented as a separate segment for financial reporting
    purposes.
Our Fertility Centers Division is a provider network of 11
    contracted fertility centers, referred to as our Partner
    Program, serving 13 metropolitan markets across the United
    States. We offer products and services to these providers
    designed to support the fertility center's growth. All
    fertility Partners also have full access to our Consumer
    Services Division offerings. The division also sponsors a
    Council of Physicians and Scientists for fertility providers.
    Physicians affiliated with our Partner fertility centers obtain
    a portion of their malpractice insurance through
    ARTIC — Assisted Reproductive Technology
    Insurance Company, a captive insurance company which we helped
    organize in 2005.
Our Consumer Services Division offers our Attain IVF programs to
    fertility patients. The division's Attain IVF programs are
    designed to make the treatment process easier and more
    affordable for patients. Currently, this division maintains a
    contracted network of 25 independent fertility centers (23 as of
    December 31, 2008) under its Affiliate Program, which
    is designed to distribute the division's products and
    services to a wider group of patients than those serviced by our
    Partner locations.
Our Vein Clinics Division began operations on August 8,
    2007, with the purchase of Vein Clinics of America, Inc.
    ("VCA"), a company that had been in business since
    1981. The Vein Clinics Division currently manages a network of
    34 clinics (32 as of December 31, 2008) located in
    13 states, which specialize in the treatment of vein
    disease and other vein disorders.
The primary elements of our business strategy include:
•
Making selective contract acquisitions of Partner fertility
    centers;
•
Expanding our network of Affiliate fertility centers;
•
Developing de novo vein clinics;
•
Increasing the total number of patients treated;
•
Increasing the penetration of our Attain IVF programs; and
•
Continuing to improve operating efficiencies.
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Table of Contents
Major
    Events Impacting Financial Condition and Results of
    Operations
2009
On April 20, 2009, we announced the opening of a new vein
    clinic in Cleveland, Ohio. This represents the 34th clinic
    in our Vein Clinics Division, our entry into the Cleveland
    market and the expansion of our presence in the State of Ohio.
On April 1, 2009, we elected to exercise the option
    contained in our business service agreement with Arizona
    Reproductive Medicine Specialists, based in Phoenix, Arizona,
    and expand our service offerings from a limited range of
    services to those offered to our other fertility Partners.
On January 20, 2009, we announced the opening of a new vein
    clinic in Cincinnati, Ohio. This represents the 33rd clinic
    in our Vein Clinics Division and our first entry into the State
    of Ohio and the Cincinnati market.
2008
From June 2008 through March 2009, our 2007 annual and our 2008
    periodic interim Securities and Exchange Commission reports were
    the subject of a standard comment and review process by the
    Staff of the Division of Corporation Finance of the Securities
    and Exchange Commission. The application of generally accepted
    accounting principles to our Attain IVF Refund Program's
    (formerly our Shared Risk Refund Program's) multiple
    element revenue arrangements is complex and management's
    interpretation of the applicable authoritative literature
    related to the timing of the recognition of the fair value of
    revenues for the non-refundable portion of the Attain IVF Refund
    Program fees differed from that of the Securities and Exchange
    Commission, which caused us to re-evaluate our revenue
    recognition policies. As a result, we restated our prior
    financial statements with respect to the timing of revenue
    recognition for our Attain IVF Refund Program within our
    Consumer Services Division. Our previous revenue recognition
    policy had generally recognized the non-refundable patient fees
    (generally 30% of the contract amount) as revenues upon the
    completion of the first treatment cycle. We now recognize the
    non-refundable fees based on the relationship of the fair value
    of each treatment to the total fair value of the treatment
    package available to each patient. We also recognize a
    "warranty reserve" representing the estimated cost of
    services to be provided in the event a qualified patient
    miscarries. This restatement does not impact our cash flows from
    operations or the ultimate profits from our Attain IVF Refund
    Program, only the timing of the revenue recognition for the
    non-refundable portion of the Attain IVF Refund Program fees
    paid by patients. See Note 2 of our consolidated financial
    statements included elsewhere in this prospectus. The financial
    data included in this prospectus reflects this restatement.
On December 17, 2008, we announced the opening of a new
    vein clinic in Skokie, Illinois. This clinic represents our
    ninth vein care clinic in the greater Chicago metropolitan area
    and benefits from the operational and marketing leverage we have
    developed in that market.
On December 8, 2008, we announced the opening of a new vein
    clinic in Monroeville, Pennsylvania. This clinic is our first
    vein clinic in Pennsylvania and is designed to provide
state-of-the-art
vein care to patients in the greater Pittsburgh area.
On July 9, 2008, we entered into a business services
    agreement to provide discrete business services to Arizona
    Reproductive Medicine Specialists, based in Phoenix, Arizona.
    Under the terms of this
25-year
agreement, our service fees were initially comprised of a fixed
    percentage of the fertility practice's net revenues. We
    also had the exclusive option, which we exercised on
    April 1, 2009, at any point during
26
Table of Contents
the life of the contract to expand our service offerings into a
    complete range of business, marketing and financial services.
    After we exercised the option on April 1, 2009, our fees
    also included a fixed percentage of the fertility
    practice's earnings.
On June 23, 2008, we announced that we entered into a new
    Affiliate services contract with the University of North
    Carolina ("UNC") School of Medicine's Department
    of Obstetrics and Gynecology in Chapel Hill, North Carolina. As
    an Affiliate, UNC School of Medicine's Department of
    Obstetrics and Gynecology receives distribution rights to our
    consumer products and services. In addition, UNC School of
    Medicine's Department of Obstetrics and Gynecology has
    the right to receive other products and services uniquely
    designed to support the business needs of successful,
    high-growth fertility centers.
On June 5, 2008, we announced the opening of a new vein
    clinic in Marietta, Georgia. This clinic was our fourth vein
    clinic in Georgia.
On April 29, 2008, we announced the opening of a new vein
    clinic in Alexandria, Virginia. This addition to our Vein
    Clinics Division provides focused vein care treatment solutions
    to the Washington, D.C. metropolitan area.
On April 24, 2008, we entered into a business service
    agreement to supply a complete range of business, marketing and
    facility services to Southeastern Fertility Centers, P.A.,
    located in Mount Pleasant, South Carolina. Under the terms
    of this
25-year
agreement, our service fees are comprised of reimbursed costs of
    services, a tiered percentage of revenues and an additional
    fixed percentage of the practice's earnings. We also
    committed up to $600,000 to fund any necessary capital needs of
    the practice.
On April 1, 2008, we entered into an Affiliate services
    contract with OU Physicians Reproductive Health in Oklahoma
    City, Oklahoma. As a result of this agreement, OU Physicians
    Reproductive Health provides another opportunity for our
    Consumer Services Division to distribute its product offerings.
2007
On August 30, 2007, we entered into a business service
    agreement to supply a complete range of business, marketing and
    facility services to the Center for Reproductive Medicine in
    Orlando, Florida. The Center for Reproductive Medicine is a
    fertility practice comprised of four physicians. Under the terms
    of this
25-year
agreement, our service fees are comprised of reimbursed costs of
    services, a tiered percentage of revenues and an additional
    fixed percentage of the Center for Reproductive Medicine's
    earnings. We also committed up to $1.0 million to fund any
    necessary capital needs of the practice.
On August 8, 2007, we acquired all of the outstanding stock
    of VCA for a total cost of approximately $29 million in
    cash and common stock. The results of VCA are included in our
    financial statements from the date of the acquisition.
Also on August 8, 2007, we entered into an amended credit
    agreement with Bank of America, N.A. ("Bank of
    America"). The new term loan under the amended credit
    agreement is in the amount of $25 million (the proceeds of
    which were applied to repay our original term loan and finance,
    in part, the VCA transaction). Interest on the new term loan is,
    at our option, at the prime rate less up to 0.50% or at LIBOR
    plus 2.00% to 2.75%, depending upon the level of the ratio of
    consolidated debt to earnings before interest, taxes
    depreciation and amortization ("EBITDA"). The amended
    credit agreement also contains provisions for a revolving line
    of credit in the amount of $10 million. Interest on the
    revolving line of credit is at the prime rate less up to 0.50%
    or at LIBOR plus 1.5% to 2.5%, depending on the level of the
    ratio of consolidated debt to EBITDA.
27
Table of Contents
Effective July 1, 2007, we expanded our fertility center
    Partner service arrangement with Shady Grove Fertility
    Reproductive Science Center, P.C. ("Shady Grove")
    with the addition of the Fertility Center of the Greater
    Baltimore Medical Center (the "Center") in Baltimore,
    Maryland, where we now provide a full range of business,
    marketing and financial services. Under the terms of this
    agreement, we purchased the assets of the Center from Greater
    Baltimore Medical Center and have committed additional resources
    to support further growth and development of the Center. Under
    the terms of this agreement, we are paid service fees comprised
    of reimbursed costs of services and a fixed percentage of
    revenues, plus an additional fixed amount of the Center's
    earnings.
On March 19, 2007, we declared a 25% common stock split
    effected in the form of a common stock dividend for all holders
    of record as of April 13, 2007. As a result of this
    dividend, 1,628,907 new shares of common stock were issued on
    the payment date of May 4, 2007. No fractional shares were
    issued as all fractional amounts were rounded up to the next
    whole share. All weighted average shares outstanding and
    earnings per share calculations in this prospectus have been
    restated to reflect this common stock dividend.
2006
In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000, which reduced our overall
    tax provision and increased net income by the same amount while
    adding $0.10 to earnings per share.
During October 2006, we provided notification that our financial
    statements for 2005 and the first two quarters of 2006 could not
    be relied on, and were restated due to an accounting error. The
    restatements consisted of non-cash adjustments to deferred tax
    and intangible balances and did not result in any changes to net
    income or earnings per share for any period. All periods
    affected by this error have been restated throughout this
    prospectus.
On May 22, 2006, we declared a 25% common stock split
    effected in the form of a common stock dividend for all holders
    of record as of June 7, 2006. As a result of this dividend,
    1,291,368 new shares of common stock were issued on the payment
    date of June 21, 2006. No fractional shares were issued as
    all fractional amounts were rounded up to the next whole share.
    All weighted average shares outstanding and earnings per share
    calculations in this prospectus have been restated to reflect
    this common stock dividend.
Significant
    Accounting Policies and Use of Estimates
Our significant accounting policies are described in Note 3
    of our consolidated financial statements included elsewhere in
    this prospectus.
The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States,
    including our significant accounting policies, requires
    management to make estimates and assumptions that affect the
    reported amounts of assets and liabilities and disclosure of
    contingent assets and liabilities at the date of the financial
    statements and the reported amounts of revenues and expenses
    during the reporting periods. On an ongoing basis, we evaluate
    our estimates and assumptions, including those related to
    revenue recognition, allowance for uncollectible accounts and
    contractual allowance reserves, contingencies and income taxes.
    We base our estimates on historical experience and on various
    other assumptions that we believe are reasonable under the
    circumstances. The results of our analysis form the basis for
    making assumptions about the carrying values of assets and
    liabilities that are not readily apparent from other sources.
    Actual results may differ from these estimates under different
    assumptions or conditions, and the impact of such differences
    may be material to our
28
Table of Contents
consolidated financial statements. The most significant use of
    estimates and assumptions in the preparation of our consolidated
    financial statements relates to the determination of net
    revenues and accounts receivable and reserves for estimated
    refunds due to pregnancy losses in our Attain IVF Refund Program.
Contractual allowance and uncollectible reserve amounts are
    determined based on historical collection performance data and
    are reviewed and adjusted monthly as necessary. We make periodic
    estimates for pregnancy loss based upon Company specific data.
Results
    of Operations
The following table shows the percentage of net revenues
    represented by various expenses and other income items reflected
    in our statements of operations for the six months ended
    June 30, 2009 and 2008 and the years ended
    December 31, 2008, 2007 and 2006:
Six Months Ended
Year Ended
    December 31,
June 30,
2008
2007
(1)
2006
2009
2008
(unaudited)
Revenues, net:
Fertility Centers
70.1
%
80.1
%
89.6
%
67.9
%
71.1
%
Consumer Services
9.6
%
10.5
%
10.4
%
9.4
%
9.1
%
Vein Clinics
20.3
%
9.4
%
N/A
22.7
%
19.8
%
Total revenues
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Costs of services incurred:
Fertility Centers
65.0
%
73.5
%
82.9
%
62.5
%
66.1
%
Consumer Services
7.2
%
8.1
%
7.5
%
7.0
%
6.6
%
Vein Clinics
18.9
%
8.8
%
N/A
20.9
%
18.7
%
Total costs of services incurred
91.1
%
90.4
%
90.4
%
90.4
%
91.4
%
Contribution:
Fertility Centers
5.1
%
6.6
%
6.7
%
5.4
%
5.0
%
Consumer Services
2.4
%
2.4
%
2.9
%
2.4
%
2.5
%
Vein Clinics
1.4
%
0.6
%
N/A
1.8
%
1.1
%
Total contribution
8.9
%
9.6
%
9.6
%
9.6
%
8.6
%
General and administrative expenses
5.4
%
7.0
%
7.5
%
6.0
%
5.3
%
Interest income
(0.2
)%
(0.8
)%
(0.9
)%
(0.1
)%
(0.3
)%
Interest expense
0.8
%
0.7
%
0.6
%
0.5
%
0.9
%
Total other expenses
6.0
%
6.9
%
7.2
%
6.4
%
5.9
%
Income from operations before income taxes
2.9
%
2.7
%
2.4
%
3.2
%
2.7
%
Income tax provision
1.1
%
0.9
%
0.2
%
(2)
1.3
%
1.1
%
Net income
1.8
%
1.8
%
2.2
%
(2)
1.9
%
1.6
%
(1)
Our Vein Clinics Division began operations on August 8,
    2007 with our purchase of VCA.
(2)
In December 2006, we determined that we no longer needed a
    valuation allowance related to deferred tax assets generated by
    net operating loss carry-forwards of prior years. As a result,
    we recorded a tax benefit of $821,000 for the year ended
    December 31, 2006.
29
Table of Contents
Revenues
For the six months ended June 30, 2009, total revenues of
    $108.5 million increased approximately $13.1 million,
    or 14%, from the same period in 2008. Approximately
    $5.8 million of this increase was generated by our Vein
    Clinics Division, $5.8 million from our Fertility Centers
    Division and $1.5 million from our Consumer Services
    Division. The two new vein clinics opened during the first
    quarter of 2009 accounted for $1.1 million of our Vein
    Clinics Division's increase, with the remaining
    $4.7 million generated by legacy clinics.
For the year ended December 31, 2008, total revenues of
    $197.4 million increased approximately $46.2 million,
    or 30.6%, from the year ended December 31, 2007. We
    experienced
year-over-year
organic revenue increases in both of our fertility business
    segments. Our Fertility Centers Division revenues increased as a
    result of growth within our existing medical practices, as well
    as the addition of two new Partner arrangements and the full
    year of results of a Partner added in the third quarter of 2007.
    Expansion continued in our Consumer Services Division, driven by
    the continued expansion of our Attain IVF Refund Program. In
    addition to growth in our two fertility segments, our
    performance for the year ended December 31, 2008 included
    full year results from our Vein Clinics Division which was
    purchased on August 8, 2007.
For the year ended December 31, 2007, total revenues of
    $151.2 million increased approximately $25.3 million,
    or 20.1%, from the year ended December 31, 2006. Our
    Fertility Centers Division revenues increased as a result of
    growth within the underlying medical practices, the addition of
    one new Partner arrangement and the expansion of the Shady Grove
    contract. Expansion continued in our Consumer Services Division,
    driven by the growth of our Attain IVF Refund Program. In
    addition to growth within our two fertility segments, on
    August 8, 2007, we acquired VCA. VCA, which we believe has
    the single largest network of vein care providers in the United
    States, became our third operating segment and contributed
    $14.3 million to our 2007 revenues.
A
segment-by-segment
discussion is presented below.
Fertility
    Centers Segment
In providing clinical care to patients, each of our Partner
    fertility centers generates patient revenues which we do not
    report in our financial statements. Although we do not
    consolidate the Partner fertility center practice financials
    with our own, these financials do directly affect our revenues.
The components of our revenues from each of the Partner
    fertility centers are:
•
A base service fee calculated as a percentage of patient
    revenues as reported by the Partner fertility center (this
    percentage generally varies from 6% down to 3% depending on the
    level of patient revenues);
•
Cost of services equal to reimbursement for the expenses which
    we advanced to the Partner fertility center during the month
    (representing substantially all of the expenses incurred by the
    center); and
•
Our additional fees which represent our share of the net income
    of the Partner fertility center (which varies from 10% to 20% or
    a fixed amount depending on the underlying center, subject to
    limits in some circumstances).
30
Table of Contents
In addition to these revenues generated from our fertility
    centers, we often receive miscellaneous other revenues related
    to providing services to medical practices. From the total of
    our revenues, we subtract the annual amortization of our
    business service rights under most agreements, which are the
    rights to provide business services to each of the centers.
During the first six months of 2009, Fertility Centers Division
    revenues increased by $5.8 million, or 9%, relative to the
    same period in the prior year. This increase was the result of a
    5.0% rise in same-center revenues as well as $2.5 million
    of revenues from the addition of two new Partner contracts in
    April and July 2008. These increases are net of the reduction in
    business at one of our top fertility centers in the Midwest as a
    result of termination of a contract with one of the
    center's third-party payors, as well as a slight moderation
    in demand that we believe is attributable to the prolonged
    recession. Contribution from this facility in 2008 was
    approximately $2.3 million and this third-party payor
    represented approximately 20% of this contribution.
Fertility Centers Division revenues in the year ended
    December 31, 2008 increased by $17.4 million, or
    14.3%, from the year ended December 31, 2007. This compares
    to an increase of $8.3 million, or 7.4%, for the year ended
    December 31, 2007 versus the year ended December 31,
    2006. During 2008 and 2007, growth was largely attributable to
    same center
year-over-year
growth in our network of underlying medical practices.
    Influencing this growth is our focus on increasing patient
    revenues through effective multi-faceted marketing programs, as
    well as our continued focus on expense management, which drives
    operational efficiency and higher contribution margins. Revenues
    for the year ended December 31, 2008 also benefited from:
•
the inclusion of a new fertility Partner in Mount Pleasant,
    South Carolina, which contributed $3.5 million to our net
    revenues from its addition in April 2008 through
    December 31, 2008;
•
full year results from our Orlando, Florida Partner added in
    September 2007; and
•
the full year impact from the expansion of Shady Grove into the
    Baltimore, Maryland market in July 2007.
In July 2008, we also entered into a
25-year
contract with Arizona Reproductive Medicine Specialists, based
    in Phoenix, Arizona. Under the terms of this agreement, we
    phased in the implementation of our full suite of Partner
    services over time. Under this arrangement, our fees were
    originally calculated as a fixed percentage of the center's
    revenues with an option to expand into our standard three-tiered
    fee structure, in line with expanded Partner services, based
    upon the center meeting certain performance targets. We
    exercised this option on April 1, 2009.
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Table of Contents
The table below illustrates the components of the Fertility
    Centers Division revenues in relation to the Partner fertility
    center practice financials for the six months ended
    June 30, 2009 and 2008 and the years ended
    December 31, 2008, 2007 and 2006 (in thousands):
Six Months Ended
Year Ended
    December 31,
June 30,
2008
2007
2006
2009
2008
Partner Fertility Center Financials
(a) Patient revenues
$
192,380
$
168,653
$
152,632
$
99,887
$
92,264
(b) Cost of services
125,156
109,132
102,625
66,287
61,504
(c) Base service fee
8,798
7,791
7,170
4,686
4,237
(d) Practice contribution (a-b-c)
58,426
51,730
42,837
28,914
26,523
(e) Physician compensation
52,863
46,678
38,577
25,718
23,898
(f) IntegraMed additional fee
5,563
5,052
4,260
3,196
2,625
IntegraMed Financials
(g) IntegraMed gross revenues (b+c+f)
139,517
121,975
114,055
74,169
68,366
(h) Amortization of business service rights
(1,300
)
(1,343
)
(1,495
)
(648
)
(648
)
(i) Other
    revenues
(1)
223
446
207
53
79
(j) IntegraMed fertility services revenues (g+h+i)
$
138,440
$
121,078
$
112,767
$
73,574
$
67,797
(1)
Other revenues includes administrative fees we receive from
    ARTIC, the captive insurance company, fees from Arizona
    Reproductive Medicine Specialists as well as other miscellaneous
    fees.
The following summarized quarterly data for the six months ended
    June 30, 2009 and the years ended December 31, 2008,
    2007 and 2006 is presented for additional analysis and
    demonstration of the slight seasonality of our Fertility Centers
    Division. New patients visits are an indicator of initial
    patient interest in fertility treatment and IVF cases completed
    are an indicator of billable charges. IVF cases completed in the
    fourth quarter of each year are typically lower, as many
    patients do not wish to undergo the IVF procedure during the
    year end holidays. Contributing to the lower number of IVF cases
    completed are voluntary laboratory closures at year end at
    several of our labs in order to undergo normal maintenance (in
    thousands, except new patient visits and IVF cases completed).
Revenues, Net
Contribution
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
$
36,284
$
32,746
$
29,092
$
27,497
$
2,642
$
2,304
$
2,315
$
2,059
Second quarter
37,290
35,051
29,728
28,648
3,057
2,570
2,526
2,031
Third quarter
N/A
36,505
31,046
28,256
N/A
2,743
2,714
2,174
Fourth quarter
N/A
34,138
31,212
28,366
N/A
2,599
2,464
2,146
Total year
$
73,574
$
138,440
$
121,078
$
112,767
$
5,699
$
10,216
$
10,019
$
8,410
New Patient Visits
IVF Cases Completed
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
6,979
6,765
5,917
5,303
3,643
3,141
3,038
2,433
Second quarter
7,089
7,093
5,867
5,452
3,547
3,314
3,088
2,630
Third quarter
N/A
7,186
5,930
5,578
N/A
3,474
3,069
2,750
Fourth quarter
N/A
7,173
6,279
5,400
N/A
3,219
2,971
2,652
Total year
14,068
28,217
23,993
21,733
7,190
13,148
12,166
10,465
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Table of Contents
Consumer
    Services Segment
Revenues from our Consumer Services Division increased by 18.5%,
    or $1.5 million, for the six months ended June 30,
    2009 versus the same period in the prior year. Attain IVF Refund
    Program revenues accounted for approximately 94% of the
    division's revenues during the first six months of 2009, up
    from approximately 93% for the same period in 2008. Patients
    enrolled in our Attain IVF Refund Program pay us an up-front fee
    (deposit) in return for up to six treatment cycles (consisting
    of three fresh IVF cycles and three frozen embryo transfers).
    Any non-refundable portion of these fees is recognized as
    revenues based on the relative fair value of each treatment
    cycle completed relative to the total fair value of the
    contracted treatment package available to the patient. The
    refundable portion of the program contract amount is recognized
    as revenue when the patient becomes pregnant. At the time of
    pregnancy, we establish a reserve for future medical costs
    should the patient miscarry and require additional contracted
    treatment cycles. The two main factors that impact Attain IVF
    Refund Program financial performance are:
•
the number of patients enrolled and receiving treatment, and
•
clinical pregnancy rates.
During the second quarter of 2009, the loss of a primary
    third-party lender that provided financing programs for Attain
    IVF patients and a general tightening of credit standards and
    higher interest rates caused a decline in new patient
    enrollments that adversely affected the program.
Our Affiliate Program generated revenues of $625,000 during the
    first half of 2009, up slightly from $587,000 for the prior year
    period. This increase in revenues is attributable to pricing
    adjustments for the program's services. Although our
    Affiliate Program produces revenues on a stand alone basis, the
    primary value of the Affiliate Program is to serve as a
    distribution channel for our Attain IVF programs and as an
    introduction to our services for medical practices that may
    become full fertility Partners. As of June 30, 2009, this
    network was comprised of 23 independent fertility centers, one
    more than the year earlier period.
Pharmaceutical revenues for the six months ended June 30,
    2009 were $16,000 down from $68,000 for the same period in the
    prior year. Our pharmaceutical revenues are comprised of
    marketing support fees we earn based upon underlying product
    margin as reported by a third-party pharmaceutical distributor.
    Over the past several years we have seen flat or declining
    revenues due to pharmaceutical cost increases which the
    distributor has been unable to pass on to the consumer as a
    result of competitive pressures. We view these pricing and
    margin developments as longer-term structural elements within
    the pharmaceutical market and do not expect significant
    improvement during 2009. As such we did not renew our contract
    with the third-party distributor when it expired on
    June 30, 2009 and we anticipate no further revenues from
    this source during the last half of 2009 and beyond.
For the year ended December 31, 2008, revenues of
    $17.6 million from our Attain IVF Refund Program
    represented approximately 92.6% of our Consumer Services
    Division revenues. This compares to revenues of
    $14.4 million, or slightly over 91.1%, of Consumer Services
    Division revenues in 2007. Revenue growth in our Attain IVF
    Refund Program of $3.2 million, or 22.2%, in 2008 compared
    to 2007 was the result of enrolling more patients into the
    program and increasing patient throughput by maintaining high
    pregnancy success rates. Similarly, Attain IVF Refund Program
    revenue growth of $2.9 million, or 25.2%, in 2007 versus
    2006 was also attributable to expanded enrollments relative to
    the earlier year, coupled with high pregnancy rates. From the
    beginning of 2005 through the end of 2008, while pregnancy
    success rates have either been maintained or increased,
    enrollments in our Attain IVF Refund Program grew at a compound
    annual rate of 32.8%. Because the patients in our Attain IVF
    Refund Program prepay for their suite of services, and a
    significant portion of the fees received by us
33
Table of Contents
are not recognized until the patient achieves pregnancy, our
    Attain IVF Refund Program deposits and deferred revenue balance
    continues to grow each year the number of enrolled patients
    grows.
Our Affiliate Program generated revenues of $1.2 million
    for the year ended December 31, 2008, which is
    approximately unchanged from the years ended December 31,
    2007 and 2006. During 2008, four independent fertility centers
    joined our Affiliate Program and two left in Partner related
    transactions for a net increase of two centers. For the year
    ended December 31, 2007, our Affiliate Program had a net
    reduction of one center as one practice moved to our Partner
    Program.
Pharmaceutical revenues of $200,000 for the year ended
    December 31, 2008 were approximately equal to
    pharmaceutical revenues for the year ended December 31,
    2007, and down from $400,000 in 2006 due to the pharmaceutical
    cost increases discussed above.
The following summarized Consumer Services Division quarterly
    data for the six months ended June 30, 2009 and the years
    ended December 31, 2008, 2007 and 2006 is presented for
    additional analysis and demonstration of the fluctuations of
    enrollments and pregnancies in our Attain IVF Refund Program (in
    thousands, except enrollments and pregnancies).
Revenues, Net
Contribution
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
$
5,225
$
4,024
$
3,084
$
2,904
$
1,512
$
1,066
$
603
$
635
Second quarter
5,004
4,611
4,059
2,991
1,161
1,254
1,007
1,132
Third quarter
N/A
5,152
4,365
3,379
N/A
1,145
982
950
Fourth quarter
N/A
5,226
4,296
3,777
N/A
1,217
887
922
Total year
$
10,229
$
19,013
$
15,804
$
13,051
$
2,673
$
4,682
$
3,479
$
3,639
Enrollments
Pregnancies
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
253
212
250
159
219
167
114
111
Second quarter
239
280
241
194
203
189
167
113
Third quarter
N/A
307
247
227
N/A
217
173
134
Fourth quarter
N/A
250
222
207
N/A
205
183
150
Total year
492
1,049
960
787
422
778
637
508
Vein
    Clinics Segment
Revenues in this segment are generated from direct billings to
    patients or their insurer for vein disease treatment services
    and these revenues are consolidated directly into our financials.
Revenues for the six months ended June 30, 2009 were
    $24.7 million, up 30.5%, or $5.8 million from the
    comparable period in 2008. During the first six months of 2009,
    we opened new vein clinic locations in Cincinnati and Cleveland,
    marking our entry into the State of Ohio and these two markets.
    These additional clinics brought our total number of vein
    clinics to 34, or three new clinics since the end of the second
    quarter of 2008. These three clinics accounted for
    $1.1 million of the growth in revenues for the six months
    ended June 30, 2009, with the remaining $4.7 million
    generated by legacy clinics.
34
Table of Contents
Revenues for the year ended December 31, 2008 were
    approximately $40.0 million versus partial year revenues of
    $14.3 million in 2007. Revenues for the year ended
    December 31, 2007 represent operating results only since
    VCA was purchased on August 8, 2007.
We continue to target the opening of two additional new vein
    clinics in locations across the United States during the
    remainder of 2009, however this pace could be affected by
    challenges in physician recruitment. To address this issue we
    have assembled a physician recruitment task force to develop a
    strategy and plan to raise the profile of the vein care career
    opportunity to high-quality physicians across the United States.
New consultations, which are an indication of patient interest
    in vein care treatment, rose 43% for the first six months of
    2009 versus the year earlier period. First leg starts, which
    signify the beginning of a billable treatment cycle, rose 32%
    for the first six months of 2009 versus the year earlier period.
    We have included the results of VCA in our financial statements
    since the date of its acquisition on August 8, 2007. Vein
    Clinics Division quarterly data for the six months ended
    June 30, 2009 and the years ended December 31, 2008
    and 2007 appear below (in thousands, except first leg starts).
Revenues, Net
Contribution
First Leg Starts
2009
2008
2007
2009
2008
2007
2009
2008
2007
First quarter
$
10,846
$
8,842
N/A
$
754
$
322
N/A
1,574
1,208
N/A
Second quarter
13,821
10,062
N/A
1,282
713
N/A
2,086
1,572
N/A
Third quarter
N/A
10,360
$
4,580
N/A
892
$
542
N/A
1,500
1,266
(1)
Fourth quarter
N/A
10,686
9,704
N/A
724
438
N/A
1,187
1,127
Total year
$
24,667
$
39,950
$
14,284
$
2,036
$
2,651
$
980
3,660
5,467
2,393
(1)
Includes the period from July 1, 2007 through
    August 7, 2007, which is prior to the VCA acquisition.
Our Vein Clinics Division managed 34 clinics as of June 30,
    2009, 32 clinics as of December 31, 2008 and 28 clinics as
    of December 31, 2007.
Contribution
For the first six months of 2009, contribution increased from
    $8.2 million in the comparable period for 2008 to
    $10.4 million in the 2009 period, or an increase of 26%,
    driven by growth in all three of our business segments.
For the year ended December 31, 2008, total contribution of
    $17.5 million was up approximately $3.1 million, or
    21.2%, from the year ended December 31, 2007. Increased
    contribution in our Fertility Centers Division in 2008 was the
    result of increased profitability in our platform of existing
    centers as well as the addition of contract acquisition related
    results. The continued growth of our Attain IVF Refund Program
    and full year results from our Vein Clinics Division were also
    major contributors to the improvement.
For the year ended December 31, 2007, contribution growth
    was $2.4 million, or 20.2%, versus the year ended
    December 31, 2006. The increase in contribution in 2007,
    versus 2006, was fueled mainly by organic growth in our
    Fertility Centers Division coupled with partial year results
    from our Vein Clinics Division acquired in August 2007.
    Contribution results for our Consumer Services Division in 2007
    were essentially even with 2006, as growth in our Attain IVF
    Refund Program was offset by declining fees from pharmaceutical
    sales.
35
Table of Contents
A
segment-by-segment
discussion is presented below.
Fertility
    Centers Segment
Fertility Centers Division contribution for the first six months
    of 2009 rose $800,000, or 17%, from the prior year period based
    on a 9% rise in revenues. During the first six months of 2009,
    $300,000 of contribution was attributable to our new Partners
    and $600,000 was attributable to our legacy centers, which were
    offset slightly by a $100,000 rise in division administrative
    overhead. The rise in contribution, along with improved
    operating margins, are the result of division wide cost control
    measures implemented early in 2009.
Fertility Centers Division contribution of $10.2 million
    for the year ended December 31, 2008 increased
    approximately $200,000, or 2.0%, from prior year levels.
    Although this segment experienced revenue growth of 14.3% in
    2008, versus the prior year, margin growth was tempered by
    additional division level infrastructure investments. These
    investments, which totaled $1.2 million during 2008, were
    designed to support continuing growth and new contract
    acquisitions within this segment.
Fertility Centers Division contribution for 2007 increased
    approximately $1.6 million, or 19.1%, from 2006. This
    increase was primarily attributable to the continued revenue and
    margin growth of our existing fertility centers, and entry into
    new fertility markets in Baltimore, Maryland and Orlando,
    Florida. Contribution growth rates for our existing Partners
    averaged 14.9% in 2007, versus the prior year. The new markets
    entered into during the second half of 2007 generated
    contribution of more than $400,000 during that year.
Consumer
    Services Segment
Contribution from our Consumer Services Division for the six
    months ended June 30, 2009 was $2.7 million versus
    $2.3 million in the year earlier period. This increase is
    the result of a 10% increase in pregnancies from our Attain IVF
    Refund Program during the first six months of 2009 versus the
    same period in 2008, coupled with a 5% increase in pregnancy
    success rates during the same period.
Contribution from our Consumer Services Division grew by
    $1.2 million to $4.7 million for the year ended
    December 31, 2008 versus a contribution of
    $3.5 million in the year ended December 31, 2007. This
    growth was driven by our Attain IVF Refund Program in which the
    two key profitability metrics, the number of patients receiving
    treatment and pregnancy success rates, showed
year-over-year
improvement in 2008 versus 2007.
Contribution from both our Affiliate and pharmaceutical programs
    in 2008 were on par with results in 2007. Although our Affiliate
    Program grew by a net of two fertility centers during 2008, the
    underlying value of this program is to serve as a distribution
    channel for our Attain IVF programs, as well as a source of
    future Partner fertility centers. Also, the market for
    pharmaceutical products in which we participate has been subject
    to external pricing pressures which have restricted revenues and
    profitability.
For the year ended December 31, 2007, contribution of
    $3.5 million from our Consumer Services Division was down
    slightly from the $3.6 million earned in the prior year.
    While enrollments in our Attain IVF Refund Program grew in 2007
    versus 2006, pregnancy rates during 2007 were at the low end of
    our expected range and impacted the amount of revenues
    recognized as we record the bulk of our revenues at the time of
    pregnancy.
36
Table of Contents
In 2007, contribution from our pharmaceutical line was down
    $400,000, or 71.3%, from 2006 due to the previously mentioned
    unfavorable pricing and reimbursement environment.
Vein
    Clinics Segment
For the first six months of 2009, Vein Clinics Division
    contribution of $2.0 million, or 8.3% of Vein Clinics
    Division revenues, compared to contribution of
    $1.0 million, or 5.5% of Vein Clinics Division revenues,
    for the first six months of 2008. The improved performance for
    the six-month period is largely attributable to the additional
    operational and marketing infrastructure put in place during
    2008. This infrastructure allowed the division to conduct
    ongoing
direct-to-consumer
marketing initiatives and provided the resources necessary to
    service the resulting increase in patient flow.
For the year ended December 31, 2008, contribution from our
    Vein Clinics Division of $2.7 million was up
    $1.7 million from 2007. Year versus year comparisons for
    this segment are not directly comparable as 2007 results only
    include contribution generated since we acquired this segment in
    August 2007.
General
    and Administrative Expenses
General and administrative expenses are comprised of salaries
    and benefits, administrative, regulatory compliance and
    operational support costs defined as our Shared Services group,
    which are not specifically related to individual center or
    clinic operations or other product offerings.
General and administrative expenses totaled $6.6 million
    for the first six months of 2009, an increase from the
    $5.1 million recorded in the same period of the prior year.
    The increased general and administrative expenses in the
    six-month period is attributable to higher service and
    infrastructure activities designed to provide operational
    support to our three growing business segments. We measure our
    performance in part by relating general and administrative
    expenses to operating contribution. For the six months ended
    June 30, 2009, general and administrative expenses were
    63.1% of contribution compared to a ratio of 62.0% for the six
    months ended June 30, 2008.
General and administrative expenses totaled $10.7 million
    in 2008, $10.5 million in 2007 and $9.4 million in
    2006. For the year ended December 31, 2008, general and
    administrative expenses were 60.7% of contribution which
    compares favorably to ratios of 72.7% and 77.8% in 2007 and
    2006, respectively. We continue to actively manage general and
    administrative expenses in an effort to leverage our Shared
    Services group and extract economies of scale as those
    opportunities arise.
Interest
Net interest expense was $423,000 for the first six months of
    2009 as compared to net interest expense of $576,000 for the
    first six months of 2008. The reduction in net interest expense
    for the six-month period is the result of scheduled debt
    repayments which reduced our outstanding loan balances coupled
    with lower market interest rates on certain portions of the
    remaining balances.
Net interest expense for the year ended December 31, 2008
    totaled $1.2 million, compared to net interest income of
    $100,000 for the year ended December 31, 2007, and net
    interest income of $400,000 for the year ended December 31,
    2006. The change in net interest income/expense for the three
    years ended December 31, 2008 is primarily the result of
    utilizing cash on hand and additional borrowings as the
    principal means of financing our acquisition of VCA in August
    2007. This acquisition used approximately $14 million of
    cash from our balance sheet in addition to $17 million of
    new borrowings.
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Coupled with this cash outlay is a reduction in the general
    level of interest rates as well as a slow-down in various credit
    markets which has resulted in restrictions on the interest
    income we are able to earn on our cash balances. Subject to
    interest rate fluctuations, we anticipate interest expense to
    decrease gradually in the coming quarters as scheduled debt
    repayments reduce our outstanding principal balances.
Interest income of $400,000 for the year ended December 31,
    2008 was below that of the prior year by $900,000, or a
    reduction of 69.5%, primarily as a result of lower market
    interest rates and conditions in the credit markets which
    limited investment opportunities. Interest expense of
    $1.6 million for the year ended December 31, 2008
    exceeded that of the prior year by $400,000, or 37.5%, primarily
    due to interest charges on new borrowings done in August 2007,
    associated with the VCA acquisition.
For the year ended December 31, 2007, interest income
    increased $200,000, or 17.1%, from the year ended
    December 31, 2006, as a result of earnings on idle cash
    balances during the first seven months of 2007. Interest expense
    of $1.1 million for the year ended December 31, 2007
    increased by $400,000 from the year ended December 31, 2006
    as a result of mid-year borrowings associated with the VCA
    acquisition.
Income
    Tax Provision
Our provision for income tax was approximately $1.4 million
    for the six months ended June 30, 2009, or 40.5% of pre-tax
    income. This compared to $1.0 million, or 40.3% of pre-tax
    income, for the six months ended June 30, 2008. Our
    effective tax rates for 2009 and 2008 reflect provisions for
    both current and deferred federal and state income taxes. The
    effective tax rates for the six months ended June 30, 2009
    and 2008 include additional interest for tax exposure items. We
    expect the effective tax rate to approximate 40% for the full
    year ending December 31, 2009.
Our provision for income tax was approximately
    $2.2 million, $1.4 million and $300,000 for the three
    years ended December 31, 2008, 2007 and 2006, respectively,
    or 39.0%, 34.2% and 8.6% of pre-tax income, respectively. Our
    effective tax rates for all periods reflect provisions for both
    federal and state income taxes. The low effective tax rate of
    8.6% for the year ended December 31, 2006 was mainly due to
    an $821,000 tax benefit related to the elimination of the
    valuation allowance on deferred tax assets. The lower effective
    tax rate of 34.2% for the year ended December 31, 2007 was
    mainly due to benefits received from tax-exempt interest income.
