IntegraMed® Q4 EPS Rose 17% to $0.14 and Full Year 2009 EPS Rose 13% to $0.51

PURCHASE, N.Y. --(Business Wire)-- IntegraMed America, Inc. (NASDAQ: INMD): Conference Call: Today, Friday, February 5, 2010 at 10:00 a.m. EST Dial-in Numbers: 866-395-2657 or 706-902-0717 (International) Webcast / Replay URL: www.integramed.com or www.earnings.com Phone (News - Alert) Replay: 800-642-1687 or 706-645-9291 through February 12, 2010 Conference ID#: 53362289 IntegraMed America, Inc. (NASDAQ: INMD), the nation's leading manager of specialty outpatient healthcare facilities in the emerging, technology-focused medical niches of fertility and vein care, today announced improved results for the fourth quarter and full-year periods ended December 31, 2009.

Summary Financial Results (in thousands, except per share data) Three Months Ended Year Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2009 2008 2009 2008 Revenues: Fertility Centers $35,771 $34,138 +5 % $145,309 $138,440 +5 % Consumer Services 5,584 5,396 +3 % 20,826 19,763 +5 % Vein Clinics 13,337 10,686 +25 % 50,625 39,950 +27 % Total Revenues $54,692 $50,220 +9 % $216,760 $198,153 +9 % Contribution: Fertility Centers 2,925 2,599 +13 % 11,603 10,216 +14 % Consumer Services 1,446 1,385 +4 % 5,187 5,419 -4 % Vein Clinics 1,069 724 +48 % 4,100 2,651 +55 % Total Contribution $5,440 $4,708 +16 % $20,890 $18,286 +14 % G&A Costs $2,822 $2,703 +4 % $12,155 $10,654 +14 % Net Interest Expense 228 296 -23 % 910 1,180 -23 % Income Before Inc. Taxes 2,390 1,709 +40 % 7,825 6,452 +21 % Income Taxes 1,158 629 +84 % 3,331 2,537 +31 % Net Income $1,232 $1,080 +14 % $4,494 $3,915 +15 % Diluted EPS $0.14 $0.12 +17 % $0.51 $0.45 +13 % Diluted Shares 8,839 8,691 +2 % 8,834 8,691 +2 % 2008 results have been restated to reflect the corrections of errors with respect to the timing of certain revenue recognition for the Attain IVF program within the Consumer Services Division.

"Our Q4 and 2009 results reflect solid revenue growth across all three business units and margin expansion in two of those businesses," commented IntegraMed CEO, Jay Higham. "Our results demonstrate we have created a business that is strong in good economic environments and resilient in bad economic climates. Not only do our fertility centers grow faster than those of our competitors, but we have also proven we can drive operating efficiency and margins, factors that are very attractive to both current and prospective physician partners. The three new Fertility Center contract acquisitions completed in Q4 2009 highlight this value while providing an expanded base of future growth opportunities in the Western states. As we look out to 2010 and beyond, we see a range of opportunities to continue expanding our base of fertility centers.

