CVGR Covalent

Covalent Group, Inc. (Nasdaq: CVGR), a leader in the design, development, and management of complex clinical trials and patient registries for many of the world's leading pharmaceutical and biotechnology companies, today announced the signing of a $1.7 million contract for a Phase 2 clinical trial designed to test the hypothesis that aggressive anti-microbial therapy can beneficially impact the progression of atherosclerosis in subjects with known vascular disease. Atherosclerosis is a disease affecting the arterial blood vessels throughout the body. The trial will utilize data recorded from serial images obtained with multiple medical imaging techniques. The imaging data will be analyzed in conjunction with clinical assessments and biomarkers of inflammation to assess the efficacy of the study drug. Covalent will provide numerous services including consulting on trial design and protocol development, project and study site management, field operations, data management, biostatistical support, and medical writing. Revenues will begin being recognized during the current third quarter on a proportional performance basis over the life of the contract as services are performed. Kenneth M. Borow, M.D., Covalent Group's President and Chief Executive Officer, commented, "We are delighted to have been chosen by this new client to work on its proof-of-concept Phase 2 trial involving an innovative approach to altering the natural history of atherosclerosis. The program combines our proven expertise in clinical trial design and operational services, our well-known expertise in cardiovascular disease, and our extensive experience using multiple medical imaging techniques to assess drug efficacy in subjects at high risk for clinical events. We anticipate a long and mutually beneficial relationship with the sponsoring company." Dr. Borow continued, "Since the beginning of 2006, Covalent Group has signed contracts with 10 new clients. The relationship with eight of these new clients began with consulting contracts which were subsequently expanded to include contracts for clinical operational services. This once again confirms the validity of our business model which integrates consulting and operational capabilities for the most complex and challenging clinical development programs for drugs, biologics, and medical devices." About Covalent Group, Inc. Covalent Group, Inc. is a clinical research organization that is a leader in the design and management of complex clinical trials and Patient Disease Registries for the pharmaceutical, biotechnology and medical device industries. The Company's mission is to provide its clients with high quality, full-service support for their biopharmaceutical development programs. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as cardiovascular, endocrinology/metabolism, diabetes, vaccines, infectious diseases, gene therapy, immunology, neurology, oncology, gastroenterology, dermatology, hepatology, women's health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its therapeutic expertise and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process. With its wholly-owned international subsidiary, Covalent Group, Ltd., Covalent is able to meet the North American and Western European drug development needs of its clients. For more information, please visit www.covalentgroup.com. This press release contains forward-looking statements identified by words such as "estimate," "project," "expect," "intend," "believe," "anticipate" and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues to decline unexpectedly; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties;(xi) our backlog may not be indicative of future revenues and may not generate the revenues expected;(xii) our ability to successfully integrate the businesses of Covalent and Remedium and (xiii) the performance of the combined business to operate successfully and generate growth. You should not place any undue reliance on these forward looking statements which speak only as of the date of this press release. Additional information concerning factors that might affect our business or stock price which could cause actual results to materially differ from those in forward-looking statements is contained in Covalent Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2005 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent Group's investor relations department or The Equity Group Inc.