Highlights – Second Quarter Fiscal 2009

* Net revenue of $220 million.

* Income from operations increased by 20%, to $29.3 million, before one time net charges.

* 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.

* One time net charges of $4.2 million arising from restructuring charges and tax credits.

* Net new business wins in the quarter of $266m, representing a book-to-bill ratio of 1.2.

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

* Revenue guidance for 09 amended to $880-$900 million and EPS guidance, before one time net charges has firmed to $1.38 - $1.44

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 year.

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 last year.

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.

Source: ICON plc

ICON/ICLR-F

ICON
Investor Relations 1-888-381-7923
or
Ciaran Murray, Chief Financial Officer
+ 353 –1-291-2000
or
Brendan Brennan, Corporate FP&A
+ 353 –1-291-2000