"With respect to Consumer Services, 2009 was a challenging year. While the costs of undergoing fertility treatment have remained relatively constant, that has not been the case with consumer purchasing power. With an average price point of approximately $25,000 for our lead product, the Attain IVF Refund program, combined with a temporary disruption in our third-party consumer-lending partner, the growth in this business encountered headwinds beginning in the second quarter. However, as we entered the fourth quarter, we began to see a modest ramp in demand. We were also able to secure an experienced third-party financing partner replacement and as the quarterly results show, the Attain IVF program is making good progress, causing us to be optimistic in our prospects to regain momentum in 2010 and beyond." Mr. Higham, added, "Our Vein Clinic business grew revenue and contribution at the top end of our expectation. VCA has brought a dynamic and valuable source of additional revenue to our Company, and we expect for it to continue to make an important contribution to our growth with an accelerated pace of new clinic openings and the continued refinement of the business model." Fertility Centers Q4 2009 Q4 2008 Change % Change Revenue: $35.8M $34.1M +1.7M +5% Operating Income: $2.9M $2.6M +$0.3M (News - Alert) +13% Inquiries 8,829 8,153 +676 +8% New Patient Visits: 6,429 6,371 +58 +1% IVF Cycles: 3,231 3,337 -106 -3% 2009 2008 Change % Change Revenue: $145.3M $138.4M +$6.9M +5% Operating Income: $11.6M $10.2M +$1.4M +14% Inquiries 37,786 34,132 +3,654 +11% New Patient Visits: 27,562 25,744 +1,818 +7% IVF Cycles: 13,878 13,554 +324 +2% Fertility Center top-line growth was driven by both same store patient revenue growth of 3.2% during Q4 ‘09 and 3.2% in the full year 2009 as well as by improved operating efficiency across the division. Economic challenges continued to modestly temper consumer demand for high cost IVF treatment as patients substituted other treatments with better insurance coverage. Same store practice level operating margins rose to 10.3% in Q4 ‘09 and 10.0% for 2009 compared to 9.7% and 9.4% for the same periods in 2008.

In addition to organic growth, which has always been a primary focus for the division and a core component of IntegraMed's growth strategy, is an increase in the pace of fertility center contract acquisitions. During the quarter IntegraMed closed on three previously announced new contract acquisitions and is planning on scaling the historic pace of one or two new contracts per year up to two to four new contracts per year. IntegraMed is in dialogue with a number of prospective centers and though it is difficult to predict the timing of transactions, it remains confident in the prospects for its new center growth in 2010 and beyond.

IntegraMed has the most extensive consolidated network of fertility centers in the U.S., spanning 14 partner centers with 66 locations in 12 major markets across the country. This growing geographic breadth and diversity has played an important role in enabling the Company to deliver solid financial performance.

Consumer Services (Attain IVF Program) Q4 2009 Q4 2008 (1) Change % Change Revenue: $5.6M $5.4M +$0.2M +3% Operating Income: $1.45M $1.38M +$0.07M +4% Applications 593 530 +63 +12% Enrollments 283 250 +33 +13% Pregnancies 194 205 -11 -5% 2009 (1) 2008 (1) Change % Change Revenue: $20.8M $19.8M +$1M +5% Operating Income: $5.2M $5.4M -$0.2M -4% Applications 2,213 2,099 +114 +5% Enrollments 1,063 1,049 +14 +1% Pregnancies 780 778 +2 +0% (1) 2008 results have been restated to reflect the corrections of errors with respect to the timing of certain revenue recognition for the Attain IVF program within the Consumer Services Division.

The improved Q4 '09 results of the Consumer Services business principally reflect the reestablishment of a robust third-party financing capability in the fourth quarter following the termination of an earlier funding source during Q2 '09, as well as the launch of the Attain IVF Multi-Cycle product which has a lower price point than the Refund Program and broadens the pool of patients who are able to enroll in the program.

Consumer Services division margins improved slightly on a quarter-over-quarter basis to 25.9% for Q4 '09, but fell to 25.7% for all of 2009 as compared to 27.4% in 2008. The full year decline in margins is attributable to a reduction in pregnancy rates from 43.2% and 44.4% in Q4 '08 and 2008, respectively, to 39.8% and 43.8% in Q4 '09 and 2009, respectively. The variation of pregnancy rates, though within a normal range, will continue to be a meaningful factor in year-over-year margin comparisons. Additionally, IntegraMed initiated an aggressive ramp-up in its marketing efforts during Q4 that will impact future margins in favor of faster growth in 2010.

Reflecting the success, growing awareness and consumer demand for the Attain IVF Program, IntegraMed added four new Affiliate providers to its Consumer Services fertility network in 2009 and just yesterday added its first new Affiliate in 2010, bringing the Affiliate total to 26 in 22 states. IntegraMed remains active in its pursuit of additional affiliate opportunities and expects to continue to add affiliate centers at a similar rate in 2010.

