ICON Reports 40% Increase in Net Revenue, 63% Increase in Operating Income and 65% Increase in EPS

ICON (NASDAQ:ICLR), a global provider of outsourced development
services to the pharmaceutical, biotechnology and medical device
industries, today reported its financial results for the third quarter
ended September 30, 2006. As a consequence of the change of financial
year, the comparative quarter mentioned in this press release will be
the quarter ended August 31, 2005. ICON recently completed its bonus
issue of shares (effectively a share spilt), the number of weighted
average shares in this press release reflects the share split in both
the current and comparative figures.

Net revenues for the quarter were $120.7 million, representing a
40% increase over net revenues of $85.9 million for the comparative
quarter last year.

Income from operations, on a US GAAP basis, was $12.6 million and
net income was $10.1 million or 35 cents per share, on a diluted
basis. Adjusting for $1.0 million in relation to the expensing of
stock compensation in accordance with SFAS No.123(R), income from
operations was $13.6 million, compared to $8.4 million last year and
net income was $11.1 million or a diluted 38 cents per share, compared
with $6.4 million or 23 cents per share last year. Adjusted operating
margin was 11.3%, compared with 9.7% for last year.

Year to date, net revenues were $326.6 million, a 28% increase
over the comparative period last year. Income from operations was
$34.0 million and net income was $26.9 million or 94 cents per share,
on a diluted basis. Adjusting these figures to exclude $3.0 million in
relation to the expensing of stock compensation in the current year
and the one-time charge of $11.3 million, relating primarily to the
impairment of goodwill in the prior year, income from operations for
the period ended September 30, 2006 was $37.0 million, an increase of
70% from $21.8 million last year and operating margin was 11.3%,
compared with 8.5% for last year. Adjusted net income was $29.9
million or a diluted 103 cents share, compared with $17.4 million, or
61 cents per share last year.

Days sales outstanding, comprising accounts receivable and
unbilled revenue less payments on account, were 57 days at September
30, 2006, a decrease from 65 days at December 31, 2005.

For the quarter ending September 30, 2006, cash in-flows from
operating activities were $2.6 million, $6.5 million was invested in
acquisitions and capital expenditures were $8.4 million, of which $2.3
million related to the extension of our Dublin facility. Year-to-date,
cash in-flows from operating activities were $33.0 million and capital
expenditure was $19.3 million. As a result, the company's cash and
short-term investments, net of debt, was $90.7 million at September
30, 2006, compared to $101.0 million at June 30, 2006 and $77.5
million at December 31, 2005.

"Q3 was another excellent quarter for ICON", commented Chairman
Dr. John Climax. "Our clinical business continues to grow very
strongly and our central laboratory made further solid progress. New
business wins in the quarter were very satisfactory and we have had a
good start to the fourth quarter. Market conditions remain positive
and we continue to be confident in the outlook for the year"

ICON has invited tenders for the sale and leaseback of the
company's Dublin facility which is currently undergoing expansion. The
estimated total cost of construction of the expansion will be in the
region of $60 million, which will be funded from cashflow. Of this,
$11 million has been spent to-date. The first phase of the expansion
project will be completed and ready for occupancy in mid 2007. The
remainder will be completed in mid 2008.

The company will hold its third quarter conference call today,
October 27, 2006 at 09:00 EST (14:00 Ireland & UK). This call and
linked slide presentation can be accessed live from our website at
http://www.iconclinical.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 "shareholders services". 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.

The financial information presented herein has been prepared in
accordance with U.S. GAAP.

ICON plc is a global provider of outsourced development services
to the pharmaceutical, biotechnology and medical device industries.
The Company specializes in the strategic development, management and
analysis of programs that support clinical development - from compound
selection to Phase I-IV clinical studies. ICON teams have successfully
conducted over 1,900 development projects and over 2,300 consultancy
engagements across all major therapeutic areas. ICON currently has
over 4,000 employees, operating from 48 locations in 30 countries.
Further information is available at www.iconclinical.com.