Effective January 1, 2007, we adopted Financial Accounting
    Standards Board ("FASB") Interpretation No. 48
    ("FIN No. 48"), "Accounting for
    Uncertainty in Income Taxes," which clarifies the
    accounting and disclosure for uncertainty in income taxes. The
    adoption of FIN No. 48 did not have a material impact
    on our financial statements. As of June 30, 2009, our total
    gross unrecognized tax benefits were approximately $271,000 and
    our total unrecognized tax benefits, net of federal effect, were
    approximately $191,000, all of which would impact our effective
    tax rate if recognized. Interest on unrecognized tax benefits as
    of June 30, 2009 was approximately $39,000. We do not
    anticipate that any of our net unrecognized tax benefits will
    become recognized over the next year due to expirations in the
    statute of limitations.
We file income tax returns in the U.S. federal jurisdiction
    and various states. For federal income tax purposes, our 2007
    and 2008 tax years remain open for examination by the tax
    authorities under the normal three year statute of limitations.
    A federal income tax examination for tax years through 2006 was
    completed during 2008 resulting in no adjustment to our income
    tax liability. For state tax purposes, our 2004 through 2008 tax
    years remain open for examination.
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Off-Balance
    Sheet Arrangements
FASB Interpretation No. 46 (revised 2003)
    ("FIN No. 46R"), "Consolidation of
    Variable Interest Entities" addresses how a business
    enterprise should evaluate whether it has a controlling
    financial interest in an entity through means other than voting
    rights and accordingly should consolidate the entity. For all
    periods subsequent to August 8, 2007, as a result of our
    acquisition of VCA, we have controlling financial interests in
    individual vein clinics where we are the primary beneficiary and
    obligor of their financial results. As such, we have
    consolidated these vein clinic operations in our financial
    statements in accordance with the provisions of
    FIN No. 46R. Because we do not have a controlling
    financial interest in individual fertility centers and we are
    not the primary beneficiary or obligor of their financial
    results, we do not consolidate the results of the fertility
    centers in our accounts. Also, since we do not have a
    controlling interest in the captive insurance company, and we
    are not the primary beneficiary or obligor of the captive
    insurance company's financial results, we do not
    consolidate the results of the captive insurance company in our
    accounts.
Liquidity
    and Capital Resources
As of June 30, 2009, we had approximately
    $31.5 million in cash and cash equivalents on hand as
    compared to $28.3 million as of December 31, 2008. We
    had a working capital deficit of approximately $5.3 million
    as of June 30, 2009, versus a working capital deficit of
    $4.0 million as of December 31, 2008. This decrease in
    working capital from December 31, 2008 levels was primarily
    due to fixed asset purchases of $3.7 million and scheduled
    debt payments of $1.9 million during the first six months
    of 2009, net of operating cash flows.
Attain IVF Refund Program patient deposits and other patient
    deposits, which are reflected as a current liability, represent
    funds received from patients in advance of treatment cycles and
    are an indication of future Consumer Services Division revenues.
    These deposits totaled approximately $13.0 million and
    $13.9 million as of June 30, 2009 and
    December 31, 2008, respectively. The decrease in deposits
    is a direct result of increased patient treatments, and the
    realization of the associated revenue, during the first six
    months of 2009. These deposits are a significant source of cash
    flow and represent interest-free financing for us.
As of both June 30, 2009 and December 31, 2008, we did
    not have any significant contractual commitments for the
    acquisition of fixed assets or construction of leasehold
    improvements. However, we anticipate capital expenditures of
    approximately $5.7 million in 2009, of which
    $3.6 million was incurred during the first six months of
    2009. These expenditures are primarily related to medical
    equipment, information system infrastructure and leasehold
    improvements.
We believe that working capital, specifically cash and cash
    equivalents, remains at adequate levels to fund our operations
    and our commitments for fixed asset acquisitions. We also
    believe that the cash flows from our operations plus our
    available revolving line of credit will be sufficient to provide
    for our future liquidity needs over the next 12 months.
In August 2007, as part of our acquisition of VCA, we entered
    into a new financing arrangement with Bank of America and
    secured a $25 million five-year variable interest rate term
    loan. Our previous term loan of $7.7 million was paid off
    in its entirety as part of entering into our new financing
    arrangement. After deducting the previous loan amount, interest
    and fees, our net funding from Bank of America was
    $17.0 million. In order to mitigate the interest rate risk
    associated with this term loan, we also entered into an interest
    rate swap agreement on 50% of the principal amount. This swap
    transaction acts as an effective hedge fixing the interest rate
    on half of our term loan at 5.39% plus the applicable margin for
    the life of the loan. Other features of this credit facility
    include a $10 million five-year revolving line of credit.
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Each component of our amended credit facility bears interest by
    reference, at our option, to Bank of America's prime rate
    minus a margin or to LIBOR plus a margin. The margin is
    dependent upon a leverage test, ranging from 2.00% to 2.75% in
    the case of LIBOR-based term loans and 0.00% to 0.50% in the
    case of prime-based term loans. Interest on the revolving line
    of credit is at the prime rate less up to 0.50% or at LIBOR plus
    1.50% to 2.50%, depending on a leverage test. Interest on the
    prime-based loans became payable quarterly beginning on
    November 8, 2007 and interest on LIBOR-based loans is
    payable on the last day of each applicable interest period. As
    of June 30, 2009 and December 31, 2008, interest on
    the term loan was payable at a rate of approximately 2.57% and
    2.71%, respectively. Unused amounts under the revolving line of
    credit bear a commitment fee of 0.25% and are payable quarterly.
Availability of borrowings under the revolving line of credit is
    based on eligible accounts receivable, as defined in the amended
    credit facility. As of both June 30, 2009 and
    December 31, 2008, under the revolving line of credit, the
    full amount of $10.0 million was available, of which
    $7.5 million was outstanding.
Our amended credit facility with Bank of America is
    collateralized by substantially all of our assets. As of both
    June 30, 2009 and December 31, 2008, we were in full
    compliance with all applicable debt covenants under our amended
    credit facility. We also continuously review our credit
    agreements and may renew, revise or enter into new agreements
    from time to time as deemed necessary.
Significant
    Contractual Obligations and Other Commercial
    Commitments
The following summarizes our contractual obligations and other
    commercial commitments at December 31, 2008, and the effect
    such obligations are expected to have on our liquidity and cash
    flows in future periods.
Payments Due by Period
Less Than
After
Total
1 Year
1 —
    3 Years
4 —
    5 Years
5 Years
(in thousands)
Notes payable
$
22,418
$
3,768
$
18,650
$
—
$
—
Line of credit outstanding
7,500
7,500
—
—
—
Capital lease obligations
301
83
218
—
—
Interest on debt
2,972
1,067
1,905
—
—
Operating leases
60,353
4,708
17,793
15,425
22,427
Fertility Partners capital and other obligations
5,747
5,747
—
—
—
Total contractual cash obligations
$
99,291
$
22,873
$
38,556
$
15,425
$
22,427
Amount of Commitment Expiration
    Per Period
Less Than
After
Total
1 Year
1 —
    3 Years
4 —
    5 Years
5 Years
(in thousands)
Unused lines of credit
$
2,500
$
—
$
2,500
$
—
$
—
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We also have commitments to provide working capital financing to
    member centers in our Fertility Centers Division that are not
    included in the above table. A significant portion of these
    commitments relate to our transactions with the medical
    practices themselves. Our responsibilities to the these medical
    practices are to provide financing for their accounts receivable
    and to hold patient deposits on their behalf, as well as
    undistributed physician earnings. Disbursements to the medical
    practices generally occur monthly. The medical practice's
    repayment hierarchy consists of the following:
•
We provide a cash credit to the practice for billings to
    patients and insurance companies;
•
We reduce the cash credit for center expenses that we have
    incurred on behalf of the practice;
•
We reduce the cash credit for the base portion of our service
    fee which relates to the Partner revenues;
•
We reduce the cash credit for the variable portion of our
    service fee which relates to the Partner earnings; and
•
We disburse to the medical practice the remaining cash amount
    which represents the physician's undistributed earnings.
We are also responsible for the collection of the Partner
    accounts receivables. We continuously fund these needs from our
    cash flows from operations, the collection of prior months'
    receivables and deposits from patients in advance of treatment.
    If delays in repayment are incurred, which have not as yet been
    encountered, we could draw on our existing revolving line of
    credit. We also make payments on behalf of the Partner for which
    we are reimbursed in the short-term. Other than these payments,
    as a general course, we do not make other advances to the
    medical practices. We have no other funding commitments to the
    Partner centers.
Quantitative
    and Qualitative Disclosures About Market Risk
In the normal course of business our interest income and expense
    items are sensitive to changes in the general level of interest
    rates. During the third quarter of 2007 we entered into an
    interest rate swap agreement designed to hedge 50% of our
    $25 million variable interest rate term loan maturing in
    2012. As a result of this swap transaction we have partially
    shielded ourselves from a portion of the interest rate risks
    associated with that portion of the term loan, as the swap
    transaction essentially converts that portion of the term loan
    to a fixed rate instrument at 5.39% plus the applicable margin.
    We are currently subject to interest rate risks associated with
    the remaining 50% of our term loan, as well as our short term
    investments and certain advances to our fertility centers, all
    of which are tied to either short term interest rates, LIBOR or
    the prime rate. As of both December 31, 2008 and
    June 30, 2009, a 1% change in interest rates would have
    impacted our pre-tax income by approximately $100,000 annually.
Recently
    Issued Accounting Pronouncements
Please see Note 3 (under the subheading "Recently
    Issued Accounting Pronouncements") of the notes to our
    consolidated financial statements included elsewhere in this
    prospectus for a discussion on recently issued accounting
    pronouncements.
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BUSINESS
We manage highly specialized outpatient centers in emerging,
    technology-based, niche medical markets. Currently, we are a
    leading manager of fertility centers and vein clinics in the
    United States. We provide services and products through our
    three operating divisions (Fertility Centers, Consumer Services
    and Vein Clinics) and shared support services for providers
    through our corporate offices. We provide our fertility centers
    and vein clinics with administrative services such as finance,
    accounting, human resources, risk management, legal and
    purchasing support; marketing and sales support; internet
    marketing and website support; access to integrated information
    systems; in some instances, non-physician practitioners; and
    access to capital for financing clinic operations and expansion.
Fertility
    Centers Division
Our Fertility Centers Division provides business and management
    services to a network of 11 contracted fertility centers in
    our Partner Program, serving 13 metropolitan markets across the
    United States. We believe these 11 Partner centers are the
    largest managed network of fertility centers in the United
    States, with 63 locations and 97 physicians and PhD
    scientists, accounting for approximately 14% of the total
    in vitro fertilization ("IVF") procedures
    performed in the United States in 2007, which is the latest
    period for which third-party data are available. The division
    supports fertility centers' operations and growth by
    providing access to information systems such as our proprietary
    ARTworks electronic medical records software as well as medical
    equipment and facilities, non-physician personnel and marketing
    and financial support services. All fertility Partners have full
    access to our Attain IVF programs, which are described below. We
    do not employ or control the physicians who provide or direct
    the treatment of patients.
Our fertility centers offer a range of diagnostic and fertility
    treatment options to patients. The fertility centers'
    physicians perform diagnostic tests on both women and men to
    determine the cause of infertility and each fertility center has
    an endocrine and andrology laboratory on site in order to
    perform and expedite infertility analyses. Once the cause of
    infertility is identified, several treatment options are offered
    to patients, including IVF treatment, frozen embryo transfer,
    intrauterine insemination and minimally invasive surgery to
    correct anatomical reproductive problems. All of our fertility
    centers have
on-site
IVF
    laboratories in order to maintain the integrity of the IVF
    processes. Fertility centers are typically staffed by six to
    seven physicians, a scientist, embryologists, nurses, support
    staff and ultrasound technicians.
Insurance and managed care payors, depending on the plan under
    which a patient is covered, reimburse certain services that our
    Partners provide, such as diagnostic testing, surgeries and, in
    certain circumstances, fertility treatments. However, the
    charges for assisted reproduction technology ("ART")
    services our Partners primarily provide are often paid directly
    by patients, including through programs such as our Attain IVF
    programs. Several states mandate offering certain benefits of
    varying degrees for ART services. For example, in Massachusetts,
    Rhode Island, Maryland and Illinois, the mandate requires
    coverage for many, but not necessarily all, ART services
    provided by our Partners. Approximately 50.3% of our Partner
    centers' payments were derived from third-party payors for
    the first six months of 2009, all of which was provided by
    private payors. Contractual arrangements with third-party payors
    typically are for a term of one year, may be terminated by
    either party upon 90 days' notice any time after the
    initial one-year term and contain automatic annual renewal
    provisions. Contractual arrangements with third-party payors
    also typically include payment terms and schedules of rates,
    although those payment terms and schedules of rates are subject
    to renegotiation after the initial term of the contract. During
    the first six months of 2009, in accordance with the terms of
    our contractual arrangements with them, third-party payors paid
    approximately 51.2% of the charges billed to them by our Partner
    Centers. We are unaware of efforts to expand mandated coverage
    to additional states. If in
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the future mandates are enacted by additional states, we expect
    the impact on our Partner fertility centers to be neutral to
    positive, as such mandates would likely increase the market for
    fertility center services, but at payment rates that are lower
    than the amounts typically paid directly by patients.
When establishing a Partner relationship, we typically acquire
    the assets of a fertility center, enter into a long-term
    comprehensive business service agreement with the center and
    assume most administrative and financial functions of the
    center. The acquisition of a Partner agreement generally
    obligates us to pay a fixed sum for the exclusive right to
    service the fertility center. These agreements are typically for
    terms of 10 to 25 years and contain automatic renewal
    provisions. Some of these agreements also contain provisions
    that allow the Partner fertility center to terminate the
    agreement, upon 12 months' prior notice, at any time
    after five years from the agreement's effective date.
    Partners typically have obligations upon termination in certain
    circumstances, such as purchasing the assets used in operating
    the fertility center and making payments based on recent
    revenues. Partners also agree to promote their practices by,
    among other things, participating in marketing programs we
    develop for them. Typically, the fertility center contracting
    with us is a professional corporation in which the key
    physicians are the shareholders. Generally, no shareholder of a
    Partner fertility center may assign his or her interest in the
    Partner fertility center without our written consent.
We require each professional corporation operating in our
    Partner fertility centers to enter into employment agreements
    with all key physicians at that center. These employment
    agreements typically have five-year terms and contain provisions
    prohibiting the key physicians from practicing reproductive
    endocrinology, infertility medicine or assisted reproductive
    technology in competition with us, within a specified area, for
    the term of the agreement and for 12 to 24 months
    thereafter. Although it is unclear whether these non-competition
    provisions would be enforceable if challenged, we have not
    experienced significant competition from physicians who formerly
    practiced at our Partner centers. We also usually enter into a
    personal responsibility agreement directly with each physician
    shareholder of the practice. The personal responsibility
    agreement obligates a physician shareholder to repay us a
    proportionate amount of the exclusive right to service fee
    payment received by that physician shareholder if he or she
    leaves the practice sooner than five years after the payment.
Under all 11 current Partner agreements, as compensation for our
    services we receive a three-part fee comprised of: a tiered
    percentage of net revenues, generally between 3% and 6%;
    reimbursed costs of services (costs incurred in providing
    services to a fertility center and any costs paid on behalf of
    the fertility center); and either a fixed amount or a percentage
    of the center's earnings, which currently ranges from 10%
    to 20%, but may be subject to limits.
Our Fertility Centers Division also supports a Council of
    Physicians and Scientists (the "Council") for leading
    fertility providers, which we established 14 years ago. The
    Council is comprised mostly of representatives from our
    fertility network and brings together leaders in reproductive
    medicine and embryology with the goal of promoting a high
    quality clinical environment throughout our fertility center
    network. The Council meets regularly and conducts bi-monthly
    teleconferences on topics related to improving infertility
    diagnosis, treatment and success rates. Additionally, the
    Council helps to establish the principles of our culture of
    safety. We believe our centers follow the Practice and Ethics
    Guidelines for clinical practice set forth by the American
    Society for Reproductive Medicine. We have also achieved
    accreditation from the American Association for Ambulatory
    Healthcare and the College of American Pathologists, which
    demonstrates our commitment to compliance with nationally
    recognized standards for laboratory services, patient safety and
    quality patient care.
We assisted in the organization of, and obtained a minority
    equity interest in, an offshore captive insurance company called
    Assisted Reproductive Technology Insurance Company
    ("ARTIC"), which is
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designed to moderate the cost of malpractice insurance to
    members of our fertility network. Most of the equity of ARTIC is
    owned by various physician practices that are members of our
    fertility network, and we have no future obligations to provide
    additional funding to ARTIC. On January 1, 2005, ARTIC
    began providing malpractice insurance coverage to the majority
    of physicians within our Partner fertility network.
Consumer
    Services Division
Our Consumer Services Division offers a family of programs,
    including our Attain IVF Refund Program and our recently
    introduced Attain IVF Multi-Cycle Program, collectively referred
    to as our Attain IVF programs, which are designed to help
    patients attain their goal of starting a family. We offer our
    Attain IVF programs directly to fertility patients, including
    patients of our Partner centers and patients of the
    division's contracted network of independent medical
    providers under its Affiliate Program.
Our Affiliate Program allows fertility centers to pay fees to
    receive selected management services we provide to our Partners,
    such as internet marketing and access to the Council. We also
    provide our Affiliates with access to our Attain IVF programs.
    Historically, we provided services to our Affiliates on an
    exclusive basis in the area in which the Affiliate operates, but
    Affiliates' access to our Attain IVF programs is generally
    subject to achievement of certain benchmarks, including with
    respect to Attain IVF Refund Program enrollments; however, in
    July 2009 we began allowing access to our Attain IVF programs on
    a non-exclusive basis in new markets. As of September 30,
    2009, we had contracted with 25 Affiliate fertility centers.
    During 2007, our Affiliate fertility centers collectively
    provided 8% of the total IVF procedures in the United States.
    Our Consumer Services Division does not provide, nor is it
    responsible for providing, medical services or treatments to
    patients.
Our Consumer Services Division re-launched its Shared Risk
    Refund Program under the name "Attain IVF" in late
    2008. This re-branding was done to reflect advantages offered by
    the program beyond its packaged pricing features and to position
    the program in a leadership role among smaller, similar programs
    offered by other providers.
Beginning in July 2009, we began referring to this program as
    our Attain IVF Refund Program to differentiate it from our
    Attain IVF Multi-Cycle Program. As described in more detail
    below, our Attain IVF Refund Program is an offer of packaged
    pricing for a set of fertility treatments with a refund, equal
    to 70% of the contract amount for patients using their own eggs,
    if treatment does not result in a baby. Under circumstances
    where a patient uses donor eggs, 100% of the contract amount is
    refunded if treatment does not result in a baby. For the six
    months ended June 30, 2009, approximately 20% of the
    patients in our Attain IVF Refund Program used donor eggs.
Patients enrolling in our Attain IVF programs can select from
    various treatment and financing options which are designed to
    appeal to patients at different stages of their reproductive
    lives and with different financial needs and resources. The
    average cost of one fresh IVF cycle as of August 2009 was
    approximately $12,000 according to Marketdata Enterprises, Inc.
    According to our estimates, the average cost of a frozen embryo
    transfer is approximately $3,000. The Attain IVF Refund Program
    allows medically cleared patients to pay an up-front deposit of
    approximately twice the average cost of a fresh IVF cycle in
    return for up to six treatment cycles (consisting of three fresh
    IVF cycles and three frozen embryo transfers) with a refund if
    treatment does not result in a baby. The refund is equal to 70%
    of the contract amount for patients using their own eggs and
    100% of the contract amount if the patient uses donor eggs. The
    Attain IVF Multi-Cycle Program allows all patients, including
    those who are not medically cleared for our Attain IVF Refund
    Program, to pay a single fee, which is slightly less than the
    average cost of two fresh IVF cycles, in return for up to four
    treatment cycles (consisting of two fresh IVF cycles and two
    frozen embryo transfers). Our Attain IVF Multi-Cycle Program
    offers a refund ranging from 10% to 85% of the contract amount
    depending on where in the process either we
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or the patient elects to terminate the program, as long as
    termination is prior to a second fresh IVF cycle. The fertility
    treatment cycles are provided to patients by fertility centers
    with which we contract for participation in the program. The
    benefits of our Attain IVF programs to our fertility centers
    include: allowing for patients to commit to multiple fertility
    treatments which improves treatment volume and revenues;
    insulating the centers from refund risk; managing cash and
    administrative details associated with our Attain IVF programs;
    and enabling physicians to maintain a traditional fee for
    service arrangement without the appearance of conflicts of
    interest that otherwise might arise from self administering a
    refund program. The benefits of our Attain IVF programs to
    patients include: improved success rates associated with
    multiple fertility treatment cycles; increased financial
    certainty relating to the cost of the fertility treatment
    process; and, in the case of our Attain IVF Refund Program, a
    significant financial refund should the treatments be
    unsuccessful.
Our Attain IVF programs serve as patient recruitment and case
    management vehicles where the patient contracts with us to
    provide the program services described below. We bind our
    Partners and Affiliates to abide by the terms of the program
    through participation agreements that support our packaged
    pricing. These programs are designed to make the fertility
    treatment process easier for patients by providing a continuum
    of services over an extended period, if necessary. Our Attain
    IVF programs achieve this objective by offering the following
    services:
•
Patient recruitment via internet web portals and search engines,
    in-clinic educational materials, in-clinic contact with
    fertility specialists and on-line contact with patient service
    specialists;
•
Educating patients as to the benefits of various treatment
    options offered by our network of contracted medical providers
    which have been tailored to appeal to patients at various stages
    of their reproductive lives and with various medical conditions;
•
Explaining the financial costs and patient responsibilities of
    the various treatment options;
•
Educating patients as to the various financing options offered
    by our Attain IVF programs and referring them to sources of
    third-party financing when requested;
•
Coordinating an initial medical assessment required for entry
    into our Attain IVF programs;
•
Arranging treatment with an Affiliate or a Partner center for
    all treatment cycles used by the patient; and
•
Providing on-going case management, treatment plan monitoring
    and evaluation services.
We receive payment directly from patients who participate in our
    Attain IVF programs. By contract, 30% of the Attain IVF Refund
    Program contract amount is non-refundable (for the non-donor egg
    option) and is recognized ratably (on a fair value basis) as
    revenues over the course of the patient's treatment cycles.
    If the patient achieves pregnancy prior to the completion of the
    last available treatment cycle, then the remaining unamortized
    portion of the non-refundable fee is immediately recognized as
    income. The remaining 70% of revenues are recorded upon the
    patient becoming pregnant and achieving a fetal heartbeat. For
    the donor egg option, for which 100% of the contract amount is
    refundable, all revenues are recorded upon the patient becoming
    pregnant and achieving a fetal heartbeat. We are able to record
    income at the time of pregnancy for our Attain IVF Refund
    Program, as we have substantially completed our fertility
    obligation to the patient and we can accurately estimate the
    amount of expenses or refunds that will become due if there is a
    pregnancy loss. We are able to make these estimates for
    pregnancy loss based upon reliable Company specific data with
    respect to the large homogeneous population we have served for
    more than seven years. Expenses prior to pregnancy
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related to the program are recorded as incurred. All of the
    amounts shown on the balance sheets in our consolidated
    financial statements included elsewhere in this prospectus as
    Attain IVF Refund Program deferred revenues and other patient
    deposits consist of unrecognized program enrollment/service fees
    and potentially refundable contract amounts for enrolled
    patients who have not had a successful pregnancy outcome and
    deposits received from patients who have not yet commenced
    treatment under the program.
Due to the characteristics of our Attain IVF programs, we pay
    for a patient's treatment costs in excess of their contract
    amount should the initial treatment cycles be unsuccessful. In
    order to moderate and manage the likelihood that we will need to
    pay for these treatment costs, we have developed a sophisticated
    statistical model and case management program in which Attain
    IVF Refund Program patients are pre-approved prior to enrollment
    in the program. We also continuously review patients'
    clinical criteria as they undergo treatment. If, while
    undergoing treatment, a patient's clinical response falls
    outside our criteria for participation in Attain IVF programs,
    we have the right to remove that individual from the program,
    with an applicable refund to the patient. To date, our case
    management process has been effective in managing the risks
    associated with our Attain IVF Refund Program within expected
    limits. A patient has the right to withdraw from our Attain IVF
    Refund Program at any time and will be issued an applicable
    refund.
Vein
    Clinics Division
Our Vein Clinics Division was formed on August 8, 2007,
    with the purchase of Vein Clinics of America, Inc.
    ("VCA"), a company that had been in business since
    1981. Our Vein Clinics Division provides business and management
    services to a network of 34 vein clinics located in
    13 states. We believe our vein clinics network is the
    largest single network of vein care providers in the United
    States. These clinics provide specialized treatment for patients
    suffering from vein diseases and other vein disorders, such as
    varicose veins, spider veins and venous ulcers.
We offer vein clinics services and support, including training
    for physicians, clinical and financial information systems,
    revenue cycle management, yield management, sales and marketing
    services, group purchasing, non-physician personnel, facilities,
    site selection and development and other operational functions
    to support the clinic. The division supports vein clinics'
    operations and growth by providing access to information systems
    such as our proprietary Virtual Physician Assistant
    ("VPA") information system, which is an end-to-end
    patient and clinic operating system that provides decision
    support and revenue cycle functions. A typical vein clinic
    averages 2,400 square feet and is located in an affluent,
    growing community. Each clinic has a standardized operational
    structure composed of a phlebologist, nurse, ultrasound
    technologist, office manager and assistant. Medical services or
    treatments are provided to vein clinic patients by physicians
    who are employed by professional corporations, whose financial
    condition, results of operations and cash flows are consolidated
    with our consolidated financial statements.
Our Vein Clinics Division's philosophy of patient care is
    based on complete disease management, from initial screening to
    treatment to follow up. Our vein clinics view each step in this
    process as critical to the patient's successful outcome.
    Our clinics currently use Endovenous Laser Treatment
    ("ELT") as well as sclerotherapy to treat varicose and
    spider veins. Our vein clinics use extensive and sophisticated
    ultrasound mapping prior to treatment, which we believe results
    in a more effective treatment plan. Rigorous post-treatment
    follow up is meant to identify any residual or emerging issues
    so that they can be quickly managed before the disease worsens.
Our Vein Clinics Division depends upon third-party payors,
    including governmental and private insurance programs, to pay
    for most treatments provided to patients. For the first six
    months of 2009,
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56% of payments received by our Vein Clinics Division were from
    managed care programs, 20% were from commercial insurers, 14%
    were from Medicare and 10% were directly from patients.
The private third-party payors providing reimbursement to our
    vein clinics include standard indemnity insurance programs as
    well as managed care programs, such as preferred provider
    organizations and health maintenance organizations. These
    third-party payors provide reimbursement to our vein clinics at
    negotiated rates, which approximate 50% of the billed charges,
    for medically necessary treatments. Most ELT treatments for
    varicose veins and venous leg ulcers provided at our vein
    clinics are reimbursed by third-party payors. However,
    third-party payors generally do not cover sclerotherapy or
    treatments they determine are not medically necessary, such as
    the cosmetic treatment of spider veins. In some cases,
    third-party payors require prior authorization of varicose vein
    treatment to provide reimbursement. Contractual arrangements
    with third-party payors typically are for a term of one year,
    may be terminated by either party upon 60 to 90 days'
    notice after the initial term and contain automatic annual
    renewal provisions. Contractual arrangements with third-party
    payors also typically include payment terms and schedules of
    rates that are subject to change by the third-party payor upon
    as little as 30 days' notice. Payments from Medicare
    are paid in accordance with a set fee schedule and are subject
    to change or review by governmental authorities.
Once our Vein Clinics Division has facilitated a vein
    clinic's establishment, we enter into a contract with the
    professional corporation operating in our clinic. Unlike our
    Partner fertility centers, the physicians who are employed at
    our vein clinics typically do not have an ownership interest in
    the medical practice. A "friendly physician" model is
    often used for ownership, pursuant to which we are the primary
    beneficiary and obligor of the vein clinic's operations;
    however, we also own and operate vein clinics through
    subsidiaries in two states where we are not prohibited from
    doing so under applicable corporate practice of medicine laws.
    Under the terms of our contracts with the vein clinics, we have
    sole and exclusive responsibility to manage the non-medical
    operations of the practice and the physicians have sole
    responsibility for the medical and clinical aspects of the
    practice. Our contracts with the vein clinics provide that we
    are responsible for the leasing of space, obtaining all
    equipment and services needed, providing all billing and
    collections functions, arranging for and supervising all
    non-physician personnel and providing services so they can
    market their own practices. In exchange for our services, our
    contracts with the vein clinics provide that the vein clinics
    pay us a fee equal to 150% of our expenses of operating and
    managing the vein clinics. These fees have historically exceeded
    the operating margin generated by any particular vein clinic
    prior to payment of the management fee. Accordingly, each vein
    clinic only pays the portion of the management fee that is equal
    to the amount of revenue generated by the clinic annually up to
    the 150% amount. As a result, our vein clinics do not generate
    any net profits at year end. Our contracts with the vein clinics
    are typically for 25 years with renewal rights. In the
    event of early termination, any accrued obligations remain
    outstanding until satisfied. We also have the right at any time
    to cause the "friendly physician" to transfer his or
    her ownership in a vein clinic to another physician designated
    by us.
We require each professional corporation operating in our vein
    clinics to enter into an employment agreement with the physician
    practicing at that clinic. The employment agreement typically
    has a term of one year and automatically renews for additional
    one-year periods unless terminated by either party. The
    physician generally is required to pay the clinic either $75,000
    or $50,000 if the agreement is terminated prior to three years
    from the physician's first employment with the clinic, with
    the amount due depending on the time of termination. This
    requirement helps defray the training expenses we incur when we
    assist the physician in establishing a practice. The physician
    also usually covenants not to compete with the clinic or provide
    medical services in the treatment of varicose veins or other
    venous diseases, within a specified area, during the
    agreement's term and for two years thereafter. Although it
    is unclear whether these non-competition provisions would be
    enforceable if challenged, we have not experienced significant
    competition from physicians who formerly practiced at our vein
    clinics.
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Since our acquisition of VCA in August 2007, we have made
    significant investments in this division's infrastructure,
    which have been designed to allow us to open new clinics at a
    more rapid and sustained pace utilizing a replicable model.
    These investments include:
•
Physician recruiting and training.
The business
    model for our Vein Clinics Division depends on being able to
    identify, recruit and train new physicians to staff new clinics.
    We have invested in additional professional personnel as well as
    other recruiting and training assets to support scaled growth in
    the future.
•
Regional management.
We have established a
    regional management infrastructure to manage the day-to-day
    operations of the expanding Vein Clinics Division clinical
    network and anticipate continued investment in regional
    management talent as our clinic base expands.
•
Revenue cycle management.
Over the past several
    years, the market for vein care has undergone a shift from
    private out of pocket payment by patients to an environment
    where most treatment is covered by insurance. This shift has
    caused us to make heavy investments in physician credentialing,
    working capital and improved billing and collections personnel,
    systems and procedures. These investments will continue as the
    business grows.
•
New clinic development.
With our planned roll-out
    of new clinic openings, we are making investments in personnel
    and procedures for identifying opportunities and opening new
    clinics in existing and new markets.
•
Marketing and sales.
We have established more
    formal, direct-to-consumer and physician referral marketing
    programs.
Shared
    Services Group
Through our Shared Services group, we provide the following
    support to our Fertility Centers, Consumer Services and Vein
    Clinics Divisions:
•
Administrative Services.
Our Shared
    Services group provides our contracted fertility centers and
    vein clinics with administrative services, including: accounting
    and financial services, such as accounts payable, payroll and
    financial reporting; human resources administration; legal
    services; risk management; insurance; information systems and
    services; and strategic planning.
•
Access to Capital.
We believe we
    provide our Partner fertility centers and vein clinics with a
    competitive advantage through access to capital for funding
    accounts receivable, expansion and growth. We provide our
    Partner fertility centers and vein clinics with efficient access
    to capital which allows them to obtain current technologies,
    equipment and facilities that enable them to provide a full
    spectrum of services to effectively compete for patients. For
    example, we have built new clinical facilities housing
    state-of-the-art fertility laboratories for several Partners,
    which enable them to expand their offerings to include a number
    of services that they had previously outsourced, and have
    acquired state-of-the-art ultrasound and laser technology for
    our vein clinics. We believe this access to capital helps us to
    recruit Partner practices.
•
Integrated Information Systems.
Using
    our established base of treatment providers, we are continuously
    developing integrated information systems to collect and analyze
    clinical, patient, financial and marketing data, which we
    believe allow us to more effectively
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control expenses and improve cash collections at our Partner
    fertility centers and vein clinics. Our proprietary ARTworks
    clinical software provides electronic medical records, treatment
    plan and success rate research capabilities, decision support
    functionality and clinical risk management services, which we
    believe makes our physicians more efficient and improves quality
    of care. We provide our vein clinics access to our proprietary
    VPA information system, which is an end-to-end patient and
    clinic operating system that provides decision support and
    revenue cycle functions.
•
Human Resources.
Our Shared Services
    group provides our contracted fertility centers and vein clinics
    with human resources services, including: policies and
    procedures; arranging for comprehensive benefits and managing
    the implementation of those benefits; wage and hour
    administration; performance reviews; job descriptions; and
    overall human capital management.
Our
    Industries
Reproductive
    Medicine
Reproductive medicine encompasses the medical discipline that
    focuses on male and female reproductive systems and processes.
    According to a recent industry estimate, approximately 10% of
    U.S. couples have trouble conceiving. There are many
    reasons why couples have difficulty conceiving, and accurate
    identification of a specific cause of infertility can be time
    consuming, expensive and requires access to specialized
    diagnostic and treatment services. Reproductive endocrinologists
    are specialized physicians who perform these more sophisticated
    medical and surgical fertility diagnoses and treatments.
    Reproductive endocrinologists generally have completed a minimum
    of four years of residency training in obstetrics and gynecology
    and have at least two years of additional training in an
    approved subspecialty fellowship program. There are
    approximately 1,400 practicing reproductive endocrinologists
    offering fertility services across 480 fertility centers in the
    United States. According to Marketdata Enterprises, Inc.,
    expenditures relating to fertility services in the U.S. market
    were estimated at approximately $4 billion for 2008. The
    fertility services market is highly fragmented among providers
    in each major local market as well as on a national basis.
Fertility services include diagnostic tests performed on both
    the female and male. Depending on the results of the diagnostic
    tests performed, treatment options may include, among others,
    fertility drug therapy, artificial insemination and fertility
    surgeries to correct anatomical problems. Procedures that
    require gametes (sperm and eggs) to be handled in vitro
    (outside the body) are classified as ART services. Current types
    of ART services include IVF, frozen embryo transfers, donor egg
    programs as well as other more specialized treatments. IVF
    treatments are the most frequently employed form of ART, with
    103,367 fresh IVF cycles performed in the United States in 2007.
    Current techniques used in connection with IVF services include
    intracytoplasmic sperm injection, assisted hatching,
    cryopreservation of embryos, pre-implantation genetic diagnosis
    and blastocyst culture and transfer.
Although demand for advanced reproductive medicine and treatment
    is highly correlated with larger demographic trends, we believe
    the market will continue to grow in the future for the following
    reasons:
•
The quality of treatment is improving, increasing pregnancy
    success rates;
•
Improvements in embryo culture media and implantation rates are
    leading to the capability of reducing high order multiple
    births, which is one of the greatest risk factors in this
    industry;
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•
With improving pregnancy rates, the cost of treatment is
    decreasing thereby making these services more affordable;
•
Demand for reproductive medical services is increasing through
    greater public awareness and acceptance of these
    treatments; and
•
Couples are delaying child birth until later in life. In 2006,
    approximately one out of every 12 first births was to a woman
    age 35 or older, compared with one out of every 100 first
    births in 1970, according to the U.S. Centers for Disease
    Control and Prevention.
While fertility market growth has moderated recently, in line
    with a demographic trough of couples of family-bearing age, we
    believe that we are well positioned to increase our share of the
    fertility market due to the following factors:
•
The benefits arising from consolidation, including the economies
    of scale that can be realized by leveraging a corporate
    infrastructure like ours to minimize general and administrative
    expenses as a percentage of fertility center revenues;
•
The need for greater efficiencies to offset rising costs and
    decreases in revenue growth;
•
The barriers to establishing new fertility centers, including
    the capital-intensive nature of acquiring and maintaining
    state-of-the-art medical equipment, laboratory and clinical
    facilities and the need to develop and maintain specialized
    information systems to meet the demands of patients and
    third-party payors;
•
The need for support services like those we provide to address
    the need for
seven-days-a-week
service to respond to patient demands and to optimize the
    outcomes of patient treatments;
•
The increased need for marketing services like those we provide
    to address increasing competition among medical providers
    specializing in fertility treatment; and
•
Our track record of growing contracted fertility center Partners
    two to three times faster than fertility centers that are not a
    part of our network, based on the number of fresh IVF cycles
    performed.
Vein
    Disease
Phlebology is the medical specialty concerned with the treatment
    of vein diseases. Common vein diseases and their symptoms can
    take many forms, including:
•
Varicose veins — which are caused when small valves
    designed to allow blood to flow in only one direction fail or
    leak. This causes blood to flow backwards under the force of
    gravity and pool inside the vein;
•
Spider veins — which are very small varicose veins.
    They are thin, threadlike veins that lie close to the
    skin's surface and are commonly red or purple in
    appearance. Spider veins can be hormonally induced and are often
    associated with pregnancy and menstruation;
•
Venous Leg Ulcers — which are non-healing open wounds
    that are caused by venous pump failure. It usually occurs near
    the inside of the ankle, but can be found anywhere below the
    knee. It can occur with or without visible varicose veins;
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•
Klippel-Trenaunay Syndrome — which is a rare,
    congenital disorder in which patients usually have one
    hypertrophied leg, a port wine stain and large varicose veins on
    the lateral aspect of the leg; and
•
Restless Leg Syndrome — which may occur when valves
    fail, causing blood to reflux, or flow backwards, causing it to
    pool and stagnate in the veins, leading to aching, throbbing,
    cramping and fatigue in the legs.
Although there are both surgical as well as minimally invasive
    treatment protocols for vein disease, we specialize in minimally
    invasive care. Conventional vein care treatment under both
    protocols usually begins with an ultrasound assisted mapping to
    determine the extent of the disease, generally followed by a
    surgical or minimally invasive treatment protocol. Historically,
    the most common surgical treatment has been a procedure referred
    to as vein stripping, which is the surgical removal of surface
    veins. Vein stripping is generally done as an outpatient
    procedure and is performed while the patient is under general
    anesthesia. Vein stripping may leave scarring and require an
    extended recovery time. More recent minimally invasive
    treatments include ELT and sclerotherapy, which are the
    treatments offered by our clinics. ELT is a laser treatment
    which does not involve hospitalization, general surgery or the
    potential for significant scarring that is associated with vein
    stripping. With ELT, after local anesthesia is administered, a
    small optical fiber is inserted through a needle into the
    varicose vein under ultrasound guidance. The laser is activated
    and, as the optic fiber is removed from the vein, it heats and
    closes the vein. Once the vein is closed, the blood that was
    circulating through the vein is naturally rerouted to other
    healthy veins. Over time, the varicose vein is absorbed by the
    body. Sclerotherapy involves injecting abnormal veins with a
    solution called a sclerosant. This immediately shrinks the vein
    and causes it to dissolve over a period of weeks, allowing the
    body to naturally redirect the blood flow to healthy veins. A
    typical sclerotherapy treatment may last for 15 to 20 minutes
    and consists of multiple microinjections.
