ICON p.l.c. and Subsidiaries Annual Report Year ended 31 December 2009 Registered number 145835 Directors' Report and Consolidated Financial Statements Contents Page Directors and Other Information 2 Directors' Report 3

ICON p.l.c. and Subsidiaries

Year ended 31 December 2009

Registered number145835

Directors' Report and Consolidated Financial Statements

ICON plc and SubsidiariesDirectors and Other Information

The Directors present their report and audited Consolidated and Company financial statements of ICON p.l.c. ("the Company" or "ICON"), a public limited company incorporated in the Republic of Ireland, and its subsidiary undertakings ("the Subsidiaries", with the Company and the Subsidiaries being together "the Group") for the year ended 31 December 2009.

Principal activities, business review and future developments

The Group is a contract research organisation ("CRO"), providing outsourced development services on a global basis to the pharmaceutical, biotechnology and medical device industries. The Group specialises in the strategic development, management and analysis of programs that support Clinical Development - from compound selection to Phase I-IV clinical studies. The Group believes that it is one of a small number of CRO's with the capability and expertise to conduct clinical trials in all major therapeutic areas on a global basis.

The Group operates offices in 69 locations in 39 countries worldwide.

The Company's primary listing for its shares is the NASDAQ market. The Company also has a secondary listing on the Irish Stock Exchange and, accordingly, is not subject to the same ongoing regulatory requirements as those which would apply to an Irish company with a primary listing on the Irish Stock Exchange, including the requirement that certain transactions require the approval of shareholders. For further information, shareholders should consult their own financial adviser.

On 9 July 2009, the Group acquired 100% of the ordinary share capital of Veeda Laboratories Limited, a specialist provider of biomarker laboratory services to the global pharmaceutical and biotechnology industries located in Oxford, United Kingdom, for an initial cash consideration of $1.9 million ( 1.2 million).

On 28 April 2009, the Group acquired the assets of the former Qualia Clinical Services, Inc., a 33,000 square foot Phase 1 facility located in Omaha, Nebraska, for $0.3 million.

In 2010, the Group looks forward to increasing its geographic presence through the addition of new offices and expanding the scale and range of its service offering. A review of performance during the year is included in the Operating and Financial Review section of the Directors' Report.

International Financial Reporting Standards

These Consolidated and Company financial statements (together "the financial statements") for the year ended 31 December 2009 are prepared in accordance with IFRS as adopted by the EU and meet the reporting requirements pursuant to Irish Company Law and the Irish Stock Exchange Listing Rules.

Results and dividends

The results for the year are as shown on page 40 of these financial statements. The Directors do not propose the payment of a dividend for the year.

Risks and uncertainties

The Group is dependent on the continued outsourcing of research and development by the pharmaceutical, biotechnology and medical device industries.

The Group is dependent upon the ability and willingness of the pharmaceutical, biotechnology and medical device companies to continue to spend on research and development and to outsource the services that the Group provides. The Group is therefore subject to risks, uncertainties and trends that affect companies in these industries. ICON has benefited to date from the tendency of pharmaceutical, biotechnology and medical device companies to outsource clinical research projects. Any downturn in these industries or reduction in spending or outsourcing could adversely affect the Group's business. For example, if these companies expanded upon their in-house clinical or development capabilities, they would be less likely to utilise the Group's services. In addition, if governmental regulations were changed, this could affect the ability of ICON's clients to operate profitably, which may lead to a decrease in research spending and therefore this could have a material adverse effect on the Group's business.

The current economic and financial downturn may have a material adverse effect on the Group's business and/or results.

Many of the world's largest economies and financial institutions are facing extreme financial difficulty, including a decline in asset prices, liquidity problems and limited availability of credit. It is still uncertain how long this downturn will last. Such difficult economic times may have a material adverse effect on the Group's revenues, results of operations, financial condition and ability to raise capital.

