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COVANCE REPORTS $0.09/SHARE FOR 2Q 2000
EXCLUDING RESTRUCTURING CHARGE

Princeton, N.J., July 25, 2000 — Covance Inc. (NYSE: CVD) today reported earnings for its second quarter ended June 30, 2000 of $0.09/diluted share, excluding a charge of approximately $14.7 million pre-tax ($8.9 million after tax) to restructure its Phase III clinical trials unit.

"Previously announced shortfalls in our Phase III clinical trials and biomanufacturing operations significantly impacted the Company's financial results for the second quarter and first half of the year," said Chris Kuebler, Chairman and CEO. "We anticipate that our financial results will improve sequentially in the third and fourth quarters of 2000 due to savings from the restructuring of our clinical business and improved production levels in the biomanufacturing area."

2Q and YTD 2000 Financial Results (excluding special charges)

Net revenues were $212.1 million for the second quarter of 2000 as compared to $215.1 million in the prior year. Year-to-date net revenues were $421.7 million compared to $425.7 million for the prior year.

Operating income for the second quarter of 2000 was $12.2 million resulting in an operating margin of 5.8% compared to 13.1% for the same period in 1999. Year-to-date operating income was $32.1 million resulting in an operating margin of 7.6% compared to 12.3% for the same period in 1999.

Net income for the second quarter of 2000 was $5.2 million or $0.09/diluted share compared to $15.4 million or $0.26/diluted share for the second quarter of 1999. Year-to-date net income was $15.8 million or $0.28/diluted share compared to $28.5 million or $0.48/diluted share for the same period in 1999.

Segment Results
Early Development Segment

($ in millions)	2Q'00	2Q'99	Change	YTD'00	YTD'99	Change
Revenues	$71.2	$69.3	2.7%	$143.3	$134.9	6.3%
Costs/Expenses	61.1	58.0	5.4%	122.3	115.6	5.8%
OM%	14.1%	16.3%		14.7 %	14.3 %

The Company's Early Development segment includes preclinical and Phase I clinical trial services. Revenues for the second quarter 2000 increased modestly over the prior year reflecting the negative impact of foreign exchange rate movements and lower than expected revenues in chemistry and European Phase I clinical services. The Company's core toxicology business, which accounts for approximately half of all Early Development segment revenues, delivered strong results.

Costs and expenses increased 5.4% in the second quarter 2000 as compared to the prior year primarily due to increased spending on strategic initiatives. These initiatives include expansion of the Company's bioanalytical capabilities and development of internet-enabled data management systems, which will provide our customers with real-time access to preclinical data.

Operating margins for second quarter 2000 declined reflecting the impact of softer revenues and higher costs and expenses. On a year-to-date basis, operating margins for the Early Development segment increased slightly over the prior year.

Late-Stage Development Segment

($ in millions)	2Q'00	2Q'99	Change	YTD'00	YTD'99	Change
Revenues	$140.9	$145.8	(3.3)%	$278.4	$290.8	(4.3%)
Costs/Expenses	138.8	128.9	7.7%	267.3	257.7	3.7%
OM%	1.5%	11.6%		4.0%	11.4%

The Late-Stage Development segment includes clinical development, clinical support services, biomanufacturing, and commercialization services. As expected, revenues for the second quarter and year-to-date 2000 declined compared to the prior year primarily due to continued revenue weakness in clinical development services.

Costs and expenses increased in the second quarter and year-to-date 2000 due to planned growth in biomanufacturing and business expansion in other areas of Late-Stage Development, such as Central Labs, Packaging and eCRO. The Company continues to experience increasing demand for its Central Lab, Packaging, and biomanufacturing services.

Operating margin for the quarter and year-to-date 2000 declined significantly over the prior year due to weak results in clinical development and biomanufacturing services.