Various demographic trends are contributing to the growth in
    demand for vein care. Annual expenditures related to vein care
    in the United States are approximately $2 billion and are
    projected to grow 12% per year through 2010, according to our
    estimates. The U.S. Food and Drug Administration's
    approval of lasers for thermal ablation of veins and subsequent
    establishment of an American Medical Association Current
    Procedural Terminology code for reimbursement by the Centers for
    Medicare and Medicaid Services has opened this market to rapid
    growth and development over the last several years. We also
    believe that the market for vein care will continue to grow in
    the future as awareness of minimally invasive treatment
    protocols grows among people with vein disease and as additional
    third-party payors recognize the medical necessity of treating
    vein disease. We believe that approximately 25 million
    people are currently affected by vein disease in the United
    States, but only approximately one million receive treatment for
    such vein disease.
We believe numerous market conditions in this industry produce
    business opportunities for us, including:
•
The level of specialized skills required for comprehensive
    patient treatment;
•
Favorable sociological trends including a growing demographic
    wave from an aging population;
•
The need to develop and maintain specialized management
    information systems to meet the increasing demands of patient
    billing and third-party payors;
•
The current fragmented nature of the market, which is comprised
    of numerous smaller, independent providers, allowing the
    opportunity for market consolidation;
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•
New laser and medical technologies that make access to treatment
    less painful and disfiguring, coupled with insurance company
    reimbursement for these new technologies;
•
The large number of people affected by vein disease in the
    United States in relation to the relatively low percentage of
    people who actually receive treatment for such vein
    disease; and
•
Our experience recruiting and training physicians in treating
    varicose veins and the ability to produce opportunities we
    believe are financially attractive to physicians practicing in
    other areas, such as general practice or emergency medicine.
Our
    Strategy
Make
    Selective Contract Acquisitions of Partner Fertility
    Centers
The U.S. market for fertility services is highly fragmented
    and we believe that it is ripe for consolidation. Recruitment
    into our Partner Program has traditionally focused on fertility
    centers that first participate as Affiliates serviced by our
    Consumer Services Division; as such, we had an established
    pipeline of 25 fertility centers as of September 30, 2009.
    Affiliate practices have the opportunity to become familiar with
    the offerings we provide and our commitment to customer service,
    which allows the Affiliate practices to see our value
    proposition first hand. We, in turn, have a chance to assess a
    practice's commitment to growth and utilization of our
    services without making a significant up-front financial
    commitment. In addition to recruiting from Affiliate centers, we
    have a development staff that targets leading physician groups
    with established practices in selected metropolitan markets.
    These candidates are then evaluated against our contract
    acquisition criteria, which includes factors such as size of
    practice, physician reputation and the physicians'
    growth-oriented outlook. We believe that our competitors'
    ability to compete with us for contract acquisitions is
    currently limited due to our experience acquiring Partner center
    contracts, our position as the manager of what we believe is the
    largest network of fertility centers in the United States and
    our developed infrastructure and experience in delivering
    valuable services to support fertility center operations.
Expand
    our Network of Affiliate Fertility Centers
As of September 30, 2009, we had Affiliates in 24
    metropolitan markets and intend to expand our network of
    Affiliate fertility centers to other metropolitan markets across
    the United States. We primarily focus our network development
    activities on metropolitan markets with populations in excess of
    500,000. Because of the relatively low percentage of the
    population that seeks fertility treatment, a large population
    base is required to support a sophisticated fertility center.
    Our fertility centers are capable of drawing consumers from a
    large geographic area and, as such, our development staff is
    focused on the top 100 largest metropolitan markets, where we
    expect the highest demand for fertility centers to occur.
Develop
    De Novo Vein Clinics
We intend to develop new vein clinics in targeted markets. Our
    past experience suggests that the vein clinics business can
    generally support one clinic per one million population in
    metropolitan markets. Our new clinic development staff focuses
    on the following:
•
Developing new clinics in markets where we already have existing
    clinics that have not fully penetrated their market to take
    advantage of existing investments in regional management,
    managed care contracts, personnel and marketing capabilities;
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•
Identifying attractive new markets in states that already have a
    vein clinic location and states contiguous to existing vein
    clinic locations to leverage regional management, personnel and
    other infrastructure assets; and
•
Identifying locations where we believe there are attractive
    demographics, reasonable media costs and a favorable
    reimbursement environment.
We believe our vein clinic model can be predictably and
    profitably replicated in new markets. Our ability to develop de
    novo vein clinics is demonstrated by the five new vein clinics
    we opened during 2008 and the new vein clinics we opened in
    Cincinnati and Cleveland, Ohio in 2009. We currently expect to
    open two additional vein clinics by the end of 2009 and
    accelerate and increase the number of de novo vein clinics
    opened in 2010, however this pace could be affected by
    challenges in physician recruitment. De novo vein clinics offer
    an attractive return on capital as they require relatively
    little capital investment, typically $300,000, and usually reach
    break-even in nine months or less after opening of the clinic.
Increase
    the Total Number of Patients Treated
We intend to work with our fertility centers and vein clinics to
    increase the total number of patients they treat. To achieve
    this objective we intend to:
•
Offer products and services to centers and clinics that help
    them attract patients, including access to state-of-the-art
    equipment, access to our Attain IVF programs and access to our
    clinical and information technology applications;
•
Enable fertility centers to enhance their ability to provide
    superior care through use of our proprietary ARTworks software,
    which provides electronic medical records, treatment plan and
    success rate research capabilities, decision support
    functionality and clinical risk management auditing services;
•
Enable vein clinics to enhance their ability to provide superior
    care through use of our proprietary VPA information system,
    which is an end-to-end patient and clinic operating system that
    provides decision support and revenue cycle functions;
•
Help our fertility centers and vein clinics drive additional
    patient volume through our sales and marketing efforts,
    including our direct-to-consumer advertising, internet
    marketing, physician referral development and providing
    marketing materials and programs to our fertility centers and
    vein clinics for their use; and
•
Convert initial potential patient contacts into patients treated
    at our centers and clinics. We believe we can accomplish this
    through the protocols we established for our call center
    professionals and contact follow up procedures our center and
    clinic staff employ to ensure patients attend their consultation
    and all scheduled treatments.
Increase
    Penetration of Our Attain IVF Programs
Currently, many third-party payors provide limited coverage for
    the diagnosis and treatment of infertility. Our Attain IVF
    programs, which are offered directly to patients, have been
    designed to offer attractive financial options to prospective
    patients. For the six months ended June 30, 2009,
    approximately 11.5% of self-pay patients in our Partner and
    Affiliate network utilized our Attain IVF Refund Program. We
    formally introduced our Attain IVF Multi-Cycle Program in July
    2009. We believe that the penetration of our Attain IVF programs
    can be meaningfully increased by educating patients on the
    improved success rates associated with multiple treatment cycles
    and the packaged pricing features of
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our Attain IVF programs, which allow for multiple treatment
    cycles and, in the case of our Attain IVF Refund Program, a
    significant financial refund if the treatments are unsuccessful.
    We also believe we can increase overall market penetration of
    our Attain IVF programs by demonstrating to physicians at
    potential Affiliate and Partner practices the benefit of
    increased patient volume and retention that we believe result
    from offering our Attain IVF programs. We have demonstrated the
    ability to increase Attain IVF Refund Program penetration
    because certain of our fertility centers had Attain IVF Refund
    Program penetration rates in excess of 25% during the six months
    ended June 30, 2009.
Continue
    Improving Operating Efficiencies
We continuously seek opportunities to lower costs and realize
    operating efficiencies through the implementation of a
    centralized infrastructure focused on improved accounts
    receivable management, along with leveraging economies of scale
    in support functions such as procurement, finance, information
    technology, human resources, risk management and legal services.
    We expect to further leverage our corporate infrastructure as we
    expand our network of Partner fertility centers and vein clinics.
Sales and
    Marketing
The marketing departments for our Fertility Centers, Consumer
    Services and Vein Clinics Divisions specialize in the
    development of sophisticated marketing and sales programs that
    give contracted fertility centers and vein clinics access to
    business-building techniques designed to facilitate growth and
    development. Although we believe these marketing and sales
    efforts are often too expensive for many individual physician
    practices, affiliation with us provides access to greater
    marketing and sales capabilities than would otherwise be
    available. In addition, our Consumer Services Division is
    focused on direct-to-consumer marketing, which we believe
    represents a competitive advantage over non-affiliated fertility
    centers. Our marketing services focus on referral enhancement,
    relationships with local physicians, media and public relations.
We operate web portals that: allow visitors access to
    educational material concerning infertility and vein care
    issues; provide links to our fertility Partner and Affiliate
    practices; provide links to our vein clinics; allow prospective
    patients to request fertility and vein care appointments or
    follow up contact; and allow prospective patients to request
    information on our Attain IVF programs and apply for treatment
    financing.
Competition
Our business divisions operate in highly competitive areas. Our
    fertility centers compete with national, regional and local
    physician practice fertility centers, hospitals and university
    medical centers, some of which have programs that compete with
    our Attain IVF programs. Our fertility centers may also compete
    with fertility centers located outside of the United States, due
    to the self-pay nature of IVF treatment. Our vein clinics
    compete with other vein care clinic providers, dermatologist and
    surgical clinics that provide ELT and sclerotherapy as an
    ancillary offering, vascular surgeons and interventional
    radiologists. Barriers to entry in the vein care industry are
    low. We do not believe that we currently face significant
    competition providing managerial services to fertility centers
    and vein clinics. We believe that the fertility centers and vein
    clinics we work with are well positioned to compete in our
    markets based on the reputations of the physicians providing
    services at those centers and clinics; however, there can be no
    assurance that these centers and clinics will be able to compete
    effectively with existing providers in our markets or that new
    competitors will not enter into our markets. These existing and
    new competitors may have greater financial and other resources
    than we or our fertility centers or vein clinics do. See
    "Risk Factors — We face increased competition
    from existing providers, as well as new providers entering our
    markets."
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Health
    Care Regulation
The health care industry is highly regulated. Our ability to
    operate profitably will depend in part upon our ability, and the
    ability of our affiliated physicians and physician practice
    groups, to obtain and maintain all licenses and other approvals
    necessary to comply with applicable health care regulations. We
    believe that health care regulations will continue to change.
    Therefore, we monitor developments in health care law, and we
    are likely to be required to modify our operations from time to
    time as our business and the regulatory environment changes.
    Many aspects of our current and anticipated business operations
    have not been the subject of specific judicial or regulatory
    interpretation. A review of our business by courts or regulatory
    authorities may result in a determination that could adversely
    affect our operations. In addition, the health care regulatory
    environment may change in a way that restricts our operations.
    Future changes in health care regulation are difficult to
    predict and may constrain or require us to restructure our
    operations, which could negatively impact our business and
    operating results.
Physician
    Licensure Laws
The practice of medicine is subject to state licensure laws,
    regulations and approvals. We have established a system designed
    to ensure that the physicians at our fertility centers and vein
    clinics are appropriately licensed under applicable state law.
    If physicians at the centers or clinics fail to renew their
    licenses on an annual basis or fail to maintain an unrestricted
    license, our business, financial condition and results of
    operations may be negatively impacted.
Corporate
    Practice of Medicine
Some states have laws that prevent business entities like us
    from practicing medicine, employing physicians and other
    individuals licensed in the healing arts or other learned
    profession and exercising control over their decisions, also
    known, collectively, as the corporate practice of medicine. In
    some states these prohibitions are expressly stated in a statute
    or regulation, whereas in other states the prohibition is a
    matter of judicial or regulatory interpretation. Additionally,
    in those states which apply such prohibitions to individuals
    licensed in the healing arts or other learned profession, it is
    not clear whether physician assistants or nurse practitioners
    would be subject to such prohibitions.
In states that prohibit the corporate practice of medicine, we
    operate by maintaining long-term management contracts with
    affiliated medical practices, which are each owned and operated
    by physicians and which employ or contract with additional
    physicians. Under such an arrangement, the laws of most states
    focus on the extent to which the corporation exercises control
    over the physicians and on the ability of the physicians to use
    their own professional judgment as to diagnosis and treatment.
    We do not represent to the public that we offer medical
    services, and we do not exercise influence or control over the
    practice of medicine by physicians or by their affiliated
    medical practices. In each of these states, the affiliated
    fertility center or vein clinic is the sole employer of the
    physicians, and the affiliated fertility center or vein clinic
    retains the full authority to direct the medical, professional
    and ethical aspects of its medical practice. Our fertility
    centers and vein clinics are duly licensed or qualified as a
    medical practice or foreign corporation in the states where such
    license or qualification is required.
Corporate practice of medicine laws and their interpretations
    are continually evolving and may change in the future. Moreover,
    these laws and their interpretations are generally enforced by
    state courts and regulatory agencies that have broad discretion
    in their enforcement. Although we neither employ physicians nor
    provide medical services in those states that prohibit the
    corporate practice of medicine, a state court or enforcement
    agency may conclude that we are engaged in the corporate
    practice of medicine in those states where we employ nurse
    practitioners and physician assistants who work under the
    supervision of the physicians at our fertility centers and vein
    clinics or because we provide services
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to physicians in connection with their performance of
    professional medical services through our management contracts.
Although we have not received notification from any state
    regulatory or similar authority asserting that we are engaged in
    the corporate practice of medicine, to the extent any act or
    service to be performed by us is construed by a court or
    enforcement agency as constituting the practice of medicine in a
    particular jurisdiction, we cannot be sure that such court or
    enforcement agency would not construe our arrangements as
    violating that jurisdiction's corporate practice of
    medicine doctrine. If such a claim were successful, we could be
    subject to civil and criminal penalties, could be required to
    restructure or terminate our applicable contractual arrangements
    and managed physicians could have restrictions imposed upon
    their licenses to practice medicine. Additionally, a physician
    shareholder of a managed practice might successfully avoid
    restrictions on the practice's ability to operate
    independent of our management on the grounds that the managed
    practice's management arrangement with us violates the
    state's prohibition on the corporate practice of medicine.
    Such results or the inability of us or the managed practices to
    restructure our relationships to comply with such prohibitions
    could have an adverse effect on our business, financial
    condition and results of operations.
Fee
    Splitting
The laws of some states prohibit physicians from splitting with
    anyone, other than providers who are part of the same group
    practice, any professional fee, commission, rebate or other form
    of compensation for any services not actually and personally
    rendered. The precise language and judicial interpretation of
    fee-splitting prohibitions varies from state to state.
Courts in a number of states, including Illinois, have
    interpreted fee-splitting statutes as prohibiting all percentage
    of gross revenue and percentage of net profit management fee
    arrangements, despite the performance of legitimate management
    services. Our management agreement with our Partner fertility
    center in Illinois provides that we will be paid a base fee
    equal to a fixed percentage of the revenues of the fertility
    center that declines to zero to the extent the costs relating to
    the management of the fertility center increase as a percentage
    of total revenues. There is a substantial risk that the
    compensation arrangement, being based on a percentage of
    revenues, would not be upheld if challenged under Illinois law.
    To address this, our management agreement provides that if such
    compensation arrangement is found to be illegal, unenforceable,
    against public policy or forbidden by law, the management fee
    will be an annual fixed fee to be mutually agreed upon, not less
    than $1,000,000 per year, retroactive to the effective date of
    the agreement, resulting in a reduction of our management fee.
    In such event, there is likely to be a decrease in the
    management fees derived from this fertility center as a result
    of the new fee structure, as well as repayment of amounts paid
    in excess of the prior management fee.
Fee-splitting laws and their interpretations vary from state to
    state and are enforced by state courts and regulatory
    authorities that have broad discretion in their enforcement. For
    example, our Attain IVF Refund Program could be interpreted by
    one or more state regulators as a prohibited fee split to the
    extent that we retain a portion of the payments patients pay
    directly to us for their medical treatment by our fertility
    centers. There can be no assurance that these laws will be
    interpreted in a manner consistent with our practices or that
    other laws or regulations will not be enacted in the future that
    could have a material adverse effect on our business, financial
    condition and operating results. Penalties for violating
    fee-splitting statutes or regulations may include the medical
    license revocation, suspension, probation or other disciplinary
    action of the providers affiliated with our fertility centers or
    vein clinics who have been found to violate the fee-splitting
    statutes or regulations.
In addition, courts have refused to enforce contracts found to
    violate state fee-splitting prohibitions. To the extent any of
    our contractual arrangements are construed by a court or
    enforcement agency as violating a jurisdiction's
    fee-splitting laws, there is a possibility that some provisions
    of our agreements
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may not be enforceable. For example, a physician shareholder of
    a managed practice might successfully avoid payment of a
    management fee on the grounds that the management arrangement
    violates the state's fee-splitting prohibition. We also may
    be required to redesign or terminate our arrangements, including
    our Attain IVF programs, and our relationships with our
    fertility centers or vein clinics in order to bring their
    activities into compliance with such laws. The termination of,
    or our failure to, successfully restructure, any such
    relationship could have a material adverse affect on our
    business, financial condition and operating results. In
    particular, a forced restructuring of our management fee could
    have a material impact on us. In addition, expansion of our
    operations to new jurisdictions could require structural and
    organizational modifications of our relationships with our
    fertility centers in order to comply with additional statutes.
Further, although our management agreements with our vein
    clinics provide that each vein clinic pay us a fee equal to 150%
    of our expenses of operating and managing the vein clinic, these
    fees have historically exceeded the operating margin generated
    by any particular vein clinic prior to payment of the management
    fee. Accordingly, each vein clinic only pays the portion of the
    management fee that is equal to the amount of revenue generated
    by the clinic annually up to the 150% amount. As a result, our
    vein clinics do not generate any net profits at year end. In
    those states that have interpreted fee-splitting statutes as
    prohibiting a percentage of net revenue management fee
    arrangements where we have vein clinics, there is material risk
    that a regulator could recharacterize our management fee as 100%
    of net revenue in violation of such states' fee-splitting
    statutes which would subject physicians affiliated with our vein
    clinics to disciplinary actions or civil penalties.
Courts in other states, including Maryland, where we have two
    vein clinics, have interpreted their fee-splitting statutes to
    prohibit non-physicians from receiving fees in connection with
    the management of a physician practice that do not bear a
    reasonable relationship to the services being rendered based on
    the fair market value of such services. A state regulator could
    conclude that 150% of our expenses does not bear a reasonable
    relationship to the services being rendered because none of our
    vein clinics generate sufficient revenues to pay the full
    management fee. If our management fee were to be challenged in a
    state such as Maryland, there is substantial risk that this
    compensation method would not be upheld, which could subject the
    providers who are affiliated with the vein clinics in Maryland
    to disciplinary action as well as civil penalties. We also have
    vein clinics in Wisconsin, Tennessee and Kansas which have a
    similar requirement that the management fee reflect the fair
    market value of the services being rendered and impose
    disciplinary actions, civil penalties and criminal penalties on
    the physicians who are affiliated with our vein clinics in those
    locations if such fee does not reflect the fair market value of
    the services being rendered.
Other state statutes only prohibit fee splitting in return for
    referrals or certain practice expansion or marketing activities.
    Although we provide technical assistance to help our fertility
    centers and vein clinics expand their practice and engage in
    marketing, such practice expansion or marketing activities are
    conducted by our fertility centers and vein clinics and not by
    us.
Federal
    and State Anti-Kickback Prohibitions
Various federal and state laws govern financial arrangements
    among health care providers. The federal anti-kickback law
    prohibits the knowing and willful offer, payment, solicitation
    or receipt of any form of remuneration in return for, or with
    the purpose to induce, the referral of Medicare, Medicaid or
    other federal health care program patients, or in return for, or
    with the purpose to induce, the purchase, lease or order of
    items or services that are covered by Medicare, Medicaid or
    other federal health care programs. Similarly, many state laws
    prohibit the solicitation, payment or receipt of remuneration in
    return for, or to induce, the referral of patients to private as
    well as government programs in violation of these statutes.
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Federal and state anti-kickback statutes are very broad and it
    is possible that a court could conclude that the marketing
    services we offer in exchange for a management fee based on a
    percentage of net profits constitutes a payment in violation of
    these statutes. Our fertility centers and vein clinics are also
    subject to these statutes, but we do not oversee and are not
    responsible for their compliance with these laws.
Violations of these anti-kickback laws may result in substantial
    civil or criminal penalties for individuals or entities. These
    laws may be enforced by the government or by private individual
    whistleblowers. If we or our fertility centers or vein clinics
    are found to have violated federal or state anti-kickback laws,
    our business, operations or financial condition could be
    adversely affected.
Physician
    Self-Referral Prohibitions
The federal physician self-referral statute, known as the
    "Stark" statute, prohibits a physician from making a
    referral for certain designated health services to any entity
    with which the physician has a financial relationship, unless
    there is an exception in the statute that allows the referral.
    The entity that receives a prohibited referral from a physician
    may not submit a bill to Medicare for that service. Federal
    courts have ruled that a violation of the Stark statute, as well
    as a violation of the federal anti-kickback law described above,
    can serve as the basis for a Federal False Claims Act suit. Many
    state laws prohibit physician referrals to entities with which
    the physician has a financial interest, or require that the
    physician provide the patient notice of the physician's
    financial relationship before making the referral. Violation of
    the Stark statute and state laws prohibiting physician referrals
    can result in substantial civil penalties for both the referring
    physician and any entity that submits a claim for a health care
    service made pursuant to a prohibited referral. Although we have
    structured our arrangements with our fertility centers and vein
    clinics to comply with the Stark statute and state laws
    prohibiting certain physician referrals, because of the
    complexity of these laws, these laws could be interpreted in a
    manner inconsistent with our operations. In addition, our
    fertility centers and vein clinics are themselves subject to
    these laws, but we do not oversee and are not responsible for
    their compliance with these laws. Federal or state self-referral
    regulation could adversely impact our arrangements with certain
    customers, and our ability to market our services directly to
    physicians in a position to refer patients to our fertility
    centers and vein clinics.
False
    Claims
Under separate federal statutes, submission of false or
    fraudulent claims to government payors may lead to civil
    monetary penalties, criminal fines and imprisonment
and/or
exclusion from participation in the Medicare, Medicaid and other
    federally-funded health care programs. These false claims
    statutes include the Federal False Claims Act, which allows any
    person to bring suit alleging false or fraudulent Medicare or
    Medicaid claims or other violations of the statute and to share
    in any amounts paid by the entity to the government in fines or
    settlement. In some jurisdictions, even claims that were
    accurately submitted for medically necessary health care
    services have been held by courts to be "false" where
    the provider was not in compliance with federal anti-kickback or
    Stark laws, or applicable Medicare regulations. These private
    actions have increased significantly in recent years and have
    increased the risk that we or our vein clinics will have to
    defend a false claims action, pay fines or be excluded from
    participation in the Medicare
and/or
Medicaid programs as a result of an investigation involving our
    fertility centers or vein clinics arising out of such an action.
Business
    of Insurance
Laws and regulatory approaches to insurance are state specific
    and vary widely from state to state. Although most states supply
    statutory definitions of "insurance," these
    definitions are subject to disparate interpretation by state
    courts, attorney generals and regulators. Our Attain IVF
    programs have
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several characteristics that are present in an insurance
    contract. We view our Attain IVF programs as guaranties or
    warranties of our fertility centers' performance; however,
    it is possible that an insurance regulator in a state where we
    conduct business could take the position that our Attain IVF
    programs are insurance and should be regulated as such by the
    state. If we are found to have engaged in the business of
    insurance without a license, we could be subject to criminal and
    civil penalties or be forced to comply with burdensome reserve
    requirements or restructure the programs.
Health
    Insurance Portability and Accountability Act of
    1996
Health care providers, health care clearinghouses and operators
    of health plans (collectively, "covered entities") are
    significantly affected by certain health information
    requirements contained in HIPAA. HIPAA and its implementing
    regulations established national standards for, among other
    things, certain electronic health care transactions, the use and
    disclosure of certain individually identifiable patient health
    information and the security of the electronic systems
    maintaining this information. These are commonly known as the
    HIPAA transaction and code set standards, privacy standards and
    security standards, respectively.
HIPAA allows covered entities to disclose protected health
    information to "business associates" if the covered
    entities obtain satisfactory assurances that the business
    associate will use the information only for the purposes for
    which it was engaged by the covered entity, will safeguard the
    information from misuse and will help the covered entity comply
    with some of the covered entity's duties under HIPAA. We
    are a "business associate" under HIPAA because we
    perform services for or on behalf of covered entities, such as
    our fertility centers or vein clinics, that involve the use or
    disclosure of protected health information. We enter into
    business associate agreements with covered entities and are
    contractually obligated to comply with the requirements of those
    agreements.
The American Recovery and Reinvestment Act of 2009, specifically
    the portion known as the Health Information Technology for
    Economic and Clinical Health Act (the "HITECH Act"),
    expanded the scope and application of HIPAA, including, among
    other things, applying the security and certain privacy
    provisions of HIPAA directly to business associates. Application
    of these rules to business associates is a significant change.
    Previously, liability under HIPAA rested exclusively with the
    covered entity. Under the HITECH Act, the business associate now
    has responsibility and liability directly for a breach.
Beginning on February 17, 2010, certain administrative,
    physical and technical safeguards and policy, procedure, and
    documentation requirements of the security standards under HIPAA
    will apply to a business associate in the same manner that they
    apply to a covered entity. For example, breaches of the security
    of electronic health records may require disclosure to affected
    individuals, news media and the Secretary of the
    U.S. Department of Health and Human Services. Such
    requirements must be incorporated into the business associate
    agreement between the business associate and the covered entity.
Under the HITECH Act, business associates will face criminal and
    civil liabilities for failure to comply with HIPAA. Criminal
    penalties may be imposed against persons who obtain or disclose
    protected health information without authorization. In addition,
    a state's attorney general can bring civil actions against
    a person on behalf of residents of the state that are adversely
    affected by violations of either HIPAA or the HITECH Act. The
    attorney general can either seek to enjoin further violations or
    obtain money damages on behalf of the residents harmed. The
    U.S. Department of Health and Human Services is also
    beginning to perform periodic audits of health care providers to
    ensure that required policies under the HITECH Act are in place.
    In addition, individuals harmed by violations will be able to
    recover a percentage of monetary penalties or a monetary
    settlement based upon methods established by the
    U.S. Department of Health and Human Services for this
    private recovery. HIPAA also authorizes the imposition of civil
    monetary penalties against entities that employ or enter into
    contracts with
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individuals or entities that have been excluded from
    participation in the Medicare or Medicaid programs, which means
    that we could be subject to penalties if our fertility centers,
    vein clinics or employees are excluded from participation in the
    Medicare or Medicaid programs. Any failure to comply with these
    laws could have an adverse impact on our business, operations or
    financial condition.
Antitrust
    Laws
In connection with the corporate practice of medicine laws
    referred to above, our fertility centers and vein clinics are
    organized as separate legal entities. As such, our fertility
    centers and vein clinics may be deemed to be persons separate
    from both us and each other under antitrust laws and,
    accordingly, subject to a wide range of laws that prohibit
    anti-competitive conduct among separate legal entities. There
    can be no assurance that a review of our business by courts or
    regulatory authorities would not have a material adverse effect
    on our operation or the operation of our fertility centers or
    vein clinics.
Future
    Legislation and Regulation
Health care providers are subject to federal, state and local
    laws and regulations, and sanctions imposed under or changes to
    such laws or regulations could adversely affect our operations
    or financial results. The federal fiscal year 2010 budget
    establishes a reserve fund of more than $630 billion over
    the next 10 years to finance fundamental reform of the
    United States' health care system, in an effort to reduce
    costs and expand health care coverage. The fund will be paid for
    by a combination of tax revenue and reductions in Medicare and
    Medicaid spending.
In addition, the White House announced in July 2009 that it had
    reached agreement with leading hospital groups, including the
    American Hospital Association, to cut federal payments under
    Medicare and Medicaid by $155 billion over 10 years as
    part of a plan to offset a portion of the cost of a national
    health insurance and health reform proposal. Much of these
    savings are reported to be derived from across-the-board cuts in
    Medicare hospital payments, with at least $50 billion in
    the cuts linked directly to increases in the number of uninsured
    who would be provided coverage under the proposed national
    health insurance proposal.
There are currently numerous proposals on the federal and state
    levels for comprehensive reforms relating to health care that
    could affect payment and reimbursement for health care services
    in the United States. The U.S. Congress is considering
    legislation that could dramatically overhaul the health care
    system, including the possibility of a government health care
    plan. If national reform legislation is enacted, we may benefit
    from certain provisions thereof, and, conversely, may be
    adversely affected by other provisions. For example, because our
    Attain IVF programs are self-pay programs for patients that do
    not have insurance coverage for fertility treatments, health
    care reform that increases insurance coverage for fertility
    treatments could lead to a decrease in demand for our Attain IVF
    programs. We cannot predict whether any such reforms will
    ultimately be adopted or the impact that such reforms may have
    on the demand or payment for our services.
Employees
As of June 30, 2009, we had 1,301 employees. Of these,
    1,055 were employed by our Fertility Centers Division, 14 by our
    Consumer Services Division, 194 by our Vein Clinics Division and
    38 were employed at our corporate headquarters, including 8 who
    were executive management. Of the 1,301 employees, 135 were
    employed on a part-time basis and 95 were employed on a per diem
    basis. We are not a party to any collective bargaining agreement
    and we believe that our employee relationships are good.
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Our
    Fertility Centers and Vein Clinics
For the years ended December 31, 2008, 2007 and 2006 and
    the six months ended June 30, 2009, the following
    contracted fertility centers each individually provided greater
    than 10% of our Fertility Centers Division revenues, net
and/or
contribution as follows:
Percent of Revenues,
    Net
Percent of
    Contribution
Six Months Ended
Year Ended
Six Months Ended
Year Ended
June 30,
December 31,
June 30,
December 31,
2009
2008
2007
2006
2009
2008
2007
2006
RSC of New England
7.1
7.2
9.0
10.7
9.1
9.1
11.0
12.2
Fertility Centers of Illinois, S.C. ("FCI")
13.9
16.1
19.0
22.0
13.2
13.3
15.3
16.3
Shady Grove Fertility Reproductive Science Center, P.C.
    ("Shady Grove")
18.3
17.9
21.2
22.7
16.7
16.1
20.3
19.0
Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of: a
    tiered percentage of the fertility center's net revenues;
    reimbursed costs of services (costs incurred in servicing a
    fertility center and any costs paid on behalf of the fertility
    center); and either a fixed percentage, or a fixed dollar
    amount, of the fertility center's earnings after services
    fees, which may be subject to further limits.
The third tier of our fee structure under these significant
    Partner agreements is as follows:
•
RSC of New England — a fixed annual percentage of the
    center's earnings.
•
FCI — a fixed percentage of the center's earnings
    subject to a fixed dollar amount, $1,865,000, as an upper
    boundary and a fixed dollar amount, $932,000. as a lower
    boundary subject to a fixed percentage of the center's
    earnings limitation.
•
Shady Grove — a fixed dollar amount of the
    center's earnings subject to a fixed percentage of the
    center's earnings limitation. The upper boundary of the
    calculation is $1,071,000 and the lower boundary of the
    calculation is $540,000.
A complete listing of our fertility Partner agreements and vein
    clinic locations is presented below.
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Fertility
    Partner Agreements
Remaining
Year Contract
Contract
No. of
No. of
Name
State
Acquired
Years
M.D.s
PhDs
Arizona Reproductive Medicine Specialists, Ltd.
AZ
July 2008
24
4
1
Southeastern Fertility Centers, P.A.
SC
April 2008
24
3
1
Center for Reproductive Medicine, P.A.
FL
August 2007
23
4
1
Reproductive Partners Medical Group, Inc.
CA
January 2005
21
9
0
Seattle Reproductive Medicine, Inc., P.S.
WA
January 2004
9
7
1
Reproductive Endocrine Associates of Charlotte, P.C.
NC
September 2003
9
6
1
Northwest Center for Infertility & Reproductive
    Endocrinology
FL
April 2002
8
7
1
Shady Grove Fertility Reproductive Science
    Center, P.C.
MD, VA & DC
March 1998
14
21
2
Fertility Centers of Illinois, S.C.
IL
February 1997
13
11
2
Bay Area Fertility & Gynecology Medical Group,
    Inc.
CA
January 1997
13
6
1
MPD Medical Associates (MA), P.C. (doing business as RSC of
    New England)
MA, NH & RI
July 1988
3
7
1
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Vein
    Clinic Locations
Location
Date Clinic Opened
Cleveland, OH
April 2009
Cincinnati, OH
January 2009
Pittsburgh, PA
December 2008
Skokie, IL
December 2008
Marietta, GA
June 2008
Alexandria, VA
April 2008
Boca Raton, FL
February 2008
Sterling, VA
December 2007
Ft. Lauderdale, FL
July 2007
St. Louis, MO
January 2007
Merrillville, IN
August 2006
Kansas City, MO
June 2006
West Palm Beach, FL
December 2005
Alpharetta, GA
October 2005
Gurnee, IL
September 2005
Naperville, IL
September 2004
Lawrenceville, GA
September 2001
Indianapolis, IN
April 2001
Knoxville, TN
March 2001
Raleigh, NC
March 2000
Greensboro, NC
January 2000
Madison, WI
March 1999
Rockville, MD
November 1998
Milwaukee, WI
March 1998
Charlotte, NC
February 1998
Orland Park, IL
November 1996
Fairfax, VA
March 1992
Overland Park, KS
April 1991
Owings Mills, MD
July 1990
Buffalo Grove, IL
August 1989
Atlanta, GA
June 1988
Oak Brook, IL
Pre-1985
Chicago, IL
Pre-1985
Schaumburg, IL
Pre-1985
Properties
Our headquarters and executive offices are located at Two
    Manhattanville Road in Purchase, New York, where we occupy
    approximately 18,500 square feet under a lease expiring in
    2012. Future lease payments for our headquarters and executive
    offices will approximate $51,100 per month.
We also lease or sublease the locations set forth in the two
    preceding tables for our Partner fertility centers and vein
    clinics. Costs associated with our Partner fertility centers are
    reimbursed to us as part of our fee agreement with the
    applicable center, whereas costs associated with vein clinic
    locations are not reimbursed.
We believe that our executive offices and the space occupied by
    our fertility centers and vein clinics are adequate for our
    operations.
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Legal
    Proceedings and Insurance
From time to time, we and our Partner fertility centers and vein
    clinics and their physicians are parties to legal proceedings in
    the ordinary course of business. We are exposed to claims of
    professional negligence based on services performed by our
    employees, including physician assistants and nurse
    practitioners, as well as based on our relationships with
    physicians providing treatments at our Partner fertility centers
    and vein clinics. None of these proceedings is expected to have
    a material adverse effect on our financial position, results of
    operations or cash flow. We maintain medical malpractice
    insurance with limits of $1 million per claim, regardless
    of the number of the covered defendants, and $10 million
    per year in the aggregate, with respect to our Partner fertility
    centers, and with limits generally equal to $1 million per
    physician and $10 million per year in the aggregate, with
    respect to our vein clinics. Our Partner fertility centers, vein
    clinics and their physicians are additional named insureds under
    our policies. All of our insurance policies are subject to
    deductibles or a self-insured retention. A portion of the
    insurance we maintain for certain of our fertility centers is
    provided by ARTIC.
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MANAGEMENT
Directors
    and Executive Officers
The following table sets forth information regarding our
    principal executive officers and directors, including their ages:
Name
Age
Position
Jay Higham
50
President, Chief Executive Officer and Director
John W. Hlywak, Jr.
62
Executive Vice President and Chief Financial Officer
Daniel P. Doman
48
President of Vein Clinics Division
Angela Gizinski
60
Vice President, Human Resources
Vijay Reddy
43
Vice President, Information Systems
Pamela Schumann
43
President of Consumer Services Division
Scott Soifer
46
Executive Vice President, Operations and Administration
Joseph J. Travia, Jr.
57
President of Fertility Centers Division
Claude E. White
60
Vice President, General Counsel and Secretary
Gerardo Canet
64
Chairman of the Board of Directors
Kush K. Agarwal
61
Director
Wayne R.
    Moon
(1)(2)(3)(4)(5)
69
Director
Lawrence J.
    Stuesser
(1)(2)(3)(5)(6)
67
Director
Elizabeth E.
    Tallett
(1)(2)(3)(5)
60
Director
Yvonne S. Thornton, M.D.,
    M.P.H.
(1)(2)(3)(5)(7)
61
Director
(1)
Member of the audit committee.
(2)
Member of the compensation committee.
(3)
Member of the nominating and governance committee.
(4)
Chairperson of the nominating and governance committee.
(5)
Independent director.
(6)
Chairperson of the audit committee.
(7)
Chairperson of the compensation committee.
JAY HIGHAM became our President and Chief Executive Officer,
    effective January 1, 2006, and had been our President and
    Chief Operating Officer since June 2004. He was appointed as a
    director, effective January 24, 2006. In October 1994,
    Mr. Higham joined us as Vice President of Marketing and
    Development and, in January 1999, was promoted to Senior Vice
    President of Marketing and Development. He earned a B.S. in
    Psychology from the University of Rochester and an M.H.S.A. from
    George Washington University.
JOHN W. HLYWAK, JR. joined us in July 1999 as our Senior Vice
    President and Chief Financial Officer and was named Executive
    Vice President and Chief Financial Officer in March 2006.
    Mr. Hlywak is a certified public accountant and has a B.S.
    in Accounting from Widener University.
DANIEL P. DOMAN joined us in August of 2007 with the acquisition
    of VCA. Since May 2008, he has served as President of our Vein
    Clinics Division. Previously, Mr. Doman was the Chief
    Financial Officer of VCA. Prior to joining VCA in April 2006, he
    was a Managing Director at Health Dimensions Group, a national,
    integrated senior living and health care management consulting
    firm, from April 2003 to March 2006. Prior to that,
    Mr. Doman was a Partner with BDO Seidman, LLP, an
    accounting and consulting firm, from July 1998 to March 2003. He
    has a Bachelor's degree in Accounting and Finance from
    Loyola University of Chicago.
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ANGELA GIZINSKI joined us in April 2006 as our Vice President,
    Human Resources. For more than three years prior to joining us,
    Ms. Gizinski was Director, Human Resources with Sara Lee
    Branded Apparel, now known as Hanesbrands, Inc.
    Ms. Gizinski has an Associates Degree from Bay Path Junior
    College and a B.A. in Human Resource Management from Fairfield
    University.
VIJAY REDDY serves as our Vice President, Information Systems.
    Before joining us in 2003 as Manager of Technical Operations,
    Mr. Reddy was Director of Infrastructure &
    Technology for Lifetime Television in New York. He also has held
    management positions in information systems with Martha Stewart
    Living Omnimedia, Conde Nast Publications, Viacom and
    Schlumberger. Mr. Reddy has a Bachelor's degree in
    Computer Science from St. John's University, and he is a
    certified Institute of Electrical and Electronics Engineers
    Computer Systems Engineer.
PAMELA SCHUMANN was appointed President of our Consumer Services
    Division in September 2007. Prior to that, she served as our
    Vice President, Consumer Services. She joined us in 2001 to help
    launch our consumer services initiative. Ms. Schumann
    received her B.A. in Marketing from the University of
    Maryland's Robert H. Smith School of Business.