Increased deliberation by clients of contract proposals may impact the Group's ability to win sufficient new business awards, which may result in decreased revenues.

Current and prospective clients have become increasingly deliberate when making decisions on whether to use the Group's services. While requests for proposals continue to be circulated, clients are taking longer in their decisions to award clinical research projects. An inability to attract sufficient new business awards could have a material effect on the Group's revenues, backlog and result of operations.

The Group depends on a limited number of clients and a loss of or significant decrease in business from them could affect its business.

The Group has in the past and may in the future derive a significant portion of its revenue from a relatively limited number of projects or clients. During the years ended 31 December 2009 and 31 December 2008, 27% and 29% respectively of revenue was derived from the Group's top five clients. No client contributed more than 10% of revenue during the years ended 31 December 2009 and 31 December 2008. The loss of, or a significant decrease in business from, one or more of these key clients could result in a material adverse effect.

The Group competes against many companies and research institutions that may be larger or more efficient than it is. This may preclude the Group from being given the opportunity to bid, or may prevent it from being able to competitively bid on and win new contracts.

The market for CROs is highly competitive. ICON primarily competes against in-house departments of pharmaceutical companies and other CROs including Covance Inc., i3 Research (United Health Group Incorporated), Kendle International Inc., Omnicare Inc., PAREXEL International Corporation, Pharmaceutical Product Development Inc., PharmaNet Development Group Inc., PRA International Inc. and Quintiles Transnational Corporation. Some of these competitors have substantially greater capital, research and development capabilities and human resources than the Group has. As a result, they may be selected as preferred vendors or partners of the Group's clients or potential clients for all projects or for significant projects, or they may be able to price projects more competitively than the Group can. Any of these factors may prevent the Group from getting the opportunity to bid on new projects or prevent it from being competitive in bidding on new contracts.

The Group's results are dependent upon a number of factors and can fluctuate from period to period.

The Group's results of operations in any period can fluctuate depending upon, among other things, the number and scope of ongoing client projects, the commencement, postponement, variation, cancellation or termination of projects in the period, the mix of revenue, cost overruns, employee hiring and other factors. Revenue in any period is directly related to the number of employees and the percentage of these employees who were working on projects billable to the clients during that period. The Group may be unable to compensate for periods of underutilisation during one part of a fiscal period by augmenting revenues during another part of that period. The Group believes that operating results for any particular period are not necessarily a meaningful indication of future results.

If the Group's clients discontinue using its services, or cancel or discontinue projects, revenue will be adversely affected and ICON may not receive these clients' business in the future or may not be able to attract new clients.

The Group's clients may discontinue using its services completely or cancel some projects either without notice or upon short notice. The termination or delay of a large contract or of multiple contracts could have a material adverse effect on revenue and profitability. Historically, clients have cancelled or discontinued projects and may in the future cancel their contracts for reasons including:

If the Group loses clients, it may not be able to attract new ones, and if the Group loses individual projects, it may not be able to replace them.

Approximately 55% of revenue is earned from long-term fixed-fee contracts. The Group would lose money in performing these contracts if the costs of performance exceed the fixed fees for these projects.

Approximately 55% of revenue is earned from long-term fixed-fee contracts. Revenues on these contracts are agreed on contract initiation between the Company and the customer and are based on estimated time inputs to the contract. Factors considered in estimating time requirements include the complexity of the study, the number of geographical sites where trials are to be conducted and the number of patients to be recruited at each site. The Company regularly reviews the estimated hours on each contract to determine if the budget accurately reflects the agreed tasks to be performed taking into account the state of progress at the time of review. The Company further ensures that changes in scope are appropriately monitored and change orders for additional revenue are promptly negotiated for the additional work. If we were to fail to recognise and negotiate change orders for changes in the resources required or the scope of the work to be performed, the Company could lose money if the costs of performance of these contracts exceeded their fixed fees.

If the Group fails to attract or retain qualified staff, its performance may suffer.

