ICON plc Bank of America May, 2006

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ICON plcBank of America May, 2006
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Forward Looking Statements
Certain statements contained herein including,
without limitation, statements containing the
words believes, anticipates, intends,
expects and words of similar import, constitute
forward-looking statements concerning the
Company's operations, performance, financial
condition and prospects. Because such statements
involve known and unknown risks and
uncertainties, actual results may differ
materially from those expressed or implied by
such forward-looking statements. Given these
uncertainties, prospective investors are
cautioned not to place undue reliance on such
forward-looking statements. The Company
undertakes no obligation to publicly update or
revise any forward-looking statements, whether as
a result of new information, future events or
otherwise.
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Investment Highlights

• Top global CRO
• Strong market fundamentals
• Outstanding record of organic growth
• Strong balance sheet
• Growth accelerating
• Margins expanding

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Company Overview

• Approx. 400 million in annualized net revenues
• 5 Year Net Revenue CAGR 28
• 4th Largest CRO in Phase II IV
• Global coverage - 41 locations in 27 countries
• Unique operating model with focus on quality and
  flexibility
• gt 3,200 staff worldwide
• Note Change of Year End to 31 December

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Global Full Service Clinical Development
6 Drug Development and Regulatory Support
5 Phase I
58 Trial Management, Monitoring
Pharmacovigilence
15 Data Management Statistical Consulting
3.5 Interactive Technologies
8 Central Laboratory
2.5 Central Imaging Lab
2 Contract Staffing
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Client Concentration Revenue 3 months to 31
March 2006
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Market Environment
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Strong Market Environment with.

• Fundamental RD Spending Growth Trend 10 p.a.
• Phase II / III pipelines strengthening
• Increased Outsourcing
• Growth c.15 p.a. since 2001
• Being accelerated by activity funding in
  Biotech / Speciality
• Evidence emerging that projects where CROs are
  engaged complete faster than internal only
  studies
• Regulatory Environment
• Globalisation favouring large CROs

Source Tufts Centre for Study of Drug
Development
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Source Pharmaprojects
. Improving Pipelines,.( growth in of
projects v prior year)
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while US Biotech Funding Environmentcontinues
to grow, leading to..
Biotech fund raising (bn)
Billion
Source Burrill and Company
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strong RFP growth in 2005. RFP Volume / Value
Trends Global Clinical 4 Quarters ending
November 05
RFP Value Growth
RFP Volume Growth
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and the trend continues in 2006 RFP Volume
/ Value Trends Global Clinical Q1 FY06 v Q1
FY05
RFP Value Growth
RFP Volume Growth
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ICON Gross Business Wins - Last 8 Quarters
CAGR 33
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ICONs Net New Business Wins growing strongly
Net Business Wins
Book to Bill Ratio
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leading to record total backlog levels.
CAGR 23
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and strong forecast coverage of next 4 quarters
revenues.
Value of backlog fcst to be earned in next 4 Qtrs
coverage of next 4 qtrs fcst revenues
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Strategy
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ICONs Broad Strategy is to

• Capitalise on market fundamentals to drive
  organic growth.
• Expand geographic footprint
• Cross-sell our services to grow sales further and
  increase margins
• Pursue acquisitions to enhance depth and scale of
  current operations and to add additional
  complementary services

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Cross-sell to leverage client relationships and
capture more of the project spend.
Strategic Product Development / Consulting 6
Phase I 5
Central Laboratory 9
Central Imaging Lab 2.5
Clinical Trial Management Phase II IV 58
IVRS 3.5
Data Management Biostatistics 15
Contract Staff 2
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Examples of some detailed strategic initiatives

• Creating Therapeutic Specialist Groups (TAGs) in
  key therapeutic areas to leverage our experience
  and build further scale e.g. Oncology
• Recent offices opened in Warsaw, Milan, Santiago,
  Beijing, San Diego, Taipei, Seoul, Hong Kong
• Investing in Operations in Japan significant
  opportunity for growth over next 10 years
• Creation of Data Management Operation in India
  now 50 people and growing
• Partnership with Medidata Solutions in EDC
  gaining traction
• Developing specialised Phase IV Division

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Financial Performance
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Recent Financial Performance (millions, except
EPS)
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Net Revenue CAGR of 28 over last 4 Years, and
strong growth forecast for 2006.
CAGR 28

Mid point calendar year guidance issued April
28, 2006
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underpinned by strong forecast coverage of next
12 months revenues. (US, of Forecasts)
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Earnings Per Share Growth
(E)

Mid point calendar year guidance issued April
28, 2006
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Summary Balance Sheet and Cashflow ( millions)
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Improving Margins
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Quarterly Operating margins have been improving.
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driven by expanding Clinical margins as revenue
growth has accelerated. These should continue to
improve through 2006
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Simultaneously, Lab losses are reducing, with
breakeven forecast by end 2006, and profits in
2007.
Lab Losses
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As Lab revenues grow . Millions
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driven by strong Lab net new business wins
Net Business Wins
Book to Bill Ratio
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Investment Highlights

• Top global CRO
• Strong market fundamentals
• Outstanding record of organic growth
• Strong balance sheet
• Growth accelerating
• Margins expanding

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Quarterly Revenue and Operating Profit

• 03, 04 and 05 data is for Feb, May, Aug and
  Nov quarters

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Mid-Size, Biotech and Specialty Pharma being
increasingly significant customers of ICON.

• Currently estimated to be more compounds in
  development in biotech/specialty than in all of
  Top 20 Pharma
• 45 of awards came from such companies in last
  quarter.

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