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ICON plc (ICLR)

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Thursday 21 February, 2008

ICON plc

Final Results

Icon PLC
                  

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.

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 http://www.iconclinical.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 68
locations in 36 countries. Further information is available at
www.iconclinical.com.

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Source: ICON plc

Contact : Investor Relations 1-888-381-7923 or
Ciaran Murray CFO + 353 -1-291-2000
Both at ICON.
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                                           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
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                                       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                                                    177,923               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.

                                         http://www.iconclinical.com
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