The Group's business, future success and ability to expand operations depends upon its ability to attract, hire, train and retain qualified professional, scientific and technical operating staff. The Group competes for qualified professionals with other CROs, temporary staffing agencies and the in-house departments of pharmaceutical, biotechnology and medical device companies. Although the Group has not had any difficulty attracting or retaining qualified staff in the past, there is no guarantee that it will be able to continue to attract a sufficient number of clinical research professionals at an acceptable cost.

The Group is highly dependent on information technology. If the Group's systems fail or are unreliable its operations may be adversely impacted.

The efficient operation of the Group's business depends on its information technology infrastructure and management information systems. The Group's information technology infrastructure includes both third party solutions and applications designed and maintained internally. Since the Group operates on multiple platforms, the failure of its information technology infrastructure and/or management information systems to perform could severely disrupt business and adversely affect the results of operation. In addition, the Group's information technology infrastructure and/or management information systems are vulnerable to damage or interruption from natural or man-made disasters, terrorist attacks, computer viruses or hackers, power loss, or other computer systems, Internet telecommunications or data network failures. Any such interruption could adversely affect business and the results of operations.

Failure to comply with the regulations of the U.S. Food and Drug Administration and other regulatory authorities could result in substantial penalties and/or loss of business.

The U.S. Food and Drug Administration, or FDA, and other regulatory authorities inspect the Group from time to time to ensure that it complies with their regulations and guidelines, including environmental and health and safety matters. In addition, ICON must comply with the applicable regulatory requirements governing the conduct of clinical trials in all countries in which it operates. If the Group fails to comply with any of these requirements it could suffer:

In December 2009, the Company received a warning letter from the U.S. Food and Drug Administration (FDA) regarding clinical study management services provided by the Group to one of its clients in relation to two studies conducted between 2004 and 2006. These studies related to the development of an antibiotic for the treatment of complicated skin and skin-structure infections. The FDA letter arises from its inspections of the Company's client and selected clinical sites and follows a similar letter issued to that client. The Company submitted a response to the FDA on 13 January 2010. The Company is committed to working cooperatively and expeditiously with the FDA to address the matters raised in the letter and is unable to predict at this time the financial consequences, if any, of the issues raised by the letter.

The Group may lose business as a result of changes in the regulatory environment.

Various governments and/or regulatory bodies throughout the world may enact legislation which could introduce changes to the regulatory environment for drug development and research. The adoption and implementation of such legislation is difficult to predict and therefore could have a material adverse effect on the Group's business.

ICON relies on third parties for important services.

The Group depends on third parties to provide it with services critical to its business. The failure of any of these third parties to adequately provide the needed services could have a material adverse effect on its business.

The Group's exposure to exchange rate fluctuations could adversely affect its results of operations.

The Group's contracts with its clients are sometimes denominated in currencies other than the currency in which it incurs expenses

related to such contracts. Where expenses are incurred in currencies other than those in which contracts are priced, fluctuations in the relative value of those currencies could have a material adverse effect on the Group's results of operations. This risk is partially mitigated by clauses in certain of its contracts which allow for price renegotiation with its clients if changes in the relative value of those currencies exceed predetermined tolerances. The Group regularly reviews its currency exchange exposure and on occasion hedge a portion of this exposure using forward exchange contracts.

In addition, the Group is also subject to translation exposures as its consolidated financial results are presented in U.S. dollars, while the local results of certain of its subsidiaries are prepared in currencies other than U.S. dollars, including the pound sterling and the euro. Accordingly, changes in exchange rates between the U.S. dollar and those other currencies will affect the translation of a subsidiary's financial results into U.S. dollars for purposes of reporting its consolidated financial results.

We are subject to political, regulatory and legal risks associated with our international operations.

