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ICON plc (ICLR)

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Thursday 26 July, 2007

ICON plc

Half-yearly Report

ICON plc
                  

ICON Reports 37% Increase in Revenues and 41% Increase in EPS. Backlog Exceeds
$1 Billion for the First Time (NASDAQ:ICLR)

Highlights - Second Quarter 2007

* Second quarter net revenues increased 37% over the prior year, to $147.0
million.

* Income from operations increased by 42%, to $16.1 million.

* Diluted earnings per share increased by 41%, to 45 cents.

* Record $230 million of net new business wins in the quarter, representing a
book-to-bill ratio of 1.6.

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 second quarter ended June 30, 2007.

Net revenues for the quarter were $147.0 million, representing a 36.9% increase
over net revenues of $107.4 million for the same quarter last year. Income from
operations, after taking non-cash stock compensation charge of $1.4 million,
calculated in accordance with SFAS 123(R), was $16.1 million or 10.9% of
revenue, compared to $11.3 million or 10.6% for the same quarter last year. Net
income was $13.3 million or 45 cents per share on a diluted basis, compared with
$9.3 million or 32 cents per share last year.

Year-to-date, net revenues were $283.1 million, representing a 37.5% increase
over the same period last year. Income from operations, after taking non-cash
stock compensation charge of $2.6 million calculated in accordance with SFAS
123(R), was $30.8 million or 10.9% of revenue, compared to $21.4 million or
10.4% last year. Net income was $25.6 million or 86 cents per share, compared
with $16.8 million or 59 cents last year.

Days sales outstanding, comprising accounts receivable and unbilled revenue less
payments on account, were 53 days at June 30, 2007, a decrease from 59 days at
March 31, 2007 and unchanged from 53 days at December 31, 2006.

For the quarter ended June 30, 2007, cash provided by operating activities was
$22.2 million and capital expenditure was $17.9 million. For the six months,
cash flow from operating activities was $19.4 million and capital expenditure
was $30.4 million. As a result, the company's cash and short-term investments,
net of debt, amounted to $91.1 million at June 30, 2007, compared to $97.9
million at December 31, 2006.

'We are delighted with the second quarter's performance', commented Chairman Dr.
John Climax. 'Revenue growth was very strong at 37%, and we made further
progress in expanding margins which led to net income growth of 43% and EPS
growth of 41%. Excellent net bookings of $230 million brought our backlog to
over $1 billion, another milestone in ICON's progress, giving us strong
confidence in the outlook for the remainder of the year'

'We recently completed the acquisition of DOCS International, a leading European
based clinical research staffing organisation, which will be integrated with
ICON's existing US based staffing business. The combined operation will give our
clients greater flexibility when they run clinical projects internally, and give
them access to a global pool of talent through one vendor'

The company will hold its second quarter conference call today, July 26, 2007 at
10:00 EST (15:00 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 5,150 employees, operating from 63
locations in 33 countries. Further information is available at
www.iconclinical.com.

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

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                               ICON plc

              Consolidated Income Statements (Unaudited)

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

                            Three Months Ended     Six Months Ended
                             June 30,   June 30,   June 30,   June 30,
                                 2007       2006       2007       2006

Gross Revenue                 207,383    153,744    394,123    294,388

Subcontractor costs            60,336     46,308    110,987     88,457

                           ---------- ---------- ---------- ----------
Net Revenue                   147,047    107,436    283,136    205,931

Costs and expenses
Direct costs                   83,875     60,014    162,432    114,718
Selling, general and
administrative                 42,662     32,397     81,346     62,677
Depreciation and
amortization                    4,450      3,689      8,606      7,134

                           ---------- ---------- ---------- ----------
Total costs and expenses      130,987     96,100    252,384    184,529

Income from operations         16,060     11,336     30,752     21,402

Interest income (net)           1,019        938      2,063      1,585

                           ---------- ---------- ---------- ----------
Income before provision of
income taxes                   17,079     12,274     32,815     22,987

Provision for income taxes      3,758      2,943      7,186      6,073
Minority interest                   6         34         48         76
                           ---------- ---------- ---------- ----------

Net income                     13,315      9,297     25,581     16,838
                           ========== ========== ========== ==========

Net income per ordinary
share
Basic                           $0.46      $0.33      $0.89      $0.60
                           ---------- ---------- ---------- ----------

Diluted                         $0.45      $0.32      $0.86      $0.59
                           ---------- ---------- ---------- ----------

Weighted average number of
ordinary shares
Basic                      28,684,201 28,265,490 28,624,350 28,174,762

Diluted                    29,685,489 28,695,530 29,597,671 28,499,356
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                               ICON plc

                      Summary Balance Sheet Data


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

                                              June 30,    December 31,
                                                  2007            2006
                                           (Unaudited)       (Audited)
Cash and short-term investments                107,042         102,861
Short-term debt                               (15,947)         (5,000)
Net cash                                        91,095          97,861

Accounts receivable                            105,983         108,216
Unbilled revenue                               104,740          89,977
Payments on account                           (87,619)        (90,394)
Total                                          123,104         107,799

Working Capital                                169,744         160,321

Total Assets                                   521,929         476,341

Shareholder's Equity                           337,479         302,738
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