The Attain IVF (in vitro fertilization) Program was pioneered by IntegraMed to fund the financial cost of a patient's decision to embark on a series of IVF treatments. The program is available in a flexible format that combines various treatment and refund options of up six treatments and up to a 100% refund in the event that treatment does not result in a take home baby. The Attain IVF program has strong consumer appeal and represents an important competitive advantage for IntegraMed affiliated fertility centers.

Vein Clinics (VCA) Q4 2009 Q4 2008 Change % Change Revenue: $13.3M $10.7M +$2.6M +25% Operating Income: $1.1M $0.7M +$0.4M +48% Inquiries 3,407 2,101 +1,306 +62% New Consultations: 2,564 1,807 +757 +42% First Leg Starts: 1,590 1,226 +364 +30% 2009 2008 Change % Change Revenue: $50.6M $40.0M +$10.6M +27% Operating Income: $4.1M $2.7M +$1.4M +55% Inquiries 20,412 12,884 +7,528 +58% New Consultations: 14,164 9,980 +4,184 +42% First Leg Starts: 7,208 5,468 +1,740 +32% Contribution or operating income from the Vein Clinic segment increased to $1.1 million in Q4 ‘09 from $0.7 million in Q4 '08, representing a 48% increase. On a full year period, contribution grew 55% to $4.1M, demonstrating the strong leverage this business model is capable of generating.

VCA margins improved on a quarterly as well as full year basis to 8.0% in Q4 '09 from 6.8% in Q4 '08 and to 8.1% in 2009 from 6.6% in 2008. The margin improvements were principally due to the impact of higher revenues on a relatively fixed overhead as well as from the slower pace of new clinic openings during 2009, as start-up losses from the first several months of new clinics create a short-term drag on divisional operating performance.

IntegraMed opened two additional clinics in 2009, bringing the total number of clinics to 3. So far in 2010 IntegraMed has announced the upcoming opening of two new vein clinics, bringing total announced clinics to 36, with at least six more clinics slated to open during the balance of 2010.

IntegraMed also announced the incorporation of Interventional Radiology (IR) into a forthcoming new clinic in Columbia, MD. Though still investigating the potential benefits of IR within the Vein Clinic business, management sees substantial synergies allowing for the treatment of a broader array of vein related conditions from the same facility.

Cash Flow and Balance Sheet IntegraMed's total assets grew to $124.3 million at year-end 2009 from $121.4 million at year-end 2008, with cash and equivalents increasing by 2% to $28.9 million at year-end 2009 versus $28.3 million at year-end 2008. The increase in cash was achieved despite investments across the company's businesses including approximately $3.6 million for acquisitions in the Fertility Centers Division. Cash provided by operating activities rose to $13.8 million in 2009, versus $6.9 million in 2008. The Company expects to use some of its cash in Q1 2010 to fund its growth strategy as well as for fertility physician drawdowns of accrued compensation, upfront outlays for marketing, advertising and media purchases and for the payment of medical malpractice and other insurance premiums.

The Company continues to focus on revenue cycle improvements and as a result has improved consolidated days sales outstanding (DSO) to 32.1 days at year-end 2009 from 40.5 days at year-end 2008. By division, Vein Clinic DSO declined to 49.3 days and the Fertility Center DSO improved to 24.9 days. Consumer Services revenues are paid up front in their entirety, eliminating any credit risk or receivable management issues.

IntegraMed CFO, John Hlywak, added, "As we anticipated, our markets improved modestly in the fourth quarter, reflecting the continuation of the slow consumer recovery. Looking at 2009 as a whole, our pace of growth was tempered by the impact of consumer economic challenges. Additionally, we had a fourth quarter catch-up adjustment for taxes in one state, which amounted to an approximately two cent negative impact on EPS. Going forward we expect taxes in this jurisdiction will have only a nominal impact on our tax rate.

