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Encorium Announces the Initiation of a Strategic Partnership With Prologue Research After the Postponement of Negotiations Regarding Its Planned Acquisition; Strategic Reorganization and Cost Reduction Plan Initiated as Strategic Alternatives are Investig
Date:9/22/2008

orium. "This will also allow Encorium to continue to focus on profitability improvements and our cost reduction plan to help us achieve profitability as soon as possible."

"Our therapeutic focus areas of cardiology and vaccines, particularly in Europe, continue to provide significant growth opportunities," commented Dr. David Ginsberg, the new Chief Executive Officer of Encorium. "We are announcing today awards of $6.2 million of new business contracts, primarily consisting of vaccine clinical trials with a major global biopharmaceutical company to be conducted in multiple European countries. We also intend to expand and focus our growth efforts in additional therapeutic areas as well.

"The cost-cutting initiatives announced today, which are designed to save approximately $1.0 million annually, demonstrate our focus on achieving profitability and positive cash flow. We believe we are repositioning the business to take advantage of the high-growth opportunities in the clinical research industry and will continue to review strategic alternatives for the Company as we strive to make Encorium successful."

About Encorium Group, Inc.

Encorium Group, Inc. is a global clinical research organization specializing in the design and management of complex clinical trials and Patient Registries for the pharmaceutical, biotechnology and medical device industries. The Company's mission is to provide its clients with high quality, full-service support for their biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as infectious diseases, cardiovascular, vaccines, oncology, diabetes endocrinology/metabolism, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, women's health and respiratory medicine. En
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