CVGR Covalent

Covalent Group, Inc. (Nasdaq: CVGR) today announced that it has signed a contract for $2.2 million to conduct a Phase 2 clinical trial in patients with cardiovascular disease. Work on this study began in December 2005 under the terms of a Letter-Of-Intent. This multinational study will be conducted at clinical trial sites in North America, Eastern Europe, and South America. Covalent's consulting group has already made important contributions to the trial's design and study site selection process. Covalent is also providing the sponsor with project and study site management, field operations, and data management services as well as biostatistical support, and medical writing. Revenues will be recognized 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, "This announcement represents Covalent's second new business contract within the past two weeks for important Phase 2 multinational clinical trials utilizing highly innovative drugs for the treatment of cardiovascular disease. The two trials, which are with clients new to Covalent, target different clinical populations with significant unmet medical needs. They are examples of Covalent being chosen for our expertise in the design and conduct of complex trials conducted in North America, Europe, and South America. Both Phase 2 studies, if positive, should lead to additional clinical trials with their respective study drugs. Covalent is well positioned to participate in both of these potentially large development programs." 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., as well as its Strategic Partners operating in various regions around the world, Covalent is able to meet the global 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; and (xi) our backlog may not be indicative of future revenues and may not generate the revenues expected. 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, 2004 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.