Restructuring Charge
During the quarter, the Company announced that it would restructure its Phase III clinical trials unit which included the closing of certain satellite offices, the consolidation of other facilities, and the elimination of approximately 200 positions globally to reduce overhead and excess capacity. In connection with these actions, the Company recorded a restructuring charge of approximately $14.7 million pre-tax ($8.9 million after tax) in the second quarter. This restructuring initiative is expected to deliver pre-tax savings in 2001 of approximately $16 million, with approximately $7 million to $8 million in savings anticipated in the second half of 2000.

Corporate Information
The Company recorded backlog of approximately $948 million on June 30, 2000 versus $925 million on March 31, 2000.

During the second quarter of 2000, Covance increased availability under bank credit facilities to $300 million. The balance outstanding at the end of the second quarter 2000 was $225 million.

Net Days Sales Outstanding for the Company is 65 days on June 30, 2000 versus 60 days on March 31, 2000 and 67 days on June 30, 1999.

The Company's quarterly financial briefing will be webcast on July 26 at 9 am. Please log on to our website at www.covance.com to participate. A corresponding slideshow is also available on our website.

Covance, with headquarters in Princeton, New Jersey, is one of the world's largest and most comprehensive drug development services companies with 1999 revenues of $829 million, operations currently in 17 countries, and approximately 7,900 employees worldwide. Information on Covance's products and services, recent press releases, and SEC filings can be obtained through our website at: www.covance.com.

Statements contained in this press release, which are not historical facts, such as statements about prospective earnings, savings, revenue, 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, competitive factors, outsourcing trends in the pharmaceutical industry, the Company's ability to continue to attract and retain qualified personnel, the fixed price nature of contracts or the loss of large contracts, the success of the Company's restructuring, and other factors described in the Company's filings with the Securities and Exchange Commission. No assurance can be given that the Company will be able to realize the net revenues included in backlog. Covance believes that its aggregate backlog is not necessarily a meaningful indicator of future results.


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Financial Exhibits follow

                              COVANCE INC.

                               PROFORMA *

               INCOME STATEMENTS - EXCLUDING SPECIAL CHARGES
               								
         FOR THE THREE AND SIX  MONTHS ENDED JUNE 30, 2000 AND 1999
         								
               (Dollars in thousands, except per share data)
               								
                              (UNAUDITED)
                              
 								
                                   Three Months Ended June 30       Six  Months Ended June 30
                                       2000 (a)      1999 (b)          2000 (a)      1999 (b)

Net revenues                           $212,118      $215,060          $421,745      $425,692 
								
Costs and expenses:								
  Cost of revenue                       152,533       140,906          298,458       282,336 
  Selling, general & administrative      33,875        34,383           64,298        68,194 
  Depreciation and amortization          13,498        11,567           26,854        22,792 
        Total                           199,906       186,856          389,610       373,322 
								
Income from operations                   12,212        28,204           32,135        52,370 
								
Other expense, net:								
  Interest expense, net                   3,476         2,419            6,368         4,405 
  Other (income) expense                    245           161            (136)            81 
        Other expense, net                3,721         2,580            6,232         4,486 
								
Income before taxes                       8,491        25,624           25,903        47,884 
								
Taxes on income                           3,288        10,267           10,062        19,379 
								
Net income                               $5,203       $15,357          $15,841       $28,505 
								
Basic earnings per share                  $0.09         $0.26            $0.28         $0.49 
								
Weighted average shares outstanding  57,289,753    58,751,478       57,163,477    58,657,220 
     - basic
	 							
Diluted earnings per share                $0.09         $0.26            $0.28         $0.48 
								
Weighted average shares outstanding  57,312,310    59,348,559       57,204,265    59,600,313 
     - diluted
			
			
							
* Excluding special charges as set forth in notes (a) and (b) below.
								
(a) Income statements for the three and six months ended June 30, 2000 exclude a restructuring
    charge incurred in Q2 2000 totaling $14,665 ($8,946 after tax.)
				
