ICON Reports Fourth Quarter and Full Year Financial

Results (Nasdaq: ICLR) / Fourth Quarter and Full Year Highlights Dublin, Ireland (PROTEXT) - * Fourth Quarter net revenues increased 20% over the fourthquarter of fiscal 1998 to $14.5 million, despite the impact ofthe scale-back of a major project, and for the year increased 32%over fiscal 1998 to $55.8 million. * Net Income for the quarter increased 30% to $1.6 million,and for the year increased 93% to $7.5 million. * Diluted earnings per share increased 39% for the year to 68cents whilst remaining level for the quarter at 15 cents. * Recruitment of staff recommenced in US at the end of thequarter

following faster than expected replacement of the scaled backproject. ICON plc (Nasdaq: ICLR), a global full service clinicalresearch organisation, headquartered in Dublin, Ireland, todayreported the financial results for its fourth quarter and fullyear ended May 31, 1999. For the fourth quarter ended May 31, 1999, net revenues were$14.5 million, representing a 20% increase over net revenues of$12.1 million for the same quarter last year. Income fromoperations for the fourth quarter was $0.7 million, a decrease of58% from the $1.6 million reported for the fourth quarter lastyear. Net income for the quarter was $1.6 million or 15 cents pershare, on a diluted basis, compared with $1.2 million or 15 centsper share last year. For the fiscal year ended May 31, 1999, net revenues increased32% to $55.8 million, from $42.1 million in the prior year.Income from operations for fiscal 1999 increased 11% from $5.8million to $6.4 million. Net income for fiscal 1999 was $7.5million compared to $3.9 million in fiscal 1998. As a resultdiluted earnings per share was 68 cents for fiscal 1999 comparedto 49 cents for fiscal 1998. Mainly as a result of capital expenditures of $10.7 millionduring the year, the company's cash, short term debt and shortterm investments were $44.8 million at May 31, 1999, compared to$53.3 million at May 31, 1998. These capital expenditures wereprimarily related to new headquarters in the US and a majorextension to the group headquarters in Ireland, together withsignificant expenditures on new IT systems. Days Sales outstanding, comprising accounts receivable andunbilled revenue less payments on account, were 64 days at May31, 1999 compared with 67 days at May 31, 1998. "Although our final quarter was adversely impacted by thepreviously announced scale-back of a major project, I am pleasedoverall with the results for the full fiscal year and I am veryencouraged by the new business activity we generated in thefourth quarter," commented Chairman Dr. Ronan Lambe. "As aresult, with over 80% of the expected revenues of our currentfinancial year already awarded, we recommenced our recruitmentefforts in the US sooner than expected, and committed to openinga new office in Irvine, California to facilitate the expansion ofour data management and clinical project management teams in theUS. We also recently hired key employees for new offices inIsrael and Singapore, both of which will commence operationswithin the next three months. These steps demonstrate ourconfidence in our global strategy and in the strength of ourbusiness." ICON provides contract clinical research services to thepharmaceutical industry world-wide. It currently has 11 officesin 8 countries and has approximately 650 employees world-wide. Information in this press release contains "forward-lookingstatements". These statements involve risks and uncertaintiesthat could cause actual results to differ materially including,without limitation, actual operating performance, the ability tomaintain large client contracts or enter into new contracts, theability to manage the opening of new offices, and the ability tomaintain client relationships. Additional factors that couldcause actual results to differ materially are discussed in theCompany's recent filings with the Securities and ExchangeCommission, including its Forms F-1 and S-8. The financial information presented herein has been preparedin accordance with U.S. GAAP.

ICON plc

Consolidated Income Statements

Three months and Years ended May 31, 1999 and1998

(Dollars, in thousands, except per sharedata)

Three Months Ended

YearEnded

May 31

May 31

1999

1998

1999 1998 Gross revenue

$24,146 $19,809 $94,550 64,149 Subcontractor costs

9,626

7,721 38,749 22,011 Net revenue

14,520 12,088 55,801 42,138 Costs and expenses Direct costs

7,873

6,187 29,339 22,023 Selling, general and administrative

5,318

3,926 18,029 13,175 Depreciation and amortization

640

328

1,990 1,151 Total costs and expenses

13,831 10,441 49,358 36,349 Income from operations

689

1,647

6,443 5,789 Interest income (net)

641

140

2,620

199 Income before provision for income taxes

1,330

1,787 9,063 5,988 Provision for income taxes

(279)

551 1,552 2,103 Net income

1,609

1,236 7,511 3,885 Net income per ordinary share Basic

$0.16

$0.17

$0.75 $0.56 Diluted

$0.15

$0.15

$0.68 $0.49 Weighted average number of ordinary shares Basic 10,109,182 7,279,714 10,069,581 6,949,521 Diluted 11,039,256 8,296,750 11,078,777 7,966,739

ICON plc

Summary Balance Sheet Data

May 31, 1999 and 1998

(Dollars, in thousands, except per share data)

May 31

1999

1998 Cash, short term debt and short term investments

$44,840

$53,263 Accounts receivable, unbilled revenue less payments on account

16,671

11,725 Working capital

55,884

57,062 Total assets

93,768

88,578 Shareholders' equity

70,266

63,009 otsOriginal Text Service: ICON plc Internet:http://www.newsaktuell.de Contact: Investors, 1-888-381-7923, orPeter Gray, CFO, +353-1-2161-100, both of ICON Web site:http://www.icon-icr.com

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