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ICON reports Full-Year 2007 revenue growth of 38% operating income growth of 45% and EPS growth of 41% (NASDAQ:ICLR)

February 21, 2008

ICON reports Full-Year 2007 revenue growth of 38% operating income growth of 45% and EPS growth of 41% (NASDAQ:ICLR)Highlights –Full Year Fiscal 2007 and Fourth Quarter

  • Full year net revenues increased 38% to $631 million.
    Fourth quarter net revenues increased 40% over the comparative quarter, to $181 million.

    • Full year operating income increased by 44.8% to $69.2 million. For the quarter income from operations increased by 43%, to $19.8 million.

    • Full year diluted earnings per share increased to $1.88, a 41% increase over last year. Diluted earnings per share increased by 36% for the fourth quarter to 53 cents.

    • Full year net business awards totalled $1.027 billion, a 54% increase on last year.
      Record net new business wins of $344 million awarded to ICON during the quarter, producing a book to bill of 1.9.

    Dublin, Ireland, February 21, 2008 – ICON (NASDAQ: ICLR), a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries, today reported its financial results for the fourth quarter ended December 31, 2007.

    Full year, net revenues were $630.7 million, representing a 38.4% increase over last year. Income from operations, after taking non-cash stock compensation charge of $5.7 million was $69.2 million or 11% of revenue, compared to $47.8 million or 10.5% last year. Net income was $55.9 million or $1.88 per share, compared with $38.3 million or $1.33 per share, last year.

    Net revenues for the quarter were $180.7 million, representing a 40.1% increase over net revenues of $128.9 million for the same quarter last year. Income from operations, after taking non-cash stock compensation charge of $1.8 million, was $19.8 million or 11.0% of revenue, compared to $13.8 million or 10.7%for the same quarter last year. Net income was $15.8 million or 53 cents per share on a diluted basis, compared with $11.4 million or 39 cents per share last year.

    Days sales outstanding, comprising accounts receivable and unbilled revenue less payments on account, were 66 days at December 31, 2007, compared to 65 days at September 30, 2007.

    For the quarter ended December 31, 2007, cash provided by operating activities was $23 million and capital expenditure was $25.7 million. Full year 2007, cash flow from operating activities was $42.9million and capital expenditure was $75.4 million. In addition, DOCS International was acquired in July 2007 for consideration of $40.6 million. As a result, cash and short-term investments, net of debt, amounted to $23.8million at December 31, 2007, compared to $97.9 million at December 31, 2006.

    “2007 has been another outstanding year for ICON”, commented Chairman Dr. John Climax. “Revenue growth continued to be strong and operating margins expanded. Record net bookings of $344m in the fourth quarter led to bookings for the full year of over $1billion, another major milestone for ICON. As a consequence, we have a record backlog of $1.3 billion, which gives us confidence as we enter our new fiscal year”

    The company will hold its fourth quarter conference call today, February 21, 2008 at 9:00 EST [14:00 Ireland & UK]. This call and linked slide presentation can be accessed live from our website at www.iconplc.com. A recording will also be available on the website for 90 days following the call. In addition, a calendar of company events, including upcoming conference presentations, is available on our website, under “Investors”. This calendar will be updated regularly.

    The statements made in this Press Release may contain forward-looking statements that involve a number of risks and uncertainties. In addition to the matters described in this Press Release, the ability to maintain large client contracts or enter into new contracts, maintain client relationships and the ability to manage the opening of new offices, the integration of new business mergers and acquisitions, as well as other risks and uncertainties detailed from time to time in SEC reports filed by ICON, including its Form 20-F, F-1, S-8 and F-3, may affect the actual results achieved by ICON. ICON disclaims any intent or obligation to update these forward-looking statements.

    The financial information presented herein has been prepared in accordance with U.S. GAAP.

    ICON plc is a global provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company specializes in the strategic development, management and analysis of programs that support clinical development - from compound selection to Phase I-IV clinical studies. ICON teams have successfully conducted over 1,900 development projects and over 2,300 consultancy engagements across all major therapeutic areas. ICON currently has approximately 5,600 employees, operating from 67 locations in 37 countries. Further information is available at www.iconplc.com

    Contact : Investor Relations 1-888-381-7923 or

    Ciaran Murray CFO + 353 –1-291-2000

    Both at ICON.

    ICON plc

    Consolidated Income Statements

    Three and Twelve Months ended December 31, 2007 and December 31, 2006

    (Dollars, in thousands, except share and per share data)

    Three Months Ended

    Twelve Months Ended

    December 31,

    December 31,

    December 31,

    December 31,

    2007

    2006

    2007

    2006

    Gross Revenue

    241,531

    184,329

    867,476

    649,826

    Subcontractor costs

    60,861

    55,377

    236,751

    194,229

    Net Revenue

    180,670

    128,952

    630,722

    455,597

    Costs and expenses

    Direct costs

    100,372

    73,117

    354,479

    256,263

    Selling, general and administrative

    55,129

    38,092

    187,993

    136,569

    Depreciation and amortization

    5,382

    3,940

    19,008

    14,949

    Total costs and expenses

    160,883

    115,149

    561,480

    407,781

    Income from operations

    19,787

    13,803

    69,242

    47,816

    Interest income (net)

    659

    1,104

    2,738

    3,640

    Income before provision of income taxes

    20,446

    14,907

    71,980

    51,456

    Provision for income taxes

    4,486

    3,428

    15,830

    12,924

    Minority Interest

    79

    107

    187

    228

    Net income

    15,881

    11,372

    55,963

    38,304

    Net income per ordinary share

    Basic

    $0.55

    $0.40

    $1.95

    $1.35

    Diluted

    $0.53

    $0.39

    $1.88

    $1.33

    Weighted average number of ordinary shares

    Basic

    28,811,694

    28,493,566

    28,705,272

    28,314,985

    Diluted

    29,975,050

    29,427,297

    29,747,964

    28,863,334

    ICON plc

    Summary Balance Sheet Data

    December 31, 2007 and December 31, 2006

    (Dollars, in thousands)

    December 31,

    December 31,

    2007

    2006

    (audited)

    (audited)

    Cash and short-term investments

    118,633

    102,861

    Debt

    94,829

    5,000

    Net cash

    23,804

    97,861

    Accounts receivable

    129,865

    108,216

    Unbilled revenue

    144,611

    89,977

    Payments on account

    (96,553)

    (90,394)

    Total

    177,973

    107,799

    Working Capital

    193,271

    160,321

    Total assets

    693,138

    476,341

    Shareholder's equity

    388,400

    302,738

    Source:

    ICON plc

    Contact:

    Investor Relations 1-888-381-7923 or

    Ciaran Murray CFO + 353 1 291 2000

    both at ICON.

    www.iconplc.com

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