SCOTT SOIFER joined us in January 2005 as our Vice President,
    Marketing and Development and was promoted to Executive Vice
    President, Operations and Administration in July 2008. For more
    than 12 years prior to joining us, Mr. Soifer was an
    Associate Partner at Accenture (formerly Andersen Consulting),
    specializing in health care strategy, focused primarily on the
    health insurance sector. Mr. Soifer has a Bachelor's
    degree in Computer Science from the University of California at
    Santa Barbara and an M.B.A. from the Kellogg School of
    Management at Northwestern University.
JOSEPH J. TRAVIA, JR. was appointed President of our Fertility
    Centers Division in September 2007. Prior to that, he served as
    our Senior Vice President, Operations, Eastern Region. He joined
    us in 2000 as Vice President and Executive Director of our
    Reproductive Science Center in New England. Mr. Travia is a
    certified public accountant and earned a B.S. in Management from
    Boston College and an M.B.A. from Babson College.
CLAUDE E. WHITE joined us in March 1995 as General Counsel and
    Assistant Secretary. In January 1998, Mr. White became
    Corporate Secretary, in addition to General Counsel, and in May
    2002 became a Vice President. Mr. White received his B.A.
    in Political Science from Rutgers College and his J.D. from
    Rutgers School of Law.
GERARDO CANET served as our Chief Executive Officer from
    February 14, 1994 to December 31, 2005 and has been a
    director since February 14, 1994. Mr. Canet resigned
    as our Chief Executive Officer effective December 31, 2005,
    but continues to serve as chairman of the board and a consultant
    to the Company. Mr. Canet has been a director of Dendreon
    Corporation since December 1996. He earned a B.A. in Economics
    from Tufts University and an M.B.A. from Suffolk University.
KUSH K. AGARWAL became a director effective August 8, 2007.
    He served as President of VCA, which we acquired on
    August 8, 2007, from August 1987 until he resigned on
    May 15, 2008. Mr. Agarwal has a Master of Science in
    Industrial Administration from Carnegie-Mellon University, a
    Master of Science in Applied Analysis and Operations Research
    from the State University of New York and a Bachelor of
    Technology in Mechanical Engineering from Indian Institute of
    Technology.
WAYNE R. MOON became a director in May 2001. Mr. Moon
    joined Kaiser Foundation Health Plan, Inc. in 1970 and was
    subsequently elected President, Chief Operating Officer and
    director. In September 1993, Mr. Moon was appointed
    President and Chief Executive Officer of Blue Shield of
    California and a member of its board of directors and, later,
    chairman. Mr. Moon retired from Blue Shield of California
    in January 2000. Until recently, he served as chairman of the
    board of RelayHealth, Inc. He
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serves on various corporate and civic boards, including Varian,
    Inc. and the California State Automobile Association.
    Mr. Moon earned a B.B.A. and a Masters in Hospital
    Administration from the University of Michigan.
LAWRENCE J. STUESSER became a director in April 1994. Since June
    1999, Mr. Stuesser has been a private investor. From June
    1996 to May 1999, Mr. Stuesser was the President and Chief
    Executive Officer and a director of Computer People Inc., the
    U.S. subsidiary of London-based Delphi Group plc, of which he
    was also a director. Mr. Stuesser was a director of
    American Retirement Corporation from May 1997 to July 2006.
    Early in his career, Mr. Stuesser qualified as a certified
    public accountant and served as an audit manager with Alexander
    Grant & Company, an accounting firm. Mr. Stuesser
    holds a B.B.A. in Accounting from St. Mary's
    University.
ELIZABETH E. TALLETT became a director in June 1998. Since July
    2002, Ms. Tallett has been a Principal of Hunter Partners,
    LLC, which provides management services to developing life
    sciences companies. Ms. Tallett is a director of The
    Principal Financial Group, Inc., Varian, Inc., Coventry Health
    Care, Inc. and Meredith Corp. Inc. Ms. Tallett graduated
    from Nottingham University with degrees in Mathematics and
    Economics.
YVONNE S. THORNTON, M.D., M.P.H. became a director in
    January 2006. Dr. Thornton is a double board-certified
    specialist in obstetrics, gynecology and maternal-fetal
    medicine. Currently, Dr. Thornton is a perinatal consultant
    at Westchester Medical Center in New York. Dr. Thornton is
    a former Professor of Clinical Obstetrics and Gynecology at
    Cornell (Weill) Medical College and Vice-Chair of the Department
    of OB/GYN and Director of Maternal-Fetal Medicine at Jamaica
    Hospital Medical Center in New York City, where she served from
    2002 to 2005. Dr. Thornton is a Diplomate of the American
    Board of Obstetrics and Gynecology, a Fellow of the American
    College of Surgeons and an Oral Examiner for the American Board
    of Obstetrics and Gynecology. After graduating with honors from
    Monmouth College in New Jersey, she received her M.D. with
    honors from Columbia University College of Physicians and
    Surgeons. Dr. Thornton also received her Executive Masters
    (M.P.H.) degree in Health Policy and Management from Columbia
    University.
Director
    Independence
Our board of directors has determined that Messrs. Moon and
    Stuesser, Ms. Tallett and Dr. Thornton are independent
    directors, in accordance with Nasdaq Marketplace
    Rule 5605(a)(2), because none of them is believed to have
    any relationships that, in the opinion of our board of
    directors, would interfere with the exercise of independent
    judgment in carrying out their responsibilities as a director.
    In addition, our board of directors has also determined that
    Mr. Sarason Liebler, who ceased being a member of our board
    of directors on May 12, 2009 because he had reached the
    mandatory retirement age of 72 under our corporate governance
    guidelines, was an independent director in accordance with
    Nasdaq Marketplace Rule 5605(a)(2). Our board of directors
    considered the $57,533 of consulting fees that were paid by us
    to Mr. Liebler in 2008 when determining his independence.
Committees
    of the Board of Directors
Our board of directors maintains an audit committee, a
    compensation committee and a nominating and governance committee.
Audit
    Committee
The audit committee is charged by our board of directors to
    (a) study, review and evaluate our accounting, auditing and
    financial reporting practices, including the internal controls
    and audit functions, (b) assess our compliance with legal
    and regulatory requirements and (c) select the independent
    auditors and review their qualifications, independence and
    performance, while being the focal
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point for communications between our board of directors, our
    management and the independent auditors. More specifically, the
    audit committee pre-approves all audit and non-audit services to
    be performed by the independent auditors, reviews the scope and
    results of the audit of our financial statements, reviews
    financial statements and periodic filings with the Securities
    and Exchange Commission and discusses the same with our
    management.
Each audit committee member is an independent director, as
    defined in Nasdaq Marketplace Rule 5605(a)(2). Our board of
    directors has determined that in addition to being independent,
    Mr. Stuesser is an "audit committee financial
    expert" as such term is defined in Item 407 of
Regulation S-K
promulgated by the Securities and Exchange Commission.
Compensation
    Committee
The compensation committee, under a delegation of authority from
    our board of directors, reviews and makes decisions with respect
    to salaries, wages, bonuses, equity awards and other benefits
    and incentives for our executive officers.
Nominating
    and Governance Committee
Our board of directors maintains a nominating and governance
    committee consisting of independent directors, as defined in
    Nasdaq Marketplace Rule 5605(a)(2). The primary purpose of
    the nominating and governance committee is to provide oversight
    on the broad range of issues surrounding the composition and
    operation of our board of directors, including identifying
    individuals qualified to become members of our board of
    directors, recommending to our board of directors director
    nominees for the next annual meeting of stockholders and
    recommending to our board of directors a set of corporate
    governance principles applicable to us. The nominating and
    governance committee also provides assistance to our board of
    directors in the areas of committee selection, evaluation of the
    overall effectiveness of our board of directors and management
    and review and consideration of developments in corporate
    governance practices. The nominating and governance
    committee's goal is to assure that the composition,
    practices, and operation of our board of directors contribute to
    value creation and effective representation of our stockholders.
Compensation
    Committee Interlocks and Insider Participation
During 2008, the members of the compensation committee were
    Ms. Tallett (chairperson), Messrs. Liebler, Moon and
    Stuesser and Dr. Thornton. Mr. Liebler ceased being a
    member of our board of directors and the compensation committee
    on May 12, 2009 because he had reached the mandatory
    retirement age of 72 under our corporate governance guidelines.
    All of the individuals listed above are, or, in the case of
    Mr. Liebler, were, independent directors, as defined in
    Nasdaq Marketplace Rule 5605(a)(2). None of the individuals
    listed above has ever been an officer or employee of us or any
    of our subsidiaries. During 2008, none of our executive officers
    served on the compensation committee or board of directors of
    any other entity that had any executive officer who also served
    on the compensation committee of our board of directors or our
    board of directors.
Compensation
    Discussion and Analysis
Overview
    and Objectives
The objective of our compensation program, consisting of base
    salary, executive incentive compensation (performance-based
    compensation), stock options, restricted stock and restricted
    stock unit ("RSU") grants, is to ensure that in our
    effort to create stockholder value, we attract, motivate and
    retain executives capable of assisting in the creation of such
    stockholder value.
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Our compensation program is designed to be competitive by
    providing base salaries that are market driven; rewarding for
    our performance and individual performance through annual
    incentive compensation awards; and retaining executives through
    grants of stock option, restricted stock and RSU awards that
    provide for vesting over time, and upon the obtainment of
    certain performance targets in the case of RSUs. Commencing in
    2008, we awarded senior executives with stock option awards that
    vest over a four-year period and, commencing in 2009, we are
    awarding senior executives with grants of performance-based
    RSUs. In order to be market competitive with salaries for senior
    executives, the compensation committee annually assesses market
    salaries and attempts to ensure that salaries for our senior
    executives fall within the mid to upper range of salaries for
    comparable positions, taking into consideration experience,
    background and annual individual performance reviews for
    individual executives, but qualified to comparable size
    companies within comparable industries. With respect to
    executive incentive compensation, our executives are expected to
    accomplish individual goals annually that contribute to our
    overall growth. To the extent the goals are accomplished, such
    executives are rewarded. Additionally, our executives are
    rewarded if we achieve certain revenue and bottom-line goals
    each year, with greater reward being provided based on higher
    level of achievement.
We believe that linking executive compensation to corporate
    performance results in a better alignment of compensation with
    our goals and the interests of our stockholders. As performance
    goals are met or exceeded, most probably resulting in increased
    value to stockholders, executives are rewarded commensurately.
    We believe the compensation levels during 2008 for our
    executives and our Chief Executive Officer adequately reflect
    our compensation goals and philosophy.
Elements
    of Our Compensation Program
We have chosen these four elements of compensation because of
    the belief that, taken together, (a) base salary,
    (b) executive incentive compensation, (c) stock option
    awards and (d) restricted stock and RSU grants represent
    the fairest way to compensate for services, provide a financial
    incentive to achieve long-term goals and objectives and help
    align an executive's interest with that of our
    stockholders. Short-term compensation is typically in the form
    of base salary and annual incentive bonuses and long-term
    compensation is typically in the form of equity. Each
    individual's base salary is determined based on years of
    experience and market rates for similar positions with other
    companies of comparable size. While the compensation committee
    does not believe that it is appropriate to establish
    compensation levels based solely on market comparisons or
    industry practices, it believes that information regarding pay
    practices at other companies is useful in assessing the
    reasonableness of compensation and recognizes that we need to be
    competitive for executive talent in our industry. A significant
    part of an executive's compensation is the incentive bonus
    compensation program. This program provides a cash bonus which
    targets 75% of base salary for our President and Chief Executive
    Officer, 50% of base salary for the division Presidents and
    Executive Vice Presidents, 40% of base salary for Senior Vice
    Presidents and 30% of salary for Vice Presidents. The program
    has been designed to (a) reward executives who have
    achieved specific business and financial success during our most
    recent fiscal year, (b) give executives the incentive to
    strive for higher productivity, efficiency and quality of
    services and (c) encourage the "best" people to
    join us and stay with us. The program is based on achieving
    specific goals and results set by our President and Chief
    Executive Officer, and approved by the compensation committee.
    Our executive incentive compensation program consists of two
    parts: part one is based on our performance versus budget and
    part two is based on the achievement of individual performance
    goals. The maximum amount earned under part one is 60% of an
    individual's total maximum incentive compensation which, as
    stated above, ranges from 30% to 75% of base salary. Part two of
    our incentive compensation program is based on the achievement
    of certain common milestones related to our achievements and
    specific milestones established for each executive. The common
    milestones are applicable to all eligible employees and the
    specific milestones apply to each eligible employee and are
    determined by each executive's individual supervisor with
    the approval of our President and Chief Executive Officer. For
    Mr. Higham, our President and Chief Executive Officer,
    whose milestones are
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approved by the compensation committee, the common milestones
    represented 10% of his bonus eligibility and the specific
    milestones represented 30% of his bonus eligibility for 2008.
    For Mr. Hlywak, our Executive Vice President and Chief
    Financial Officer, 10% of his eligible bonus was based on the
    common milestones and the specific milestones represented 30% of
    his bonus eligibility for 2008.
Our President and Chief Executive Officer recommends to, and
    consults with, the compensation committee with respect to the
    base salaries of our executive officers. In order to assure that
    executive compensation is both competitive and appropriate, the
    compensation committee reviews executive compensation in its
    entirety before determining compensation level adjustments. The
    overall compensation of our senior executives is intended to
    fall within an appropriate range for comparable positions in our
    industry.
The compensation committee may retain the services of a
    compensation consultant to advise and assist it in the
    performance of its functions. During 2008, the compensation
    committee engaged Frederic W. Cook & Co.
    ("Cook"), which received instructions from, and
    reported directly to, the compensation committee. The
    compensation committee requested Cook's advice on a variety
    of issues, including compensation strategy, market comparisons,
    pay and performance alignment versus industry peers, executive
    pay trends and potential compensation plan design and
    modifications.
Historically, our executive compensation structure emphasized
    cash components over long-term incentive components, due
    primarily to the low trading volume of our common stock. As we
    have grown, it has become more feasible to increase the emphasis
    on long-term incentives, making our executive compensation more
    competitive with comparable companies by increasing the equity
    portion of our overall compensation.
Allocation
    of Compensation Among the Four Elements
In determining what portion or percentage of an executive's
    compensation is to be allocated among the four elements
    discussed above, we have determined that the largest portion
    should be allocated to base salary, the next largest portion to
    executive incentive compensation and the smallest portion to
    stock option awards and restricted stock and RSU grants. We
    recognize that in order to attract, motivate and retain
    executives, there must be a connection among each element of
    compensation that accomplishes the objectives stated above. Base
    salary serves to attract competent executives in what is an
    increasingly competitive marketplace. Executive incentive
    compensation serves as a good motivator for executives to strive
    for the highest level of productivity, which results in
    stockholder value. Stock option awards and restricted stock and
    RSU grants serve to retain executives because the vesting of the
    stock options, shares of restricted stock and RSUs granted is
    over a period of time and with the growth of our common stock,
    each executive's incentives are aligned with those of our
    stockholders.
Perquisites
We provide our President and Chief Executive Officer, Jay
    Higham, with a leased vehicle that is maintained at our expense.
    The total 2008 expenses related to the leased vehicle were
    $12,463. Mr. Doman, the President of our Vein Clinics
    Division, received an automobile allowance for a portion of the
    year ended December 31, 2008 in an aggregate amount of
    $2,564.
401(k)
    Defined Contribution Plan
We maintain a 401(k) Plan that allows executives, as well as our
    other employees, to make elective salary deferrals in accordance
    with Internal Revenue Service ("IRS") regulations. We
    provide a discretionary match of 25% of an individual's
    maximum contribution of $15,500, up to 1.5% of an
    individual's compensation of $230,000 or less for the year,
    for a maximum match of $3,450 per individual. For our President
    and Chief Executive Officer, our Executive Vice President and
    Chief
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Executive and our other Named Executive Officers (as defined
    below), we contributed the maximum match of $3,450 in 2008.
Retirement
    Benefits
No retirement benefits are provided to our executives.
Severance
    and Change of Control Arrangements
Jay
    Higham Employment Agreement
On October 10, 2005, we entered into an employment
    agreement with Jay Higham to serve as our President and Chief
    Executive Officer, effective January 1, 2006. Pursuant to
    the employment agreement, Mr. Higham was appointed as one
    of our directors on January 24, 2006. The employment
    agreement provides that Mr. Higham receive an annual base
    salary of $275,000, subject to increases. Under the employment
    agreement, Mr. Higham was granted shares of our common
    stock with a value of $400,000 based on the closing price of our
    common stock as reported on the Nasdaq Global Market on the
    first trading day of January 2006. The number of shares of our
    common stock granted to Mr. Higham was 32,000 and such
    shares of common stock vest over a
10-year
period. Pursuant to the employment agreement, we may terminate
    Mr. Higham's employment without cause on
    30 days' prior notice, in which event Mr. Higham
    will receive, as severance pay, 12 months' base
    salary, plus Mr. Higham's annual bonus, without regard
    to the condition precedents established for the bonus payment,
    in one lump sum payment. Under the employment agreement, if we
    had terminated Mr. Higham effective December 31, 2008,
    based on his 2008 compensation, he would have been paid an
    aggregate of $545,000, $330,000 of which represents his 2008
    base salary and $215,000 of which represents his accrued 2008
    bonus.
The employment agreement further provides that if, within one
    year after our "Change of Control" (as defined in the
    employment agreement), Mr. Higham's employment is
    terminated by Mr. Higham for "Good Reason" (as
    defined in the employment agreement) or by us without cause,
    Mr. Higham will be paid a lump sum amount equal to his base
    salary for a
24-month
period, plus twice the full amount of Mr. Higham's
    annual bonus based on his then current base salary, without
    regard to the condition precedents established for the bonus
    payment. Based on this change of control provision, if we had
    experienced a "Change of Control" in 2008 and
    Mr. Higham's employment had been terminated effective
    December 31, 2008, for either "Good Reason" by
    Mr. Higham or without cause by us, Mr. Higham would
    have been entitled to termination pay equal to an aggregate of
    $1,089,000, $660,000 of which represents his then annualized
    base salary for
24-months
and $429,000 of which represents twice the full amount of his
    annual bonus.
Under the employment agreement, Mr. Higham has agreed not
    to compete with us while employed by us and for a period of two
    years thereafter.
Executive
    Retention Agreements
We are also a party to executive retention agreements with our
    executive officers, including Mr. Hlywak, our Executive
    Vice President and Chief Financial Officer, and the other Named
    Executive Officers (as defined below).
The executive retention agreements provide for certain severance
    payments and benefits to the Named Executive Officers in the
    event of a termination of their employment, either by us without
    cause or by the executive for "Good Reason" (as
    defined in the executive retention agreement), at any time
    within 18 months after we experience a "Change in
    Control" (as defined in the executive retention agreement)
    (any such termination, a "Qualifying Termination").
    More specifically, the executive retention
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agreements provide the Named Executive Officers with one
    additional year of base salary, bonus (if applicable) and
    benefits (or equivalent) more than they would previously have
    been entitled to receive upon a termination without cause.
    Accordingly, pursuant to the executive retention agreements, in
    the event of a Qualifying Termination, the Named Executive
    Officers will be paid one year's severance. Pursuant to the
    terms of the executive retention agreements, all incentive stock
    options granted to a Named Executive Officer will become fully
    vested upon a Qualifying Termination, subject to certain terms
    and conditions. Also, pursuant to the executive retention
    agreements, we would be required to pay each Named Executive
    Officer for all reasonable fees and expenses incurred by them in
    litigating their rights under the executive retention
    agreements, to the extent a Named Executive Officer is
    successful in any such litigation.
Under the executive retention agreements, in the event a Named
    Executive Officer, other than Mr. Higham, who would be paid
    in accordance with the terms of his employment agreement, is
    terminated without cause under circumstances outside a
    "Change in Control," each Named Executive Officer
    would be paid 90 days base salary continuation. In the
    event Mr. Hlywak had been terminated without cause
    effective December 31, 2008 as a result of a "Change
    in Control" that occurred in 2008, Mr. Hlywak would
    have been paid an aggregate of $484,000, $256,000 of which
    represents his 2008 annual base salary and $128,000 of which
    represents the bonus amount Mr. Hlywak would have been
    eligible to receive. For each of the other Named Executive
    Officers, had they been terminated without cause effective
    December 31, 2008 as a result of a "Change in
    Control" that occurred in 2008, he or she would have been
    paid his or her 2008 annual base salary and bonus amount which
    he or she would have been eligible to receive. For
    Mr. Doman, the payment would have been an aggregate of
    $310,520, $221,880 of which represents annual base salary and
    $88,720 of which represents bonus. For Mr. Travia, the
    payment would have been an aggregate of $343,000, $245,000 of
    which represents annual base salary and $98,000 of which
    represents bonus. For Ms. Schumann, the payment would have
    been an aggregate of $294,000, $210,000 of which represents
    annual base salary and $84,000 of which represents bonus.
Finally, in certain circumstances, Section 162(m) of the
    Internal Revenue Code of 1986, as amended
    ("Section 162(m)"), limits to $1 million the
    deductibility of compensation, including stock-based
    compensation, paid to executives by public companies. None of
    the compensation paid to our executive officers in 2008 exceeded
    the threshold for deductibility under Section 162(m).
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Summary
    Compensation Table
The following table sets forth a summary of the compensation
    paid or accrued by us during the years ended December 31,
    2008, 2007 and 2006 for our President and Chief Executive
    Officer, our Executive Vice President and Chief Financial
    Officer and our next three most highly compensated executive
    officers (the "Named Executive Officers"):
Stock
Option
All Other
Salary
Bonus
Awards
Awards
Compensation
Total
Name and Principal
    Position
Year
($)
($)
($)
(1)
($)
(1)
($)
(2)
($)
Jay Higham
2008
$
330,000
$
128,700
$
70,949
$
112,516
$
15,913
$
658,078
President and Chief
2007
$
300,000
$
195,000
$
154,000
—
$
13,555
$
662,555
Executive Officer
2006
$
275,000
$
148,500
$
441,250
—
$
15,828
$
880,578
John W. Hlywak, Jr.
2008
$
256,000
$
76,500
$
38,252
$
56,259
$
3,450
$
430,461
Executive Vice President
2007
$
245,000
$
122,500
$
84,807
—
$
3,300
$
455,607
and Chief Financial Officer
2006
$
234,000
$
105,750
$
28,200
—
$
3,300
$
371,250
Daniel P.
    Doman
(3)
2008
$
221,880
$
42,750
$
100,004
$
49,550
$
6,014
$
420,198
President of Vein Clinics
2007
$
79,167
$
56,670
—
—
—
$
135,837
Division
Pamela
    Schumann
(4)
2008
$
210,000
$
84,000
$
27,500
$
56,259
$
3,450
$
381,209
President of Consumer
2007
$
122,635
$
31,863
$
111,075
—
$
2,895
$
268,468
Services Division
2006
$
97,231
$
28,800
$
9,770
—
$
2,775
$
138,576
Joseph J. Travia, Jr.
2008
$
245,000
$
110,250
$
37,500
$
56,259
$
3,450
$
452,459
President of Fertility Centers
2007
$
222,654
$
87,200
$
124,600
—
$
3,300
$
437,754
Division
2006
$
201,076
$
63,570
$
19,800
—
$
3,015
$
287,461
(1)
See Note 19 of our consolidated financial statements
    included elsewhere in this prospectus for a discussion of the
    assumptions made in the valuation of the stock awards and the
    option awards.
(2)
This column includes the amounts of $12,463, $10,255 and $12,528
    for the years ended December 31, 2008, 2007 and 2006,
    respectively, paid by us in connection with a vehicle leased for
    Mr. Higham, $2,564 for the year ended December 31,
    2008 paid by us in connection with a vehicle leased for
    Mr. Doman, plus amounts representing our matches made for
    the Named Executive Officers under our 401(k) Plan.
(3)
Mr. Doman joined us on August 8, 2007 with our
    acquisition of VCA.
(4)
Ms. Schumann worked on a part-time basis from
    January 1, 2006 through November 14, 2007.
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Table of Contents
Grants of
    Plan-Based Awards for the Fiscal Year Ended December 31,
    2008
The following table sets forth certain information concerning
    the Named Executive Officers with respect to grants of
    plan-based awards for the fiscal year ended December 31,
    2008:
All Other
Option Awards:
All Other
Number of
Stock Awards:
Securities
Exercise or
Grant Date
Number of Shares
Underlying
Base Price of
Fair Value of
of Stock or Units
Options
Option  Awards
Stock and
Name
Grant Date
(#)
(1)
(#)
($/Sh)
(2)
Option Awards
Jay Higham
1/02/08
(3)
5,573
$
11.20
$
13,416
5/13/08
(3)
6,265
$
56,761
5/13/08
(4)
1,566
$
14,188
7/22/08
(4)
33,600
$
8.06
$
99,100
John W. Hlywak, Jr.
1/02/08
(3)
2,787
$
11.20
$
6,709
5/13/08
(3)
3,378
$
30,605
5/13/08
(4)
844
$
7,647
7/22/08
(4)
16,800
$
8.06
$
49,550
Daniel P. Doman
5/13/08
(4)
11,038
$
100,004
7/22/08
(4)
16,800
$
8.06
$
49,550
Pamela Schumann
1/02/08
(3)
2,787
$
11.20
$
6,709
5/13/08
(4)
828
$
7,502
5/13/08
(4)
3,311
$
29,998
7/22/08
(4)
16,800
$
8.06
$
49,550
Joseph J. Travia, Jr.
1/02/08
(3)
2,787
$
11.20
$
6,709
5/13/08
(4)
828
$
7,502
5/13/08
(3)
3,311
$
29,998
7/22/08
(4)
16,800
$
8.06
$
49,550
(1)
Represents grants of restricted stock.
(2)
Options were issued with an exercise price equal to $11.20 per
    share with respect to the January 2, 2008 grants and $6.15
    per share with respect to the July 22, 2008 grants, which,
    in each case, represented the last reported sale price for our
    common stock on the date of grant, as reported by the Nasdaq
    Global Market.
(3)
Granted pursuant to our 2000 Long-Term Compensation Plan.
(4)
Granted pursuant to our 2007 Long-Term Compensation Plan.
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Table of Contents
Outstanding
    Equity Awards at December 31, 2008
The following table sets forth outstanding equity awards with
    respect to the Named Executive Officers at December 31,
    2008:
Option Awards
Stock Awards
Number of
Market
Securities
Number of
Value of
Underlying
Shares or
Shares or
Unexercised
Units of
Units of
Options
Option
Option
Stock That
Stock That
(#)
Exercise
Expiration
Have Not
Have Not
Name
Unexercisable
Price($)
Date
Vested
    (#)
(1)
Vested
    ($)
(2)
Jay Higham
5,573
$
11.20
01/02/2018
13,461
$
90,862
33,600
$
8.06
07/22/2018
John W. Hlywak, Jr.
2,787
$
11.20
01/02/2018
7,582
$
51,179
16,800
$
8.06
07/22/2018
Daniel P. Doman
16,800
$
8.06
07/22/2018
8,589
$
57,976
Pamela Schumann
2,787
$
11.20
01/02/2018
8,568
$
57,834
16,800
$
8.06
07/22/2018
Joseph J. Travia, Jr.
2,787
$
11.20
01/02/2018
8,568
$
57,834
16,800
$
8.06
07/22/2018
(1)
Restricted stock awards granted May 13, 2005 to the Named
    Executive Officers vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period. Restricted stock awards granted January 4, 2006 to
    Mr. Higham vest over a
120-month
period at the rate of 2.5% every 90 days of the
120-month
period. Restricted stock awards granted May 23, 2006 to the
    Named Executive Officers vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period. Restricted stock awards granted May 15, 2007 to the
    Named Executive Officers vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period. Twenty-five percent of the restricted stock awards
    granted to Messrs. Higham and Hlywak on September 24,
    2007 vested immediately with the balance vesting over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period. Restricted stock awards granted September 24, 2007
    to Ms. Schumann and Mr. Travia vest over a
60-month
period at the rate of 5% every 90 days of the
60-month
period. The Named Executive Officers received two restricted
    stock awards on May 13, 2008; the first restricted stock
    award vests over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period and the second restricted stock award vests on
    May 12, 2011. Of the total 7,831 shares of restricted
    stock granted to Mr. Higham, 6,265 vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period and 1,566 shares vest on May 12, 2011. Of the
    total 4,222 shares of restricted stock granted to
    Mr. Hlywak, 3,378 vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period and 844 shares vest on May 12, 2011. All of the
    11,038 shares of restricted stock granted to Mr. Doman
    vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period. Of the total 4,139 shares of restricted stock
    granted to Ms. Schumann, 3,311 vest over a
36-month
period at the rate of 8.33% every 90 days of the
36-month
period and 828 shares vest on May 12, 2011.
(2)
The market value of the restricted stock awards is based on the
    last reported sale price for our common stock on
    December 31, 2008, as reported by the Nasdaq Global Market,
    which was $6.75.
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Table of Contents
Option
    Exercises and Stock Vested for the Fiscal Year Ended
    December 31, 2008
The following table shows option exercises and stock award
    vesting with respect to the Named Executive Officers for the
    year ended December 31, 2008:
Stock Awards
Number of Shares
Value Realized
Acquired on Vesting
on Vesting
Name
(#)
(1)
($)
(2)
Jay Higham
7,831
$
70,448
John W. Hlywak, Jr.
4,222
$
36,900
Daniel P. Doman
11,038
$
79,032
Pamela Schumann
4,139
$
31,580
Joseph J. Travia, Jr.
4,139
$
31,580
(1)
Reflects shares of restricted stock that vested during the year
    ended December 31, 2008.
(2)
The value realized on vesting is based on the last reported sale
    price for our common stock on the vesting date, as reported by
    the Nasdaq Global Market.
Pension
    Benefits
We do not have any pension plans.
Nonqualified
    Deferred Compensation
We do not have a deferred compensation plan.
Director
    Compensation
In 2008, our non-employee directors were paid an annual retainer
    of $30,000 and a fee of $2,000 for each regularly scheduled
    meeting of the board of directors attended and for any special
    or committee meeting not coinciding with a regularly scheduled
    board of directors meeting. The chairpersons of the compensation
    committee and the nominating and governance committee were paid
    $5,000 each for serving as chairperson and the chairperson of
    the audit committee was paid $8,000 for serving as chairperson.
    Directors were also reimbursed for reasonable travel expenses
    incurred in attending meetings. Additionally, our non-employee
    directors (other than Mr. Agarwal) were granted, as part
    compensation for services rendered, 4,415 shares of our
    common stock, with a market value of $9.06 per share, or
    $40,000, based on the last reported sale price for our common
    stock on the date of the grant, which was May 13, 2008, as
    reported by the Nasdaq Global Market, with vesting upon grant.
    Directors who are also executive officers are not compensated
    for their services as directors.
Our philosophy regarding director compensation is to recognize
    that in order to attract and retain directors who are willing to
    contribute time and talent to us, it is important to
    competitively compensate such persons. With that philosophy in
    mind, we attempt to provide fair cash compensation for a company
    of our size and also provide directors with "skin in the
    game" by awarding, as part compensation, shares of our
    common stock. By making grants of our common stock a component
    of a director's compensation, we enable directors to align
    their interests with stockholders and appreciate the importance
    of improving stock performance and providing investors with
    long-term gains. Directors are not paid for their roles on
    committees, other than as serving as chairperson and for
    attending meetings of a committee not coinciding with a
    regularly scheduled meeting of our board of directors.
    Committees meet in conjunction with board of directors meetings
    and, accordingly, we do not believe there should be additional
    compensation for committee involvement, unless a meeting of a
    committee does not
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Table of Contents
coincide with a regularly scheduled meeting of our board of
    directors. Because committee chairpersons are expected to
    interact more with management, they are compensated for the
    additional time.
During 2006, our board of directors established a requirement
    that directors own shares of our common stock with a value equal
    to five times the annual director retainer fee paid by us to
    directors for the year the director was first appointed or
    elected. A director has five years to achieve this requirement.
    Once this requirement is met, a director need not adjust the
    number of shares of our common stock he or she owns based on
    fluctuations in the market price of our common stock. As of the
    date of this prospectus, all directors have met this requirement.
The following table sets forth a summary of the compensation
    paid or accrued by us during the year ended December 31,
    2008 for our directors, but excludes any management director
    whose compensation is reflected on the Summary Compensation
    Table for Named Executive Officers:
Director
    Compensation for the Fiscal Year Ended December 31,
    2008
Fees Earned or
All Other
Paid in Cash
Stock Awards
Compensation
Total
Name
($)
($)
(1)
($)
(2)
($)
Kush K. Agarwal
$
19,000
—
$
93,750
$
112,750
Gerardo Canet
$
38,000
$
40,000
$
125,000
$
203,000
Sarason
    Liebler
(3)
$
38,000
$
40,000
$
57,533
$
135,533
Wayne R. Moon
$
43,000
$
40,000
—
$
83,000
Lawrence J. Stuesser
$
46,000
$
40,000
—
$
86,000
Elizabeth E. Tallett
$
45,000
$
40,000
—
$
85,000
Yvonne Thornton, M.D., M.P.H.
$
40,000
$
40,000
—
$
80,000
(1)
Represents grants of 4,415 shares of our common stock to
    each of the directors on May 13, 2008, with a fair market
    value of $9.06 per share. All of these grants vested immediately.
(2)
The amounts in "All Other Compensation" for
    Messrs. Canet and Liebler include consulting fees in the
    amount of $125,000 and $57,533, respectively, paid or accrued
    for by us in 2008. Pursuant to his consulting agreement, dated
    February 2, 2009, effective January 1, 2009,
    Mr. Canet has agreed to provide us with consulting services
    two days per month during the period from January 1, 2009
    through December 31, 2009 and will receive an amount from
    us equal to $36,000 in 12 equal installments of $3,000 per
    month. The amount in "All Other Compensation" for
    Mr. Agarwal represents compensation paid by us to
    Mr. Agarwal for his service as President of VCA.
    Mr. Agarwal resigned as President of VCA on May 15,
    2008.
(3)
Mr. Liebler ceased being a member of our board of directors
    on May 12, 2009 because he had reached the mandatory
    retirement age of 72 under our corporate governance guidelines.
At December 31, 2008, our directors, as a group, held
    outstanding options to purchase 56,876 shares of our common
    stock and also held an aggregate of 30,905 shares of our
    common stock pursuant to stock awards made during 2008.
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Table of Contents
PRINCIPAL
    STOCKHOLDERS
The following table sets forth, as of August 31, 2009,
    certain information concerning the beneficial stock ownership of
    all persons known by us to beneficially own 5% or more of the
    shares of our common stock outstanding, each director, certain
    of our executive officers and all of our directors and executive
    officers as a group. Except as indicated in the footnotes to the
    below table, we believe that each stockholder named in such
    table has sole voting and dispositive power with respect to all
    shares of common stock attributable to such stockholder.
Shares of Common
Stock Beneficially
Percent of Common
Beneficial Owner
Owned
(1)
Stock Outstanding
Principal Stockholders:
Peter R. Kellogg
2,641,286
(2)
30.1
%
IAT Reinsurance Company Ltd.
120 Broadway
New York, New York 10271
Blue TSV I, LTD.
1,172,094
(3)
13.4
%
c/o Maple
Corporate Services Limited
P.O. Box 309, Ugland House
Grand Cayman, E9 KY1 — 1104
Gruber and McBaine Capital Management, LLC
633,850
(4)
7.2
%
50 Osgood Place
San Francisco, California 94133
Dimensional Fund Advisors LP
487,625
(5)
5.6
%
1299 Ocean Avenue
Santa Monica, California 90401
Directors and Certain Executive Officers:
Jay Higham
153,981
(6)
1.8
%
John W. Hlywak, Jr.
108,043
(6)
1.2
%
Pamela Schumann
16,974
(6)
*
Joseph J. Travia, Jr.
35,326
(6)
*
Daniel P. Doman
6,623
*
Kush K. Agarwal
141,211
1.6
%
Gerardo Canet
41,117
*
Wayne R. Moon
45,345
(6)
*
Lawrence J. Stuesser
65,740
(6)
*
Elizabeth E. Tallett
82,747
(6)
*
Yvonne S. Thornton, M.D., M.P.H
17,891
*
All directors and executive officers as a group
    (15 persons)
741,025
(7)
8.4
%
*
Represents less than 1% of outstanding shares of our common
    stock.
(1)
For purposes of this prospectus, beneficial ownership is defined
    in accordance with the rules and regulations of the Securities
    and Exchange Commission and generally means the power to vote
and/or
to
    dispose of securities regardless of any economic interest
    therein.
(2)
Based on a Form 4 filed with the Securities and Exchange
    Commission on August 15, 2008.
(3)
Based on a Form 4 filed with the Securities and Exchange
    Commission on August 31, 2009.
(4)
Represents 491,530 shares of our common stock held by
    Gruber and McBaine Capital Management, LLC as investment
    advisor, plus 78,605 shares of our common stock held by
    Jon D. Gruber and 63,714 shares of our common stock
    held by J. Patterson McBaine individually based on a
    Schedule 13G, dated January 27, 2009, filed with the
    Securities and Exchange Commission by Gruber and McBaine Capital
    Management, LLC, Jon D. Gruber, J. Patterson McBaine
    and Eric B. Swergold.
footnotes continued on following page
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Table of Contents
(5)
Represents securities reported on an amendment to a
    Schedule 13G, dated February 9, 2009, as being owned
    by various funds for which Dimensional Fund Advisors LP has
    sole voting and dispositive power, but disclaims beneficial
    ownership.
(6)
Includes exercisable options to purchase shares of our common
    stock within 60 days of August 31, 2009 as follows:
    Wayne R. Moon — 10,156; Lawrence J.
    Stuesser — 20,312; Elizabeth E.
    Tallett — 20,312; Jay Higham — 2,437;
    John W. Hlywak, Jr. — 1,219; Pamela
    Schumann — 1,219; and Joseph J.
    Travia, Jr. — 1,219.
(7)
Includes 51,553 exercisable options to purchase shares of our
    common stock within 60 days of August 31, 2009,
    including 835 exercisable options held by an executive officer
    not named above. The address for each of our directors and
    executive officers is
c/o IntegraMed
America, Inc., Two Manhattanville Road, Purchase, New
    York 10577.
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Table of Contents
RELATED
    PARTY TRANSACTIONS
Consulting
    Agreement
We have and have had consulting agreements with Gerardo Canet,
    the chairman of our board of directors. The previous consulting
    agreement provided for compensation of $125,000 for the year
    ended December 31, 2008. The consulting agreement expired
    on December 31, 2008 and was replaced with a new one-year
    consulting agreement providing for $36,000 in compensation.
Policies
    and Procedures for Related Party Transactions
We do not have written policies and procedures for the review,
    approval or ratification of related party transactions. However,
    any related party transaction is reviewed and discussed by our
    board of directors or an appropriate committee of our board of
    directors with responsibility for the subject matter. For
    example, the consulting agreement with Mr. Canet was
    reviewed and approved by the compensation committee of our board
    of directors.
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Table of Contents
DESCRIPTION
    OF CAPITAL STOCK
The following description of our capital stock summarizes the
    provisions of our restated certificate of incorporation and
    by-laws.
The following description of the material provisions of our
    capital stock and restated certificate of incorporation and
    by-laws is only a summary, does not purport to be complete and
    is qualified by applicable law and the full provisions of our
    restated certificate of incorporation and by-laws, which have
    been filed with the Securities and Exchange Commission as
    exhibits to the registration statement of which this prospectus
    is a part.
