Bio-Imaging Acquires a Leading Provider of Clinical Data Services

(Newtown, PA; USA) announced that it has acquired Phoenix Data Systems, Inc. (King of Prussia, PA, USA), a leading global clinical data services provider of electronic data capture (EDC) services and a comprehensive array of broadly interoperable eClinical data solutions to the pharmaceutical and biotechnology industries.

The acquisition is a cash and stock transaction valued at US$24 million, payable at closing, consisting of $7.0 million of cash and 2,287,582 shares of Bio-Imaging stock valued at $17.0 million. Together, Bio-Imaging and Phoenix Data Systems will provide a broader set of clinical trial services to its pharmaceutical and biotechnology customers. The global EDC services market is increasing rapidly and within five years is expected to increase Bio-Imaging's addressable market in the clinical trials space to over $1 billion.

Phoenix Data Systems provides full service EDC, a unique combination of electronic data capture, interactive voice response, reporting, and data management services that give clinical data managers improved control to run well-managed studies. Phoenix Data assists its pharmaceutical, biotechnology, medical device, and contract research organization clients with streamlining the clinical research process by providing early visibility to reliable clinical research data. Phoenix Data's solutions have been proven in over 500 studies, including pivotal trials for new drug application submissions to the U.S. Food and Drug Administration (FDA).

Phoenix Data Systems is growing rapidly and it generated $12 million of revenue and an operating profit in 2007. The acquisition is expected to be accretive to Bio-Imaging's fully diluted earnings per share for fiscal 2008. Phoenix Data Systems will retain its name and continue to be managed by Dr. William Claypool, its current president. All of Phoenix Data Systems' 127 employees will join Bio-Imaging as a new division of core clinical trials services business.

Mark Weinstein, Bio-Imaging's CEO commented "We have had an interest to expand into the eClinical space for several years and have been looking for a company that meets our criteria, of excellent reputation, strong management team, comprehensive suite of products and services with growing profitable operations. The acquisition of Phoenix Data Systems expands our core clinical trial services business into the rapidly growing electronic data capture market and leverages our global operational capabilities and sales and marketing reach into pharmaceutical and biotechnology companies. We are very pleased to have the Phoenix Data Systems team become an integral component of Bio-Imaging's future.”

"We're extremely pleased to join a company that shares our commitment to client service, offers a strong team of recognized industry experts, and provides an exceptional portfolio of global operational capabilities that complement our services,” said Phoenix Data Systems' president, Dr. William Claypool. "With Bio-Imaging's proprietary image capture technologies and scientific expertise, we extend our unparalleled suite of services to support the clinical development efforts of our clients and prepare their data for regulatory submissions.”

Bio-Imaging Technologies is a healthcare contract-service organization providing services that support the product development process of the pharmaceutical, biotechnology, and medical device industries. The company has specialized in assisting its clients in the design and management of the medical-imaging component of clinical trials since 1990. Through its CapMed personal health management suite, Bio-Imaging provides its Personal HealthKey technology, the personal health record (PHR) software, and CapMed Patient Portal allowing patients to better monitor and manage their health care information.

Phoenix Data Systems provides full-service EDC, a unique combination of electronic data capture, interactive voice response, reporting, and data management services that give clinical data managers improved control to run well-managed studies. Phoenix Data's solutions have been proven in over 500 studies, including pivotal trials for new drug applications.


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