ICON Reports 22% Increase in EPS and Strong Cash Flows (NASDAQ:ICLR) (ISIN:IE0005711209) Highlights - Second Quarter Fiscal 2009 * Net revenue of $220 million. * Income from operations increased by 20%, to $29.3 million,

Reports 22% Increase in EPS and Strong Cash Flows (NASDAQ:ICLR)

- Second Quarter Fiscal 2009

revenue of $220 million.

from operations increased by 20%, to $29.3 million, before one time net

Operating margins before one time net charges expanded to 13.3% from

11.2% and EPS on the same basis increased by 22% to 38 cents.

time net charges of $4.2 million arising from restructuring charges and

business wins in the quarter of $266m, representing a book-to-bill ratio

cash of $83.2 million compared to net debt of $2.2 million in Q1.

guidance for 09 amended to $880-$900 million and EPS guidance, before

one time net charges has firmed to $1.38 - $1.44

DUBLIN--(BUSINESS WIRE)--July 22, 2009--ICON

(NASDAQ:ICLR)(ISIN:IE0005711209), 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, 2009.

Net revenues for the quarter were $220 million, representing a 1%

increase over net revenues of $218.3 million for the comparative quarter

last year. Year-to-date, net revenues were $439.8 million, representing

a 5% increase over the same period last year.

Before one time net charges income from operations was $29.3 million or

13.3% of revenue, compared to $24.4 million or 11.2% for the same

quarter last year. Net income was $22.8 million or 38 cents per share on

a diluted basis, compared with $18.8 million or 31 cents per share last

Before one time net charges year-to-date income from operations was

$56.2 million, compared to $45.9 million last year representing a margin

of 12.8% in 2009 v a margin of 10.9% in 2008. Net income was $43.7

million or 73 cents per share, compared with $35.7 million or 59 cents

Days sales outstanding, comprising accounts receivable and unbilled

revenue less payments on account, were 49 days at June 30, 2009,

compared to 59 days at March 31, 2009.

For the quarter ended June 30, 2009, cash provided from operating

activities was $103 million and capital expenditure was $8.3 million. As

a result, the company's net cash, amounted to $83.2 million at June 30,

2009, compared to net debt of $2.2 million at March 31, 2009.

Chairman Dr. John Climax commented "I am very pleased with ICON's

performance for the first six months of 2009. Our growth in margins,

operating income and earnings was very encouraging. Year to date revenue

was 5% ahead of prior year and earnings per share were up 24% over the

first six months of 08."

"In the current market, we are pleased with the results for the

quarter", said CEO Peter Gray. "We continue to expand margin and as a

result we increased operating income by 20% compared to the same period

last year. In addition we are now amending guidance for revenue for the

remainder of 2009 to $880 - $900 million and firming our EPS guidance,

before one time net charges to, $1.38 -$1.44."

During the quarter the company undertook a number of cost reduction

steps which led to one time gross restructuring costs of $13.4 million.

An offsetting credit from government incentive payments relating to

prior periods resulted in a net charge of $8.9 million. In addition, tax

credits amounting to a further $4.7 million reduced the provision for

income tax. Thus the overall net one time charge was $4.2 million. US

GAAP operating income after these items amounted to $20.4 million or

9.3% of revenue and year-to-date operating income amounts to $47.3

million or 10.8% of revenue. US GAAP net income for the quarter is $18.5

million or 31 cents per share and for the year-to-date net income is

$39.5 million or 66 cents.

In addition to the financial measures prepared in accordance with

generally accepted accounting principles (GAAP), this press release

contains certain non-GAAP financial measures, including non-GAAP

operating and net income and non-GAAP diluted earnings per share. While

non-GAAP financial measures are not superior to or a substitute for the

comparable GAAP measures, ICON believes certain non-GAAP information is

useful to investors for historical comparison purposes.

The company will hold its second quarter conference call today, July 22,

2009 at 10:00 EST [15:00 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.

ICON plc is a global provider of outsourced development services to the

pharmaceutical, biotechnology and medical device industries. The Company

specialises in the strategic development, management and analysis of

programs that support clinical development - from compound selection to

Phase I-IV clinical studies. With headquarters in Dublin, Ireland, ICON

currently, operates from 71 locations in 38 countries and has

approximately 7,000 employees. Further information is available at www.iconplc.com.

Investor Relations 1-888-381-7923

Murray, Chief Financial Officer

Brennan, Corporate FP&A