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ICON plc

Consolidated Income Statements
(Unaudited)

Three and Nine Months ended September 30, 2006 and August 31, 2005
(Dollars, in thousands, except share and per share data)

Three Months Ended Nine Months Ended
September 30, August 31, September 30, August 31,
2006 2005 2006 2005

Gross Revenue 171,109 115,352 465,497 350,672

Subcontractor costs 50,395 29,431 138,852 95,927

------------- ----------- ------------- -----------
Net Revenue 120,714 85,921 326,645 254,745

Costs and expenses
Direct costs 68,428 47,310 183,146 140,847
Selling, general
and administrative 35,800 26,809 98,477 81,734
Depreciation and
amortization 3,875 3,434 11,009 10,407
One-time charges - - - 11,275

------------- ----------- ------------- -----------
Total costs and
expenses 108,103 77,553 292,632 244,263

Income from
operations 12,611 8,368 34,013 10,482

Interest income
(net) 951 415 2,536 1051

------------- ----------- ------------- -----------
Income before
provision of
income taxes 13,562 8,783 36,549 11,533

Provision for
income taxes 3,423 2,459 9,496 4,679
Minority Interest 45 (59) 121 50
------------- ----------- ------------- -----------

Net income 10,094 6,383 26,932 6,804
============= =========== ============= ===========

Net income per
ordinary share
Basic $0.36 $0.23 $0.95 $0.24
------------- ----------- ------------- -----------

Diluted $0.35 $0.23 $0.94 $0.24
------------- ----------- ------------- -----------

Weighted average
number of ordinary
shares
Basic 28,351,525 27,839,212 28,333,823 27,782,555

Diluted 29,085,080 28,300,424 28,709,932 28,218,814
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ICON plc

Adjusted Consolidated Income Statements (a)
(Unaudited)

Three and Nine Months ended September 30, 2006 and August 31, 2005
(Dollars, in thousands, except share and per share data)

Three Months Ended Nine Months Ended
September 30, August 31, September 30, August 31,
2006 2005 2006 2005

Gross Revenue 171,109 115,352 465,497 350,672

Subcontractor costs 50,395 29,431 138,852 95,927

------------- ----------- ------------- -----------
Net Revenue 120,714 85,921 326,645 254,745

Costs and expenses
Direct costs 67,863 47,310 181,497 140,847
Selling, general
and administrative 35,340 26,809 97,133 81,734
Depreciation and
amortization 3,875 3,434 11,009 10,407

------------- ----------- ------------- -----------
Total costs and
expenses 107,078 77,553 289,639 232,988

Income from
operations (a) 13,636 8,368 (a) 37,006 (b) 21,757

Interest income
(net) 951 415 2,536 1051

------------- ----------- ------------- -----------
Income before
provision of
income taxes 14,587 8,783 39,542 22,808

Provision for
income taxes 3,423 2,459 9,496 5,404
Minority Interest 45 (59) 121 50
------------- ----------- ------------- -----------

Net income 11,119 6,383 29,925 17,354
============= =========== ============= ===========

Net income per
ordinary share
Basic $0.39 $0.23 $1.06 $0.62
------------- ----------- ------------- -----------

Diluted $0.38 $0.23 $1.03 $0.61
------------- ----------- ------------- -----------

Weighted average
number of ordinary
shares
Basic 28,351,525 27,839,212 28,333,823 27,782,554

Diluted 29,514,059 28,300,424 29,161,310 28,218,814
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(a) Excluded from the quarter to September 30, 2006, is the
non-cash stock compensation expense of $1.025 million ($2.993
million for the nine months to September 30, 2006) relating to
stock options expensed in accordance with SFAS No. 123(R).
Also excluded from this quarter, is the adjustment of 428,979
shares (and 451,378 shares for the nine months ended September
30, 2006) on the diluted share number which is a consequence
of the adoption of the standard.

(b) The nine month period ended August 31, 2005, excludes a
one-time charge of $11.3 million, relating to the recognition
in the quarter to February 28, 2005, of an impairment of the
goodwill associated with the Central Laboratory business,
certain assets, lease termination costs and exit costs, net of
the tax deduction thereon.

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ICON plc

Summary Balance Sheet Data

September 30, 2006 and December 31, 2005
(Dollars, in thousands)

September 30, December 31,
2006 2005
(unaudited) (audited)
Cash and short-term
investments 94,710 82,318
Short-term debt 4,000 4,856
Net cash 90,710 77,462

Accounts receivable 101,124 71,450
Unbilled revenue 76,826 62,270
Payments on account (71,156) (50,211)
Total 106,794 83,509

Working Capital 153,532 132,312

Total assets 431,137 349,067

Shareholder's equity 284,326 241,558
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