A.D.A.M., Inc. Reports Financial Results for First Quarter 2007.

Adjusted EBITDA increases 127%; Net income of $0.04 per share

ATLANTA -- A.D.A.M., Inc. (Nasdaq: ADAM):

Financial and Operating Highlights:

* Revenues for the quarter ended March 31, 2007 were $6,546,000 as compared to $2,482,000 in the year ago period, an increase of 164%. The increase is primarily attributable to the Company's expansion into the employer and consumer directed healthcare market through its acquisition of OnlineBenefits, Inc. in August, 2006.

* Adjusted EBITDA was $1,851,000 for the quarter ended March 31, 2007 as compared to Adjusted EBITDA of $815,000 in the year ago period, an increase of 127%. Adjusted EBITDA margins for the first quarter of 2007 were 28% of revenues.

* Operating income for the quarter ended March 31, 2007 was $1,151,000 as compared to $601,000 in the year ago period. Adjusted operating income, which excludes non-cash stock-based compensation and amortization expense from purchased intangibles associated with the Company's acquisition of OnlineBenefits, Inc. was $1,622,000 as compared to $590,000 for the same period last year, an increase of 175%.

* Net income for the quarter ended March 31, 2007 was $466,000 or $0.04 per share on a fully diluted basis as compared to $728,000 or $0.07 per share on a fully diluted basis for the year ago period. First quarter net income included a ($0.09) negative impact from the Company recording a higher non-cash stock-based compensation expense of $283,000 and interest charges from debt associated with the Company's acquisition of OnlineBenefits, Inc. of $681,000.

* Cash and investments totaled $5,700,000 as of March 31, 2007, a decrease of $1,540,000 from $7,240,000 as of December 31, 2006. During the first quarter of 2007, the Company made a $2,000,000 advance principal payment in connection with its debt agreement with CapitalSource Finance, LLC and a $1,500,000 principal payment on debt acquired with Online Benefits, Inc.

"We are off to a great start towards meeting our objectives for 2007," said Kevin Noland, A.D.A.M.'s president and chief executive officer. "Our key business units, content licensing and OnlineBenefits, both delivered solid performance for the first quarter. OnlineBenefits has now been with A.D.A.M. for two full quarters, and over this time our focused integration efforts have paid off in both financial results and an improved operational synergy within the company. Our engineering and production teams are working closely together on Benergy 2G!, our next generation product that speaks directly to the needs of the burgeoning consumer-driven healthcare movement. Benergy 2G! brings together A.D.A.M.'s robust health and wellness assets with a full-service benefits management platform, to create an end-to-end solution for employers and employees alike. We anticipate the launch of Benergy 2G! in the late second to third quarter of 2007. Given our positive momentum, we are maintaining our 2007 guidance at $6,000,000 to $7,000,000 in Adjusted EBITDA and $26,000,000 to $28,000,000 in revenue."

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 

Except for historical information, all of the statements, expectations and assumptions contained in this press release are forward-looking statements. These statements, especially revenue, net income, cash flow and Adjusted EBITDA forecasts, 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

These financial results are preliminary and subject to adjustments during the Company's year-end close process. The Company will be conducting a conference call to discuss its first quarter 2007 earnings results on May 8, 2007, at 10:00 A.M. ET. To participate in the call, please dial [phone] approximately five minutes prior to the start time. International callers may dial [phone]. A digital replay will be available the following day by dialing [phone] or [phone] with reservation number 21337222. The Company will issue its final results prior to the conference call.

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

A.D.A.M. (Nasdaq: 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.

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