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COVANCE REPORTS $0.03/SHARE FOR 3Q 2000
Strategic Repositioning and Announced Divestiture Process Well Underway

Princeton, N.J., October 24, 2000 — Covance Inc. (NYSE: CVD) today reported earnings for its third quarter ended September 30, 2000 of $0.03/diluted share.

Commenting on the third quarter, Chris Kuebler, Chairman and CEO said, "While the market for certain drug development services remained soft in the third quarter, we are encouraged by the progress of our strategic repositioning. To this end we are increasing investments in our future, including bioanalytical services and Nexigent, the brand name for the new company we formed to pursue our internet-enabled clinical trial services. In addition, we are actively pursuing the divestiture of our capital-intensive pharmaceutical packaging and biomanufacturing businesses to enable us to reduce our leverage and provide additional funds for strategic investment. We are very pleased with the considerable buyer interest for these businesses that we have seen to date."

Successful implementation of Covance's growth strategy and divestiture plans will lead to significant changes in its financial structure, including reduction of the Company's debt levels and capital requirements. Covance indicated that it would focus on leveraging the strengths of its market leading Early Development and Central Laboratory services and invest in new services to significantly reduce the time and cost of drug development by focusing on providing drug development data to sponsors in close to real time.

3Q and YTD 2000 Financial Results (excluding special charges)

Net revenues for the third quarter of 2000 increased 8.1% to $214.9 million, compared to $198.9 million in the prior year. Excluding the impact of foreign exchange, third quarter revenues increased 11.8%. Year-to-date net revenues were $636.7 million compared to $624.6 million for the prior year.

Operating income for the third quarter of 2000 was $7.9 million resulting in an operating margin of 3.7% compared to $23.1 million or 11.6% for the same period in 1999. Year-to-date operating income was $40.0 million resulting in an operating margin of 6.3% compared to $75.5 million or 12.1% for the same period in 1999. Excluding the results of Phase III clinical and biomanufacturing, operating margins were 10.1% for the third quarter 2000. Operating margins were also impacted by the Company's investment in Nexigent totaling $3.7 million for the third quarter 2000 and $7.1 million year-to-date.

Net income for the third quarter of 2000 was $1.7 million or $0.03/diluted share compared to $12.3 million or $0.21/diluted share for the third quarter of 1999. Year-to-date net income was $17.5 million or $0.31/diluted share compared to $40.8 million or $0.69/diluted share for the same period in 1999.

Segment Results
Early Development Segment

($ in millions)	3Q'00	3Q'99	Change	YTD'00	YTD'99	Change
Revenues	$71.4	$68.0	5.1%	$214.8	$202.9	5.9%
Costs/Expenses	62.4	55.9	11.6%	184.7	171.5	7.7%
OM%	12.7%	17.8%		14.0 %	15.5 %

The Company's Early Development segment includes preclinical and Phase I clinical trial services. Excluding the impact of foreign exchange rate changes, Early Development revenues grew 8.8% in the third quarter of 2000 and 8.1% year-to-date compared to the prior year. The Company's industry-leading toxicology business, which accounts for approximately half of all Early Development segment revenues, continued to deliver solid results and experience strong demand. However, temporary softness in other service areas such as metabolism and immunochemistry reduced revenue growth rates for the third quarter of 2000 and year-to-date.

Operating margins for the third quarter and year-to-date 2000 were lower than the prior year reflecting softer revenues in certain service areas, increased costs and expenses and investment spending for bioanalytical services and internet-enabled data management systems. The Company believes these investments will significantly enhance its market leadership in Early Development services.

Late-Stage Development Segment

($ in millions)	3Q'00	3Q'99	Change	YTD'00	YTD'99	Change
Revenues	$143.5	$130.9	9.6%	$421.9	$421.7	(4.3%)
Costs/Expenses	144.7	119.9	20.7%	412.0	377.6	9.1%
OM%	(0.8)%	8.4%		2.3%	10.5%

The Late-Stage Development segment includes clinical development, clinical support services, biomanufacturing, and commercialization services. Excluding the impact of foreign exchange rate changes, revenues for the third quarter of 2000 grew 13.3% and 3.0% year-to-date compared to the prior year. Revenue growth in clinical support services during the third quarter of 2000 was partially offset by continuing weakness in clinical development revenues. Year-to-date 2000 revenues were flat compared to the prior year as significantly lower clinical development revenues offset the growth in other service areas.

Operating margin for the third quarter and year-to-date 2000 declined significantly over the prior year due to losses in clinical development and biomanufacturing services, higher Nexigent spending and an increased mix of lower-margin studies in central laboratory services.