"In summary, we believe the steps we took to deal with the downturn effectively adjusted our cost structure to ensure we can operate profitably in this new consumer environment and realize attractive incremental profits and free cash flows on revenue gains. We continue to utilize the cash generated in the business to support our growth, and in spite of such investments, our liquidity position and balance sheet remain strong. Looking through 2010 and into 2011, we are committed to accelerating our pace of growth by leveraging our proven business model to grow each of our businesses through acquisition in fertility, new affiliate agreements in consumer services and new clinic builds in vein care." About IntegraMed America, Inc.

IntegraMed America, Inc. manages highly specialized outpatient facilities in emerging, technology-based, niche medical markets and is the leading manager of fertility centers and vein clinics in the United States. IntegraMed supports its provider networks with clinical and business information systems, marketing and sales, facilities and operations management, finance and accounting, human resources, legal, risk management and quality assurance services. IntegraMed's fertility network is the nation's largest fertility network, comprised of 40 contracted centers with over 120 locations in 35 states and the District of Columbia. Nearly one of every four IVF procedures in the U.S. is performed in an IntegraMed network fertility practice. The IntegraMed Vein Clinic network is the leading provider of varicose vein care services in the US, currently operating 36 centers in 13 states, principally in the Midwest and Southeast.

For more information about IntegraMed please visit: www.integramed.com for investor background, www.integramedfertility.com for fertility, or www.veinclinics.com for vein care Statements contained in this press release that are not based on historical fact, including statements concerning future results, performance, expectations and expansion of IntegraMed are forward-looking statements that may involve a number of risks and uncertainties. Actual results may differ materially from the statements made as a result of various factors, including, but not limited to, the risks associated with IntegraMed's ability to identify, consummate and finance future growth, including larger-scale acquisitions; changes in insurance coverage, government laws and regulations regarding health care or managed care contracting; and other risks, including those identified in the company's most recent Form 10-K and in other documents filed by IntegraMed with the U.S. Securities and Exchange Commission. All information in this press release is as of February 5, 2010 and IntegraMed undertakes no duty to update this information.

INTEGRAMED AMERICA, INC.

CONSOLIDATED STATEMENT OF OPERATIONS (all amounts in thousands, except per share amounts) Three months ended Year ended December 31, December 31, 2009 2008 2009 2008 (unaudited) (unaudited) Revenue Fertility Centers $ 35,771 $ 34,138 $ 145,309 $ 138,440 Consumer Services 5,584 5,396 20,826 19,763 Vein Clinics 13,337 10,686 50,625 39,950 Total Revenues 54,692 50,220 216,760 198,153 Costs of services and sales Fertility Centers 32,846 31,539 133,706 128,224 Consumer Services 4,138 4,011 15,639 14,344 Vein Clinics 12,268 9,962 46,525 37,299 Total Cost of Services and Sales 49,252 45,512 195,870 179,867 Contribution Fertility Centers 2,925 2,599 11,603 10,216 Consumer Services 1,446 1,385 5,187 5,419 Vein Clinics 1,069 724 4,100 2,651 Total Contribution 5,440 4,708 20,890 18,286 General and administrative expenses 2,822 2,703 12,155 10,654 Interest income (63 ) (59 ) (250 ) (383 ) Interest expense 291 355 1,160 1,563 Total other expenses 3,050 2,999 13,065 11,834 Income before income taxes 2,390 1,709 7,825 6,452 Income tax provision 1,158 629 3,331 2,537 Net income $ 1,232 $ 1,080 $ 4,494 $ 3,915 Basic and diluted earnings per share of Common Stock: Basic earnings per share $ 0.14 $ 0.13 $ 0.51 $ 0.45 Diluted earnings per share $ 0.14 $ 0.12 $ 0.51 $ 0.45 Weighted average shares - basic 8,783 8,618 8,773 8,618 Weighted average shares - diluted 8,839 8,691 8,834 8,691 INTEGRAMED AMERICA, INC.

