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A.D.A.M., Inc. Announces Financial Results for Third Quarter 2007
Revenues increase 49%; Net Income increases 62%

ATLANTA, GA – November 6, 2007 – A.D.A.M., Inc. (NasdaqCM: ADAM) today announced financial results for its third quarter ended September 30, 2007.

Kevin Noland, President and Chief Executive Officer of A.D.A.M., commented, “The progress demonstrated in our third quarter results underscores the efforts we are making in aligning our business for future growth. The launch of Benergy 2G! during the quarter, which to date has been received with enthusiastic response, significantly enhances our ability to capitalize on marketplace
needs for effective communication tools for employees regarding their health, wellness and benefit programs.”

Third Quarter Financial Highlights:

September 2007 Year-to-Date Results
For the nine-month period ended September 30, 2007, revenues were $20,245,000, up 109% from $9,670,000 in the same period last year. Net income for the nine-month period ended September 30, 2007 was $2,115,000, or $0.20 per share on a fully diluted basis, as compared to $2,165,000, or $0.21 per share on a fully diluted basis for the same period last year. Increases in revenues and operating income are primarily attributable to the acquisition of OnlineBenefits. Net
income for the first nine months of 2007 was impacted by the increased operating income, which was offset by interest charges of $1,938,000 associated with the debt used to acquire OnlineBenefits.

During the first nine months of 2007, A.D.A.M. generated $5,115,000 in cash flow from operations. As of September 30, 2007, A.D.A.M.’s cash and investments increased to $10,433,000 from $7,240,000 as of December 31, 2006 from the increased cash flow from operations, which was offset by principal payments on debt.

“We are also excited by a number of key additions we have made to the A.D.A.M. team during the quarter, including Dr. David Zieve. These additions allow us to build a strong product, support and sales foundation that drives future growth and competitive differentiation,” added Noland.

Non-GAAP Measures
Adjusted operating income represents operating income before non-cash stock-based compensation expense and amortization of purchased intangibles. Adjusted net income represents net income before non-cash stock-based compensation expense and amortization of purchased intangibles. Adjusted EBITDA represents earnings before interest, taxes, depreciation, amortization
and non-cash stock-based compensation expense. These financial measures are not measures of financial performance in accordance with generally accepted accounting principles. We believe these non-GAAP financial measures are useful because they are appropriate measures for evaluating our operating performance. We present these non-GAAP financial measures to provide
additional information regarding our performance and because they are measures by which we gauge our profitability. You should not consider these non-GAAP financial measures as an alternative to net income. Our calculation of these financial measures may be different from the calculations used by other companies and, as a result, comparability may be limited.

Forward-Looking Statements
The press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. The forward-looking statements are based on A.D.A.M.’s current intent, belief and expectations. These statements, especially revenue, net income, cash flow, involve a number of risks and uncertainties that could cause actual results, performance or developments to differ materially. Factors that could affect the company’s actual results, performance or developments include general economic conditions, development of the Internet as a source of health information,
pricing actions taken by competitors, demand for the company’s health information, the ability to realize the anticipated benefits of the acquisition, regulatory changes in laws and regulations that impact how the company conducts its business and the other factors described in A.D.A.M.’s filings with the SEC. A.D.A.M. disclaims any obligation or duty to update any of its forward-looking
statements.

Conference Call and Earnings Release Information
A.D.A.M. will be conducting a conference call to discuss its third quarter 2007 financial results on November 6, 2007, at 10:00 A.M. ET. To participate in the call, please dial 866-624-3372 approximately five minutes prior to the start time. International callers may dial 706-758-3874. A digital replay will be available the following day by dialing 800-633-8284 or 402-977-9140 with reservation number 21352692.

About A.D.A.M., Inc.

A.D.A.M. (NasdaqCM: ADAM) is a leading provider of health information services and benefits management solutions serving healthcare organizations, employers, insurance brokers, consumers, and educational institutions. With an industry-leading employee and HR benefits management platform and one of the largest consumer health information libraries in the world, A.D.A.M. engages consumers to learn about their health and manage their benefit choices while reducing the costs of healthcare and benefits administration. For more information, visit www.adam.com or call 1-800-408-ADAM.

For further information, contact:

Victor Thompson
A.D.A.M., Inc.
770-541-5140



 
     
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