Authorized
    Capitalization
As of the date of this prospectus, our authorized capital stock
    consists of 15,000,000 shares of common stock, par value
    $0.01 per share, and 5,000,000 shares of preferred stock,
    par value $1.00 per share. Immediately after the completion of
    this offering, 12,774,994 shares of our common stock, or
    13,374,994 shares of our common stock if the underwriters
    exercise their over-allotment option in full, and no shares of
    our preferred stock will be issued and outstanding.
Common
    Stock
All shares of our common stock to be outstanding immediately
    after completion of this offering will be validly issued, fully
    paid and nonassessable.
Dividends.
Holders of shares of our
    common stock are entitled to receive dividends and other
    distributions in cash, property or capital stock of ours as may
    be declared by our board of directors from time to time out of
    our assets or funds legally available for dividends or other
    distributions. We have not paid cash dividends on our common
    stock during the last two fiscal years, and we currently
    anticipate retaining all available funds for use in the
    operation and expansion of our business. In addition, our credit
    agreement prohibits us from paying cash dividends on our common
    stock. Therefore, we do not anticipate paying any cash dividends
    on our common stock in the foreseeable future.
Liquidation Rights.
In the event of our
    voluntary or involuntary liquidation, dissolution or winding up,
    holders of shares of our common stock will be entitled to share
    in our assets remaining after payment of all debts and other
    liabilities, subject to the liquidation preference of any
    outstanding shares of our preferred stock.
Voting Rights.
Shares of our common
    stock carry one vote per share. All shares of common stock rank
    equally as to voting and all other matters. Except as otherwise
    required by law, holders of our common stock are not entitled to
    vote on any amendment to our restated certificate of
    incorporation that relates solely to the terms of one or more
    outstanding series of preferred stock if the holders of the
    affected shares are entitled to vote on the amendment. Shares of
    our common stock have no conversion rights, no redemption or
    sinking fund provisions, are not liable for further call or
    assessment and are not entitled to cumulative voting rights.
Except as otherwise required by the Delaware General Corporation
    Law and our restated certificate of incorporation and by-laws,
    action requiring stockholder approval may be taken by a vote of
    the holders of a majority of our common stock at a meeting at
    which a quorum is present. See "— Anti-Takeover
    Effects of Various Provisions of Delaware Law and Our Restated
    Certificate of Incorporation and By-laws."
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Table of Contents
Other Rights.
Holders of shares of our
    common stock have no preemptive rights. The holders of our
    common stock are subject to, and may be adversely affected by,
    the rights of the holders of shares of any series of preferred
    stock that we may designate and issue in the future.
Preferred
    Stock
Our restated certificate of incorporation provides that we may
    issue up to 5,000,000 shares of our preferred stock in one
    or more series as may be determined by our board of directors.
Our board of directors has broad discretionary authority with
    respect to the rights of issued series of our preferred stock
    and may take several actions without any vote or action of the
    holders of our common stock, including:
•
determining the number of shares to be included in each series;
•
fixing the designation, powers, preferences and relative rights
    of the shares of each series and any qualifications, limitations
    or restrictions with respect to each series, including
    provisions related to dividends, conversion, voting, redemption
    and liquidation, which may be superior to those of our common
    stock; and
•
increasing or decreasing the number of shares of any series.
Our board of directors may authorize, without approval of
    holders of our common stock, the issuance of preferred stock
    with voting and conversion rights that could adversely affect
    the voting power and other rights of holders of our common
    stock. For example, our preferred stock may rank prior to our
    common stock as to dividend rights, liquidation preferences or
    both, may have full or limited voting rights and may be
    convertible into shares of our common stock.
Our preferred stock could be issued quickly with terms designed
    to delay or prevent a change of control of our Company or to
    make the removal of our management more difficult. This could
    have the effect of discouraging third-party bids for our common
    stock or may otherwise adversely affect the market price of our
    common stock.
We believe that the ability of our board of directors to issue
    one or more series of our preferred stock provides us with
    flexibility in structuring possible future financings and
    acquisitions, and in meeting other corporate needs that might
    arise. The authorized shares of our preferred stock, as well as
    authorized and unissued shares of our common stock, will be
    available for issuance without action by holders of our common
    stock, unless such action is required by applicable law or the
    rules of any stock exchange or automated quotation system on
    which our securities may be listed or traded.
Although our board of directors has no intention at the present
    time of doing so, it could issue a series of our preferred stock
    that could, depending on the terms of such series, be used to
    implement a stockholder rights plan or otherwise impede the
    completion of a merger, tender offer or other takeover attempt
    of our Company. Our board of directors could issue preferred
    stock having terms that could discourage an acquisition attempt
    through which an acquirer may be able to change the composition
    of our board of directors, including a tender offer or other
    transaction that some, or a majority, of our stockholders might
    believe to be in their best interest or in which stockholders
    might receive a premium for their stock over the market price.
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Anti-Takeover
    Effects of Various Provisions of Delaware Law and Our Restated
    Certificate of Incorporation and By-laws
The Delaware General Corporation Law, our restated certificate
    of incorporation and our by-laws contain provisions that may
    have some anti-takeover effects and may delay, defer or prevent
    a tender offer or takeover attempt that a stockholder might
    consider in his, her or its best interest, including those
    attempts that might result in a premium over the market price
    for the shares held by stockholders.
Delaware
    Anti-Takeover Statute
We are subject to Section 203 of the Delaware General
    Corporation Law ("Section 203"). Subject to
    specific exceptions, Section 203 prohibits a publicly held
    Delaware corporation from engaging in a "business
    combination" with an "interested stockholder" for
    a period of three years after the time the stockholder becomes
    an interested stockholder, unless:
•
the business combination, or the transaction in which the
    stockholder became an interested stockholder, is approved by our
    board of directors prior to the time the interested stockholder
    attained that status;
•
upon consummation of the transaction that resulted in the
    stockholder becoming an interested stockholder, the interested
    stockholder owned at least 85% of our voting stock outstanding
    at the time the transaction commenced, excluding those shares
    owned by persons who are directors and also officers and
    employee stock plans in which employee participants do not have
    the right to determine confidentially whether shares held
    subject to the plan will be tendered in a tender or exchange
    offer; or
•
at or after the time a stockholder became an interested
    stockholder, the business combination is approved by our board
    of directors and authorized at an annual or special meeting of
    stockholders by the affirmative vote of at least two-thirds of
    our outstanding voting stock that is not owned by the interested
    stockholder.
"Business combinations" include mergers, asset sales
    and other transactions resulting in a financial benefit to the
    interested stockholder. Subject to various exceptions, in
    general, an "interested stockholder" is a stockholder
    who, together with his, her or its affiliates and associates,
    owns, or within three years did own, 15% or more of the shares
    of our outstanding voting stock. These restrictions could
    prohibit or delay the accomplishment of mergers or other
    takeover or change of control attempts with respect to us and,
    therefore, may discourage attempts to acquire us.
Restated
    Certificate of Incorporation and By-laws
Provisions of our restated certificate of incorporation and
    by-laws, which are summarized in the following paragraphs, may
    also have an anti-takeover effect.
Quorum Requirements.
Our by-laws
    provide for a minimum quorum of a majority in voting power of
    the issued and outstanding shares of our capital stock entitled
    to vote.
No Cumulative Voting.
The Delaware
    General Corporation Law provides that stockholders are denied
    the right to cumulate votes in the election of directors unless
    a company's certificate of incorporation provides
    otherwise. Our restated certificate of incorporation does not
    expressly address cumulative voting.
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Calling of Special Meeting of
    Stockholders.
Our by-laws provide that
    special meetings of our stockholders may be called only by
    (a) the chairman of our board of directors, (b) our
    board of directors or (c) our President.
Advance Notice Requirements for Stockholder Proposals and
    Director Nominations.
Our by-laws provide
    that stockholders seeking to bring business before or to
    nominate candidates for election as directors at an annual
    meeting of stockholders must provide us with timely notice of
    their proposal in writing. To be timely, a stockholder's
    notice must be delivered to or mailed and received at our
    principal executive offices not less than 90 nor more than
    120 days prior to the first anniversary of the preceding
    year's annual meeting of stockholders. Stockholder
    proposals or nominations for the election of directors at a
    meeting held more than 30 days from such anniversary date
    must be received no later than the close of business on the
    10th day following the earlier of the day on which notice
    of the date of the meeting was mailed or public disclosure was
    made.
Our by-laws also specify requirements as to the form and content
    of a stockholder's notice. These provisions may impede
    stockholders' ability to bring matters before an annual
    meeting of stockholders or make nominations for directors at an
    annual meeting of stockholders.
Limitations on Liability and Indemnification of Officers
    and Directors.
The Delaware General
    Corporation Law authorizes corporations to limit or eliminate
    the personal liability of directors to corporations and their
    stockholders for monetary damages for breaches of
    directors' fiduciary duties as directors. Our restated
    certificate of incorporation includes a provision that
    eliminates the personal liability of our directors to us and our
    stockholders for monetary damages for breaches of their
    fiduciary duties as our directors to the fullest extent
    permitted by the Delaware General Corporation Law.
Our by-laws provide that we must indemnify our directors and
    officers to the fullest extent authorized by the Delaware
    General Corporation Law and that such indemnitees will also
    generally be entitled to an advancement of expenses. We are also
    expressly authorized to, and do, carry directors' and
    officers' insurance for our directors, officers and certain
    employees for some liabilities. We believe that these
    indemnification provisions and insurance are useful to attract
    and retain qualified directors and executive officers.
The limitation of liability and indemnification provisions in
    our by-laws may discourage stockholders from bringing lawsuits
    against our directors for breaches of their fiduciary duties.
    These provisions may also have the effect of reducing the
    likelihood of derivative litigation against our directors and
    officers, even though such an action, if successful, might
    otherwise benefit us and our stockholders. In addition, your
    investment may be adversely affected to the extent that, in a
    class action or direct suit, we pay the costs of settlement and
    damage awards against our directors and officers pursuant to
    these indemnification provisions.
There is currently no pending material litigation or proceeding
    involving any of our directors, officers or employees for which
    indemnification is sought.
Authorized but Unissued Shares.
Our
    authorized but unissued shares of common stock and preferred
    stock will be available for future issuance without your
    approval. We may use additional shares for a variety of
    corporate purposes, including future public offerings to raise
    additional capital, corporate acquisitions and employee benefit
    plans. The existence of authorized but unissued shares of our
    common stock and preferred stock could render more difficult or
    discourage an attempt to obtain control of us by means of a
    proxy contest, tender offer, merger or otherwise.
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Amendments.
Our restated certificate of
    incorporation grants our board of directors the authority to
    make, alter, amend and repeal our by-laws without a stockholder
    vote in any manner not inconsistent with the laws of the State
    of Delaware or our restated certificate of incorporation.
Listing
Our common stock is listed on the Nasdaq Global Market under the
    symbol "INMD."
Transfer
    Agent and Registrar
The transfer agent and registrar for our common stock is
    American Stock Transfer & Trust Company, LLC.
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MATERIAL
    U.S. FEDERAL TAX CONSIDERATIONS
FOR
NON-U.S.
HOLDERS OF OUR COMMON STOCK
The following discussion summarizes certain material
    U.S. federal income and estate tax considerations relating
    to the acquisition, ownership and disposition of our common
    stock purchased pursuant to this offering by a
non-U.S. holder
(as defined below). This discussion is based on the provisions
    of the U.S. Internal Revenue Code of 1986, as amended,
    final, temporary and proposed U.S. Treasury regulations
    promulgated thereunder and current administrative rulings and
    judicial decisions, all as in effect as of the date hereof. All
    of these authorities may be subject to differing interpretations
    or repealed, revoked or modified, possibly with retroactive
    effect, which could materially alter the tax consequences to
non-U.S. holders
described in this prospectus.
There can be no assurance that the IRS will not take a contrary
    position to the tax consequences described herein or that such
    position will not be sustained by a court. No ruling from the
    IRS or opinion of counsel has been obtained with respect to the
    U.S. federal income or estate tax consequences to a
non-U.S. holder
of the purchase, ownership or disposition of our common stock.
This discussion is for general information only and is not
    tax advice. All prospective
non-U.S. holders
of our common stock should consult their own tax advisors with
    respect to the U.S. federal, state, local and
non-U.S. tax
consequences of the purchase, ownership and disposition of our
    common stock.
As used in this discussion, the term
"non-U.S. holder"
means a beneficial owner of our common stock that is not any of
    the following for U.S. federal income tax purposes:
•
an individual who is a citizen or a resident of the United
    States;
•
a corporation or other entity taxable as a corporation for
    U.S. federal income tax purposes that was created or
    organized in or under the laws of the United States, any state
    thereof or the District of Columbia;
•
an estate whose income is subject to U.S. federal income
    taxation regardless of its source;
•
a trust (a) if a U.S. court is able to exercise
    primary supervision over the trust's administration and one
    or more U.S. persons have the authority to control all of
    the trust's substantial decisions or (b) that has a
    valid election in effect under applicable U.S. Treasury
    regulations to be treated as a U.S. person; or
•
an entity that is disregarded as separate from its owner if all
    of its interests are owned by a single person described above.
An individual may be treated, for U.S. federal income tax
    purposes, as a resident of the United States in any calendar
    year by being present in the United States on at least
    31 days in that calendar year and for an aggregate of at
    least 183 days during a three-year period ending in the
    current calendar year. The
183-day
test
    is determined by counting all of the days the individual is
    treated as being present in the current year, one-third of such
    days in the immediately preceding year and one-sixth of such
    days in the second preceding year. Residents are subject to
    U.S. federal income tax as if they were U.S. citizens.
This discussion assumes that a prospective
non-U.S. holder
will hold shares of our common stock as a capital asset
    (generally, property held for investment). This discussion does
    not address all aspects of U.S. federal income and estate
    taxation that may be relevant to a particular
non-U.S. holder
in light of that
non-U.S. holder's
individual circumstances. In addition, this discussion does not
    address any aspect
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of U.S. state or local or
non-U.S. taxes,
or the special tax rules applicable to particular
non-U.S. holders,
such as:
•
insurance companies and financial institutions;
•
tax-exempt organizations;
•
controlled foreign corporations and passive foreign investment
    companies;
•
partnerships or other pass-through entities;
•
regulated investment companies or real estate investment trusts;
•
pension plans;
•
persons who received our common stock as compensation;
•
brokers and dealers in securities;
•
owners that hold our common stock as part of a straddle, hedge,
    conversion transaction, synthetic security or other integrated
    investment; and
•
former citizens or residents of the United States subject to tax
    as expatriates.
If a partnership or other entity treated as a partnership for
    U.S. federal income tax purposes is a beneficial owner of
    our common stock, the treatment of a partner in the partnership
    generally will depend on the status of the partner and the
    activities of the partnership. We urge any beneficial owner of
    our common stock that is a partnership and partners in that
    partnership to consult their tax advisors regarding the
    U.S. federal income tax consequences of acquiring, owning
    and disposing of our common stock.
Distributions
    on Our Common Stock
Any distribution on our common stock paid to
non-U.S. holders
will generally constitute a dividend for U.S. federal
    income tax purposes to the extent paid from our current or
    accumulated earnings and profits, as determined under
    U.S. federal income tax principles. Distributions in excess
    of our current and accumulated earnings and profits will
    generally constitute a return of capital to the extent of the
non-U.S. holder's
adjusted tax basis in our common stock, and will be applied
    against and reduce the
non-U.S. holder's
adjusted tax basis. Any remaining excess will be treated as
    capital gain, subject to the tax treatment described below in
    "Gain on Sale, Exchange or Other Disposition of Our Common
    Stock."
Dividends paid to a
non-U.S. holder
that are not treated as effectively connected with the
non-U.S. holder's
conduct of a trade or business in the United States generally
    will be subject to withholding of U.S. federal income tax
    at a rate of 30% on the gross amount paid, unless the
non-U.S. holder
is entitled to an exemption from or reduced rate of withholding
    under an applicable income tax treaty. In order to claim the
    benefit of a tax treaty or to claim an exemption from
    withholding, a
non-U.S. holder
must provide a properly executed IRS
Form W-8BEN
(or successor form) prior to the payment of dividends. A
non-U.S. holder
eligible for a reduced rate of withholding pursuant to an income
    tax treaty may be eligible to obtain a refund of any excess
    amounts withheld by timely filing an appropriate claim for a
    refund with the IRS.
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Dividends paid to a
non-U.S. holder
that are treated as effectively connected with a trade or
    business conducted by the
non-U.S. holder
within the United States (and, if an applicable income tax
    treaty so provides, are also attributable to a permanent
    establishment or a fixed base maintained within the United
    States by the
non-U.S. holder)
are generally exempt from the 30% withholding tax if the
non-U.S. holder
satisfies applicable certification and disclosure requirements.
    To obtain the exemption, a
non-U.S. holder
must provide us with a properly executed IRS
Form W-8ECI
(or successor form) prior to the payment of the dividend.
    Dividends received by a
non-U.S. holder
that are treated as effectively connected with a U.S. trade
    or business generally are subject to U.S. federal income
    tax at rates applicable to U.S. persons. A
non-U.S. holder
that is a corporation may, under certain circumstances, be
    subject to an additional "branch profits tax" imposed
    at a rate of 30%, or such lower rate as specified by an
    applicable income tax treaty between the United States and such
    holder's country of residence.
A
non-U.S. holder
who provides us with an IRS
Form W-8BEN
or
Form W-8ECI
must update the form or submit a new form, as applicable, if
    there is a change in circumstances that makes any information on
    such form incorrect.
Gain On
    Sale, Exchange or Other Disposition of Our Common
    Stock
In general, a
non-U.S. holder
will not be subject to any U.S. federal income tax or
    withholding on any gain realized from the
non-U.S. holder's
sale, exchange or other disposition of shares of our common
    stock unless:
•
the gain is effectively connected with a U.S. trade or
    business (and, if an applicable income tax treaty so provides,
    is also attributable to a permanent establishment or a fixed
    base maintained within the United States by the
non-U.S. holder),
in which case the gain will be taxed on a net income basis
    generally in the same manner as if the
non-U.S. holder
were a U.S. person, and, if the
non-U.S. holder
is a corporation, the additional branch profits tax described
    above in "Distributions on Our Common Stock" may also
    apply;
•
the
non-U.S. holder
is an individual who is present in the United States for
    183 days or more in the taxable year of the disposition and
    certain other conditions are met, in which case the
non-U.S. holder
will be subject to a 30% tax on the net gain derived from the
    disposition, which may be offset by
U.S.-source
capital losses of the
non-U.S. holder,
if any; or
•
we are, or have been at any time during the five-year period
    preceding such disposition (or the
non-U.S. holder's
holding period, if shorter), a "United States real property
    holding corporation."
Generally, we will be a "United States real property
    holding corporation" if the fair market value of our
    U.S. real property interests equals or exceeds 50% of the
    sum of the fair market values of our worldwide real property
    interests and other assets used or held for use in a trade or
    business, all as determined under applicable U.S. Treasury
    regulations. We believe that we have not been and are not
    currently, and do not anticipate becoming in the future, a
    "United States real property holding corporation" for
    U.S. federal income tax purposes.
Backup
    Withholding and Information Reporting
We must report annually to the IRS and to each
non-U.S. holder
the amount of distributions paid to such holder and the amount
    of tax withheld, if any. Copies of the information returns filed
    with the IRS to report the distributions and withholding may
    also be made available to the tax authorities in a country in
    which the
non-U.S. holder
is a resident under the provisions of an applicable income tax
    treaty or agreement.
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The United States imposes a backup withholding tax on the gross
    amount of dividends and certain other types of payments
    (currently at a rate of 28%). Dividends paid to a
non-U.S. holder
will not be subject to backup withholding if proper
    certification of foreign status (usually on IRS
Form W-8BEN)
is provided, and we do not have actual knowledge or reason to
    know that the
non-U.S. holder
is a U.S. person. In addition, no backup withholding or
    information reporting will be required regarding the proceeds of
    a disposition of our common stock made by a
non-U.S. holder
within the United States or conducted through certain
    U.S. financial intermediaries if we receive the
    certification of foreign status described in the preceding
    sentence and we do not have actual knowledge or reason to know
    that such
non-U.S. holder
is a U.S. person or the
non-U.S. holder
otherwise establishes an exemption.
Non-U.S. holders
should consult their own tax advisors regarding the application
    of the information reporting and backup withholding rules to
    them.
Backup withholding is not an additional tax. Amounts withheld
    under the backup withholding rules from a payment to a
non-U.S. holder
can be refunded or credited against the
non-U.S. holder's
U.S. federal income tax liability, if any, provided that
    certain required information is furnished to the IRS in a timely
    manner.
U.S.
    Federal Estate Tax
An individual
non-U.S. holder
who is treated as the owner, or who has made certain lifetime
    transfers, of an interest in our common stock will be required
    to include the value of the common stock in his or her gross
    estate for U.S. federal estate tax purposes, and may be
    subject to U.S. federal estate tax unless an applicable
    estate tax treaty provides otherwise.
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UNDERWRITING
The underwriters named below have agreed to purchase, subject to
    the terms and conditions of an underwriting agreement among us
    and the underwriters, the number of shares listed opposite their
    names below. The underwriters are committed to purchase all of
    the shares if any are purchased.
Underwriters
Number of Shares
Piper Jaffray & Co.
Cowen and Company, LLC
Total
The underwriters have advised us that they propose to offer the
    shares to the public at $      per
    share. The underwriters propose to offer the shares to certain
    dealers at the same price less a concession of not more than
    $      per share. The underwriters may
    allow and the dealers may reallow a concession of not more than
    $      per share on sales to certain
    other brokers and dealers. After the offering, these figures may
    be changed by the underwriters. Sales of shares made outside of
    the United States may be made by affiliates of the underwriters.
We have granted the underwriters an option to purchase up to
    600,000 additional shares of common stock from us at the
    public offering price less the underwriting discount set forth
    in the table below. The underwriters may exercise this option at
    any time and from time to time during the
30-day
period from the date of this prospectus to cover
    over-allotments, if any. To the extent any shares are purchased
    with this over-allotment option, the underwriters will purchase
    shares in approximately the same proportion as shown in the
    table above.
The following table shows the underwriting fees to be paid by us
    to the underwriters in connection with this offering. These
    amounts are shown assuming both no exercise and full exercise of
    the underwriters' option to purchase additional shares.
No Exercise
Full Exercise
Per share
$
$
Total
$
$
We estimate that the total fees and expenses of this offering
    payable by us, including registration, filing and listing fees,
    printing fees and legal and accounting expenses, but excluding
    underwriting discounts, will be approximately
    $          ,
    which includes
    $          
    that we estimate we will pay pursuant to our agreement to
    reimburse the underwriters for the fees and expenses incurred by
    them in connection with this offering. The fees and expenses of
    the underwriters that we have agreed to reimburse are not
    included in the underwriting discounts set forth in the table
    above.
We have agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act, and
    to contribute to payments that the underwriters may be required
    to make in respect of those liabilities.
We and each of our directors and executive officers are subject
    to
lock-up
agreements that prohibit us and them from offering, pledging,
    announcing the intention to sell, selling, contracting to sell,
    selling any option or contract to purchase, purchasing any
    option or contract to sell, granting any option, right or
    warrant to purchase, making any short sale or otherwise
    transferring or disposing of, directly or indirectly, any shares
    of our common stock or any securities convertible into,
    exercisable or exchangeable for or that represent the right to
    receive our common stock or entering into any swap or other
    agreement that transfers, in whole or in part, any of the
    economic consequences of ownership of our
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common stock, for a period of at least 90 days following
    the date of this prospectus without the prior written consent of
    Piper Jaffray. The
lock-up
agreement does not prohibit our directors or executive officers
    from transferring shares of our common stock as a bona fide gift
    or to certain trusts, subject to certain requirements, including
    that the transferee be subject to the same
lock-up
terms, or pursuant to trading plans adopted in accordance with
    the guidelines specified by
Rule 10b5-1
under the Exchange Act in existence as of the date of this
    prospectus. The
lock-up
provisions do not prevent us from selling shares to the
    underwriters pursuant to the underwriting agreement, or from
    granting options to acquire securities under our existing equity
    compensation plans or issuing shares upon the exercise or
    conversion of securities outstanding on the date of this
    prospectus.
The
90-day
lock-up
period in all of the
lock-up
agreements is subject to extension if (a) during the last
    17 days of the
lock-up
period we issue an earnings release or material news or a
    material event relating to us occurs or (b) prior to the
    expiration of the
lock-up
period, we announce that we will release earnings results during
    the
16-day
period beginning on the last day of the
lock-up
period, in which case the restrictions imposed in these
lock-up
agreements shall continue to apply until the expiration of the
18-day
period beginning on the issuance of the earnings release or the
    occurrence of the material news or material event, unless
    Piper Jaffray waives the extension in writing.
Our shares are listed on the Nasdaq Global Market under the
    symbol "INMD."
To facilitate the offering, the underwriters may engage in
    transactions that stabilize, maintain or otherwise affect the
    price of our common stock during and after the offering.
    Specifically, the underwriters may over-allot or otherwise
    create a short position in our common stock for their own
    account by selling more shares of common stock than we have sold
    to them. The underwriters may close out any short position by
    either exercising their option to purchase additional shares or
    purchasing shares in the open market.
In addition, the underwriters may stabilize or maintain the
    price of our common stock by bidding for or purchasing shares of
    common stock in the open market and may impose penalty bids. If
    penalty bids are imposed, selling concessions allowed to
    syndicate members or other broker-dealers participating in the
    offering are reclaimed if shares of common stock previously
    distributed in the offering are repurchased, whether in
    connection with stabilization transactions or otherwise. The
    effect of these transactions may be to stabilize or maintain the
    market price of our common stock at a level above that which
    might otherwise prevail in the open market. The imposition of a
    penalty bid may also affect the price of our common stock to the
    extent that it discourages resales of our common stock. The
    magnitude or effect of any stabilization or other transactions
    is uncertain. These transactions may be effected on the Nasdaq
    Global Market or otherwise and, if commenced, may be
    discontinued at any time.
In connection with this offering, some underwriters (and selling
    group members) may also engage in passive market making
    transactions in our common stock. Passive market making consists
    of displaying bids on the Nasdaq Global Market limited by the
    prices of independent market makers and effecting purchases
    limited by those prices in response to order flow. Rule 103
    of Regulation M promulgated by the Securities and Exchange
    Commission limits the amount of net purchases that each passive
    market maker may make and the displayed size of each bid.
    Passive market making may stabilize the market price of our
    common stock at a level above that which might otherwise prevail
    in the open market and, if commenced, may be discontinued at any
    time.
From time to time in the ordinary course of their respective
    businesses, the underwriters and certain of their respective
    affiliates have engaged, and may in the future engage, in
    commercial banking or investment banking transactions with us
    and our affiliates.
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This prospectus may be made available on the websites maintained
    by the underwriters and the underwriters may distribute
    prospectuses electronically.
Selling
    Restrictions
European
    Economic Area
In relation to each Member State of the European Economic Area
    which has implemented the Prospectus Directive (each, a
    "Relevant Member State"), with effect from and
    including the date on which the Prospectus Directive is
    implemented in that Relevant Member State, no offer of our
    common stock has been made or will be made to the public in that
    Relevant Member State, except that, with effect from and
    including such date, an offer of our common stock may be made to
    the public in the Relevant Member State at any time:
•
to legal entities which are authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
•
to any legal entity which has two or more of (1) an average
    of at least 250 employees during the last financial year;
    (2) a total balance sheet of more than €43,000,000;
    and (3) an annual net turnover of more than
    €50,000,000, as shown in its last annual or consolidated
    accounts;
•
to fewer than 100 natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive); or
•
in any other circumstances which do not require the publication
    by us of a prospectus pursuant to Article 3 of the
    Prospectus Directive.
For the purposes of this provision, the expression an
    "offer of our common stock to the public" in any
    Relevant Member State means the communication in any form and by
    any means of sufficient information on the terms of the offer
    and the shares to be offered so as to enable an investor to
    decide to purchase any such shares, as the same may be varied in
    that Relevant Member State by any measure implementing the
    Prospectus Directive in that Relevant Member State, and the
    expression "Prospectus Directive" means Directive
    2003/71/EC and includes any relevant implementing measure in
    each Relevant Member State.
Belgium
This offering is exclusively addressed to Qualified Investors
    within the meaning of article 10, §§ 1 and 2
    of the Belgian Prospectus Law of 16 June 2006 and
    article 2 of the Royal Decree of 26 September 2006
    extending the notion of Qualified Investor and of institutional
    and professional investor; or this offering is addressed to
    fewer than 100 natural or legal persons on the Belgian
    territory. Therefore, this prospectus has not been and will not
    be submitted for approval to the Belgian Banking, Finance and
    Insurance Commission.
Federal
    Republic of Germany
This prospectus is not a Securities Selling Prospectus
    (Verkaufsprospekt) within the meaning of the German Securities
    Prospectus Act (Verkaufsprospektgesetz) of 9 September
    1998, as amended, and has not been filed with and approved by
    the German Federal Supervisory Authority (Bundesanstalt fur
    Finanzdienstleistungsaufsicht) or any other German governmental
    authority, and shares of our common stock may not be offered or
    sold in this offering and copies of this prospectus or any
    website relating to
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the shares may not be distributed, directly or indirectly, in
    Germany except to persons falling within the scope of
    paragraph 2 numbers 1, 2 and 3 of the German
    Securities Prospectus Act.
Hong
    Kong
Our common stock may not be offered or sold by means of any
    document other than: (a) in circumstances which do not
    constitute an offer to the public within the meaning of the
    Companies Ordinance (Cap. 32, Laws of Hong Kong); (b) to
    "professional investors" as defined in the Securities
    and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any
    rules thereunder; or (c) in other circumstances which do
    not result in the document being a "prospectus" within
    the meaning of the Companies Ordinance. No advertisement,
    invitation or other document relating to our common stock may be
    issued, whether in Hong Kong or elsewhere, where such document
    is directed at, or the contents are likely to be accessed or
    read by, the public of Hong Kong (except if permitted to do so
    under the laws of Hong Kong), other than with respect to such
    common stock that is intended to be disposed of only to persons
    outside of Hong Kong or only to "professional
    investors" as defined in the Securities and Futures
    Ordinance and any rules thereunder.
The
    Netherlands
The shares may not be offered, sold, transferred or delivered in
    or from within The Netherlands as part of their initial
    distribution or at any time thereafter, directly or indirectly,
    nor may any other website in respect of the shares be
    distributed or circulated in The Netherlands, other than to
    individuals who are legal entities which trade or invest in
    securities in the conduct of their profession or business within
    the meaning of The Netherlands Securities Transactions
    Supervision Act of 1995 (Vrijstellingsregeling wet foezicht
    effectenverkeer 1995) and its implementing regulations
    (which includes banks, brokers, pension funds, insurance
    companies, securities institutions, investment institutions and
    other institutional investors, including, among others,
    treasuries of large enterprises, who or which are regularly
    active in the financial markets in a professional manner).
Norway
This prospectus has not been approved by or registered with any
    authority in Norway. Accordingly, the shares have not been
    offered or sold, and will not be offered or sold, to any persons
    in Norway in any way that would constitute an offer to the
    public, other than to persons that are "qualified
    investors" within the meaning of Article 2(1)(e) of
    the Prospectus Directive as implemented in the Norwegian
    Securities Trading Act of 2007 (the "Norwegian Securities
    Trading Act"), or otherwise only in circumstances where an
    exemption from the duty to publish a prospectus under the
    Prospectus Directive as implemented in the Norwegian Securities
    Trading Act shall be applicable.
Singapore
This prospectus has not been registered as a prospectus with the
    Monetary Authority of Singapore. Accordingly, this prospectus
    and any other document or material in connection with the offer
    or sale, or invitation for subscription or purchase, of shares
    of our common stock may not be circulated or distributed, nor
    may the shares be offered or sold, or be made the subject of an
    invitation for subscription or purchase, whether directly or
    indirectly, to persons in Singapore other than (a) to an
    institutional investor under Section 274 of the Securities
    and Futures Act, Chapter 289 of Singapore (the
    "SFA"), (b) to a relevant person, or any person
    pursuant to Section 275(1A) of the SFA, and in accordance
    with the conditions, specified in Section 275 of the SFA or
    (c) otherwise pursuant to, and in accordance with the
    conditions of, any other applicable provision of the SFA.
93
Table of Contents
Where shares of our common stock are subscribed or purchased
    under Section 275 of the SFA by a relevant person which is:
(a) a corporation (which is not an accredited investor) the
    sole business of which is to hold investments and the entire
    share capital of which is owned by one or more individuals, each
    of whom is an accredited investor; or
(b) a trust (where the trustee is not an accredited
    investor) whose sole purpose is to hold investments and each
    beneficiary is an accredited investor,
shares, debentures and units of shares and debentures of that
    corporation or the beneficiaries' rights and interest in
    that trust shall not be transferable for six months after that
    corporation or that trust has acquired the shares of our common
    stock under Section 275 of the SFA except:
(1) to an institutional investor or to a relevant person,
    or to any person pursuant to an offer that is made on terms that
    such rights or interest are acquired at a consideration of not
    less than $200,000 (or its equivalent in a foreign currency) for
    each transaction, whether such amount is to be paid for in cash
    or by exchange of securities or other assets;
(2) where no consideration is given for the
    transfer; or
(3) by operation of law.
Sweden
This document has not been prepared in accordance with the
    prospectus requirements provided for in the Swedish Financial
    Instruments Trading Act (lagen (1991:980) om handel med
    finansiella instrument) nor any other Swedish enactment. Neither
    the Swedish Financial Supervisory Authority (Finansinspek
    tionen) nor any other Swedish public body has examined, approved
    or registered this prospectus.
No shares of our common stock will be offered or sold to any
    investor in Sweden except in circumstances that will not result
    in a requirement to prepare a prospectus pursuant to the
    provisions of the Swedish Financial Instruments Trading Act.
Switzerland
The shares offered pursuant to this prospectus will not be
    offered, directly or indirectly, to the public in Switzerland
    and this prospectus does not constitute a public offering
    prospectus as that term is understood pursuant to
    Article 652a or Article 1156 of the Swiss Federal Code
    of Obligations. We have not applied for a listing of the shares
    being offered pursuant to this prospectus on the SWX Swiss
    Exchange, and, consequently, the information presented in this
    prospectus does not necessarily comply with the information
    standards set out in the relevant listing rules. The shares
    being offered pursuant to this prospectus have not been
    registered with the Swiss Federal Banking Commission as foreign
    investment funds, and the investor protection afforded to
    acquirers of investment fund certificates does not extend to
    acquirers of securities.
United
    Kingdom
In the United Kingdom this document is being distributed only
    to, and is directed only at, Qualified Investors who are
    permitted to carry on regulated activity in the United Kingdom
    by the U.K. Financial Services Authority under the Financial
    Services and Markets Act 2000 (as amended), persons whose
    ordinary activities for the purpose of their businesses involve
    them in buying, selling, subscribing for or underwriting such
    securities or making arrangements for another person to do so
    (whether as principal or agent) or advising on investments or
    other persons who are Investment Professionals within the
    meaning given in paragraph 19(5) of the Financial Services
    and Markets Act 2000 (Financial Promotion) Order 2005. Persons
    who are not permitted to carry on such regulated activity may
    not rely on this document.
94
Table of Contents
LEGAL
    MATTERS
The validity of the shares of common stock offered by this
    prospectus will be passed upon for us by Dorsey &
    Whitney LLP, New York, New York. Certain legal matters relating
    to this offering will be passed upon for the underwriters by
    Faegre & Benson LLP, Minneapolis, Minnesota.
EXPERTS
The consolidated financial statements and schedules of
    IntegraMed America, Inc. as of December 31, 2008 and 2007,
    and for each of the years in the three-year period ended
    December 31, 2008, included in this prospectus and the
    registration statement of which this prospectus is a part, have
    been so included in reliance on the audit reports of Amper,
    Politziner & Mattia, LLP, an independent registered
    public accounting firm, included in this prospectus and the
    registration statement of which this prospectus is a part, given
    on the authority of that firm as experts in accounting and
    auditing.
95
Table of Contents
WHERE YOU
    CAN FIND MORE INFORMATION
We file annual, quarterly and current reports, proxy statements
    and other information with the Securities and Exchange
    Commission. These reports, proxy statements and the other
    information we file with the Securities and Exchange Commission
    contain additional information about us. Our Securities and
    Exchange Commission filings are available to the public at the
    Securities and Exchange Commission's website at
    www.sec.gov. You may also read and copy these reports, proxy
    statements and other information at the Securities and Exchange
    Commission's Public Reference Room at
    100 F Street, N.E., Washington, D.C. 20549. You
    can also request copies of these reports, proxy statements and
    other information, upon payment of a duplicating fee, by writing
    the Public Reference Room. Please call the Securities and
    Exchange Commission at
1-800-SEC-0330
for more information about the operation of the Public Reference
    Room. You can also inspect these materials at the offices of The
    Nasdaq Global Market, at 1735 K Street, N.W.,
    Washington, D.C. 20006.
We have filed with the Securities and Exchange Commission a
    registration statement on
Form S-1
under the Securities Act with respect to the securities that may
    be offered by this prospectus. This prospectus does not contain
    all the information set forth in the registration statement,
    certain parts of which are omitted in accordance with the rules
    and regulations of the Securities and Exchange Commission. For
    more information about us and the securities covered by this
    prospectus, you should see the registration statement and its
    exhibits and schedules. Any statement made in this prospectus
    concerning the provisions of documents may be incomplete, and
    you should refer to the copy of such documents filed as an
    exhibit to the registration statement with the Securities and
    Exchange Commission.
96
INTEGRAMED
    AMERICA, INC.
INDEX TO
    FINANCIAL STATEMENTS
Report of Independent Registered Public
    Accounting Firm
F-2
Consolidated Balance Sheets as of
    December 31, 2008 and 2007 and June 30, 2009
    (unaudited)
F-4
Consolidated Statements of Operations for the
    years ended December 31, 2008, 2007 and 2006 and the six
    months ended June 30, 2009 and 2008 (unaudited)
F-5
Consolidated Statements of Shareholders'
    Equity for the years ended December 31, 2008, 2007 and 2006
    and the six months ended June 30, 2009 (unaudited)
F-6
Consolidated Statements of Cash Flows for the
    years ended December 31, 2008, 2007 and 2006 and the six
    months ended June 30, 2009 and 2008 (unaudited)
F-7
Notes to Consolidated Financial Statements
F-8
F-1
Table of Contents
REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Shareholders of IntegraMed America, Inc.
We have audited the accompanying consolidated balance sheets of
    IntegraMed America, Inc. as of December 31, 2008 and 2007
    and the related consolidated statements of operations,
    shareholders' equity and cash flows for each of the years
    in the three-year period ended December 31, 2008. We also
    have audited IntegraMed America, Inc.'s internal control
    over financial reporting as of December 31, 2008, based on
    criteria established in
Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of the
    Treadway Commission (COSO). IntegraMed America, Inc.'s
    management is responsible for these financial statements, for
    maintaining effective internal control over financial reporting,
    and for its assessment of the effectiveness of internal control
    over financial reporting, included in the accompanying
    consolidated financial statements. Our responsibility is to
    express an opinion on these financial statements and an opinion
    on the company's internal control over financial reporting
    based on our audits.