We are one of a small group of organisations with the capability and expertise to conduct clinical trials on a global basis. We believe that this capability to provide our services globally in most major and developing pharmaceutical markets enhances our ability to compete for new business from large multinational pharmaceutical, biotechnology and medical device companies. We have expanded geographically and operate from 69 locations in 39 countries and intend to continue expanding in regions that have the potential to increase our client base or increase our investigator and patient populations. We expect that revenues earned in emerging markets will continue to account for an increasing portion of our total revenues. However, emerging market operations may present several risks, including civil disturbances, health concerns, cultural differences such as employment and business practices, volatility in gross domestic product, economic and governmental instability, the potential for nationalisation of private assets and the imposition of exchange controls.

Changes in the political and regulatory environment in the international markets in which we operate such as price or exchange controls could impact our revenue and profitability, and could lead to penalties, sanctions and reputational damages if we are not compliant with those regulations. Political uncertainty and a lack of institutional continuity in some of the emerging and developing countries in which we operate could affect the orderly operation of markets in these economies. In addition, in countries with a large and complicated structure of government and administration, national, regional, local and other governmental bodies may issue inconsistent decisions and opinions that could increase our cost of regulatory compliance.

In addition, the uncertainty of the legal environment in some emerging countries could limit our ability to enforce our rights. In certain emerging and developing countries we enjoy less comprehensive protection for some of our rights, including intellectual property rights, which could undermine our competitive position. Finally, we operate in some countries where national laws may require not only accurate books and records, but also sufficient controls, policies and processes to ensure business is conducted without the influence of bribery and corruption. Given the high level of complexity of these laws, however, there is a risk that some provisions may be inadvertently breached, for example through negligent behaviour of individual employees, our failure to comply with certain formal documentation requirements or otherwise. Any violation of these laws or allegations of such violations, whether or not merited, could have a material adverse effect on our reputation and could cause the trading price of our ordinary shares and ADSs to decline.

If any of the above risks or similar risks associated with our international operations were to materialise, our results of operations and financial condition could be materially adversely affected.

Liability claims brought against the Group could result in payment of substantial damages to plaintiffs and decrease Group profitability.

The Group contracts with physicians who serve as investigators in conducting clinical trials to test new drugs on their patients. This testing creates the risk of liability for personal injury to or death of patients. Although investigators are generally required by law to maintain their own liability insurance, the Group could be named in lawsuits and incur expenses arising from any professional malpractice actions against the investigators with whom it contracts. To date, the Group has not been subject to any liability claims that are expected to have a material effect on it.

Indemnifications provided by the Group's clients against the risk of liability for personal injury to or death of patients vary from client to client and from trial to trial and may not be sufficient in scope or amount or the providers may not have the financial ability to fulfil their indemnification obligations. Furthermore, the Group would be liable for its own negligence and that of its employees.

In addition, the Group maintains an appropriate level of worldwide Professional Liability/Error and Omissions Insurance. The amount of coverage the Group maintains depends upon the nature of the trial. The Group may in the future be unable to maintain or continue its current insurance coverage on the same or similar terms. If it is liable for a claim that is beyond the level of or outside the scope of insurance coverage, it may be responsible for paying all or part of any award.

The Group may lose business opportunities as a result of health care reform and the expansion of managed care organisations.

Numerous governments, including the U.S. government and governments outside of the U.S. have undertaken efforts to control growing health care costs through legislation, regulation and voluntary agreements with medical care providers and drug companies. If these efforts are successful, pharmaceutical, biotechnology and medical device companies may react by spending less on research and development and therefore this could have a material adverse effect on the Group's business.

In addition to healthcare reform proposals, the expansion of managed care organisations in the healthcare market may result in reduced spending on research and development. Managed care organisations' efforts to cut costs by limiting expenditures on pharmaceuticals and medical devices could result in pharmaceutical, biotechnology and medical device companies spending less on research and development. If this were to occur, the Group would have fewer business opportunities and its revenues could decrease, possibly materially.

The Group may make acquisitions in the future, which may lead to disruptions to its ongoing business.

