PPD NET REVENUE PROJECTED TO GROW 19% IN 2007.

PPD, Inc. (Nasdaq: PPDI), Wilmington, NC, has updated its existing 2006 guidance and reported its projected financial guidance for 2007.

PPD anticipates that net revenue, excluding reimbursed out-of-pockets, for the full year 2006 will be slightly higher than its existing guidance and will be in the range of $1.145 to $1.150 billion. Earnings per diluted share, including non-cash stock opt ion expense, for the fourth quarter 2006 is expected to be in the range of $0.33 to $0.34, resulting in full year 2006 earnings per diluted share of $1.30 to $1.31.

For 2007, net revenue, excluding reimbursed out-of-pockets, is expected to be in the range of $1.340 to $1.390 billion, an increase of approximately 19.0 percent over the revised 2006 net revenue forecast. First quarter 2006 discovery sciences net revenue included a $15.0 million milestone payment from Takeda Pharmaceutical Company Limited triggered by the start of the on-going Phase III clinical trial for Takeda's DPP4 program. Projected net revenue for the full year 2007 does not include any milestone payments or royalties from our compound partnering programs.

Earnings per diluted share, including non-cash stock option expense, for the full year 2007 are expected to be in the range of $1.46 to $1.54. Stock option expense for 2007, net of tax, is expected to be in the range of $0.10 to $0.12 per diluted share. The quarterly 2007 earnings per diluted share are expected to be in the following ranges: Q1 - $0.34 to $0.35; Q2 - $0.35 to $0.36; Q3 - $0.37 to $0.40; Q4 - $0.40 to $0.43.

The full year 2007 earnings per diluted share for the development segment are forecasted to be in the range of $1.48 to $1.56. Total company full year 2007 earnings per diluted share guidance reflects a dilutive earnings contribution from the discovery sciences segment of ($0.02) per diluted share. Discovery sciences earnings guidance includes projected results from PPD's preclinical drug discovery services, biomarker operations and existing compound partnering programs. The effective tax rate for 2007 is expected to be 34.5 percent, compared to an expected rate of 33.7 percent for 2006.

Capital spending for 2007 is expected to be in the range of $105.0 to $110.0 million. Projected capital spending includes approximately $30.0 million in remaining construction costs for PPD's new headquarters building in Wilmington, North Carolina, which is expected to be completed in early 2007. Projected capital expenditures also include approximately $29.5 million for global facility expansions and improvements, including facilities in Europe, Latin America and Asia. The balance of 2007 projected capital spending includes investments in information technology related projects and the purchase of lab equipment.

Additional information concerning expected operating segment performance, compound partnering programs and other information regarding PPD's financial guidance will be provided during the guidance conference call.

"For 2007, we expect to see solid, steady growth in the core development business, and we plan to focus our efforts on disciplined execution throughout the coming year," said Fred Eshelman, chief executive officer of PPD. Commenting further on the discovery sciences segment, Eshelman said, "We anticipate that the Phase III trials for the Takeda DPP4 program will continue to advance in 2007 and we plan to continue evaluating new opportunities in this arena that will leverage our clinical development expertise, fit our compound partnering strategy and drive long-term shareholder value."

Net revenue is the most directly comparable GAAP financial measure to net revenue excluding reimbursed out-of-pockets. Although net revenue excluding reimbursed out-of-pockets is not superior to or a substitute for GAAP net revenue, PPD excludes reimburse d out-of-pockets from its forecasted net revenue because they are difficult to accurately predict and are immaterial because they do not affect operating income, net income or earnings per share. PPD further believes this non-GAAP financial information i s useful to investors because it more accurately reflects the net revenue that will be generated by PPD's services, and because it provides information for period-to-period comparisons.

PPD is a leading global contract research organization providing discovery, development and post-approval services as well as compound partnering programs. Our clients and partners include pharmaceutical, biotechnology, medical device, academic and government organizations. With offices in 27 countries and more than 9,100 professionals worldwide, PPD applies innovative technologies, therapeutic expertise and a commitment to quality to help its clients and partners maximize returns on their R&D investments and accelerate the delivery of safe and effective therapeutics to patients.

For more information, visit http://www.ppdi.com or call 910/772 6999.