We conducted our audits in accordance with the standards of the
    Public Company Accounting Oversight Board (United States). Those
    standards require that we plan and perform the audits to obtain
    reasonable assurance about whether the financial statements are
    free of material misstatement and whether effective internal
    control over financial reporting was maintained in all material
    respects. Our audits of the financial statements included
    examining, on a test basis, evidence supporting the amounts and
    disclosures in the financial statements, assessing the
    accounting principles used and significant estimates made by
    management, and evaluating the overall financial statement
    presentation. Our audit of internal control over financial
    reporting included obtaining an understanding of internal
    control over financial reporting, assessing the risk that a
    material weakness exists, and testing and evaluating the design
    and operating effectiveness of internal control based on the
    assessed risk. Our audits also included performing such other
    procedures as we considered necessary in the circumstances. We
    believe that our audits provide a reasonable basis for our
    opinions.
A company's internal control over financial reporting is a
    process designed to provide reasonable assurance regarding the
    reliability of financial reporting and the preparation of
    financial statements for external purposes in accordance with
    generally accepted accounting principles. A company's
    internal control over financial reporting includes those
    policies and procedures that (1) pertain to the maintenance
    of records that, in reasonable detail, accurately and fairly
    reflect the transactions and dispositions of the assets of the
    company; (2) provide reasonable assurance that transactions
    are recorded as necessary to permit preparation of financial
    statements in accordance with generally accepted accounting
    principles, and that receipts and expenditures of the company
    are being made only in accordance with authorizations of
    management and directors of the company; and (3) provide
    reasonable assurance regarding prevention or timely detection of
    unauthorized acquisition, use, or disposition of the
    company's assets that could have a material effect on the
    financial statements.
Because of its inherent limitations, internal control over
    financial reporting may not prevent or detect misstatements.
    Also, projections of any evaluation of effectiveness to future
    periods are subject to the risk that controls may become
    inadequate because of changes in conditions, or that the degree
    of compliance with the policies or procedures may deteriorate.
In our opinion, the financial statements referred to above
    present fairly, in all material respects, the financial position
    of IntegraMed America, Inc. as of December 31, 2008 and
    2007, and the results of its operations and its cash flows for
    each of the years in the three-year period ended
    December 31, 2008 in conformity with accounting principles
    generally accepted in the United States of America. Also in our
    opinion, IntegraMed America, Inc. maintained, in all material
    respects, effective internal control over
F-2
Table of Contents
financial reporting as of December 31, 2008, based on
    criteria established in
Internal Control-Internal Framework
issued by the Committee of Sponsoring Organizations of the
    Treadway Commission (COSO).
As discussed in Note 2 and Note 3 to the consolidated
    financial statements, the Company restated its consolidated
    financial statements as of December 31, 2007 and 2006 as a
    result of a change in its revenue recognition policy for its
    Attain IVF Refund Program, net of the related income tax effect.
As discussed in Note 16 to the consolidated financial
    statements, effective January 1, 2007, the Company adopted
    the provisions of Financial Interpretation (FIN) No. 48
    "Accounting for Uncertainty in Income Taxes- an
    interpretation of Statement of Financial Accounting Standards
    No. 109."
/s/ Amper, Politziner & Mattia, LLP
Edison, New Jersey
March 30, 2009
F-3
Table of Contents
INTEGRAMED
    AMERICA, INC.
CONSOLIDATED
    BALANCE SHEETS
(all
    dollars in thousands, except share amounts)
December 31,
December 31,
June 30,
2008
2007
2009
(restated)
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
28,275
$
23,740
$
31,454
Patient and other receivables, net
6,681
5,511
7,646
Deferred taxes
5,744
5,565
4,352
Other current assets
6,468
4,669
6,463
Total current assets
47,168
39,485
49,915
Fixed assets, net
16,618
16,912
17,328
Intangible assets, Business Service Rights, net
21,956
22,305
21,308
Goodwill
29,478
29,359
29,478
Trademarks
4,442
4,492
4,442
Other assets
1,781
1,619
3,274
Total assets
$
121,443
$
114,172
$
125,745
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
2,853
$
1,895
$
1,864
Accrued liabilities
16,676
16,941
17,407
Current portion of long-term notes payable and other obligations
11,351
3,661
11,329
Due to Fertility Medical Practices
6,354
9,043
10,141
Attain IVF Refund Program deferred revenue and other Patient
    Deposits
13,892
12,465
14,432
Total current liabilities
51,126
44,005
55,173
Long-term notes payable and other obligations
18,868
21,799
16,836
Deferred and other tax liabilities
696
1,819
271
Total Liabilities
70,690
67,623
72,280
Commitments and Contingencies
Shareholders' equity:
Common Stock, $.01 par value —
    15,000,000 shares authorized on December 31, 2008 and
    2007 and June 30, 2009, respectively, 8,645,694, 8,558,083
    and 8,774,994 shares issued and outstanding on
    December 31, 2008 and 2007 and June 30, 2009,
    respectively
87
86
88
Capital in excess of par
54,943
53,890
55,702
Other comprehensive loss
(375
)
(82
)
(293
)
Treasury stock, at cost — 22,682, 14,175 and
    46,408 shares on December 31, 2008 and 2007 and
    June 30, 2009, respectively
(211
)
(165
)
(375
)
Accumulated deficit
(3,691
)
(7,180
)
(1,657
)
Total shareholders' equity
50,753
46,549
53,465
Total liabilities and shareholders' equity
$
121,443
$
114,172
$
125,745
See accompanying notes to the consolidated financial statements.
F-4
Table of Contents
INTEGRAMED
    AMERICA, INC.
CONSOLIDATED
    STATEMENTS OF OPERATIONS
(all
    amounts in thousands, except per share amounts)
For the Year
For the Six-Month Period
Ended
    December 31,
Ended June 30,
2008
2007
2006
2009
2008
(restated)
(restated)
(unaudited)
Revenues, net
Fertility Centers
$
138,440
$
121,078
$
112,767
$
73,574
$
67,797
Consumer Services
19,013
15,804
13,051
10,229
8,635
Vein Clinics
39,950
14,284
—
24,667
18,904
Total revenues
197,403
151,166
125,818
108,470
95,336
Costs of services and sales:
Fertility Centers
128,224
111,059
104,357
67,875
62,923
Consumer Services
14,331
12,325
9,412
7,556
6,315
Vein Clinics
37,299
13,304
—
22,631
17,869
Total costs of services and sales
179,854
136,688
113,769
98,062
87,107
Contribution
Fertility Centers
10,216
10,019
8,410
5,699
4,874
Consumer Services
4,682
3,479
3,639
2,673
2,320
Vein Clinics
2,651
980
—
2,036
1,035
Total contribution
17,549
14,478
12,049
10,408
8,229
General and administrative expenses
10,654
10,536
9,380
6,569
5,098
Interest income
(383
)
(1,256
)
(1,073
)
(143
)
(273
)
Interest expense
1,563
1,136
695
566
849
Total other expenses
11,834
10,416
9,002
6,992
5,674
Income before income taxes
5,715
4,062
3,047
3,416
2,555
Income tax provision
2,226
1,391
1,084
1,382
1,030
Income tax benefit
—
—
(821
)
—
—
Net income
$
3,489
$
2,671
$
2,784
$
2,034
$
1,525
Basic and diluted net earnings per share:
Basic earnings per share
$
0.40
$
0.32
$
0.34
$
0.23
$
0.18
Diluted earnings per share
$
0.40
$
0.32
$
0.34
$
0.23
$
0.18
Weighted average shares — basic
8,618
8,310
8,090
8,767
8,570
Weighted average shares — diluted
8,691
8,410
8,194
8,829
8,652
See accompanying notes to the consolidated financial statements.
F-5
Table of Contents
INTEGRAMED
    AMERICA, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS'
    EQUITY
(all amounts in thousands)
(Restated)
Accumulated
Common Stock
Capital in
Comprehensive
Treasury Stock
Accumulated
Total
Shares
Amount
Excess of Par
Income
Shares
Amount
Deficit
Equity
BALANCE AT DECEMBER 31, 2005
8,008
$
80
$
49,364
$
—
133
$
(937
)
$
(12,635
)
$
35,872
Stock grants issued, net
85
1
58
—
—
—
—
59
Stock grant compensation expense amortization
—
—
405
—
—
—
—
405
Exercise of common stock options and related tax benefits
187
1
498
—
—
—
—
499
Amortization of common stock option compensation expense
—
—
87
—
—
—
—
87
Unrealized loss on hedging transaction
—
—
—
(9
)
—
—
—
(9
)
Retirement of Treasury stock, net of shares issued upon exercise
    of options or issuance of stock grants
(153
)
(1
)
(1,167
)
—
(133
)
937
—
(231
)
Net income for the year ended 12/31/06
—
—
—
—
—
—
2,784
2,784
BALANCE AT DECEMBER 31, 2006
8,127
81
49,245
(9
)
—
—
(9,851
)
39,466
Stock grants issued, net
78
—
—
—
19
(228
)
—
(228
)
Stock grant compensation expense amortization
—
—
558
—
—
—
—
558
Exercise of common stock options and related tax benefits
35
1
154
—
—
—
—
155
Treasury stock transactions, net
(5
)
—
(63
)
—
(5
)
63
—
—
Issuance of common stock upon acquisition of Vein Clinics of
    America, Inc.
337
4
3,996
—
—
—
—
4,000
Unrealized loss on hedging transaction
—
—
—
(73
)
—
—
—
(73
)
Net income for the year ended 12/31/07
—
—
—
—
—
—
2,671
2,671
BALANCE AT DECEMBER 31, 2007
8,572
86
53,890
(82
)
14
(165
)
(7,180
)
46,549
Stock grants issued, net
99
1
(1
)
—
—
—
—
—
Stock grant compensation expense amortization
—
—
858
—
—
—
—
858
Exercise of common stock options and related tax benefits
11
1
360
—
2
(23
)
—
338
Treasury stock transactions, net
(14
)
(1
)
(164
)
—
7
(23
)
—
(188
)
Unrealized loss on hedging transaction
—
—
—
(293
)
—
—
—
(293
)
Net income for the year ended 12/31/08
—
—
—
—
—
—
3,489
3,489
BALANCE AT DECEMBER 31, 2008
8,668
87
54,943
(375
)
23
(211
)
(3,691
)
50,753
Stock awards granted, net
142
1
(1
)
—
23
(164
)
—
(164
)
Restricted stock award and stock option expense amortization
—
—
740
—
—
—
—
740
Stock options exercised
11
—
20
—
—
—
—
20
Unrealized gain on hedging transaction
—
—
—
82
—
—
—
82
Net income for the six months ended June 30, 2009
—
—
—
—
—
—
2,034
2,034
BALANCE AT JUNE 30, 2009 (unaudited)
8,821
$
88
$
55,702
$
(293
)
46
$
(375
)
$
(1,657
)
$
53,465
See accompanying notes to the consolidated financial statements
F-6
Table of Contents
INTEGRAMED
    AMERICA, INC.
CONSOLIDATED
    STATEMENTS OF CASH FLOWS
(all
    amounts in thousands)
For the
For the Year
Six-Month Period
Ended
    December 31,
Ended June 30,
2008
2007
2006
2009
2008
(restated)
(restated)
(unaudited)
Cash flows from operating activities:
Net income
$
3,489
$
2,671
$
2,784
$
2,034
$
1,525
Adjustments to reconcile net income to net cash provided by
    operating activities:
Depreciation and amortization
7,288
6,450
5,705
3,598
3,623
Deferred income tax provision
(1,068
)
469
(799
)
(590
)
(284
)
Deferred or stock-based compensation
858
558
492
740
378
Changes in assets and liabilities —
Decrease (increase) in assets, net of assets acquired from VCA
Patient and other accounts receivables
(1,170
)
(378
)
45
(965
)
(885
)
Prepaids and other current assets
(643
)
(1,040
)
(403
)
5
351
Other assets
(162
)
(122
)
(99
)
13
(180
)
(Decrease) increase in liabilities, net of liabilities acquired
    from VCA
Accounts payable
958
(271
)
590
(989
)
960
Accrued liabilities
(1,421
)
2
3,890
567
(195
)
Due to medical practices
(2,689
)
4,744
(650
)
3,787
(1,718
)
Attain IVF Refund Program deferred revenue and other patient
    deposits
1,427
2,873
2,408
540
1,078
Net cash provided by operating activities
6,867
15,956
13,963
8,740
4,653
Cash flows from investing activities:
Purchase of business service rights
(950
)
(2,653
)
—
—
(950
)
Cash paid to purchase VCA, net of cash acquired
(119
)
(25,409
)
—
—
(119
)
Purchase of other intangibles
50
(40
)
(12
)
—
(94
)
Purchase of fixed assets and leasehold improvements, net
(5,695
)
(6,222
)
(3,233
)
(3,660
)
(3,608
)
Net cash used in investing activities
(6,714
)
(34,324
)
(3,245
)
(3,660
)
(4,771
)
Cash flows from financing activities:
Proceeds from issuance of debt
7,880
25,000
—
—
—
Debt repayments
(3,648
)
(15,163
)
(1,382
)
(1,921
)
(1,436
)
Common Stock transactions
150
87
327
20
85
Net cash provided by (used in) financing activities
4,382
9,924
(1,055
)
(1,901
)
(1,351
)
Net increase (decrease) in cash and cash equivalents
4,535
(8,444
)
9,663
3,179
(1,469
)
Cash and cash equivalents at beginning of period
23,740
32,184
22,521
28,275
23,740
Cash and cash equivalents at end of period
$
28,275
$
23,740
$
32,184
$
31,454
$
22,271
Supplemental Information:
Interest paid
$
1,632
$
1,024
$
695
$
520
$
472
Income taxes paid
$
1,526
$
1,130
$
327
$
3,593
$
736
See accompanying notes to the consolidated financial statements.
F-7
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 —
THE
    COMPANY:
IntegraMed America, Inc. is a specialty healthcare services
    company offering products and services to patients and providers
    in the fertility and vein care segments of the health industry.
As of December 31, 2008 and June 30, 2009, our
    fertility line of business encompassed two of our reporting
    segments and was comprised of 34 contracted fertility centers
    serving major markets across the United States, with products
    and services designed to support fertility center growth, assist
    patients with treatment financing, an Attain IVF Refund
    (formerly Shared Risk Refund) Program and captive insurance
    offerings. As of June 30, 2009, we offered defined business
    services to 11 of these contracted fertility centers under our
    Partner Program, and a more discrete menu of services to 23
    other fertility centers under our Affiliate Program. All 34
    centers have access to our consumer services offerings which are
    comprised of our Attain IVF Refund Program.
In late 2008, our Consumer Services division re-launched its
    Shared Risk Refund Program under the name "Attain
    IVF." This re-branding was done to reflect advantages
    offered by the program beyond its packaged pricing features and
    to seek to position the program in a leadership role among
    smaller, similar programs offered by other providers. We have
    also modified our revenue recognition model for this program as
    described in Note 2 and Note 3. All amounts presented
    for 2007 and 2006 have been restated to reflect this change in
    revenue recognition.
Our vein clinics division, which began operations in August,
    2007, was, as of June 30, 2009, comprised of 34 (32 as of
    December 31, 2008) vein clinics serving major markets,
    which primarily provide minimally invasive advanced treatment
    for vein diseases. We offer defined business services to these
    clinics which are designed to support their operations and
    growth.
NOTE 2 —
RESTATEMENT
    OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL
    STATEMENTS:
The accompanying 2007 and 2006 consolidated financial statements
    have been restated to reflect a change in the revenue
    recognition policy for our Attain IVF Refund Program. Our
    previous revenue recognition policy had generally recognized the
    non-refundable patient fees (generally 30% of the contract
    amount) as revenue upon the completion of the first treatment
    cycle and we now recognize the non-refundable fees based on the
    relationship of the relative fair value of each treatment to the
    total fair value of the treatment package available to each
    patient. We also recognize a "warranty reserve"
    representing the estimated cost of services to be provided in
    the event a qualified patient miscarries. This restatement does
    not impact the cash flows from the operations of this program or
    the ultimate profits to be recognized, only the timing of the
    revenue recognition for a portion of the fees that we collect
    from our customers.
The cumulative effect of this change in policy as of
    December 31, 2008, is to defer approximately
    $3.5 million of revenue into 2009 which would have been
    recognized in 2008. Similarly we recognized a substantial amount
    of revenue in 2008 which had been deferred from 2007. The change
    in revenue on
F-8
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
our financial statements for the years ended December 31,
    2008, 2007 and 2006 is illustrated below (000's):
For the Twelve Months Ended
December 31,
2008
2007
2006
Revenue recognized from prior year
$
2,796
$
1,964
$
1,344
Revenue deferred to future year
(3,477
)
(2,796
)
(1,964
)
Net change in annual revenue
$
(681
)
$
(832
)
$
(620
)
Our new revenue recognition policy, as more fully described in
    Note 3 — "Summary of Significant Accounting
    Policies," changes the timing of the revenue recognition
    for the non-refundable fees, and aligns it more closely to the
    underlying treatment cycles delivered to the patient.
The change in the timing related to revenue recognition had the
    following effects:
For the Year Ended
Six Months Ended
December 31,
June 30,
2008
2007
2006
2008
Revenue as reported
$
198,084
$
151,998
$
126,438
$
95,473
Net Change in reported revenue
(681
)
(832
)
(620
)
(137
)
Revenue as restated
$
197,403
$
151,166
$
125,818
$
95,336
Income before income taxes as reported
$
6,454
$
4,952
$
3,731
$
2,720
Net change in reported revenue
(681
)
(832
)
(620
)
(137
)
Net change in reserve for medical costs
(58
)
(58
)
(64
)
(28
)
Income before income taxes as restated
$
5,715
$
4,062
$
3,047
$
2,555
Income tax provision as reported
$
2,514
$
1,695
$
507
$
1,094
Net change in income taxes from above adjustments
(288
)
(304
)
(244
)
(64
)
Income tax provision as restated
$
2,226
$
1,391
$
263
$
1,030
Net income as reported
$
3,940
$
3,257
$
3,224
$
1,626
Summary of above adjustments
(451
)
(586
)
(440
)
(101
)
Net income as restated
$
3,489
$
2,671
$
2,784
$
1,525
Diluted earnings per share as reported
$
0.45
$
0.39
$
0.39
$
0.19
Change in earnings per share from above adjustments
(0.05
)
(0.07
)
(0.05
)
(0.01
)
Diluted earnings per share as restated
$
0.40
$
0.32
$
0.34
$
0.18
Current liabilities as reported
$
47,329
$
40,946
$
25,687
$
41,023
Cumulative effect of restatement on liabilities
3,797
3,059
2,169
3,224
Current liabilities as restated
$
51,126
$
44,005
$
27,856
$
44,247
F-9
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
For the Year Ended
Six Months Ended
December 31,
June 30,
2008
2007
2006
2008
Shareholders' Equity as reported
$
53,158
$
48,503
$
40,834
$
50,453
Cumulative effect of restatement on Shareholders' Equity
(2,405
)
(1,954
)
(1,368
)
(2,055
)
Shareholders' Equity as restated
$
50,753
$
46,549
$
39,466
$
48,398
NOTE 3 —
SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES:
Unaudited
    Interim Financial Information —
The interim consolidated financial statements and related
    disclosures as of June 30, 2009 and for the six months
    ended June 30, 2009 and 2008 are unaudited and have been
    prepared in accordance with the rules and regulations of the
    Securities and Exchange Commission ("SEC"). The
    unaudited interim consolidated financial statements have been
    prepared on the same basis as the audited consolidated financial
    statements, and in the opinion of management, reflect all
    adjustments of a normal recurring nature considered necessary to
    present the Company's financial position as of
    June 30, 2009 and the results of its operations and its
    cash flows for the six months ended June 30, 2009 and 2008.
    The results of operations for the six months ended June 30,
    2009 are not necessarily indicative of the results that may be
    expected for the year ending December 31, 2009.
Basis of
    consolidation —
The consolidated financial statements comprise the accounts of
    IntegraMed America, Inc. and its wholly owned subsidiaries. With
    the acquisition of Vein Clinics of America, Inc. (VCA) in the
    third quarter of 2007, we reorganized our service offerings into
    three major product lines, Fertility Centers, Consumer Services
    and Vein Clinics. In our Fertility Centers Segment, we derive
    our revenues from business service contracts with independent
    fertility centers. Our Consumer Services Segment derives its
    revenues from fees assessed to patients enrolling in our Attain
    IVF Refund Program, fees assessed to affiliated fertility
    clinics, and fees derived from fertility patient financing
    products. Our Vein Clinics Segment derives revenues from
    billings to patients and third party payors for treatment
    services rendered based upon the amount billed to the patient or
    their payor less any expected contractual allowances resulting
    from specified rates contained within payor contracts.
We evaluate whether we should report the results of the clinical
    operations in which we have management service contracts in
    accordance with Financial Accounting Standards Board (FASB)
    Interpretation (FIN) No. 46 (revised December 2003)
    (FIN 46R) "Consolidation of Variable Interest
    Entities." Since we do not have a controlling financial
    interest in any of the fertility medical practices to which we
    provide services, and we are not the primary beneficiary or
    obligor of their financial results (our contracts provide for
    the physician owners of the clinics to receive any excess or
    deficit of profits) we do not consolidate their results. This is
    further supported by the facts that the physician owners of the
    clinics have voting control with respect to such entities and
    sufficient equity interests to fund such entities. We do have
    effective voting control and a controlling financial interest in
    the operations of each of the vein clinics, where we are the
    primary beneficiary and obligor of their financial results and
    therefore consolidate the results of those clinic operations.
    Accordingly, we report the revenue for patient services only
    from the vein clinic segment and those fertility patients who
    enroll in the Attain IVF Refund Program (included in our
    consumer services segment).
F-10
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Reclassifications —
With the addition of VCA, we have realigned the way we operate
    our business into three segments. As a result, we have
    reclassified certain costs for all years presented within the
    three divisions to reflect this change in our operating
    structure and to provide a clearer view of each division's
    operating performance and efficiency. The result of this change
    is to reduce overall contribution margins and unallocated
    General and Administrative costs, as reported in previous
    periods.
Stock
    split effected in the form of a stock dividend —
In May 2007 and June 2006, we effected a 25% stock split in the
    form of a stock dividend. Where applicable, we have restated our
    capital accounts, shares outstanding, weighted average shares
    and earnings per share calculations for all years in these
    financial statements and related footnotes to reflect these
    transactions.
Revenue
    Recognition —
Fertility
    Centers — Partner service fees
Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of:
    (i) a tiered percentage of the fertility center's net
    revenues, (ii) reimbursed costs of services (costs incurred
    in servicing a fertility center and any costs paid on behalf of
    the fertility center) and (iii) either a fixed percentage
    ranging from 10% to 20%, or a fixed dollar amount (limited to
    $1,071,000 and $1,865,000 for the year ended December 31,
    2008 at our two largest fertility centers) of the fertility
    center's earnings after service fees, which may be subject
    to further limits. All revenues from Partner contracts are
    recorded in the period services are rendered. Direct costs
    incurred by us in performing our services and costs incurred on
    behalf of the medical practices are reported as costs of
    services. Revenue and costs are recognized in the same period in
    which the related services have been performed.
Consumer
    Services — Affiliate Service Fee
Under our Affiliate agreements, we receive as compensation for
    our services a fixed fee dependent upon the level of service
    provided. All revenues and costs from Affiliate contracts are
    recorded in the period services are rendered.
Consumer
    Services — Attain IVF Refund Program
The Attain IVF Refund Program consists of a fertility treatment
    package that includes a fixed number of treatment cycles for one
    fixed price with a significant refund if treatment is
    unsuccessful. We receive payment directly from consumers who
    qualify for the program and the patient contracts with us for
    the provision of medical services. We arrange for patient
    treatment by contracting with affiliated fertility clinics for
    the provision of patient care. We pay contracted fertility
    centers a defined reimbursement for each treatment cycle
    performed. Since the Company is the primary obligor in the
    arrangement, the Company has latitude in establishing the price,
    the Company performs a portion of the contracted service, the
    Company has discretion in supplier selection, the amount earned
    by the Company per transaction is not fixed and the patient
    looks to the Company as the contracting party, these
    arrangements qualify for gross accounting under
EITF 99-19.
We have revised our revenue recognition policy and have restated
    all periods presented to reflect the revised revenue recognition
    policy described below.
F-11
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
By contract, a portion of the contract amount (generally 30%) is
    non-refundable and is recognized as revenue based on the
    relative fair value of each treatment cycle completed relative
    to the total fair value of the contracted treatment package
    available to the patient, following the guidance of Emerging
    Issues Task Force statement
00-21.
The
    remaining revenue, which consists of the 70% refundable portion
    as well as any part of the 30% non-refundable portion not yet
    recognized as revenue, is recorded upon the patient becoming
    pregnant and achieving a fetal heartbeat (most of the patients
    that are pregnant at this point go on to deliver a baby). We are
    able to record income at the time of pregnancy as we have
    substantially completed our obligation to the patient,
    discharged the patient from the care of the fertility
    specialists, and can accurately estimate the amount of expenses
    and refunds that will become due if there is a pregnancy loss.
    We are able to make these estimates for pregnancy loss based
    upon reliable Company specific data with respect to the large
    homogeneous population we have served for more than seven years.
    Expenses prior to pregnancy related to the program and
    principally paid to the affiliated fertility clinic are recorded
    as incurred.
Accordingly, at each balance sheet date, we have established a
    liability for patients in the Attain IVF Refund Program for the
    following:
1. Deposits for customers who have not yet begun treatment and
    for whom no revenue has been recognized (we expect such amounts
    to be recognized as income or refunded within twelve to eighteen
    months).
2. Refund reserve for those patients who became pregnant, but
    may not deliver a baby. (See Note 12)
3. Medical costs associated with additional treatments to a
    patient who became pregnant, did not deliver a baby and still
    has additional treatments available under their treatment
    package. (See Note 12)
The table below presents the balances of each of these
    liabilities as of the respective dates (000's):
December 31,
June 30,
2008
2007
2009
2008
Deposits or refundable fees
$
12,636
$
11,254
$
12,952
$
11,391
Refund reserve for pregnant patients
386
403
294
403
Medical cost reserve
321
262
347
290
Due to the characteristics of the program, we assume the risk
    for a patient's treatment cost in excess of their
    enrollment fee should initial treatment cycles be unsuccessful.
    In order to moderate and manage this risk, we have developed a
    sophisticated statistical model and case management program in
    which Attain IVF Refund Program patients are medically
    pre-approved prior to enrollment in the program. We also
    continuously review their clinical criteria as they undergo
    treatment. If, while undergoing treatment, a patient's
    clinical response falls outside our criteria for participation
    in the Attain IVF Refund Program, we have the right to remove
    that individual from the program, with an applicable refund to
    the patient. To date, our case management process has been
    effective in managing the risks associated with our Attain IVF
    Refund Program within expected limits. A patient may withdraw
    from the program at any time and will be issued a refund.
F-12
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
The Attain IVF Refund Program is available to the self-pay
    patient. Approximately 11.5%, 12.9%, 11.6% and 9.6% of the
    self-pay patients served by our network chose to enroll in the
    Attain IVF Refund Program in the six months ended June 30,
    2009, and the years ended December 31, 2008, 2007 and 2006,
    respectively.
Consumer
    Services — Pharmaceutical Sales
Marketing fees associated with third-party pharmaceutical sales
    are recorded upon shipment to customers. Our revenues for the
    periods presented are comprised of these marketing fees and not
    from the sales of actual pharmaceuticals.
Consumer
    Services — Patient Financing
A fertility treatment cycle can be an expensive process for
    which many patients do not have full medical insurance coverage.
    As a service to these patients, we can arrange financing to
    qualified patients of our network at rates significantly lower
    than credit cards and other finance companies. Our financing
    operations are administered by a third-party vendor and loans
    are made to qualified patients by an independent bank or finance
    organization. We are not at risk for loan losses and receive a
    placement fee from the lender involved. Since many financing
    transactions are closely associated with our Attain IVF Refund
    Program, financing revenues, which we receive and record at the
    time the loans are closed, are reported as part of that program.
Vein
    Clinics — Patient Revenues and Accounts Receivable and
    Allowance for Uncollectible Accounts
Our relationship with the individual medical practices
    comprising our vein clinics division meets the test for
    consolidation under FIN 46R "Consolidation of Variable
    Interest Entities." Among these tests is the fact that we
    hold a controlling financial interest in the medical practices,
    we are the primary beneficiary of the results of the practices
    and we absorb any losses of the practices. As a result of these
    relationships, we consolidate the medical practice's
    patient revenues in our financial statements. These revenues are
    derived from the treatment of individual patients and revenue is
    recognized when the services are performed, net of estimated
    contractual allowances.
The medical practices have agreements with third-party payors
    that provide for payments at amounts different from established
    rates. Payment arrangements include prospectively determined
    rates for reimbursed cost and discounted charges. Revenue is
    reported at the estimated net realizable amounts from patients
    and third-party payors.
A summary of the payment arrangements with major third-party
    payors follows:
•
Medicare: All outpatient services related to Medicare
    beneficiaries are paid based on a fixed physician fee schedule
    per service which is updated annually.
•
Other: Estimates for contractual allowances under managed care
    health plans are based primarily on the payment terms of
    contractual arrangements, such as predetermined rates per
    diagnosis, per diem rates or discounted fee for service rates.
Approximately 17% of gross patient revenues of the Vein Clinics
    Division for the year ended December 31, 2008, related to
    services rendered to patients covered by the Medicare program.
F-13
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Laws and regulations governing the Medicare program are complex
    and subject to interpretation. Management is not aware of any
    pending or threatened investigations involving allegations of
    potential wrongdoing. While no such regulatory inquiries have
    been made, compliance with such laws and regulations can be
    subject to future government review and interpretation.
Our accounts receivable are primarily comprised of patient and
    third-party receivables arising from services provided by our
    vein care division. Receivables due from third-party payors are
    carried at an estimated collectible value determined by the
    original charge for the service provided, less an estimate for
    contractual allowances or discounts provided to the third-party
    payors. Receivables due directly from patients are carried at
    the original charge for the service provided less an estimated
    allowance for uncollectible amounts. Contractual allowance and
    uncollectible reserve amounts are determined based on historical
    collection performance data and are reviewed and adjusted
    monthly as necessary.
Vein
    Clinics — Deferred Compensation Arrangements
The Professional Corporations providing medical services at the
    clinics have entered into employment agreements with physicians
    at clinic sites providing for multi-year bonus compensation to
    be accumulated over a physician's first five years of
    employment. Accumulated balances are paid out during the years
    following this period, or after specific performance targets
    have been met. These obligations are funded in physician
    designated investment accounts on a quarterly basis. At
    December 31, 2008, these balances totaled approximately
    $938,000 and at June 30, 2009, these balances totaled
    approximately $922,000.
Intangible
    and Long-Lived Assets —
Our intangible assets are comprised of Business Service Rights
    associated with our fertility Partner contracts, Goodwill
    associated with our acquisition of VCA, and Trademarks, also
    principally associated with our VCA acquisition.
Business Service Rights represent payments we made for the right
    to service certain fertility centers. We amortize our
    non-refundable Business Service Rights on a straight-line basis
    over the life of the underlying contract, usually ten to twenty
    five years. Our refundable Business Service Rights are not
    amortized as they are contractually reimbursable from the
    medical practice upon termination of the underlying contract.
    Our Goodwill and Trademark assets associated with the VCA
    acquisition are deemed to have indefinite lives and are
    therefore not amortized.
We test all of our intangible and long-lived assets for
    impairment on a regular basis in accordance with Financial
    Accounting Standards (FAS) 144 "Accounting for the
    Impairment or Disposal of Long-Lived Assets"
    (FAS 144). If we record an impairment loss, it may have a
    material adverse effect on our results of operations for the
    year in which the impairment is recorded. As of June 30,
    2009 and December 31, 2008, none of our long lived assets
    were deemed to be impaired.
Use of
    Estimates —
The preparation of financial statements in conformity with
    accounting principles generally accepted in the United States
    requires management to make estimates and assumptions that
    affect the reported amounts of assets and liabilities and
    disclosure of contingent assets and liabilities at the date of
    the financial statements and the reported amounts of revenues
    and expenses during the reporting periods. Actual results could
    differ from those estimates. The use of estimates and
    assumptions in the preparation of the accompanying consolidated
    financial statements is most significant with respect to the
F-14
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
determination of net revenues and accounts receivable and
    reserves for estimated refunds due to pregnancy losses in our
    Attain IVF Refund Program.
Due to
    Medical Practices —
Due to Medical Practices represents the net amounts owed by us
    to contracted medical practices in our Partner Program. This
    balance is comprised of amounts due to us by the medical
    practices for funds which we advanced for use in financing their
    accounts receivable, less balances owed to the medical practices
    by us for undistributed physician earnings and patient deposits
    we hold on behalf of the medical practices.
Cash and
    cash equivalents —
Cash and cash equivalents primarily include all highly liquid
    debt instruments with original maturities of three months or
    less, recorded at cost, which approximates market.
Concentrations
    of credit risk —
Financial instruments, which potentially expose us to
    concentrations of credit risk, consist primarily of trade
    receivables from patients and third-party payors which totaled
    approximately $14.5 million at June 30, 2009 and
    $13.2 million and $12.2 million as of
    December 31, 2008 and 2007, respectively. Our related
    reserves for uncollectible accounts and contractual allowances
    totaled $6.8 million, $6.5 million and
    $6.7 million as of June 30, 2009 and December 31,
    2008 and 2007, respectively.
Income
    taxes —
We account for income taxes utilizing the asset and liability
    approach in accordance with FAS 109, "Accounting For
    Income Taxes." Deferred tax assets and liabilities are
    recognized on differences between the book and tax basis of
    assets and liabilities using presently enacted tax rates. The
    income tax provision is the sum of the amount of income tax paid
    or payable for the year as determined by applying the provisions
    of enacted tax laws to the taxable income for that year and the
    net change during the year in our deferred tax assets and
    liabilities. (See Note 16).
Earnings
    per share —
We determine earnings per share in accordance with FAS 128
    "Earnings Per Share." Basic earnings per share is
    calculated by dividing net income by the weighted average number
    of common shares outstanding during the reporting period.
    Diluted earnings per share is calculated by dividing net income
    by the weighted average number of common shares, and potential
    common shares, outstanding during the reporting period. (See
    Note 17).
Fair
    value of financial instruments —
The fair value of a financial instrument, such as a note
    payable, represents the amount at which the instrument could be
    exchanged in a current transaction between willing parties,
    other than in a forced sale or liquidation. Significant
    differences can arise between the fair value and carrying
    amounts of financial instruments that are recorded at historical
    cost amounts. We believe that the carrying amounts of cash and
    cash equivalents, our accounts receivable and accounts payable
    approximate fair value due to their short-term nature.
F-15
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
As of December 31, 2008 and 2007, the carrying amount of
    our long-term liabilities approximates the fair value of such
    instruments based upon our best estimate of interest rates that
    would be available to us for similar debt obligations with
    similar maturities.
Recently
    issued accounting pronouncements —
FAS 157-3
: In
    October 2008, the FASB issued FASB Staff Position (FSP)
FAS 157-3,
"Determining the Fair Value of a Financial Asset When the
    Market for That Asset Is Not Active." The FSP clarifies the
    application of FAS 157, "Fair Value
    Measurements," in a market that is not active and provides
    an example to illustrate key considerations in determining the
    fair value of a financial asset when the market for that
    financial asset is not active. The FSP is effective for prior
    periods for which financial statements have not been issued. We
    currently believe that
FAS 157-3
will not have a material impact on our consolidated financial
    statements.
FAS 142-3
: In
    April 2008, the FASB issued FSP
FAS 142-3,
"Determination of the Useful Life of Intangible
    Assets." This FSP amends the factors that should be
    considered in developing renewal or extension assumptions used
    to determine the useful life of a recognized intangible asset
    under FAS 142, "Goodwill and Other Intangible
    Assets" (FAS 142). The intent of this FSP is to
    improve the consistency between the useful life of a recognized
    intangible asset under FAS 142 and the period of expected
    cash flows used to measure the fair value of the asset under
    FAS 141R, and other U.S. generally accepted accounting
    principles. This FSP is effective for financial statements
    issued for fiscal years beginning after December 15, 2008,
    and interim periods within those fiscal years. We currently
    believe that
FAS 142-3
will have no material impact on our consolidated financial
    statements.
FAS 161
: In March 2008, the FASB issued
    FAS 161, "Disclosures about Derivative Instruments and
    Hedging Activities — an amendment of FASB Statement
    No. 133" (FAS 161). FAS 161 changes the
    disclosure requirements for derivative instruments and hedging
    activities. Entities are required to provide enhanced
    disclosures about (a) how and why an entity uses derivative
    instruments, (b) how derivative instruments and related
    hedged items are accounted for under FAS 133 and its
    related interpretations, and (c) how derivative instruments
    and related hedge items affect an entity's financial
    position, financial performance, and cash flows. This statement
    is effective for fiscal years after November 15, 2008. We
    currently believe that FAS 161 will have no material impact
    on our consolidated financial statements.
FAS 160
: In December 2007, the FASB issued
    FAS 160, "Non-controlling Interests in Consolidated
    Financial Statements — an amendment of ARB
    No. 51" (FAS 160). FAS 160 requires a
    company to clearly identify and present ownership interests in
    subsidiaries held by parties other than the company in the
    consolidated financial statements within the equity section but
    separate from the company's equity. It also requires the
    amount of consolidated net income attributable to the parent and
    to the non-controlling interest be clearly identified and
    presented on the face of the consolidated statement of income;
    changes in ownership interest be accounted for similarly, as
    equity transactions; and when a subsidiary is deconsolidated,
    any retained non-controlling equity investment in the former
    subsidiary and the gain or loss on the deconsolidation of the
    subsidiary be measured at fair value. FAS 160 is effective
    for fiscal years after December 15, 2008. We currently
    believe that FAS 160 will have no material impact on our
    consolidated financial statements.
FAS 141R
: In December 2007, the FASB issued
    FAS 141 (Revised 2007), "Business Combinations"
    (FAS 141R). The objective of FAS 141R is to improve
    the relevance, representational faithfulness, and comparability
    of the information that a reporting entity provides in its
    financial reports about a business
F-16
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
combination and its effects. To accomplish that, FAS 141R
    establishes principles and requirements for how the acquirer:
a. Recognizes and measures in its financial statements the
    identifiable assets acquired, the liabilities assumed, and any
    non-controlling interest in the acquiree
b. Recognizes and measures the goodwill acquired in the business
    combination or a gain from a bargain purchase
c. Determines what information to disclose to enable users of
    the financial statements to evaluate the nature and financial
    effects of the business combination
This statement is effective for fiscal years beginning on or
    after December 15, 2008. We currently believe that
    FAS 141R will not have a material impact on our
    consolidated financial statements
FAS 157
: In September 2006, the FASB issued
    FAS 157, "Fair Value Measurements"
    (FAS 157). FAS 157 defines fair value, establishes a
    framework for measuring fair value, and expands disclosures
    about fair value measurements. FAS 157 is effective for
    financial statements issued for fiscal years beginning after
    November 15, 2007 and became effective for us on
    January 1, 2008.
Fair value is defined as the price at which an asset could be
    exchanged in a current transaction between knowledgeable,
    willing parties. A liability's fair value is defined as the
    amount that would be paid to transfer the liability to a new
    obligor, not the amount that would be paid to settle the
    liability with the creditor. The FASB establishes a three-level
    hierarchy for fair value measurements based upon the
    transparency of inputs to the valuation as of the measurement
    date and expands disclosures about financial instruments
    measured at fair value. Assets and liabilities recorded at fair
    value are categorized based upon the level of judgment
    associated with the inputs used to measure their fair value.