The Group has made a number of acquisitions and will continue to review new acquisition opportunities. If it is unable to successfully integrate an acquired company, the acquisition could lead to disruptions to the business. The success of an acquisition will depend upon, among other things, the Company's ability to:

Acquisitions of foreign companies may also involve additional risks, including assimilating differences in foreign business practices and overcoming language and cultural barriers. In the event that the operations of an acquired business do not meet the Group's performance expectations, it may have to restructure the acquired business or write-off the value of some or all of the assets or goodwill of the acquired business.

The Group may not be able to successfully develop and market or acquire new services.

The Group may seek to develop and market new services that complement or expand its existing business or expand its service offerings through acquisition. If the Group is unable to develop new services and/or create demand for those newly developed services, or expand its service offerings through acquisition, its future business, results of operations, financial condition, and cash flows could be adversely affected.

Failure to raise sufficient finance may affect our ability to sustain future development of the business

The Group has financed its operations and growth since inception primarily with cash flows from operations, proceeds from its initial public offering in May 1998, its second public offering in August 2003 and borrowings as applicable. Although the Group has not had difficulty in raising finance in the past, there is no guarantee that it will be able to raise sufficient capital, at an appropriate cost to the Company, to sustain future development of the business.

The Group relies on its interactive voice response systems to provide accurate information regarding the randomisation of patients and the dosage required for patients enrolled in the trials.

The Group develops and maintains computer run interactive voice response systems to automatically manage the randomisation of patients in trials, assign study drug, and adjust the dosage when required for patients enrolled in trials it supports. An error in the design, programming or validation of these systems could lead to inappropriate assignment or dosing of patients which could give rise to patient safety issues, invalidation of the trial, liability claims against the Company or all three.

The Group relies on various control measures to mitigate the risk of a serious adverse event resulting from healthy volunteer Phase I trials.

The Group conducts healthy volunteer Phase I trials including first-into-man trials. Due to the experimental nature of these studies, serious adverse events may arise. The Group mitigates such events by following Good Clinical Practice and ensuring appropriately trained and experienced clinical physicians are managing these trials and that internal Standard Operating Procedures and client protocols are rigorously adhered to. The Group also ensures that a signed contract is in place with the client in advance of clinical dosing with appropriate indemnifications and insurance coverage. The Group maintains its own clinical trial insurance. Following internal review and submission, an Independent Ethics Committee, approves the study protocol and appropriate approval is obtained from the relevant regulatory body.

Operating and Financial Review

The following table sets forth for the periods indicated certain financial data as a percentage of revenue and the percentage change in these items compared to the prior period, being the key performance indicators used by management. The trends illustrated in the following table may not be indicative of future results.

Year ended 31 December 2009 compared to Year ended 31 December 2008

Revenue increased by $22.4 million, or 2.6%, from $865.2 million to $887.6 million. For the year ended 31 December 2009, the Group derived approximately 46.0%, 45.4% and 8.6% of revenue in the United States, Europe and Rest of World, respectively. The rate of increase in revenue has reduced over prior periods primarily as a result of the global economic downturn, its impact on market confidence and the availability of funding for drug development.

Direct costs increased by $17.8 million, or 3.6%, from $490.7 million to $508.5 million. Direct costs as a percentage of revenue increased from 56.7% in the year ended 31 December 2008 to 57.3% for the year ended 31 December 2009. Direct costs consist primarily of compensation, associated fringe benefits and share based compensation expense for project-related employees and other direct project driven costs. This increase was primarily due to increased salary and related costs of $15.7 million for project related employees, increased laboratory expenses of $1.6 million and an increase in other direct project related costs of $6.5 million. These increases were offset by a reduction in travel costs for project related employees of $5.2 million.

