Encorium Group Provides Update to LOI with Respect to the Sale of its U.S...( WAYNE Pa. May 18 /- Encorium Group I...),Health

WAYNE, Pa., May 18 /PRNewswire-FirstCall/ -- Encorium Group, Inc. (Nasdaq: ENCO), a full service multinational contract research organization (CRO) that provides design, development, and management capabilities for clinical trials and patient registries to many of the world's leading pharmaceutical companies, today announced that the initial non-binding letter of intent with respect to its U.S. business has been terminated and that the Company has entered into another letter of intent with Pierrel SpA, an international contract research organization listed on Milano's Stock Exchange.

Subject to the negotiation of a definitive agreement, pursuant to the letter of intent, Pierrel has the right to purchase the U.S. Line of Business for a purchase price equal to a percentage of the Company's U.S. backlog calculated as of the closing or $1.35 million, whichever is greater, less the amount, if any, that assumed current liabilities, less assumed current assets exceeds $350,000. In addition to the purchase price payable at closing, Pierrel will pay Encorium a 10% commission on the value of any new contract, net of pass-through costs, executed after the closing date but prior to December 31, 2009, which constitute part of the Company's pipeline at closing.

Encorium Group plans to file a Current Report on Form 8-K with the United States Securities and Exchange Commission today containing a more detailed description of the parties' rights and obligations under the agreement.

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 q
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