CONSOLIDATED BALANCE SHEETS (all amounts in thousands) December 31, December 31, 2009 2008 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 28,865 $ 28,275 Patient and other receivables, net 6,964 6,681 Deferred tax assets 2,883 5,744 Other current assets 7,653 6,466 Total current assets 46,365 47,166 Fixed assets, net 16,705 16,618 Intangible assets, Business Service Rights, net 24,210 21,956 Goodwill 30,334 29,478 Trademarks 4,442 4,442 Other assets 2,253 1,781 Total assets $ 124,309 $ 121,441 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,846 $ 2,853 Accrued liabilities 15,119 17,818 Current portion of long-term notes payable and other obligations 11,317 11,351 Due to Fertility Medical Practices, net 6,424 6,354 Attain IVF Refund Program and other patient deposits 13,362 11,237 Total current liabilities 49,068 49,613 Deferred tax liabilities 2,199 696 Long-term notes payable and other obligations 14,849 18,868 66,116 69,177 Commitments and Contingencies Shareholders' equity: Common stock 88 87 Capital in excess of par 56,354 54,943 Other comprehensive loss (188 ) (375 ) Treasury stock (375 ) (211 ) Retained earnings (Accumulated deficit) 2,314 (2,180 ) Total shareholders' equity 58,193 52,264 Total liabilities and shareholders' equity $ 124,309 $ 121,441 INTEGRAMED AMERICA, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (all amounts in thousands) For the For the Three-month period Year ended Dec. 31, ended Dec. 31, 2009 2008 2009 2008 (unaudited) (unaudited) Cash flows from operating activities: Net income $ 1,232 $ 1,080 $ 4,494 $ 3,915 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,737 1,829 7,119 7,288 Deferred income tax provision 4,269 (692 ) 3,433 (1,068 ) Deferred stock based compensation 298 241 1,336 858 Changes in assets and liabilities -- Decrease (increase) in assets: Patient and other accounts receivable 626 65 (283 ) (1,170 ) Other current assets (1,587 ) (1,076 ) (1,187 ) (643 ) Other assets (323 ) 162 (473 ) (162 ) (Decrease) increase in liabilities: Accounts payable 797 371 (7 ) 958 Accrued liabilities (3,706 ) 217 (2,864 ) (1,097 ) Due to medical practices (4,127 ) (664 ) 70 (2,689 ) Attain IVF Refund patient deposits 366 (542 ) 2,125 677 Net cash provided by (used in) operating activities (418 ) 991 13,763 6,867 Cash flows used in investing activities: Purchase of business service rights (3,550 ) -- (3,550 ) (950 ) Cash paid to purchase VCA, net of cash acquired -- -- -- (119 ) Other intangibles -- 160 -- 50 Purchase of fixed assets and leasehold improvements (1,444 ) (1,799 ) (5,910 ) (5,695 ) Net cash used in investing activities (4,994 ) (1,639 ) (9,460 ) (6,714 ) Cash flows used in financing activities: Proceeds from issuance of debt -- 7,500 -- 7,880 Principle repayments on debt (915 ) (912 ) (3,750 ) (3,648 ) Common stock transactions, net 6 (111 ) 37 150 Net cash provided by (used in) financing activities (909 ) 6,477 (3,713 ) 4,382 Net increase in cash (6,321 ) 5,829 590 4,535 Cash and cash equivalents at beginning of period 35,186 22,446 28,275 23,740 Cash and cash equivalents at end of period $ 28,865 $ 28,275 $ 28,865 $ 28,275 Supplemental Information: Interest paid 255 620 1,067 1,632 Income taxes paid 238 43 3,896 1,526

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