PAREXEL RECEIVES ARBITRAGEUR COMPLAINT
BOSTON, MA, May 9, 2000 — PAREXEL International Corporation (Nasdaq: PRXL) announced today that a complaint has been filed against it in connection with the proposed merger with Covance, Inc. which was terminated in June of 1999. The complaint was filed in the United States District Court for the Southern District of New York by two arbitrageurs, Elliott Associates, L.P. and Westgate International, L.P. The arbitrageurs allege, in brief, that they were misled by certain statements made by PAREXEL and Covance, Inc. in connection with the proposed merger between PAREXEL and Covance which was announced in April of 1999. The plaintiffs purportedly executed both purchases and short sales of securities in reliance on the PAREXEL/Covance merger being consummated and claim they were damaged when the merger agreement was terminated. PAREXEL believes that it has highly meritorious defenses to the action and will vigorously defend against it.
This release may contain "forward-looking" statements regarding future results and events, including statements regarding expected financial results, future growth and customer demand. The Company's actual future results may differ significantly from the results discussed in the forward-looking statements contained in this release. Important factors that might cause such a difference include, but are not limited to, risks associated with: the cancellation or delay of contracts; the Company's dependence on certain industries and clients; the Company's ability to manage growth and its ability to attract and retain employees; the Company's ability to complete additional acquisitions and to integrate newly acquired businesses; government regulation of certain industries and clients; competition and consolidation within the pharmaceutical industry; the potential for significant liability to clients and third parties; the potential adverse impact of health care reform; and the effects of exchange rate fluctuations. These factors and others are discussed more fully in the section entitled "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2000.
PAREXEL is one of the largest contract pharmaceutical outsourcing organizations in the world, providing a broad range of knowledge-based contract research, medical marketing and consulting services to the worldwide pharmaceutical, biotechnology and medical device industries. With a commitment to providing solutions that accelerate time-to-market and peak market penetration, PAREXEL has developed significant expertise in clinical trials management, data management, biostatistical analysis, medical marketing, clinical pharmacology, regulatory and medical consulting, industry training and publishing and other drug development consulting services. The Company’s integrated services, therapeutic area depth and sophisticated information technology, along with its experience in global drug development and product launch services, represent key competitive strengths. Headquartered near Boston, MA, PAREXEL operates in 43 locations throughout 29 countries around the world, and has approximately 4,275 employees.