    Hierarchical levels defined by FAS 157 and directly related
    to the amount of subjectivity associated with the inputs to fair
    valuation of these assets and liabilities are as follows:
Level 1: Inputs are unadjusted, quoted prices in
    active markets for identical assets or liabilities at the
    measurement date. The types of assets and liabilities carried at
    this level are equities listed in active markets, investments in
    publicly traded mutual funds with quoted market prices and
    listed derivatives.
Level 2: Inputs (other than quoted prices included in
    Level 1) are either directly or indirectly observable
    for the asset or liability through correlation with market data
    of the instrument's anticipated life. Fair value assets and
    liabilities that are generally included in this category are
    municipal bonds and certain derivatives.
Level 3: Financial assets and financial liabilities
    whose values are based on prices or valuation techniques that
    require inputs that are both unobservable and significant to the
    overall fair value measurement. Consideration is given to the
    risk inherent in the valuation method and the risk inherent in
    the inputs to the model. Generally, assets and liabilities
    carried at fair value and included in this category are certain
    derivatives.
The adoption of FAS 157 did not have a material impact on
    our consolidated financial statements.
F-17
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
FSP 141(R)-1
: In April 2009, the FASB issued
    FSP FAS 141(R)-1, "Accounting for Assets Acquired and
    Liabilities Assumed in a Business combination That Arise from
    Contingencies" (FSP 141(R)-1). FSP 141(R)-1
    requires that assets acquired and liabilities assumed in a
    business combination that arise from pre-acquisition
    contingencies, be recognized at fair value at the acquisition
    date, if fair value can be determined during the measurement
    period. If the acquisition date fair value cannot be determined,
    the guidance in FASB Statement No. 5, "Accounting for
    Contingencies" (FASB ASC 450), and FIN No. 14,
    "Reasonable Estimation of the Amount of a Loss" (FASB
    ASC
450-20),
should be applied. FSP 141(R)-1 also eliminates the
    requirement to disclose an estimate of the range of outcomes of
    recognized contingencies at the acquisition date and requires
    that contingent consideration arrangements of an acquiree
    assumed by the acquirer in a business combination be treated as
    contingent consideration of the acquirer and should be initially
    and subsequently measured at fair value in accordance with
    FAS 141(R)-1. FSP 141(R)-1 is effective prospectively
    for business combinations for which the acquisition date is on
    or after the beginning of the first annual reporting period
    beginning on or after December 15, 2008. Adoption of
    FSP 141(R)-1 did not have a material impact on our
    financial statements.
FSP 157-4
: In
    April 2009, the FASB also issued FSP
FAS 157-4,
"Determining Fair Value When the Volume and Level of
    Activity for the Asset or Liability Have Significantly Decreased
    and Identifying Transactions That Are Not Orderly"
(FSP 157-4).
FSP 157-4
provides additional guidance for estimating fair value in
    accordance with FAS 157 when the volume and level of
    activity for the asset or liability have significantly
    decreased.
FSP 157-4
also includes guidance on identifying circumstances that
    indicate a transaction is not orderly.
FSP 157-4
is effective for interim and annual reporting periods after
    June 15, 2009. Adoption of
FSP 157-4
did not have a material impact on our financial statements.
FSP 107-1
and APB
28-1
: In
    April 2009, the FASB issued FSP
FAS 107-1
and APB
No. 28-1,
"Interim Disclosures about Fair Value of Financial
    Instruments"
(FSP 107-1
and APB
28-1),
which
    requires quarterly disclosure of information about the fair
    value of financial instruments within the scope of FAS 107,
    "Disclosures about Fair Value of Financial
    Instruments."
FSP 107-1
and APB
28-1
has an effective date requiring adoption by the third quarter of
    2009 with early adoption permitted. The adoption of
FSP 107-1
and APB
28-1
will not have a material impact on our consolidated financial
    statements.
FAS 165
: In May 2009, the FASB issued
    FAS 165, "Subsequent Events" (FAS 165),
    which sets forth general standards of accounting for and
    disclosure of events that occur after the balance sheet date but
    before financial statements are issued or are available to be
    issued. FAS 165 will become effective in the third quarter
    of 2009. The adoption of FAS 165 will not have a material
    impact on our consolidated financial statements. In accordance
    with FAS 165, the Company evaluated all events and
    transactions that occurred after June 30, 2009 up through
    August 7, 2009, the date the Company issued its unaudited
    consolidated financial statements for the six-month period ended
    June 30, 2009. During this period, the Company did not have
    any material recognizable subsequent events.
FAS 166
: In June 2009, the FASB issued
    FAS 166, "Accounting for Transfers of Financial
    Assets — an amendment of FASB Statement
    No. 140" (FAS 166). FAS 166 amends
    FAS 140, "Accounting for Transfers and Servicing of
    Financial Assets and Extinguishments of Liabilities" (FASB
    ASC 860) and will significantly change how entities account
    for transfers of financial assets. FAS 166 eliminates the
    qualifying special purpose entity (QSPE) concept. All
    QSPE's will be subject to the consolidation considerations
    of FAS 167. The new standard also includes a number of
    changes and clarifications that restrict the ability of
    companies to derecognize financial assets. A transfer of
    financial assets that does
F-18
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
not meet the criteria for derecognition is treated as a secured
    financing rather than a sale. In addition, the new standard
    requires disclosures aimed at improving the transparency of any
    continuing involvement with transfers of financial assets, the
    nature of any restrictions on the transferor's assets that
    relate to a transferred financial asset, and how a transfer of
    financial assets affects the company's balance sheet,
    earnings, and cash flows. FAS 166 applies to all transfers
    of financial assets occurring in the first fiscal year beginning
    after November 15, 2009 and in interim periods in those
    years. Adoption of FAS 166 will not have a material impact
    on our financial statements.
FAS 167
: In June 2009, the FASB issued
    FAS 167, "Amendments to FASB Interpretation
    No. 46(R)" (FAS 167), which amends FIN 46
    (revised December 2003) to address the elimination of the
    concept of a QSPE. FAS 167 also replaces the
    quantitative-based risks and rewards calculation for determining
    which enterprise has a controlling financial interest in a
    variable interest entity with an approach focused on identifying
    which enterprise has the power to direct the activities of a
    variable interest entity and the obligation to absorb losses of
    the entity or the right to receive benefits from the entity.
    Additionally, FAS 167 provides more timely and useful
    information about an enterprise's involvement with a
    variable interest entity. FAS 167 will become effective in
    the first quarter of 2010. The adoption of FAS 167 will not
    have a material impact on our consolidated financial statements.
FAS 168
: In June 2009, the FASB issued
    FAS 168, "The FASB
Accounting Standards
    Codification
tm
and the Hierarchy of Generally Accepted Accounting Principles, a
    replacement of FASB Statement No. 162" (FAS 168),
    which establishes the FASB Accounting Standards Codification as
    the source of authoritative accounting principles recognized by
    the FASB to be applied in the preparation of financial
    statements in conformity with generally accepted accounting
    principles. FAS 168 explicitly recognizes rules and
    interpretive releases of the Securities and Exchange Commission
    (SEC) under federal securities laws as authoritative generally
    accepted accounting principles for SEC registrants. FAS 168
    will become effective in the fourth quarter of 2009 and will not
    have a material impact on our consolidated financial statements.
NOTE 4 —
SIGNIFICANT
    SERVICE CONTRACTS:
For the six months ended June 30, 2009 and the years ended
    December 31, 2008, 2007, and 2006, the following contracted
    fertility centers each individually provided greater than 10% of
    our revenues, net
and/or
contribution as follows:
Percent of
Percent of
Company Revenues, Net
Contribution
Six
Six
Months
Months
Ended
Year Ended
Ended
Year Ended
June 30,
December 31,
June 30,
December 31,
2009
2008
2007
2006
2009
2008
2007
2006
RSC of New England
7.1
7.2
9.0
10.7
9.1
9.1
11.0
12.2
Fertility Centers of Illinois
13.9
16.1
19.0
22.0
13.2
13.3
15.3
16.3
Shady Grove Fertility Center
18.3
17.9
21.2
22.7
16.7
16.1
20.3
19.0
Under all of our fertility Partner agreements, we receive as
    compensation for our services a three-part fee comprised of:
    (i) a tiered percentage of the fertility centers net
    revenues, (ii) reimbursed costs of services (costs incurred
    in servicing a fertility center and any costs paid on behalf of
    the fertility center)
F-19
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
and (iii) a either a fixed percentage, or a fixed dollar
    amount of the fertility centers earnings after services fees,
    which may be subject to further limits.
The third tier of our fee structure with these significant
    contracts contains provisions as follows:
•
RSC of New England — a fixed annual percentage of the
    center's earnings.
•
Fertility Centers of Illinois — a fixed percentage of
    the center's earnings subject to a fixed dollar amount as
    an upper boundary ($1,865,000) and a fixed dollar amount as a
    lower boundary ($932,000) subject to a fixed percentage of the
    center's earnings limitation.
•
Shady Grove Fertility Center — a fixed dollar amount
    of the center's earnings subject to a fixed percentage of
    the center's earnings limitation ($1,071,000 is the upper
    boundary and $540,000 is the lower boundary of this calculation).
NOTE 5 —
SEGMENT
    INFORMATION:
We follow the requirements contained in FAS 131,
    "Disclosures about Segments of an Enterprise and Related
    Information" (FAS 131), with respect to identifying
    and reporting business segments. FAS 131 requires that
    segment reporting reflect our organizational structure, major
    revenue sources, lines of responsibility and senior
    management's perspective of our organization. With the
    acquisition of VCA during the third quarter of 2007, we
    reorganized our service offerings into three product lines:
    Fertility Centers, Consumer Services and Vein Clinics. Each of
    the operating segments includes an element of overhead
    specifically associated with it. Such overhead costs were
    previously reported as General and Administrative costs, and
    have been reclassified in all periods presented to better
    reflect the operating results of our business segments.
F-20
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Performance by segment, for the three years ended
    December 31, 2008, 2007 (restated) and 2006 (restated) and
    the six months ended June 30, 2009 and 2008 are presented
    below (000's omitted):
Fertility
Consumer
Vein
Centers
Services
Clinics
(1)
Corp G&A
Consolidated
For the Year ended December 31, 2008
Revenues
$
138,440
$
19,013
$
39,950
$
—
$
197,403
Cost of services
128,224
14,331
37,299
—
179,854
Contribution
10,216
4,682
2,651
—
17,549
Operating margin
7.4
%
24.6
%
6.6
%
—
8.9
%
General and administrative
—
—
—
10,654
10,654
Interest (income) expense, net
(181
)
—
8
1,353
1,180
Income (loss) before income taxes
$
10,397
$
4,682
$
2,643
$
(12,007
)
$
5,715
Depreciation expense included above
$
4,327
$
3
$
761
$
898
$
5,989
Capital expenditures, net
$
4,053
$
—
$
1,057
$
585
$
5,695
Total assets
$
36,885
$
331
$
46,750
$
37,477
$
121,443
For the Year ended December 31, 2007
Revenues
$
121,078
$
15,804
$
14,284
$
—
$
151,166
Cost of services
111,059
12,325
13,304
—
136,688
Contribution
10,019
3,479
980
—
14,478
Operating margin
8.3
%
22.0
%
6.9
%
—
9.6
%
General and administrative
—
—
—
10,536
10,536
Interest (income) expense, net
(203
)
—
2
81
(120
)
Income (loss) before income taxes
$
10,222
$
3,479
$
978
$
(10,617
)
$
4,062
Depreciation expense included above
$
4,003
$
3
$
255
$
846
$
5,107
Capital expenditures, net
$
4,654
$
—
$
906
$
662
$
6,222
Total assets
$
42,586
$
888
$
44,786
$
25,912
$
114,172
For the Year ended December 31, 2006
Revenues
$
112,767
$
13,051
$
—
$
—
$
125,818
Cost of services
104,357
9,412
—
—
113,769
Contribution
8,410
3,639
—
—
12,049
Operating margin
7.5
%
27.9
%
—
—
9.6
%
General and administrative
—
—
—
9,380
9,380
Interest (income) expense, net
(279
)
—
—
(99
)
(378
)
Income (loss) before income taxes
$
8,689
$
3,639
$
—
$
(9,281
)
$
3,047
Depreciation expense included above
$
3,594
$
2
$
—
$
614
$
4,210
Capital expenditures, net
$
2,158
$
—
$
—
$
1,075
$
3,233
Total assets
$
41,458
$
995
$
—
$
33,870
$
76,323
F-21
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Fertility
Consumer
Vein
Centers
Services
Clinics
(1)
Corp G&A
Consolidated
For the Six Months ended June 30, 2009
Revenues
$
73,574
$
10,229
$
24,667
$
—
$
108,470
Cost of services
67,875
7,556
22,631
—
98,062
Contribution
5,699
2,673
2,036
—
10,408
Operating margin
7.7
%
26.1
%
8.3
%
—
9.6
%
General and administrative
—
—
—
6,569
6,569
Interest (income) expense, net
—
—
—
423
423
Income (loss) before income taxes
$
5,699
$
2,673
$
2,036
$
(6,992
)
$
3,416
Depreciation expense included above
$
2,089
$
1
$
419
$
441
$
2,950
Capital expenditures, net
$
2,717
$
—
$
383
$
560
$
3,660
Total assets
$
36,916
$
192
$
48,841
$
39,796
$
125,745
For the Six Months ended June 30, 2008
Revenues
$
67,797
$
8,635
$
18,904
$
—
$
95,336
Cost of services
62,923
6,315
17,869
—
87,107
Contribution
4,874
2,320
1,035
—
8,229
Operating margin
7.2
%
26.9
%
5.5
%
—
8.6
%
General and administrative
—
—
—
5,098
5,098
Interest (income) expense, net
(109
)
—
2
683
576
Income (loss) before income taxes
$
4,983
$
2,320
$
1,033
$
(5,781
)
$
2,555
Depreciation expense included above
$
2,191
$
1
$
373
$
410
$
2,975
Capital expenditures, net
$
2,718
$
—
$
597
$
293
$
3,608
Total assets
$
43,101
$
2,101
$
45,658
$
23,705
$
114,565
(1)
Acquired August 8, 2007.
NOTE 6 —
CASH AND
    CASH EQUIVALENTS:
Cash and short term investments consist of cash and short term
    marketable securities. To the extent that cash balances exceed
    short term operating needs, excess cash is invested in short
    term interest bearing instruments. It is our policy to restrict
    our investments to high-quality securities with fixed maturity
F-22
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
dates and principal amounts. The composition of our cash and
    short term investments is as follows (000's omitted):
December 31,
June 30,
2008
2007
2009
Cash
$
26,807
$
22,156
$
16,934
Money market funds
58
118
—
Certificates of deposit
1,400
1,400
14,450
Accrued interest income
10
66
70
Total cash and cash equivalents
$
28,275
$
23,740
$
31,454
NOTE 7 —
PATIENT
    AND OTHER RECEIVABLES, NET:
Patient and other receivables are principally comprised of gross
    patient and insurance receivables from our Vein Clinics segment
    which represent outstanding balances due for patient treatments
    less estimated allowances for insurance contractual agreements
    and uncollectible balances. Insurance contractual allowances are
    calculated based on recent allowance trends stratified by major
    payor category and uncollectible reserves are based on both
    historical trends and specific identification of specific
    accounts. For the periods ended December 31, 2008 and 2007
    and June 30, 2009, we believe that our receivable reserves
    were adequate to provide for any contractual or collection
    issues.
The composition of our patient and other receivables is as
    follows (000's omitted):
December 31,
June 30,
2008
2007
2009
Vein Clinic patient and insurance receivables
$
12,865
$
11,966
$
14,049
Reserve for insurance contractual allowance
(3,866
)
(3,339
)
(3,704
)
Reserve for uncollectible accounts
(2,648
)
(3,386
)
(2,891
)
Subtotal Vein Clinic receivables, net
6,351
5,241
7,454
Other receivables
330
270
192
Total Patient and other receivables, net
$
6,681
$
5,511
$
7,646
F-23
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 8 —
FIXED
    ASSETS, NET:
Fixed assets, net at December 31, 2008 and 2007 and
    June 30, 2009 consisted of the following (000's
    omitted):
December 31,
June 30,
2008
2007
2009
Furniture, office and computer equipment
$
18,311
$
17,158
$
18,922
Medical equipment
7,396
6,259
8,419
Leasehold improvements
21,059
19,091
22,445
Construction in progress
63
148
701
Assets under capital leases
427
427
427
Total
47,256
43,083
50,914
Less — Accumulated depreciation and amortization
(30,638
)
(26,171
)
(33,586
)
$
16,618
$
16,912
$
17,328
Our fixed assets are depreciated on a straight line basis. We
    generally assign useful lives of five years to assets classified
    as furniture, fixtures, office and medical equipment. Assets
    classified as computer hardware and software are generally
    assigned a three year useful life and leasehold improvements are
    depreciated over the lesser of their useful life, or the term of
    the lease.
Depreciation expense on fixed assets for the six months ended
    June 30, 2009 and the years ended December 31, 2008
    and 2007 was $2,948,000, $5,989,000, and $5,107,000,
    respectively. Assets under capital leases are comprised of
    various medical equipment. Accumulated amortization related
    specifically to capital leases at June 30, 2009 and
    December 31, 2008 and 2007 was $167,000, $126,000 and
    $59,000, respectively.
NOTE 9 —
BUSINESS
    SERVICE RIGHTS, NET:
Business Service Rights, net at December 31, 2008 and 2007
    and June 30, 2009 consisted of the following (000's
    omitted):
December 31,
June 30,
2008
2007
2009
Business Service rights, net
$
34,205
$
33,255
$
34,205
Less accumulated amortization
(12,249
)
(10,950
)
(12,897
)
Total
$
21,956
$
22,305
$
21,308
Business Service Rights are negotiated one-time payments we
    generally make to physician practices joining our fertility
    Partner Program. These payments are made to secure the right to
    provide business services to the practices for contracted terms
    generally ranging from ten to twenty five years. Depending upon
    the negotiated terms, these payments may be refundable at the
    termination of the contract or non-refundable. We amortize our
    non-refundable Business Service Rights over the life of the
    applicable contract. Refundable Business Service Rights, which
    totaled approximately $6.1 million as of
F-24
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
December 31, 2008 and $6.1 million as of June 30,
    2009, are not amortized because these amounts will be repaid to
    us upon termination of the contract.
For the six months ended June 30, 2009 and the twelve
    months ended December 31, 2008 and 2007, amortization
    expense related to our Business Service Rights totaled
    approximately $0.6 million, $1.3 million and
    $1.3 million, respectively.
As of December 31, 2008, amortization expense of our
    Business Service Rights in future years are as follows
    (000's omitted):
2009
$
1,300
2010
1,300
2011
1,300
2012
1,300
2013
1,300
Thereafter
9,356
Total payments
$
15,856
We test our Business Service Rights for impairment on a regular
    basis in accordance with FAS 144. To date, no impairment
    charges have been recognized.
NOTE 10 —
GOODWILL:
On August 8, 2007, IntegraMed acquired 100 percent of
    the outstanding common shares of VCA. With this acquisition
    IntegraMed became a leading provider of services to the vein
    disease segment in the health care market. At the date of
    acquisition, VCA operated 27 clinics in 11 states. This
    acquisition also provided the opportunity for operational
    efficiencies in the form of cost reductions through economies of
    scale and resource sharing for both organizations. Purchase
    accounting principles in accordance with FAS 141,
    "Business Combinations" were applied and accordingly,
    only the results of VCA operations subsequent to its acquisition
    are included in the accompanying financial statements.
The goodwill of $29.5 million arising from this acquisition
    consists largely of the market potential expected from the
    operations and enhanced resources of VCA. All of this goodwill
    was assigned to VCA's vein care operations, with none of
    the goodwill expected to be deductible for income tax purposes.
The following pro forma data reflects the consolidated revenue
    and earnings of IntegraMed America, Inc, and Subsidiaries had
    the VCA acquisition date been January 1, 2006 (000's
    omitted):
Basic
Earnings
Revenue
Net Income
per Share
Supplemental pro forma for 01/01/2007 to 12/31/2007
$
171,269
$
3,090
$
0.37
Supplemental pro forma for 01/01/2006 to 12/31/2006
$
154,299
$
3,270
$
0.40
F-25
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
We test our goodwill for impairment in accordance with the
    provisions of FAS 142. This test consists of a two-step
    process. The first step is to identify potential impairment by
    comparing the fair value of the underlying asset with its
    carrying amount. If the fair value, which is based on future
    cash flows, exceeds the carrying amount, the intangible asset is
    not considered impaired. If the carrying amount exceeds the fair
    value, the second step must be performed to measure the amount
    of the impairment loss, if any. The second step compares the
    implied fair value of the intangible with the carrying amount of
    that intangible. If the implied fair value is less than the
    carrying amount, an impairment loss would be recognized in an
    amount equal to the excess of the carrying amount of the
    intangible over its implied fair value. To date we have not
    recorded any impairment losses.
NOTE 11 —
TRADEMARKS:
Trademarks and other intangibles, net at December 31, 2008
    and 2007 and June 30, 2009 consisted of the following
    trademark items (000's omitted):
December 31,
June 30,
2008
2007
2009
IntegraMed America, Inc.
$
42
$
92
$
42
Vein Clinics of America, Inc.
4,400
4,400
4,400
Total
$
4,442
$
4,492
$
4,442
We do not amortize our trademarks as they have an indefinite
    useful life. We do test our trademarks for impairment on a
    regular basis in accordance with FAS 144. To date, no
    impairment charges have been recognized.
F-26
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 12 —
ACCRUED
    LIABILITIES:
Accrued liabilities as of December 31, 2008 and 2007
    (restated) and June 30, 2009 consisted of the following
    (000's omitted):
December 31,
June 30,
2008
2007
2009
Accrued payroll
$
1,665
$
4,286
$
3,873
Accrued employee incentives and benefits
3,072
3,062
2,774
Accrued vacation
151
300
168
Accrued physician incentives (VCA)
2,754
2,542
3,594
New physician recruitment
113
103
121
Accrued costs on behalf of medical practices
1,894
1,884
2,444
Accrued rent
1,166
892
1,137
Accrued professional fees
250
390
213
Accrued insurance
1,246
196
412
Reserves for estimated Attain IVF Refund Program patient refunds
386
403
294
Reserve for Attain IVF Refund Program post-pregnancy expenses
321
262
347
Accrued federal and state taxes
1,780
424
170
Other accrued taxes
300
350
238
Other
(1)
1,578
1,847
1,622
Total accrued liabilities
$
16,676
$
16,941
$
17,407
(1)
Individually represents less than 5% of total accrued
    liabilities.
NOTE 13 —
DUE TO
    MEDICAL PRACTICES:
Due to Medical Practices is comprised of the net amounts owed by
    us to fertility medical practices contracted as Partners. This
    balance is comprised of amounts due to us by the medical
    practices for funds which we advanced for use in financing their
    accounts receivable, less balances owed to the medical practices
    by us for undistributed physician earnings and patient deposits
    we hold on behalf of the medical practices.
While we are responsible for the management and collection of
    the Partner's accounts receivable, as part of the business
    services we provide, the credit and collection risk for these
    receivables remains with the medical practice. We finance the
    receivables with full recourse. Amounts financed relating to
    uncollectible accounts are recovered from the medical practice
    in the month uncollectible reserves are established or accounts
    are written-off.
F-27
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
As of December 31, 2008 and 2007 and June 30, 2009,
    Due to Medical Practices was comprised of the following balances
    (000's omitted):
December 31,
June 30,
2008
2007
2009
Advances to Partners for receivable financing
$
(17,121
)
$
(15,585
)
$
(16,285
)
Undistributed Physician Earnings
3,205
6,338
4,690
Physician practice patient Deposits
20,270
18,290
21,736
Due to Medical Practices, net
$
6,354
$
9,043
$
10,141
Our responsibilities to the these medical practices are to
    provide financing for their accounts receivable and to hold
    patient deposits on their behalf as well as undistributed
    physician earnings.
We are also responsible for the collection of the Partner
    accounts receivables, which we finance with full recourse. We
    have no other funding commitments to the Partner.
NOTE 14 —
NOTES PAYABLE
    AND OTHER OBLIGATIONS:
Notes payable and other obligations at December 31, 2008
    and 2007 and June 30, 2009 consisted of the following
    (000's omitted):
December 31,
June 30,
2008
2007
2009
Note payable to bank
$
29,309
$
25,000
$
19,928
Revolving Line of Credit
—
—
7,500
Derivative Fair valuation adjustment
609
82
477
Obligations under capital lease
301
378
260
Total notes payable and other obligations
$
30,219
$
25,460
$
28,165
Less — Current portion
(11,351
)
(3,661
)
(11,329
)
Long-term notes payable and other obligations
$
18,868
$
21,799
$
16,836
Note
    Payable to Bank —
In August 2007, as part of our acquisition of VCA, we secured a
    new $25 million
5-year
term
    loan. Our previous term loan of $7.7 million was paid off
    in its entirety as part of this agreement. After deducting the
    previous loan amount, interest and fees, our net funding from
    Bank of America was $17.0 million. Other features of this
    credit facility include a $10 million three-year revolving
    line of credit. Availability of borrowings under the working
    capital revolver is based on eligible accounts receivable, as
    defined in the credit agreement. As of June 30, 2009 and
    December 31, 2008 under the revolving line of credit the
    full amount of $10.0 million was available, of which
    $7.5 million was outstanding.
F-28
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Each component of our amended credit facility bears interest by
    reference, at our option, to Bank of America's prime rate
    minus a margin or to LIBOR plus a margin. The margin is
    dependent upon a leverage test, ranging from 2.00% to 2.75% in
    the case of LIBOR-based term loans and 0.0% to 0.50% in the case
    of prime-based term loans. Interest on the revolving line of
    credit is at the prime rate less up to 0.50% or at LIBOR plus
    1.50% to 2.50% depending on a leverage test. Interest on the
    prime-based loans is payable quarterly beginning
    November 8, 2007 and interest on LIBOR-based loans is
    payable on the last day of each applicable interest period. As
    of December 31, 2008 and June 30, 2009, interest on
    the term loan was payable at a rate of approximately 2.71% and
    2.57%, respectively. Unused amounts under the working capital
    revolver bear a commitment fee of 0.25% and are payable
    quarterly.
In order to mitigate the interest rate risk associated with our
    new term loan, we entered into an interest rate swap agreement
    with Bank of America in August 2007 for 50% of the loan amount,
    or $12.5 million. The effect of this swap transaction was
    to effectively fix the interest rate on our term loan at 5.39%
    plus the applicable margin for the life of the loan. See
    Note 15.
Our Bank of America credit facility is collateralized by
    substantially all of our assets. As of June 30, 2009 and
    December 31, 2008, we were in full compliance with all
    applicable debt covenants. We also continuously review our
    credit agreements and may renew, revise or enter into new
    agreements from time to time as deemed necessary.
Debt
    Maturities —
At December 31, 2008, aggregate note payments, including
    capital lease obligation payments, in future years were as
    follows (000's omitted):
2009
$
11,351
2010
3,861
2011
3,868
2012
11,139
Total payments
$
30,219
Leases —
Our capital lease obligation relates to medical equipment
    acquired for certain vein care clinics.
We maintain operating leases for our corporate headquarters and
    for medical office space for our Partner fertility centers and
    our vein clinics. We also have operating leases covering certain
    medical equipment. Aggregate rental expense under operating
    leases was approximately $11.5 million, $10.7 million,
    and $9.3 million, for the years ended December 31,
    2008, 2007 and 2006, respectively.
F-29
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
At December 31, 2008, the minimum lease payments for assets
    under capital and non-cancelable operating leases in future
    years were as follows (000's omitted):
Capital
Operating
2009
$
102
$
9,416
2010
102
8,825
2011
102
8,520
2012
33
7,701
2013
—
6,927
Thereafter
—
18,964
Total minimum lease payments
$
339
$
60,353
Less — Amount representing interest
38
Present value of minimum lease payments
$
301
NOTE 15 —
OTHER
    COMPREHENSIVE LOSS:
IntegraMed is exposed to the risk that its earnings and cash
    flows could be adversely impacted by market driven fluctuations
    in the level of interest rates. It is our policy to manage these
    risks by using a mix of fixed and floating rate debt and
    derivative instruments.
During the third quarter of 2007, we entered into a revised
    financing agreement with Bank of America. This agreement
    contained an interest rate swap provision designed to hedge
    risks associated with $12.5 million of our then
    $25.0 million term loan. As a result of this agreement, our
    net income for the twelve months ended December 31, 2008
    and the six months ended June 30, 2009 includes additional
    financing costs of approximately $260,000 and $163,000,
    respectively, and we expect to record additional financing costs
    of approximately $300,000 related to the swap agreement over the
    coming twelve months given current interest rate forecasts
    (these financing costs are expected to be offset by lower
    interest expense on the portion of the term loan that was not
    hedged over this same time frame).
In addition to the costs included in our reported net income,
    recording this hedge at fair value also generated a
    non-recognized tax-effected loss of approximately $293,000 for
    the twelve months ended December 31, 2008, a tax-effected
    gain of approximately $82,000 for the six months ended June 30,
    2009 and a tax-effected loss totaling $293,000 over the life of
    the hedge as of June 30, 2009, which is reported as part of
    our Other Comprehensive Income.
The fair value of this hedge was calculated in accordance with
    FAS 157, utilizing Level 2 inputs of quoted prices for
    similar liabilities in active markets, specifically
three-month
Eurodollar LIBOR rates.
We deem this hedge to be highly effective as it shares the same
    termination date and amortization schedule as the underlying
    debt subject to the hedge and any change in fair value inversely
    mimics the appropriate portion of the hedged item. As of
    June 30, 2009 and December 31, 2008, we had no other
    hedge or derivative transactions.
F-30
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
The following table summarizes total comprehensive income (loss)
    for the applicable periods (000's omitted):
For the Year Ended
For the Six Months Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Net income as reported
$
3,489
$
2,671
$
2,784
$
2,034
$
1,525
Net non-recognized gain (loss) on derivative transactions
(293
)
(73
)
(9
)
82
(139
)
Total comprehensive income
$
3,196
$
2,598
$
2,775
$
2,116
$
1,386
NOTE 16 —
INCOME
    TAXES:
The provision for income taxes consisted of the following
    (000's omitted):
For the Year Ended
For the Six Months Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Current taxes:
Federal
$
2,699
$
1,049
$
811
$
1,579
$
151
State
644
391
575
341
55
Total current tax expense
$
3,343
$
1,440
$
1,386
$
1,920
$
206
Deferred taxes:
Federal
$
(903
)
$
171
$
(703
)
$
(443
)
$
710
State
(214
)
(220
)
(420
)
(95
)
114
Total deferred tax expense (benefit)
$
(1,117
)
$
(49
)
$
(1,123
)
$
(538
)
$
824
Total tax provision
$
2,226
$
1,391
$
263
$
1,382
$
1,030
F-31
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
The financial statement income tax provision differed from
    income taxes determined by applying the statutory federal income
    tax rate to the financial statement income before income taxes
    for the years ended December 31, 2008, 2007 and 2006 and
    the six months ended June 30, 2009 and 2008 primarily as a
    result of the following (000's omitted):
For the Year Ended
For the Six Months Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Provision at U.S. federal statutory rate
$
1,943
$
1,381
$
1,036
$
1,159
$
878
State income taxes, net of federal tax effect
244
81
102
160
118
Non-deductible expenses
27
62
57
27
25
Tax-exempt interest income
(14
)
(199
)
(129
)
—
(4
)
Adjustment to deferred tax assets
—
—
(33
)
—
—
Other
—
39
(2
)
26
—
Change in FIN 48 liability
26
27
—
10
13
Change in deferred tax asset valuation allowance
—
—
(768
)
—
—
Income tax expense
$
2,226
$
1,391
$
263
$
1,382
$
1,030
Significant components of the deferred tax assets (liabilities)
    as of December 31, 2008 and 2007 and June 30, 2009 and
    2008 were as follows (000's omitted):
December 31,
June 30,
2008
2007
2009
2008
Deferred tax assets
Net operating loss carry forwards
$
—
$
109
$
—
$
—
Temporary book to tax differences
6,055
5,513
6,195
4,785
Total deferred tax assets
6,055
5,622
6,195
4,785
Deferred tax liabilities
Depreciation and amortization
(737
)
(1,613
)
(333
)
(1,516
)
Other
(18
)
(58
)
—
(58
)
Total deferred tax liabilities
(755
)
(1,671
)
(333
)
(1,574
)
Net total deferred tax asset
$
5,300
$
3,951
$
5,862
$
3,211
The uncertainties that existed prior to December 31, 2006
    related to our ability to generate sufficient taxable income to
    fully utilize our deferred tax asset valuation allowance related
    to our net operating loss (NOL) carry-forward deductions. The
    utilization of the NOL was further complicated by a
    Section 382 of the tax code limitation as a result of a
    change in control from ten years earlier. While in one year we
    could generate significant taxable earnings, our ability to
    utilize our NOL was capped by the Section 382 limit leaving
    NOLs to be realized by future taxable income. Each year future
    projected taxable earnings were evaluated and as it became clear
    that a certain amount of NOLs would be utilized we released that
    part of the allowance. When it became clear that projections of
    taxable income
F-32
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
would be sufficient to utilize the remaining NOLs, we released
    the balance of the valuation allowance. At no time prior to the
    final release did we believe the realization of all the
    remaining NOL was assured.
We assess the realizability of our deferred tax assets at each
    interim and annual balance sheet date based on actual and
    forecasted operating results in order to determine the proper
    amount, if any, required for a valuation allowance. As a result
    of this assessment, we believe that it is more likely than not,
    given the weight of available evidence, that all of our deferred
    tax assets will be realized. We will continue to assess the
    realizability of our deferred tax assets at each interim and
    annual balance sheet date in order to determine the proper
    amount, if any, required for a valuation allowance.
Effective January 1, 2007, we adopted FIN 48,
    "Accounting for Uncertainty in Income Taxes"
    (FIN 48), which clarifies the accounting and disclosure for
    uncertainty in income taxes. The adoption of FIN 48 did not
    have a material impact on our financial statements.
We file income tax returns in the U.S. federal jurisdiction
    and various states. For federal income tax purposes, our 2007
    and 2008 tax years remain open for examination by the tax
    authorities under the normal three year statute of limitations.
    A federal income tax examination for tax years through 2006 was
    completed during 2008 resulting in no adjustment to our income
    tax liability. For state tax purposes, our 2004 through 2008 tax
    years remain open for examination by the tax authorities under a
    four year statute of limitations.
A reconciliation of the unrecognized tax benefits for the years
    ended December 31, 2008 and 2007 and the six months ended
    June 30, 2009 and 2008 follow:
Unrecognized
Tax Benefits
    (000's)
December 31,
June 30,
2008
2007
2009
2008
Beginning balance
$
149
$
188
175
149
Additions for current year tax positions
46
39
17
22
Additions for prior year tax positions
—
—
—
—
Reductions for prior year tax positions
(31
)
(3
)
—
—
Settlements
—
(66
)
—
—
Reductions related to expirations of statute of limitations
—
(11
)
(10
)
—
Additional interest
11
2
9
8
Ending balance
$
175
$
149
$
191
$
179
As of December 31, 2008 and 2007, all of the unrecognized
    tax benefits could affect our tax provision and effective tax
    rate.
In accordance with our accounting policy, both before and after
    adoption of FIN 48, interest expense and penalties related
    to income taxes are included in the income tax expense line of
    our consolidated statement of operations. For the years ended
    December 31, 2008 and 2007, we recognized $11,000 and
    $2,000, respectively, for interest expense related to uncertain
    tax positions. As of December 31, 2008 and 2007, we had
    recorded liabilities for interest expense related to uncertain
    tax positions in the
F-33
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
amounts of $26,000 and $33,000, respectively. We made no accrual
    for penalties related to income tax positions. For the six
    months ended June 30, 2009 and 2008, we recognized $9,000
    and $8,000, respectively, for interest expense related to
    uncertain tax positions. As of June 30, 2009 and 2008, we
    had recorded liabilities for interest expense related to
    uncertain tax positions in the amounts of $39,000 and $23,000,
    respectively.
NOTE 17 —
EARNINGS
    PER SHARE:
The reconciliation of the numerators and denominators of the
    basic and diluted earnings per share computations for the years
    ended December 31, 2008, 2007 (restated) and 2006
    (restated) and the six months ended June 30, 2009 and 2008
    is as follows (000's omitted, except for per share amounts):
For the Year Ended
For the Six Months Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Numerator
Net Income
$
3,489
$
2,671
$
2,784
$
2,034
$
1,525
Denominator
Weighted average shares outstanding
8,618
8,310
8,090
8,767
8,570
Effect of dilutive options and warrants
73
100
104
62
82
Weighted average shares and dilutive potential common shares
8,691
8,410
8,194
8,829
8,652
Basic earnings per common share
$
0.40
$
0.32
$
0.34
$
0.23
$
0.18
Diluted earnings per common share
$
0.40
$
0.32
$
0.34
$
0.23
$
0.18
For the year ended December 31, 2008, options to purchase
    approximately 124,000 shares of common stock were excluded
    from the computation of diluted earnings per share as the
    exercise price of the options was above the average market price
    of the shares of common stock. For the years ended
    December 31, 2007 and 2006, there were no outstanding
    options to purchase shares of common stock which were excluded
    from the computation of the diluted earnings per share amount as
    the exercise price of all outstanding options was less than the
    average market price of the shares of common stock.
For the years ended December 31, 2008, 2007 and 2006, there
    were no outstanding warrants to purchase shares of common stock
    which were excluded from the computation of the diluted earnings
    per share amount as the exercise prices of any outstanding
    warrants were less than the average market price of the shares
    of common stock.
For the six-month periods ended June 30, 2009 and 2008,
    there were 121,054 and 123,252, respectively, outstanding
    options to purchase shares of common stock which were excluded
    from the computation of the diluted earnings per share amount as
    the exercise prices of these outstanding options were greater
    than the average market price of the shares of common stock.
F-34
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 18 —
SHAREHOLDERS'
    EQUITY:
During the six months ended June 30, 2009 and the twelve
    months ended December 31, 2008, 2007 and 2006, we issued
    approximately 142,000, 99,000, 78,000 and 106,000 shares,
    respectively, of restricted common stock as deferred
    compensation to several officers and directors with an aggregate
    value of $978,000, $899,000, $956,000 and $887,000,
    respectively. These shares were valued at their fair value on
    the date of grant, and are amortized to expense over their
    vesting period which generally is a three year period.
During 2008, we issued incentive stock options to purchase
    approximately 128,000 shares of common stock to several
    officers of the company with an aggregate fair value of
    approximately $741,000 on the date of issue. These options have
    a term of ten years and vest ratably over a four year period.
During 2006, we received approximately 19,000 shares of our
    common stock in consideration for the exercise of common stock
    options on behalf of various officers and individuals. These
    shares were received in lieu of cash for the exercise price of
    the options pursuant to terms allowed under our stock option
    plans. As of the dates the underlying options were exercised,
    these shares were valued at approximately $187,000 and were
    accounted for as Treasury Stock.
Our Board of Directors has authorized the retirement of common
    stock held as Treasury Stock on a periodic basis. As such we
    retired approximately 14,000, 5,000 and 191,000 shares of
    Treasury Stock during the years ended December 31, 2008,
    2007 and 2006 respectively. As of June 30, 2009 and
    December 31, 2008 there were approximately 46,000 and
    22,000 shares, respectively, of common stock held as
    Treasury Stock.