(b) Income statements for the three and six months ended June 30, 1999 exclude a one-time
    charge incurred in Q2 1999 in connection with the terminated PAREXEL merger totaling $5,249
    ($3,150 after tax.)



                              COVANCE INC.
								
               INCOME STATEMENTS - INCLUDING SPECIAL CHARGES
								
         FOR THE THREE AND SIX  MONTHS ENDED JUNE 30, 2000 AND 1999
								
               (Dollars in thousands, except per share data)			
								
                              (UNAUDITED)
						
 								
                                   Three Months Ended June 30      Six  Months Ended June 30
                                           2000          1999             2000          1999

Net revenues                           $212,118      $215,060         $421,745      $425,692 
								
Costs and expenses:								
  Cost of revenue                       152,533       140,906          298,458       282,336 
  Selling, general & administrative      33,875        34,383           64,298        68,194 
  Depreciation and amortization          13,498        11,567           26,854        22,792 
  Restructuring charge                   14,665             -           14,665             -
  Merger-related costs                        -         5,249                -         5,249 
        Total                           214,571       192,105          404,275       378,571 
								
Income (loss) from operations           (2,453)        22,955           17,470        47,121 
								
Other expense, net:								
  Interest expense, net                   3,476         2,419            6,368         4,405 
  Other (income) expense                    245           161            (136)            81 
        Other expense, net                3,721         2,580            6,232         4,486 
								
Income (loss) before taxes              (6,174)        20,375           11,238        42,635 
 								
Taxes on income                         (2,431)         8,168            4,343        17,280 
								
Net income (loss)                      $(3,743)       $12,207           $6,895       $25,355 
								
Basic earnings (loss) per share         $(0.07)         $0.21            $0.12         $0.43 
								
Weighted average shares outstanding  57,289,753    58,751,478       57,163,477    58,657,220
       - basic 
								
Diluted earnings (loss) per share       $(0.07)         $0.21            $0.12         $0.43 
								
Weighted average shares outstanding  57,312,310    59,348,559       57,204,265    59,600,313 
       - diluted




                           JUNE 30, 2000 AND DECEMBER 31, 1999
				
                                   (Dollars in thousands)
				
				
				
                                                    June 30,        December 31,
                                                        2000                1999
                                                 (UNAUDITED)		
				
CONDENSED BALANCE SHEET DATA				
				
  Cash and cash equivalents                          $14,217             $25,444 
  Accounts and unbilled receivables                 $230,755            $192,327 
  Total Current Assets                              $344,187            $302,124 
  Total Assets                                      $759,447            $700,314 
				
				
  Total Current Liabilities                         $216,972            $199,877 
  Long-term debt                                    $243,142            $208,724 
  Total Liabilities                                 $488,595            $437,662 
  Total Stockholders' Equity                        $270,852            $262,652
  
  
  
  
  
                                     COVANCE INC.
				
                               CONDENSED CASH FLOW DATA
				
                    FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
				
                               (Dollars in thousands)
				
                                     (UNAUDITED)
				
				
				
                                                        Six Months Ended June 30
                                                        2000                1999
CONDENSED CASH FLOW DATA				
				
  Cash flows from net earnings adjusted              $42,813             $52,324
          for non-cash activity 
  Changes in operating assets and liabilities       (45,505)            (37,607)
  Net cash (used in) provided by                     (2,692)              14,717 
          operating activities
				
  Capital expenditures                              (44,040)            (48,349)
				
 Contingent purchase price paid in connection          (909)            (16,128)
         with prior acquisitions
				
  Other, net                                              56                 564 
				
  Net proceeds from debt                              34,418              50,000 
				
  Cash provided by stock issued under employee         2,269               5,014 
          benefit plans
				
  Other                                                (329)                   -   
				
  Net change in cash and cash equivalents           (11,227)               5,818 
				
  Cash and cash equivalents, beginning of period      25,444              19,263 
				
  Cash and cash equivalents, end of period           $14,217             $25,081