Bio-Imaging Acquires Phoenix Data Systems, A Leading Provider Of Clinical Data Services

Bio-Imaging Technologies, Inc. recently announced that it has acquired privately held Phoenix Data Systems, Inc., 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 $24M, payable at closing, consisting of $7.0M of cash and 2,287,582 shares of Bio-Imaging stock valued at $17.0M. Together Bio-Imaging and Phoenix Data Systems will offer 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 $1B.

Founded in 1997 and headquartered in nearby King of Prussia, PA, Phoenix Data Systems delivers 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 FDA.

Phoenix Data Systems is growing rapidly and generated $12M 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 our core clinical trials services business. Crosstree Capital Partners, Inc. acted as Phoenix Data Systems' financial advisor in the transaction.

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. Based on the inclusion of Phoenix Data Systems' financial results from the acquisition date through the end of the year, we are revising up our full year 2008 guidance to service revenue in the range of $52-$55M and fully diluted earnings per share in the range of $0.22 to $0.24."

"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."

Dr. David Nowicki, Chairman of the Board of Directors of Bio-Imaging continued, "This is an exciting opportunity in a rapidly growing and very large market space. We are pleased to add such an experienced and capable team at Phoenix Data Systems to the Bio-Imaging family, thus we believe enhancing long term growth prospects for all involved, and delivering increased value for our loyal shareholders. The EDC / eClinical space is experiencing rapid client acceptance and implementation as a result of the desire for the real time capture, validation, and analysis of trial-generated data. There is a clear desire to improve R&D efficiency through faster production of interim reports, database lock, report generation and FDA submissions. Further driving this EDC growth trend is the coming regulatory demand for electronic submission of a standardized data structure and code set for a variety of FDA submissions. We view the Phoenix Data acquisition as a great opportunity to support and integrate the scalable growth of the Phoenix Data Systems platform with the transparency and financial support of a larger publicly traded company."

About Bio-Imaging Technologies, Inc.
Bio-Imaging Technologies, Inc. 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. Bio-Imaging serves its clients on a global basis through its Core Labs in Newtown, PA, and Leiden, The Netherlands, along with business offices in PA, MA, The Netherlands, Germany and France. 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. Additional information about Bio-Imaging is available at www.bioimaging.com.

About Phoenix Data Systems
Phoenix Data Systems delivers 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. Additional information about Phoenix Data Systems is available at www.phoenixdatasystems.net.

SOURCE: Bio-Imaging Technologies, Inc.