Other operating expenses decreased by $26.9 million, or 9.3%, from $289.0 million to $262.2 million. As a percentage of revenue, other operating expenses decreased from 33.4% in the year ended 31 December 2008 to 29.5% for the year ended 31 December 2009. Other operating expenses consist of compensation, related fringe benefits and share based compensation expense for selling and administrative employees, professional service costs, advertising costs and all costs related to facilities and information systems, including depreciation. The decrease in other operating expenses is primarily driven by decreases of $7.0 million in personnel related costs, comprising salary and travel costs for selling, general and administrative employees and recruitment expenditure. Facility and information system costs decreased by $2.1 million, principally as a result of a reduction in utility costs and support and maintenance costs. The remainder of the decrease arises from a decrease in other overhead costs.

One-time net charges of $8.8 million have been recognised during the year ended 31 December 2009. In response to the globalisation of clinical studies and its attendant impact on resources in existing and emerging markets, the Company conducted a review during 2009 of its existing infrastructure to better align its resources with the needs of its clients. This realignment has resulted in resource rationalisations in certain more mature markets and the recognition of a restructuring charge of $13.3 million in the second quarter of 2009. This was offset by research and development incentives of $4.5 million received by the Company in certain European Union jurisdictions in which it operates.

Operating profit for the year increased by $22.6 million, or 26.4%, from $85.6 million for the year ended 31 December 2008 to $108.2 million for the year ended 31 December 2009. As a percentage of revenue, operating profit increased from 9.9% of revenue for the year ended 31 December 2008, to 12.2% for the year ended 31 December 2009. Excluding the impact of one-time net charges recognised during the year, operating profit as a percentage of revenue increased from 9.9% for the year ended 31 December 2008, to 13.2% for the year ended 31 December 2009.

Net financing expense for the year ended 31 December 2009 was $4.3 million, compared with a net finance expense of $1.0 million for the year ended 31 December 2008. Financing expense increased from $4.9 million for the year ended 31 December 2008, to $5.8 million on the year ended 31 December 2009. Financing expense for the year ended 31 December 2009 comprised foreign exchange losses on bank loans of $1.6 million, interest on bank overdrafts and credit facilities of $3.5 million, pension costs of $0.7 million and finance lease interest of $0.1 million. Financing income decreased $2.5 million for the year ended 31 December 2008 to $1.5m for the year ended 31 December 2009. Financing income for the year ended 31 December 2009 comprised return on pension assets of $0.7 million and interest receivable on surplus cash balances and current asset investments of $0.8 million.

Year ended 31 December 2009 compared to Year ended 31 December 2008 (continued)

The provision for income taxes decreased from $19.9 million for the year ended 31 December 2008, to $11.2 million for the year ended 31 December 2009. The Group's effective tax rate for the year ended 31 December 2009 was 10.8% compared with 23.6% for the year ended 31 December 2008. The decrease in the effective tax rate during the period arose principally from corporation tax refunds arising from research and development tax credits received in certain European Union jurisdictions. The Group recognised a net benefit of $10.6 million in its 2009 tax charge for research and development tax credits relating to previous years, but received in 2009. Excluding the impact of these research and development tax credits recognised during the period, the Group's effective tax rate decreased from 23.6% for the year ended 31 December 2008, to 20.2% for the year ended 31 December 2009.

Liquidity and capital resources

The CRO industry generally is not capital intensive. The Group's principal operating cash needs are payment of salaries, office rents, travel expenditures and payments to investigators. Investing activities primarily reflect capital expenditures for facilities, information systems enhancements, the purchase of current asset investments and acquisitions.

The Group's clinical research and development contracts comprise both fixed price and variable component contracts and range in duration from a few weeks to several years. Revenue from contracts is generally recognised as income on the basis of the relationship between time incurred and the total estimated contract duration or on a fee-for-service basis. The cash flow from contracts typically consists of a down payment of between 10% and 20% paid at the time the contract is entered into, with the balance paid in instalments over the contract's duration, or in some cases on the achievement of certain milestones. Accordingly, cash receipts do not correspond to costs incurred and revenue recognised on contracts.

