WuXi PharmaTech Announces Fourth-Quarter and Full-Year 20...(of $56.7 million for fourth-quarter2008 ...)

Reflecting losses from both continuing and discontinued operations, we recorded a GAAP net loss of $93.9 million in fourth quarter 2008 and $64.2 million for full-year 2008.

Continuing Operations-Non-GAAP Results

The non-GAAP gross margins from continuing operations of 39% in fourth-quarter 2008 and 44% in full-year 2008 were lower than 44% and 48%, respectively, for the comparable periods in 2007, mainly due to the inclusion of financial results for AppTec, which had lower gross margins than our China-based businesses, lower gross margins in our China-based Manufacturing Services business due to changes in project mix, and the timing of certain expense accruals, which were less weighted in fourth-quarter 2007.

Fourth-quarter 2008 non-GAAP operating income and net income declined 19% and 40%, respectively, compared to the prior-year period due to the timing of certain expense accruals, which were less weighted in fourth-quarter 2007, and lower gross profit in both Laboratory Services and Manufacturing Services and higher sales and marketing and general and administrative expenses in fourth-quarter 2008. Full-year 2008 non-GAAP operating income and net income increased 56% and 31%, respectively, versus 87% growth in revenue. The lower rates of growth were due to inclusion of lower-margin AppTec results in 2008 results and lower 2008 margins in the Manufacturing Services business due to changes in project mix. (See the table titled Reconciliation of GAAP to Non-GAAP below).

Discontinued Operations

All results of the biologics manufacturing business are reflected in Discontinued Operations in fourth-quarter and full-year 2008. We recorded a Loss from Discontinued Operations, net of tax, of $44.6 million in fourth-quarter 2008 and of $49.3 million for full-year 2008, in both cases
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