1 ICON plc Investor Update March 2006. 2 Certain statements contained herein including, without limitation, statements containing

1

ICON plc

Investor UpdateMarch 2006

2 www.iconclinical.comwww.iconclinical.com

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.

Forward Looking Statements


Global, full service Contract Research Organisation

(CRO) providing comprehensive outsourcing

solutions and services in Phase I – IV Clinical

Research, for the Pharmaceutical, Biotech and

Medical Device industries.

ICON plc – NASDAQ: ICLR

4

Investment HighlightsInvestment Highlights

Top global CRO

Strong market fundamentals

Outstanding record of organic growth

Strong balance sheet

Growth accelerating

Margins expanding

5

Company OverviewCompany Overview

>$350 million in annualized net revenues

5 Year Net Revenue CAGR = 23%

4th Largest CRO in Phase II – IV

Global coverage - 41 locations in 27 countries

Unique operating model with focus on quality and flexibility

> 3,000 staff worldwide

Note Change of Year End to 31 December


Global Full Service Clinical Development

Pre-clinical Phase I Phase II Phase III Launch Phase IV

6% Drug Development and Regulatory Support

5% Phase I

13% Data Management & Statistical Consulting

2.5% Contract Staffing

2.5% Central Imaging Lab

4% Interactive Technologies

9% Central Laboratory

58% Trial Management, Monitoring & Pharmacovigilence

7

Market Environment

8

Strong Market Environment with….

Fundamental R&D 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

www.iconclinical.comwww.iconclinical.com*Source: Tufts Centre for Study of Drug Development

9

Source : Pharmaprojects

www.iconclinical.comwww.iconclinical.com

…. Improving Pipelines,….

(% growth in # of projects v prior year)

-2%

0%

2%

4%

6%

8%

10%

Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2'05 Q305 Q405

Phase II Phase III

10

… while US Biotech Funding Environmentcontinues to grow, leading to…..

$16.4

$38.9

$19.5$17.9

$25.3

$30.8

$34.5

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

$45.0

1999 2000 2001 2002 2003 2004 2005Source: Burrill and Company

$Bil

lio

n

Biotech fund raising ($bn)

11

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

www.iconclinical.comwww.iconclinical.com

Currently estimated to be more compounds in development in biotech/specialty than in all of Top 20 Pharma

58% of awards came from such companies in last quarter.

0%

10%

20%

30%

40%

50%

FY2000 FY2001 FY2002 FY2003 FY2004 FY2005

% o

f IC

ON

re

ve

nu

es

21%26%

35%39% 40% 42%

12

As a Result, Major CROs Quarterly Net Bookings* are trending upwards …

$1.21$1.35

$1.56

$1.27$1.41

$1.17$0.98

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Q2 '04 Q3 '04 Q4 '04 Q1' 05 Q2 '05 Q3 '05 Q4 '05

$Bil

lio

n

Source: Company Reports; Bear Stearns

* includes Quintiles, PPDI, Covance, Parexel, ICON

13

…with ICON’s Net New Business Wins growing strongly…

$140m

$122m

$101m$106m

$120m

$46m

$91m$91m

$30m

$50m

$70m

$90m

$110m

$130m

$150m

Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

1.2

1.5

1.2

1.41.3

1.6

0.6

1.2

Net Business Wins

Book to Bill Ratio

14

…leading to ICON reaching record total Backlog levels.

$568

$633

$528$509

$488

$453$464$450

$427

$200

$300

$400

$500

$600

$700

Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 FY06 Q2 FY06

$ m

illio

ns

15

Strategy

16

ICON’s 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

17

Cross-sell to leverage client relationships and capture more of the project spend.

Strategic ProductDevelopment /

Consulting 6%

Strategic ProductDevelopment /

Consulting 6%

Clinical Trial ManagementPhase II – IV

58%

Clinical Trial ManagementPhase II – IV

58%

Phase I5%

Phase I5%

Central Laboratory

9%

Central Laboratory

9%

IVRS4%

IVRS4%

Contract Staff2.5%

Contract Staff2.5%

Central Imaging Lab2.5%

Central Imaging Lab2.5%

Data Management &

Biostatistics13%

Data Management &

Biostatistics13%

18

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

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

19

Financial Performance

20

Recent Financial Performance ($millions, except EPS)

FY ’06 FY ’05 FY ’06 FY ’05

Net Revenue 88.1 79.5 174.0 157.8

Direct Costs 48.7 43.7 96.0 86.1

SG & A 26.8 25.5 53.6 48.9

D & A 3.5 3.3 6.9 6.4_____ _____ _____ _____

Operating Income 9.0 7.0 17.4 16.5

Net Income 7.0 5.8 13.3 13.1_____ _____ _____ _____

EPS 49c 41c 94c 93c

Weighted Average no. of Shares

14.3 14.1 14.2 14.1

3 mths to Nov 6 Mths to Nov


$116

$157

$226

$297

$327

$390

$0

$100

$200

$300

$400

FY2001 FY2002 FY2003 FY2004 FY2005 2006(E)

Mil

lio

ns

Net Revenue CAGR of 29% over last 4 Years, and strong growth forecast for 2006….

CAGR 29%

22

$296m

$279m

$262m

$252m$248m

$224m

$238m$241m

Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

… underpinned by strengthened forecast of value of Backlog to be earned in the next 12 months. (US$, & % of Forecasts)

76%

71%70%71%70%

67%

70%

66%


$0.92

$1.16

$1.50

$1.88$1.70

$2.25

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

FY2001 FY2002 FY2003 FY2004 FY2005 2006 (E)*

Earnings Per Share Growth

* Calendar Year guidance issued January 10, 2006

(E)

24

Improving Margins

25

8.8%

7.3%

8.6%

9.7%10.2%

Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006

Quarterly Operating margins have been improving….

26

12.2%

10.2%

11.7%

12.7% 12.8%

Q2 2005 Q3 2005 Q4 2005 Q1 FY2006 Q2 FY2006

… driven by expanding Clinical margins as revenue growth has accelerated. These should continue to improve through 2006

27

Simultaneously, Lab losses are reducing, with breakeven forecast by end 2006, and profits in 2007….

-$0.3

$0.0

-$0.5

-$0.9

-$1.2

-$1.6

-$2.1

-$1.8-$1.9

($2)

($1)

($0)

Q2 05 Q3 05 Q4 05 Q1 FY06 Q2 FY06 Q1 06(E) Q2 06(E) Q3 06(E) Q4 06(E)

$ m

illio

ns

Lab Losses

28

…As Lab revenues grow …. $Millions

$8.1

$7.2

$6.1

$6.4$6.5$6.5

$5

$6

$7

$8

$9

Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06

$ m

illio

ns


…driven by strong Lab net new business wins…

Net Business Wins Book to Bill Ratio

$10.8$12.0

$4.9

$11.3

$6.9

$9.3

$11.8

$21.6

$18.6

$12.9

$0

$5

$10

$15

$20

Q1 04 Q2 04 Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 Q1 06 Q2 06

$ m

illi

on

s

1.9

1.51.4

1.9

2.6

1.1

3.5

1.6

0.7

1.8

30

Investment HighlightsInvestment Highlights

Top global CRO

Strong market fundamentals

Outstanding record of organic growth

Strong balance sheet

Growth accelerating

Margins expanding

Documents

1 ICON plc Investor Update March 2006. 2 Certain statements contained herein including, without limitation, statements containing