Major Pharmaceutical Company Makes Multi-Year Commitment To Covance’s Early Development Segment

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Strategic Arrangement Guaranteed to $45 Million Level
Princeton, New Jersey, March 22, 2004 — Covance Inc. (NYSE: CVD), a leading provider of drug development services, announced today that it has entered into a multi-year agreement with a major pharmaceutical company to provide early development services in a dedicated portion of their Madison, Wisconsin facility. This agreement has a guaranteed value of at least $45 million over the next three years.

"The changing dynamics in the pharmaceutical and biotechnology industries have provided us with more strategic market opportunities. As the number of new drug leads continues to grow, our clients are increasingly interested in securing dedicated resources for early development services," said Joe Herring, President and Chief Operating Officer.

This agreement introduces a pioneering approach for Covance in managing nonclinical safety studies on behalf of our clients. As part of the Madison expansion completed in 2002, Covance built flexible capacity that could be quickly converted into dedicated space. This capacity will now be dedicated to this pharmaceutical client's studies and jointly managed onsite by Covance and client staff. Covance is able to provide this client with a full range of toxicology services including regulatory toxicology, safety pharmacology, infusion, and reproductive and development studies. The relationship has the potential to include other Covance services such as bioanalysis, metabolism, and clinical pharmacology as well as toxicology services.

"This strategic agreement is a result of a long-term relationship between our two companies," said Wendel Barr, Group President of Early Development North America. "Over the years, we have worked closely with this client to better understand their needs and customize solutions that best meet those needs. Our strengths in process excellence, customer satisfaction, and our ability to provide near-real-time data through our StudyTracker® system have been instrumental in building a relationship that led to this strategic agreement."

Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with 2003 net revenues of $940 million, global operations in 18 countries, and approximately 6,500 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through the website in the About Covance area.

Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, operations, revenue and earnings growth and other financial results are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements including the statements contained herein regarding anticipated trends in the Company's business are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, Covance's ability to provide the services called for in the agreement and realize the anticipated revenues, and other factors described in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no duty to update any forward looking statement to conform the statement to actual results or changes in the Company's expectations.