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ICON plc (ICLR)

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Tuesday 23 October, 2007

ICON plc

3rd Quarter Results

ICON plc
                  

ICON Reports 38% Increase in Revenues, 40% Increase in EPS and Raises 2007
Guidance (NASDAQ:ICLR)

Highlights - Third Quarter 2007

* Third quarter net revenues increased 38% over the prior year.

* Income from operations increased by 48%, and diluted earnings per share
increased by 40%.

* Operating margins expanded from 10.4% last year to 11.2%.

* Net business wins of $230 million in the quarter, representing a book-to-bill
ratio of 1.4.

* 2007 guidance raised.

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 third quarter ended September 30, 2007.

Net revenues for the quarter were $166.9 million, representing a 38.3% increase
over net revenues of $120.7 million for the same quarter last year. Income from
operations, after taking non-cash stock compensation charge of $1.4 million, was
$18.7 million or 11.2% of revenue, compared to $12.6 million or 10.4% for the
same quarter last year. Net income was $14.5 million or 49 cents per share on a
diluted basis, compared with $10.1 million or 35 cents per share last year.

Year-to-date, net revenues were $450.1 million, representing a 37.8% increase
over the same period last year. Income from operations, after taking non-cash
stock compensation charge of $4.0 million was $49.5 million or 11% of revenue,
compared to $34.0 million or 10.4% last year. Net income was $40.1 million or
$1.35 per share, compared with $26.9 million or 94 cents per share, last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 65 days at September 30, 2007, up from 57 days at
September 30, 2006.

For the quarter ended September 30, 2007, cash provided by operating activities
was $0.6 million and capital expenditure was $19.3 million. For the nine months,
cash flow from operating activities was $19.9 million and capital expenditure
was $49.7 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 $27.7million at September 30, 2007, compared to $97.9
million at December 31, 2006.

'We are delighted with ICON's third quarter performance', commented Chairman Dr.
John Climax. 'Revenue growth was very strong and operating margins continued to
expand. Excellent net bookings of $230 million producing a book to bill of 1.4,
give us strong confidence in the outlook for the remainder of the year. As a
result we are increasing our revenue guidance for 2007 to $615 - $625 million
and, our EPS guidance to $1.82 - $1.85'

The company will hold its third quarter conference call today, October 23, 2007
at 9:00 EST (14:00 Ireland & UK). This call and linked slide presentation can be
accessed live from our website at http://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 5,400 employees, operating from 65
locations in 33 countries. Further information is available at www.iconplc.com

Source: ICON plc

ICON
Investor Relations, 1-888-381-7923
or
Ciaran Murray CFO, +353-1-291-2000
http://www.iconplc.com

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                               ICON plc

             Consolidated Income Statements (Un-audited)

Three and Nine Months ended September 30, 2007 and September 30, 2006
       (Dollars, in thousands, except share and per share data)

                            Three Months Ended     Nine Months Ended
                           September  September  September  September
                                  30,        30,        30,        30,
                                 2007       2006       2007       2006

Gross Revenue                 231,819    171,109    625,942    465,497

Subcontractor costs            64,903     50,395    175,890    138,852

                           ---------- ---------- ---------- ----------
Net Revenue                   166,916    120,714    450,052    326,645

Costs and expenses
Direct costs                   91,675     68,428    254,107    183,146
Selling, general and
administrative                 51,518     35,800    132,864     98,477
Depreciation and
amortization                    5,020      3,875     13,626     11,009

                           ---------- ---------- ---------- ----------
Total costs and expenses      148,213    108,103    400,597    292,632

Income from operations         18,703     12,611     49,455     34,013

Interest income (net)              16        951      2,079      2,536

                           ---------- ---------- ---------- ----------
Income before provision of
income taxes                   18,719     13,562     51,534     36,549

Provision for income taxes      4,158      3,423     11,344      9,496
Minority interest                  60         45        108        121
                           ---------- ---------- ---------- ----------

Net income                     14,501     10,094     40,082     26,932
                           ========== ========== ========== ==========

Net income per ordinary
share
Basic                           $0.50      $0.36      $1.40      $0.95
                           ---------- ---------- ---------- ----------

Diluted                         $0.49      $0.35      $1.35      $0.94
                           ---------- ---------- ---------- ----------

Weighted average number of
ordinary shares
Basic                      28,760,726 28,351,525 28,669,798 28,333,823

Diluted                    29,826,457 29,085,080 29,714,584 28,709,932
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                               ICON plc

                      Summary Balance Sheet Data


               September 30, 2007 and December 31, 2006
                       (Dollars, in thousands)

                                          September 30,   December 31,
                                                   2007           2006
                                           (Un-audited)      (Audited)
Cash and short-term investments                  98,206        102,861
Short-term debt                                (70,487)        (5,000)
Net cash                                         27,719         97,861

Accounts receivable                             136,696        108,216
Unbilled revenue                                123,823         89,977
Payments on account                            (94,028)       (90,394)
Total                                           166,491        107,799

Working Capital                                 127,945        160,321

Total Assets                                    631,780        476,341

Shareholder's Equity                            359,986        302,738
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