Net cash at 31 December 2009 amounted to $193.6 million compared with net debt of $5.0 million at 31 December 2008. Net cash at 31 December 2009 comprised cash and cash equivalents of $144.8 million and current investments of $49.2 million less finance lease obligations of $0.5 million. Net debt at 31 December 2008 comprised cash and cash equivalents of $58.4 million, current asset investments of $42.7 million, less bank credit lines and loan facilities of $105.4 million and finance lease obligations of $0.7 million. Additional borrowings available to the Group under negotiated facilities at 31 December 2009 amounted to $162.5 million compared with $55.6 million at 31 December 2008.

Net cash provided by operating activities was $255.1 million for the year ended 31 December 2009, compared with cash provided by operating activities of $81.3 million for the year ended 31 December 2008. The Group's working capital, comprising total current assets less total current liabilities, at 31 December 2009 amounted to $204.2 million, compared to $166.7 million at 31 December 2008. The most significant influence on our working capital and operating cash flow is revenue outstanding, which comprises accounts receivable and unbilled revenue, less payments on account. The dollar values of these amounts and the related days revenue outstanding can vary due to the achievement of contractual milestones, including contract signing, and the timing of cash receipts. The number of days revenue outstanding was 33 days at 31 December 2009 and 70 days at 31 December 2008. The decrease in the number of days revenue outstanding at 31 December 2009 resulted from improved working capital management during the period.

Net cash used in investing activities was $65.7 million for the year ended 31 December 2009, compared to $117.4 million for the year ended 31 December 2008. Net cash used in the year ended 31 December 2009 arises principally from capital expenditure, payments for purchase of subsidiary undertakings, and purchase of short-term investments, offset by the sale of short-term investments.

Capital expenditure for the year ended 31 December 2009, amounted to $33.8 million, and comprised mainly of expenditure on global infrastructure and information technology systems to support the Company's growth and expenditure on the expansion of its central laboratory facility in Dublin, Republic of Ireland. During the year ended 31 December 2008, the Company completed the expansion of its office facility in Dublin, Republic of Ireland.

Liquidity and capital resources (continued)

Cash paid on acquisitions during the year ended 31 December 2009, amounted to $25.9 million, being cash paid for the acquisition of the remaining 30% of the common stock of Beacon Biosciences of $17.8 million, $5.9 million relating to the acquisition of Prevalere Lifesciences, $0.3 million relating to the acquisition of the assets of the former Qualia Clinical Services and $1.9 million relating to the acquisition of Veeda Laboratories Limited. An additional $24.1 million of surplus cash balances were invested in current asset investments during the year, offset by $17.5 million realised during the year from the sale of current asset investments.

Net cash used by financing activities during the year ended 31 December 2009, amounted to $105.1 million compared with net cash provided of $22.3 million for the year ended 31 December 2008. During the year ended 31 December 2009, the Company drew down additional borrowings of $17.4 million. This was offset by the repayment of $127.0 million of borrowings during the year. At 31 December 2009, all borrowings previously drawn under negotiated facilities had been repaid in full.

As a result of these cash flows, cash and cash equivalents increased by $84.3 million for the year ended 31 December 2009, compared to a decrease of $13.8 million for the year ended 31 December 2008.

On 9 July 2007, ICON entered into a five year committed multi-currency facility agreement for 35 million ($50.2 million) with Bank of Ireland. The facility bears interest at an annual rate equal to EURIBOR plus a margin and is secured by certain composite guarantees, indemnities and pledges in favour of the bank. At 31 December 2009, 26.2 million ($37.5 million) was available to be drawn under this facility.

On 22 December 2008, a committed three year US dollar credit facility was negotiated with Allied Irish Bank plc for $50 million. The facility bears interest at LIBOR plus a margin and is secured by certain composite guarantees and pledges in favour of the bank. As at 31 December 2009, $50 million was available to be drawn under this facility.