Additional Information
On October 1, 2000, Covance formed a separate company called Nexigent to more effectively develop, brand and market its internet-enabled capabilities for enhancing clinical trials. Nexigent will offer comprehensive internet-enabled services and tools to address major bottlenecks in conducting clinical trials, such as the capture and management of voluminous patient data from many disparate sources, and enhance communications among the broad and diverse range of trial participants — patients, investigators, sponsors and service providers. A key competitive advantage for Nexigent is access to Covance Central Laboratory's large, global network of clinical trial investigators.

The Company recorded backlog of approximately $932 million on September 30, 2000.

Net Days Sales Outstanding for the Company is 61 days on September 30, 2000 versus 65 days on June 30, 2000 and 69 days on September 30, 1999.

The Company's quarterly financial briefing will be webcast on October 25 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. Much more informtaion about Covance can be found throughbout the site, including our products and services, other recent press releases, and SEC filings.

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, the Company's ability to divest businesses at a satisfactory price, Nexigent's ability to develop effective and comprehensive internet-enabled services and tools, demand for certain of the Company's Early Development services 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 NINE  MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
         								
               (Dollars in thousands, except per share data)
               								
                              (UNAUDITED)
                              
 								
                               Three Months Ended September 30 Nine Months Ended September 30
                                        2000 (a)      1999 (b)         2000 (a)      1999 (b)

Net revenues                            $214,946      $198,920         $636,691      $624,612
								
Costs and expenses:								
  Cost of revenue                        160,149       134,643          458,607       416,979
  Selling, general & administrative   33,192        28,912           97,490        97,106
  Depreciation and amortization           13,744        12,243           40,598        35,035
        Total                            207,085       175,798          596,695       549,120
								
Income from operations                     7,861        23,122           39,996        75,492
								
Other expense, net:								
  Interest expense, net                    4,947         2,682           11,315         7,087
  Other (income) expense                     174          (22)               38            59
        Other expense, net                 5,121         2,660           11,353         7,146
								
Income before taxes                        2,740        20,462           28,643        68,346
								
Taxes on income                            1,064         8,124           11,126        27,503
								
Net income                                $1,676       $12,338           $17,517      $40,843
								
Basic earnings per share                   $0.03         $0.21             $0.31        $0.69
								
Weighted average shares outstanding   57,582,175    58,946,003        57,303,043    58,753,481
     - basic
	 							
Diluted earnings per share                 $0.03         $0.21             $0.31         $0.69
								
Weighted average shares outstanding   57,649,229    59,033,962        57,353,347    59,332,078
     - diluted
			
			
							
* Excluding special charges as set forth in notes (a), (b) and (c) below.
								
(a) Income statement for the three months ended September 30, 1999 excludes a restructuring
    charge incurred in Q3 1999 totaling $7,719	($4,631 after tax.)
 		
(b) Income statement for the nine months ended September 30, 2000 excludes a restructuring
    charge incurred in Q2 2000 totaling $14,665 ($8,946 after tax.)

(c) Income statement for the nine months ended September 30, 1999 excludes a one-time charge
    incurred in Q2 1999 in connection with a terminated merger totalling $5,249 ($3,150 after
    tax) and a restructuring charge incurred in Q3 1999 totalling $7,719 ($4,631 after tax.)



                                CONDENSED BALANCE SHEET DATA

                           SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
                           				
                                   (Dollars in thousands)
                                   			
				
                                                    September 30,       December 31,
                                                        2000                1999
                                                    (UNAUDITED)		
				
CONDENSED BALANCE SHEET DATA				
				
  Cash and cash equivalents                          $18,835             $25,444  
  Accounts and unbilled receivables                 $227,063            $192,327  
  Total Current Assets                              $343,504            $302,124 
  Total Assets                                      $773,468            $700,314 
				
				
  Total Current Liabilities                         $218,621            $199,877 
  Long-term debt                                    $252,804            $208,724 
  Total Liabilities                                 $500,556            $437,662 
  Total Stockholders' Equity                        $272,912            $262,652
  
  
  
  
  
                                     COVANCE INC.
				
                               CONDENSED CASH FLOW DATA
				
                    FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999	
				
                               (Dollars in thousands)
				
                                     (UNAUDITED)
				
				
				
                                                  Nine Months Ended September 30
                                                        2000                1999
CONDENSED CASH FLOW DATA				
				
  Cash flows from net earnings adjusted              $55,412             $83,497
          for non-cash activity 
  Changes in operating assets and liabilities       (33,495)            (49,850)
  Net cash (used in) provided by                      21,917              33,647 
          operating activities
				
  Capital expenditures                              (75,004)            (90,091)
				
 Contingent purchase price paid in connection          (909)            (16,830)
         with prior acquisitions
				
  Other, net                                             210                 635  
				
  Net proceeds from debt                              44,080              60,000  
				
  Cash provided by stock issued under employee         3,097               5,774  
          benefit plans
								
  Net change in cash and cash equivalents            (6,609)             (6,865) 
				
  Cash and cash equivalents, beginning of period      25,444              19,263  
				
  Cash and cash equivalents, end of period           $18,835             $12,398