Covalent Wins $8.2 Million in Contracts

Covalent Group, Inc. has signed multiple Phase I and Phase II contracts valued at $8.2 million. All of the contracts are with the same client and relate to the development of an agent to treat multiple types of influenza, including Avian Flu. Services include consulting on clinical trial design and protocol development, project and study site management, field operations, data management, and biostatistical support.

Kenneth M. Borow, M.D., chief executive officer and president for Covalent Group, commented, “We are exceptionally proud of our involvement in this important development program which we believe could ultimately prove to be beneficial to millions of people worldwide. These contract wins were the result of highly coordinated business development and clinical operations efforts on the part of Covalent Group and Remedium Oy, a privately owned, full-service CRO based in Espoo, Finland that we expect to acquire. We believe that these contract wins represent a strong proof-of-concept that the combination of Covalent and Remedium, resulting in the newly created company Encorium Group, Inc., will be a highly competitive force in the drug development and CRO marketplaces.”

The closing of the Remedium transaction is targeted for November 1, 2006 and is subject to the approval of Covalent Group’s shareholders.