In May 2007 and June 2006 we effected a 25% stock split in the
    form of a stock dividend. Where applicable we have restated our
    capital accounts, shares outstanding, weighted average shares
    and earnings per share calculations for all years in these
    financial statements and related footnotes to reflect these
    transactions.
NOTE 19 —
STOCK-BASED
    EMPLOYEE COMPENSATION:
We account for our stock based employee compensation plans under
    FAS 123 (revised 2004), "Share-Based Payment"
    (FAS 123R). FAS 123R addresses the accounting for
    share based payment transactions in which an enterprise receives
    employee services in exchange for equity instruments of the
    enterprise or liabilities that are based on the fair value of
    the enterprise's equity instruments or that may be settled
    by the issuance of such equity instruments. FAS 123R
    requires that such transactions be accounted for using a fair
    value based method.
In considering the fair value of the underlying stock when we
    grant options or issue restricted stock, we consider several
    factors including the fair values established by market
    transactions. Stock-based compensation includes significant
    estimates and judgments of when stock options might be
    exercised, forfeiture rates and stock price volatility. The
    timing of option exercises is out of our control and depends
    upon a number of factors including our market value and the
    financial objectives of the option holders. These estimates can
    have a material impact on our stock compensation expense but
    will have no impact on our cash flows.
We currently have three stock option plans which have been
    previously approved by the stockholders. Under the 1992
    Incentive and Non-Incentive Stock Option Plan (1992 Plan), the
    2000 Long-term
F-35
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Compensation Plan (2000 Plan) and the 2007 Long-term
    Compensation Plan (2007 Plan), 500,000, 700,000 and
    500,000 shares, subject to adjustment, of common stock,
    respectively, were reserved for issuance of incentive and
    non-incentive stock options and stock grants. The 1992 Plan
    expired in May 2002, and although some options are still
    outstanding, no further awards may be made under that plan.
    Under the 2000 and 2007 Plans, stock options and stock grants
    may be awarded to employees, directors and such other persons as
    the Board of Directors determines will contribute to our
    success. Vesting periods are set by the Board of Directors and
    stock options are generally exercisable during a ten-year period
    following the date of award, with stock grants generally vesting
    in three to five years. The Board of Directors has the authority
    to accelerate the maturity of any stock option or grant at its
    discretion, and all stock options and grants have anti-dilution
    provisions. Under all of our plans, options expire three months
    from the date of the holder's termination of employment or
    twelve months in the event of disability or death. As of
    December 31, 2008, there were 356,784 shares available
    for granting under these plans. As of June 30, 2009, there
    were 464,933 shares available for granting under these
    plans. We recognize compensation cost for stock option plans
    over the vesting period based on the fair value of the option as
    of the date of the grant.
The following table sets forth information about the
    weighted-average fair value of options granted during the
    periods below, and the assumptions used for each grant:
For the
For the
Twelve Months
Six Months
Ended
Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Fair Value of Options
$
8.45
N/A
N/A
N/A
$
8.45
Dividend yield
0.0
%
N/A
N/A
N/A
0.0
%
Expected volatility
51.8
%
N/A
N/A
N/A
51.8
%
Risk free interest rate
4.0
%
N/A
N/A
N/A
4.0
%
Expected term in years
6.3
N/A
N/A
N/A
6.3
%
Our dividend yield assumptions on the underlying common stock
    upon which the options were granted anticipate that all earnings
    will be retained for use in the operation and expansion of the
    Company and no dividends will be paid to shareholders. Our
    expected volatility is based on historic trading patterns of our
    common stock. The risk free interest rate is based on the yield
    of short term U.S. Treasury securities in effect at the
    time of the grant. The expected term of the options reflects our
    historic exercise and forfeiture experience with similar option
    grants.
F-36
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
Stock option activity under these plans is summarized below:
Number of
Shares of
Common Stock
Underlying
Weighted Average
Options
Exercise Price
Options outstanding at December 31, 2005
391,178
$
2.22
Granted
—
—
Exercised
(240,721
)
$
2.12
Canceled
(4,063
)
$
2.94
Options outstanding at December 31, 2006
146,394
$
2.35
Granted
—
—
Exercised
(42,146
)
$
2.38
Canceled
(2,029
)
$
2.94
Options outstanding at December 31, 2007
102,219
$
2.33
Granted
127,844
$
8.45
Exercised
(3,047
)
$
2.68
Cancelled
—
—
Options outstanding at December 31, 2008
227,016
$
5.78
Granted
—
—
Exercised
(11,175
)
$
1.84
Cancelled
—
—
Options outstanding at June 30, 2009
215,841
$
5.98
Options exercisable at:
December 31, 2006
146,394
$
2.35
December 31, 2007
102,219
$
2.33
December 31, 2008
99,171
$
2.34
June 30, 2009
92,944
$
2.87
As of June 30, 2009 and December 31, 2008, stock
    options outstanding and exercisable by price range were as
    follows:
OPTIONS OUTSTANDING
OPTIONS EXERCISABLE
Outstanding
Weighted-Average
Exercisable
Range of
as of
Remaining
Weighted-Average
as of
Weighted-Average
Exercise Prices
06/30/09
Contractual Life
Exercise Price
06/30/2009
Exercise Price
$0.00 — $2.55
58,731
1.6
$
2.13
58,731
$
2.13
$2.56 — $4.00
29,265
2.8
$
2.95
29,265
$
2.95
$4.01 — $20.00
127,845
9.0
$
8.45
4,948
$
11.20
215,841
6.1
$
5.98
92,944
$
2.87
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Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
OPTIONS OUTSTANDING
OPTIONS EXERCISABLE
Outstanding
Weighted-Average
Exercisable
Range of
as of
Remaining
Weighted-Average
as of
Weighted-Average
Exercise Prices
12/31/2008
Contractual Life
Exercise Price
12/31/2008
Exercise Price
$0.00 — $2.55
69,906
1.9
$
2.09
69,906
$
2.09
$2.56 — $5.00
29,265
3.3
$
2.95
29,265
$
2.95
$5.01 — $20.00
127,845
9.5
$
8.45
—
—
227,016
6.3
$
5.78
99,171
$
2.34
The total intrinsic value of options exercised during the years
    ended December 31, 2008, 2007 and 2006 was approximately
    $57,000, $100,000 and $499,000 respectively. The aggregate
    intrinsic value of options outstanding and exercisable as of
    December 31, 2008, 2007 and 2006 was approximately
    $333,000, $238,000, and $344,000, respectively. The aggregate
    intrinsic value of options outstanding and exercisable as of
    June 30, 2009 was approximately $408,000.
During the years ended December 31, 2008, 2007 and 2006, we
    issued restricted stock grants to selected officers and members
    of the Board of Directors. These stock grants vest over a three,
    five or ten year period for officers, with grants to directors
    vesting immediately. These grants are valued at the closing
    market price on the date granted with the associated
    compensation expense recognized ratably over the applicable
    period.
Compensation expense recognized in connection with stock options
    for the years ended December 31, 2008, 2007 and 2006 was
    $105,000, $0 and $0, respectively, and $95,000 and $6,000,
    respectively, for the six-month periods ended June 30, 2009
    and 2008. Compensation expense recognized in connection with
    stock grants for the years ended December 31, 2008, 2007
    and 2006 was $753,000, $558,000 and $405,000 respectively. As of
    December 31, 2008, remaining unamortized stock compensation
    expense for both stock options and stock grants was
    approximately $2.0 million and will be recognized as
    follows (000's):
Stock
Stock
Options
Grants
2009
$
246
$
556
2010
246
396
2011
145
179
2012
—
71
2013
—
40
Thereafter
—
79
Unamortized stock compensation costs
$
637
$
1,321
As of June 30, 2009, we had approximately $542,000 of
    unrecognized compensation costs related to stock options which
    will be recognized over the remaining vesting period, which
    approximates the service period. As of June 30, 2009, we
    had approximately recognized $1,653,000 of unrecognized
    compensation costs related to stock grants which will be
    recognized over the vesting periods, which approximates the
    service period.
F-38
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
NOTE 20 —
QUARTERLY
    FINANCIAL DATA (UNAUDITED):
Summarized quarterly financial data for 2009, 2008 (restated for
    first three quarters), 2007 (restated) and 2006 (restated)
    appear below (in thousands, except per share data):
Revenues, Net
Contribution
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
$
52,355
$
45,611
$
32,176
$
30,402
$
4,908
$
3,691
$
2,918
$
2,998
Second quarter
56,115
49,725
33,786
31,638
5,500
4,538
3,532
2,861
Third quarter
N/A
52,018
40,099
31,635
N/A
4,780
4,225
3,123
Fourth quarter
N/A
50,049
45,105
32,143
N/A
4,540
3,803
3,067
Total year
$
108,470
$
197,403
$
151,166
$
125,818
$
10,408
$
17,549
$
14,478
$
12,049
Diluted Net
Net Income
Income Per
    Share
(1)
2009
2008
2007
2006
2009
2008
2007
2006
First quarter
$
920
$
621
$
469
$
445
$
0.10
$
0.08
$
0.06
$
0.05
Second quarter
1,114
904
659
413
0.13
0.10
0.08
0.05
Third quarter
N/A
979
811
431
N/A
0.11
0.09
0.06
Fourth quarter
N/A
985
732
1,495
N/A
0.11
0.09
0.18
Total year
$
2,034
$
3,489
$
2,671
$
2,784
$
0.23
$
0.40
$
0.32
$
0.34
(1)
The sum of the quarterly earnings per share may not equal the
    full year earnings per share as the computations of the weighted
    average shares outstanding for each quarter and the full year
    are made independently.
NOTE 21 —
COMMITMENTS
    AND CONTINGENCIES:
Capital
    Leases —
Refer to Note 14 for a summary of capital lease commitments.
Reliance
    on Third Party Vendors —
Our fertility and vein clinics are dependent on a limited number
    of primary third-party vendors that produce supplies and
    medications vital to treating infertility and vein disease.
    Should any of these vendors experience a supply shortage, it may
    have an adverse impact on the operations of our clinical
    locations and network members. To date, no shortage or
    disruption has been experienced.
Employment
    Agreements
We have an employment agreement with our President and Chief
    Executive Officer. Pursuant to that agreement, we may terminate
    the President and Chief Executive Officer's employment
    without cause on thirty days' notice, in which event
    severance pay equal to twelve months' base salary plus an
    annual bonus, calculated without regard to the condition
    precedents established under the bonus plan, will be payable in
    a lump sum.
The employment agreement further provides that in the event that
    within one year after a "Change of Control" (as
    defined therein) of the Company occurs, and the President and
    Chief Executive Officer's
F-39
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
employment is terminated, the President and Chief Executive
    Officer will be paid a lump sum amount equal to his base salary
    for a
24-month
period following termination, plus twice the full amount of his
    annual bonus based on his then current salary, without regard to
    the condition precedents established for the bonus payment.
    Based on this change of control provision, if there had been a
    change of control of the Company in 2008, or during the six
    months ended June 30, 2009, and the President and Chief
    Executive Officer's employment was terminated effective
    December 31, 2008 or June 30, 2009, either for
    "Good Reason" or without cause, then the President and
    Chief Executive Officer would be entitled to termination pay
    equal to $660,000 or $750,000, respectively, representing his
    then annualized base salary for
24-months,
plus $429,000 or $487,500, respectively, representing twice the
    amount to which he was eligible under our Executive Incentive
    Compensation Plan for 2008 or 2009, respectively.
We have also entered into indemnification and change in control
    severance agreements with certain of our management employees,
    which include, among other terms, noncompetition provisions and
    salary and benefits continuation. Our minimum aggregate
    commitment under these agreements at December 31, 2008 and
    June 30, 2009 was approximately $3.2 million and
    $3.3 million, respectively.
Commitments
    to Partners —
In accordance with the majority of our Partner agreements, we
    are obligated to: (i) on an ongoing basis, advance funds to
    the fertility centers to fund operations and provide services;
    and (ii) on a monthly basis, transfer to the fertility
    centers funds equal to the net accounts receivable generated
    that month to finance those receivables less any amounts owed to
    us for services fees
and/or
advances.
Litigation
    and Compliance with Health Care Regulations —
From time to time, we are party to legal proceedings in the
    ordinary course of business and are required to maintain
    compliance with extensive health care regulations. None of these
    proceedings or potential issues associated with health care
    regulation compliance are expected to have a material adverse
    effect on our financial position, results of operations or cash
    flow.
Insurance —
As of June 30, 2009, December 31, 2008 and
    December 31, 2007, we and our affiliated fertility centers
    and vein clinics were insured with respect to medical
    malpractice risks on a claims made basis. We believe, either
    through the captive insurance company, or on the open market, we
    will be able to obtain renewal coverage for both our fertility
    and vein care physicians in the future. We are not aware of any
    claims against us or our affiliated medical practices, which
    would expose us, or our affiliated medical practices to
    liabilities in excess of insured amounts.
As of June 30, 2009, December 31, 2008 and 2007, we
    also carried policies to insure against liability, theft,
    property loss, business interruption and a variety of other
    business risks. We also maintain an appropriate insurance
    reserve to cover estimated deductible amounts should a claim be
    filed under our policies.
NOTE 22 —
    RELATED PARTY TRANSACTIONS:
In accordance with our Partner agreement with Shady Grove,
    Michael J. Levy, M.D., an employed shareholder physician of
    the P.C., became a member of our Board of Directors in March
    1998. In 2004, Dr. Levy became an advisory director and was
    no longer a voting member of the Board of Directors. The medical
    practice at Shady Grove paid us service fees of $1,735,000,
    $3,145,000, $2,916,000 and
F-40
Table of Contents
INTEGRAMED
    AMERICA, INC.
NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS — (Continued)
$2,572,000 in the six months ended June 30, 2009 and the
    years ended December 31, 2008, 2007 and 2006, respectively.
In accordance with our Partner agreement with FCI (the Illinois
    practice), Aaron Lifchez, M.D., an employed shareholder
    physician of FCI, became a member of our Board of Directors in
    August 1997. In 2004, Dr. Lifchez became an advisory
    director and was no longer a voting member of the Board of
    Directors. The medical practice FCI paid us service fees of
    $1,331,000, $2,787,000, $2,649,000 and $2,413,000 in the six
    months ended June 30, 2009 and the years ended
    December 31, 2008, 2007 and 2006, respectively.
The Company has a Consulting Agreement with its Chairman of the
    Board. The agreement provided for compensation of $125,000 for
    the twelve months ended December 31, 2008. This consulting
    agreement expired on December 31, 2008 and was replaced
    with a new one-year agreement providing for $36,000 in
    compensation.
NOTE 23 —
SUPPLEMENTAL
    DISCLOSURES OF CASH FLOW INFORMATION AND NON-CASH
    TRANSACTIONS:
Equity transactions related to common stock, principally arising
    from stock grants, option exercises and related tax benefits
    disclosed on our Consolidated Statements of Cash Flows are
    comprised of the following (000's omitted):
For the
For the
Twelve Months Ended
Six Months Ended
December 31,
June 30,
2008
2007
2006
2009
2008
Common stock options and grants
30
35
499
—
—
Tax benefit related to stock transactions
332
67
59
—
—
Treasury Stock, net and other
(211
)
(67
)
(231
)
—
(165
)
F-41
Table of Contents
4,000,000 Shares
INTEGRAMED AMERICA,
    INC.
Common Stock
PROSPECTUS
Piper Jaffray
Cowen and Company
,
    2009
Table of Contents
PART II
INFORMATION
    NOT REQUIRED IN PROSPECTUS
Item 13. Other
    Expenses of Issuance and Distribution.
The following table sets forth all
    expenses, other than underwriting discounts and commissions,
    payable by us in connection with the sale of the common stock
    being registered. All of such expenses are estimates, except the
    fees payable to the Securities and Exchange Commission and the
    Financial Industry Regulatory Authority.
Securities and Exchange Commission registration fee
$
2,367
Financial Industry Regulatory Authority fee
4,741
Printing and mailing expenses
*
Legal fees and expenses
*
Accounting fees and expenses
*
Transfer agent and registrar fees
*
Miscellaneous fees and expenses
*
$
*
*
To be provided by amendment.
Item 14. Indemnification
    of Directors and Officers.
Article VII of our amended and
    restated certificate of incorporation provides that we shall, to
    the fullest extent permitted by Section 145 of the Delaware
    General Corporation Law (the "DGCL"), indemnify any
    and all persons whom we shall have the power to indemnify under
    said Section from and against any and all expenses, liabilities
    or other matters referred to in or covered by said Section.
    Article VII of our amended and restated certificate of
    incorporation also provides that no director shall be personally
    liable to us or our stockholders for any monetary damages for
    breach of fiduciary duty as a director; provided, however, that
    nothing contained in such Article shall eliminate the liability
    of a director (a) for any breach of such director's
    duty of loyalty to us or our stockholders, (b) for acts or
    omissions that are not in good faith or involve intentional
    misconduct or a knowing violation of the law, (c) under
    Section 174 of the DGCL or (d) for any transaction
    from which such director derived an improper personal benefit.
Article VII of our by-laws, as
    amended, and our directors' and officers' liability
    insurance policy provide for indemnification of our directors
    and officers against certain liabilities.
Section 145 of the DGCL
    empowers a corporation to indemnify any person who was or is a
    party or is threatened to be made a party to any threatened,
    pending or completed action, suit or proceeding, whether civil,
    criminal, administrative or investigative (other than an action
    by or in the right of the corporation) by reason of the fact
    that he or she is or was a director, officer, employee or agent
    of the corporation or is or was serving at the request of the
    corporation as a director, officer, employee or agent of another
    corporation or other enterprise, against expenses (including
    attorneys' fees), judgments, fines and amounts paid in
    settlement actually and reasonably incurred by him or her in
    connection with such action, suit or proceeding if he or she
    acted in good faith and in a manner he or she reasonably
    believed to be in, or not opposed to, the best interests of the
    corporation, and, with respect to any criminal action or
    proceeding, had no reasonable cause to believe his or her
    conduct was unlawful.
Section 145 of the DGCL also
    empowers a corporation to indemnify any person who was or is a
    party or is threatened to be made a party to any threatened,
    pending or completed action or suit by or in the right of the
    corporation to procure a judgment in its favor by reason of the
    fact that such person acted
II-1
Table of Contents
in any of the capacities set forth
    above, against expenses (including attorneys' fees)
    actually and reasonably incurred by him or her in connection
    with the defense or settlement of such action or suit if he or
    she acted under similar standards, except that no
    indemnification may be made in respect of any claim, issue or
    matter as to which such person shall have been adjudged to be
    liable to the corporation unless, and only to the extent that,
    the Delaware Court of Chancery or the court in which such action
    was brought shall determine that despite the adjudication of
    liability such person is fairly and reasonably entitled to
    indemnity, for such expenses which the Delaware Court of
    Chancery or such other court shall deem proper.
Section 145 of the DGCL
    further provides that to the extent a director, officer,
    employee or agent of a corporation has been successful in the
    defense of any action, suit or proceeding referred to above or
    in the defense of any claim, issue or matter therein, he or she
    shall be indemnified against expenses (including attorneys'
    fees) actually and reasonably incurred by him or her in
    connection therewith; that indemnification provided for by
    Section 145 of the DGCL shall not be deemed exclusive of
    any other rights to which the indemnified party may be entitled;
    and that the corporation is empowered to purchase and maintain
    insurance on behalf of any person who is or was a director,
    officer, employee or agent of the corporation against any
    liability asserted against him or her in any such capacity or
    arising out of his or her status as such, whether or not the
    corporation would have the power to indemnify him or her against
    such liability under Section 145 of the DGCL.
Item 15. Recent
    Sales of Unregistered Securities.
On August 8, 2007, we issued
    an aggregate of 336,700 unregistered restricted shares of common
    stock, in reliance upon the exemption from registration provided
    by Section 4(2) of the Securities Act, to Kush K. Agarwal
    and Brian D. McDonagh in connection with our acquisition of VCA.
    These shares were exchanged for a portion of
    Messrs. Agarwal's and McDonagh's interests in
    VCA. These shares had a market value of $4 million on the
    date of issuance. Other than the foregoing issuance, we have not
    sold any unregistered securities during the previous three years.
Item 16. Exhibits
    and Financial Statement Schedules.
(a) See the Exhibit Index
    for a complete list of all exhibits filed as part of this
    registration statement, which Exhibit Index is incorporated
    herein by reference.
(b) Below is
    Schedule II — Valuation and Qualifying Accounts.
    All other consolidated financial statement schedules have been
    omitted because they are either inapplicable or the required
    information has been given in the consolidated financial
    statements or the notes thereto included elsewhere in this
    registration statement.
II-2
Table of Contents
REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON FINANCIAL STATEMENT SCHEDULE
To the Board of Directors and
    Stockholders
of IntegraMed America, Inc.:
Our audits of the consolidated
    financial statements referred to in our report dated
    March 30, 2009 appearing in this registration statement on
Form S-1
of IntegraMed America, Inc. also included an audit of the
    financial statement schedule listed in Schedule II of this
    registration statement on
Form S-1.
In our opinion, this financial statement schedule presents
    fairly, in all material respects, the information set forth
    therein when read in conjunction with the related consolidated
    financial statements.
/s/ Amper, Politziner &
    Mattia, LLP
Edison, New Jersey
March 30, 2009
II-3
Table of Contents
SCHEDULE II
VALUATION
    AND QUALIFYING ACCOUNTS
Balance at
Beginning
End of
of Period
Additions
Deductions
Period
(in thousands)
Six Months Ended June 30, 2009
Allowance for doubtful accounts
    receivable
$
2,648
$
1,068
$
1,043
$
2,673
Reserve for Attain IVF Refund
    Program refunds
386
71
163
294
Reserve for Attain IVF Refund
    Program medical costs
321
27
1
347
Year Ended December 31, 2008
Allowance for doubtful accounts
    receivable
$
3,386
$
3,613
$
4,351
$
2,648
Reserve for Attain IVF Refund
    Program refunds
403
492
509
386
Reserve for Attain IVF Refund
    Program medical costs
262
322
263
321
Year Ended December 31, 2007
Allowance for doubtful accounts
    receivable
$
13
$
3,524
(1)
$
151
$
3,386
Reserve for Attain IVF Refund
    Program refunds
281
461
339
403
Reserve for Attain IVF Refund
    Program medical costs
204
291
233
262
Year Ended December 31, 2006
Allowance for doubtful accounts
    receivable
$
116
$
72
(2)
$
31
$
13
Reserve for Attain IVF Refund
    Program refunds
293
143
155
281
Reserve for Attain IVF Refund
    Program medical costs
141
427
364
204
Deferred tax valuation allowance
768
—
768
—
(1)
Includes $3,224 acquired in
    connection with our acquisition of VCA.
(2)
Represents the reversal of unused
    reserves for uncollectible accounts receivable associated with
    our discontinuation of pharmaceutical product sales in 2005, and
    the transition to a marketing fee arrangement with our
    third-party pharmaceutical distributor.
Item 17. Undertakings.
Insofar as indemnification for
    liabilities arising under the Securities Act of 1933 may be
    permitted to directors, officers and controlling persons of the
    registrant pursuant to the foregoing provisions, or otherwise,
    the registrant has been advised that in the opinion of the
    Securities and Exchange Commission such indemnification is
    against public policy as expressed in the Act and is, therefore,
    unenforceable. In the event that a claim for indemnification
    against such liabilities (other than the payment by the
    registrant of expenses incurred or paid by a director, officer
    or controlling person of the registrant in the successful
    defense of any action, suit or proceeding) is asserted by such
    director, officer or controlling person in connection with the
    securities being registered, the registrant will, unless in the
    opinion of its counsel the matter has been settled by
    controlling precedent, submit to a court of appropriate
    jurisdiction the question whether such indemnification by it is
    against public policy as expressed in the Act and will be
    governed by the final adjudication of such issue.
II-4
Table of Contents
The undersigned registrant hereby
    undertakes that:
1. For purposes of determining
    any liability under the Securities Act of 1933, the information
    omitted from the form of prospectus filed as part of this
    registration statement in reliance upon Rule 430A and
    contained in a form of prospectus filed by the registrant
    pursuant to Rule 424(b) (1) or (4) or 497(h)
    under the Securities Act shall be deemed to be part of this
    registration statement as of the time it was declared effective.
2. For the purpose of
    determining any liability under the Securities Act of 1933, each
    post-effective amendment that contains a form of prospectus
    shall be deemed to be a new registration statement relating to
    the securities offered therein, and the offering of such
    securities at that time shall be deemed to be the initial bona
    fide offering thereof.
II-5
Table of Contents
SIGNATURES
Pursuant to the requirements of the
    Securities Act of 1933, the registrant has duly caused this
    registration statement to be signed on its behalf by the
    undersigned, thereunto duly authorized, in the City of Purchase,
    State of New York, on October 2, 2009.
INTEGRAMED AMERICA, INC.
By
/s/  Jay
    Higham
Name:     Jay
    Higham
Title:
Chief Executive Officer
Pursuant to the requirements of the
    Securities Act of 1933, this registration statement has been
    signed by the following persons in the capacities and on the
    dates indicated.
Signature
Title
Date
/s/
Jay
    Higham
Jay
    Higham
President, Chief Executive Officer
    and
Director (principal executive officer)
October 2, 2009
/s/
John
    W. Hlywak,
    Jr.
John
    W. Hlywak, Jr.
Executive Vice President and
Chief Financial Officer
(principal financial officer and
principal accounting officer)
October 2, 2009
/s/
Gerardo
    Canet
Gerardo
    Canet
Chairman of the Board of Directors
October 2, 2009
/s/
Kush
    K. Agarwal
Kush
    K. Agarwal
Director
October 2, 2009
/s/
Wayne
    R. Moon
Wayne
    R. Moon
Director
October 2, 2009
/s/
Lawrence
    J. Stuesser
Lawrence
    J. Stuesser
Director
October 2, 2009
/s/
Elizabeth
    E. Tallett
Elizabeth
    E. Tallett
Director
October 2, 2009
/s/
Yvonne
    S. Thornton
Yvonne
    S. Thornton, M.D., M.P.H.
Director
October 2, 2009
II-6
Table of Contents
EXHIBIT INDEX
Exhibit
Number
Description
1
.1*
Form of Underwriting Agreement
3
.1
Restated Certificate of Incorporation of IntegraMed filed as an
    Exhibit to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2004 and
    incorporated herein by reference thereto
3
.2
By-laws of IntegraMed filed as an Exhibit to IntegraMed's
    Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2009 and
    incorporated herein by reference thereto
4
.1†
Specimen certificate for shares of common stock
5
.1*
Opinion of Dorsey & Whitney LLP regarding the validity
    of the securities being registered
10
.1
Stock Purchase Agreement, dated August 8, 2007 by and among
    IntegraMed, IDVC Acquisition Co., the Sellers named therein, the
    Guarantors named therein and VCA filed as an Exhibit to
    IntegraMed's Current Report on
Form 8-K
dated August 8, 2007 and incorporated herein by reference
    thereto
10
.2
1992 Stock Option Plan, including form of option, filed as an
    Exhibit to IntegraMed's Registration Statement on
Form S-1
(Registration
No. 333-47046)
filed with the Securities and Exchange Commission on
    April 9, 1992 and incorporated herein by reference thereto
10
.3
Amended and Restated 1992 Incentive and Non-Incentive Stock
    Option Plan, dated April 16, 1998 filed as an Exhibit to
    IntegraMed's Definitive Proxy Statement on
    Schedule 14A filed with the Securities and Exchange
    Commission on May 5, 1998 and incorporated herein by
    reference thereto
10
.4
Agreement of Lease, dated September 27, 1994, between
    Purchase Corporate Park Associates and IntegraMed filed as an
    Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 1994 and incorporated
    herein by reference thereto
10
.5†
Amendment, dated January 1995, to Agreement of Lease between
    Purchase Corporate Park Associates and Integramed
10
.6†
Second Amendment, dated August 23, 1999, to Agreement of
    Lease between Purchase Corporate Park Associates, L.P. and
    IntegraMed
10
.7†
Third Amendment, dated October 15, 2002, to Agreement of
    Lease between Purchase Corporate Park Associates, L.P. and
    IntegraMed
10
.8
Business Service Agreement, dated August 30, 2007, by and
    between IntegraMed and the Center for Reproductive Medicine,
    P.A. filed as an Exhibit to IntegraMed's Current Report on
Form 8-K
dated September 6, 2007 and incorporated herein by
    reference thereto
10
.9
Consulting Agreement, dated December 24, 2008, between
    Gerardo Canet and IntegraMed filed as an Exhibit to
    IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2008 and incorporated
    herein by reference thereto
10
.10
Employment Agreement, dated October 10, 2005, between
    IntegraMed and Jay Higham filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2005 and
    incorporated herein by reference thereto
10
.11
Management Agreement, dated January 7, 1997, by and between
    IntegraMed and Bay Area Fertility and Gynecology Medical Group,
    Inc. filed as an Exhibit to IntegraMed's Current Report on
Form 8-K
dated January 20, 1997 and incorporated herein by reference
    thereto
10
.12
Amendment No. 1, dated April 5, 1998, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 1998 and
    incorporated herein by reference thereto
10
.13
Amendment No. 2, dated July 21, 1998, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 1999 and
    incorporated herein by reference thereto
Table of Contents
Exhibit
Number
Description
10
.14
Amendment No. 3, dated April 1, 2000, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Group, Inc. filed as an Exhibit to IntegraMed's
    Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2000 and
    incorporated herein by reference thereto
10
.15
Amendment No. 4, dated January 1, 2001, to Management
    Agreement between IntegraMed and Bay Area Fertility and
    Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2001 and
    incorporated herein by reference thereto
10
.16
Amendment No. 5, dated September 19, 2001, to
    Management Agreement between IntegraMed and Bay Area Fertility
    and Gynecology Medical Group, Inc. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2001 and
    incorporated herein by reference thereto
10
.17
Amendment No. 6, dated December 2003, to Service Agreement
    between IntegraMed and Reproductive Science Center of the
    San Francisco Bay Area, a California medical corporation
    filed as an Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2003 and incorporated
    herein by reference thereto
10
.18
Management Agreement, dated February 28, 1997, between
    IntegraMed and Fertility Centers of Illinois, S.C. filed as an
    Exhibit to IntegraMed's Registration Statement on
Form S-1
(Registration
No. 333-26551)
filed with the Securities and Exchange Commission on May 6,
    1997 and incorporated herein by reference thereto
10
.19
Amendment, dated May 2, 1997, to Management Agreement
    between IntegraMed and Fertility Centers of Illinois, S.C. filed
    as an Exhibit to Amendment No. 1 to IntegraMed's
    Registration Statement on
Form S-1
(Registration
No. 333-26551)
filed with the Securities and Exchange Commission on
    June 20, 1997 and incorporated herein by reference thereto
10
.20
Amendment No. 2, dated June 18, 1997, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to Amendment No. 1 to
    IntegraMed's Registration Statement on
Form S-1
(Registration
No. 333-26551)
filed with the Securities and Exchange Commission on
    June 20, 1997 and incorporated herein by reference thereto
10
.21
Amendment No. 3, dated August 19, 1997, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed's Quarterly Report
    on
Form 10-Q
for the quarterly period ended September 30, 1997 and
    incorporated herein by reference thereto
10
.22
Amendment No. 4, dated January 9, 1998, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to a Schedule 13D dated
    February 11, 1998 filed with the Securities and Exchange
    Commission by Gerardo Canet and incorporated herein by reference
    thereto
10
.23
Amendment No. 5, dated March 5, 1998, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 1997 and incorporated
    herein by reference thereto
10
.24
Amendment No. 6, dated July 1, 1999, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed's Quarterly Report
    on
Form 10-Q
for the quarterly period ended June 30, 1999 and
    incorporated herein by reference thereto
10
.25
Amendment No. 7, dated April 1, 2000, to Management
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed's Quarterly Report
    on
Form 10-Q
for the quarterly period ended June 30, 2000 and
    incorporated herein by reference thereto
Table of Contents
Exhibit
Number
Description
10
.26
Amendment No. 8, dated September 24, 2001, to
    Management Agreement between IntegraMed and Fertility Centers of
    Illinois, S.C. filed as an Exhibit to IntegraMed's
    Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2001 and
    incorporated herein by reference thereto
10
.27
Amendment No. 9, dated December 2003, to Service Agreement
    between IntegraMed and Fertility Centers of Illinois, S.C. filed
    as an Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2003 and incorporated
    herein by reference thereto
10
.28
Amendment No. 10, dated January 1, 2005, to Service
    Agreement between IntegraMed and Fertility Centers of Illinois,
    S.C. filed as an Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2005 and incorporated
    herein by reference thereto
10
.29
Service Agreement, dated May 25, 2001, between IntegraMed
    and MPD Medical Associates (MA), P.C. filed as an Exhibit
    to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2001 and
    incorporated herein by reference thereto
10
.30
Amendment No. 1, dated March 5, 2002, to Service
    Agreement between IntegraMed and MPD Medical Associates
    (MA), P.C. filed as an Exhibit to IntegraMed's Annual
    Report on
Form 10-K
for the year ended December 31, 2001 and incorporated
    herein by reference thereto
10
.31
Management Agreement, dated March 11, 1998, between Shady
    Grove Fertility Centers, P.C. and Levy, Sagoskin and
    Stillman, M.D., P.C. filed as an Exhibit to
    IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 1997 and incorporated
    herein by reference thereto
10
.32
Amendment No. 1, dated April 16, 1998, to Management
    Agreement between Shady Grove Fertility Centers, Inc. and Levy,
    Sagoskin and Stillman, M.D., P.C filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 1998 and
    incorporated herein by reference thereto
10
.33
Amendment No. 2, dated May 6, 1998, to Management
    Agreement between Shady Grove Fertility Centers, Inc. and Levy,
    Sagoskin and Stillman, M.D., P.C. filed as an Exhibit
    to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 1998 and incorporated
    herein by reference thereto
10
.34
Amendment No. 3, dated September 1, 1999, to the
    Management Agreement between IntegraMed and Shady Grove
    Reproductive Science Center, P.C. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 1999 and
    incorporated herein by reference thereto
10
.35
Amendment No. 4, dated April 1, 2000, to Management
    Agreement between IntegraMed and Shady Grove Reproductive
    Science Center, P.C. filed as am Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2000 and
    incorporated herein by reference thereto
10
.36
Amendment No. 5 to Management Agreement between IntegraMed
    and Shady Grove Reproductive Science Center, P.C. filed as
    an Exhibit to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2001 and
    incorporated herein by reference thereto
10
.37
Amendment No. 6, dated September 18, 2001, to
    Management Agreement between IntegraMed and Shady Grove
    Reproductive Science Center, P.C. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2001 and
    incorporated herein by reference thereto
10
.38
Amendment No. 7, dated November 2003, to Service Agreement
    between IntegraMed and Shady Grove Reproductive Science
    Center, P.C. filed as an Exhibit to IntegraMed's
    Annual Report on
Form 10-K
for the year ended December 31, 2003 and incorporated
    herein by reference thereto
Table of Contents
Exhibit
Number
Description
10
.39
Amendment No. 8, dated February 16, 2006, to Service
    Agreement between IntegraMed and Shady Grove Reproductive
    Science Center, P.C. filed as an Exhibit to
    IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2005 and incorporated
    herein by reference thereto
10
.40
Amendment No. 9, dated March 22, 2007, to Service
    Agreement between IntegraMed and Shady Grove Fertility
    Reproductive Science Center, P.C. filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 2007 and
    incorporated herein by reference thereto
10
.41
Second Amended and Restated Loan Agreement, dated August 8,
    2007, by and among IntegraMed and Bank of America, N.A. filed as
    an Exhibit to IntegraMed's Current Report on
Form 8-K
dated August 8, 2007 and incorporated herein by reference
    thereto
10
.42
Form of Retention Agreement filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 1999 and
    incorporated herein by reference thereto
10
.43
Form of Amendment to Retention Agreement relating to
    Section 409A of the U.S. Internal Revenue Code of 1986, as
    amended, filed as an Exhibit to IntegraMed's Annual Report
    on
Form 10-K
for the year ended December 31, 2008 and incorporated
    herein by reference thereto
10
.44
Form of Indemnification Agreement filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2000 and
    incorporated herein by reference thereto
10
.45
Form of Amendment to Indemnification Agreement relating to
    Section 409A of the U.S. Internal Revenue Code of 1986, as
    amended, filed as an Exhibit to IntegraMed's Annual Report
    on
Form 10-K
for the year ended December 31, 2008 and incorporated
    herein by reference thereto
10
.46
Service Agreement, dated April 26, 2002, between IntegraMed
    and Northwest Center for Infertility and Reproductive
    Endocrinology filed as an Exhibit to IntegraMed's Quarterly
    Report on
Form 10-Q
for the quarterly period ended March 31, 2002 and
    incorporated herein by reference thereto
10
.47
Amendment No. 1, dated June 14, 2002, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2002 and
    incorporated herein by reference thereto
10
.48
Amendment No. 2, dated November 1, 2002, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2002 and incorporated
    herein by reference thereto
10
.49
Amendment No. 3, dated January 1, 2003, to Service
    Agreement between IntegraMed and Northwest Center for
    Infertility and Reproductive Endocrinology filed as an Exhibit
    to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2003 and incorporated
    herein by reference thereto
10
.50
2000 Long-Term Compensation Plan filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2002 and
    incorporated herein by reference thereto
10
.51
Form of Incentive Stock Option Agreement filed as an Exhibit to
    IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2005 and
    incorporated herein by reference thereto
10
.52
Form of Non-Qualified Stock Option Agreement filed as an Exhibit
    to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended June 30, 2005 and
    incorporated herein by reference thereto
Table of Contents
Exhibit
Number
Description
10
.53
Form of Restricted Stock Unit Award Agreement filed as an
    Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2008 and incorporated
    herein by reference thereto
10
.54
Service Agreement, dated September 1, 2003, between
    IntegraMed and Reproductive Endocrine Associates of
    Charlotte, P.C. filed as an Exhibit to IntegraMed's
    Quarterly Report on
Form 10-Q
for the quarterly period ended September 30, 2003 and
    incorporated herein by reference thereto
10
.55
Service Agreement, dated January 1, 2004, between
    IntegraMed and Seattle Reproductive Medicine, Inc., P.S. filed
    as an Exhibit to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 2004 and
    incorporated herein by reference thereto
10
.56
Submanagement Agreement, dated January 1, 2005, between
    Reproductive Partners, Inc. and IntegraMed filed as an Exhibit
    to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 2005 and
    incorporated herein by reference thereto
10
.57
2007 Long-Term Compensation Plan filed as an Exhibit to
    IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2007 and incorporated
    herein by reference thereto
10
.58
Business Service Agreement, dated April 24, 2008, between
    IntegraMed and Southeastern Fertility Centers, P.A. filed as an
    Exhibit to IntegraMed's Quarterly Report on
Form 10-Q
for the quarterly period ended March 31, 2008 and
    incorporated herein by reference thereto
10
.59
Business Service Agreement, dated July 9, 2008, between
    IntegraMed and Arizona Reproductive Medicine Specialists Ltd.
    filed as an Exhibit to IntegraMed's Annual Report on
Form 10-K
for the year ended December 31, 2008 and incorporated
    herein by reference thereto
21
.1†
List of subsidiaries of IntegraMed America, Inc.
23
.1†
Consent of Amper, Politziner & Mattia, LLP,
    Independent Registered Public Accounting Firm
23
.2*
Consent of Dorsey & Whitney LLP (included in
    Exhibit 5.1)
24
.1†
Powers of Attorney
*
To be filed by amendment.
†
Filed herewith.