Covalent Group Signs $1.0 Million Contract to Study Vaccine Against Plague Company's Third Counter-Bioterrorism Contract WAYNE, Pa., May 5 /PRNewswire-FirstCall/ -- Covalent Group, Inc. today announced the signing of its third counter-bioterrorism vaccines contract within the past five months. This $1.0 million contract with DynPort Vaccine Company LLC (DVC) is for a Phase 1 study for the development of a recombinant vaccine for protection against Yersinia pestis infection, the bacterium that causes plague. Covalent will provide study design consultation, project management, clinical site management and monitoring, data management, biostatistics and medical safety surveillance. The total duration of the study is approximately 18 months. Covalent will begin recognizing revenue on the study in the second half of 2004 with initial subject enrollment beginning in early 2005. The vaccine being studied is the plague recombinant vaccine conceived and developed at the U.S. Army Medical Research Institute of Infectious Diseases. The U.S. Army has a U.S. Patent Application pending for this vaccine. Plague is an infection caused by Y. pestis, a gram-negative bacterium. It results in an acute and often fatal disease. In nature, people usually get plague as a result of a bite by a rodent flea that is carrying plague bacterium or by handling an infected animal. During the course of history, plague pandemics have killed millions of people. Today, human weapons are much more likely than rodent fleas to cause a plague pandemic. Plague is considered one of the most dangerous agents of bioterrorism. Over the past 60 years, there have been numerous examples of malevolent groups trying to weaponize Y. pestis. The threat would come through pneumonic plague, the most deadly and contagious form of the disease that results from inhalation of the bacterium. Currently, there is no licensed plague vaccine available in the United States. Kenneth M. Borow, M.D., Covalent Group's President and Chief Executive Officer, commented, "An effective vaccine against plague would have enormous benefit for military personnel as well as civilian populations in the case of a bioterrorist attack with Y. pestis. The Working Group on Civilian Biodefense wrote in their Consensus Statement on Plague as a Biological Weapon, 'The availability of Y. pestis around the globe, the capacity for its mass production and aerosol dissemination, and the potential for secondary spread of infectious cases during an epidemic make the use of plague as a biological weapon a great concern. (Journal of the American Medical Association 2000;283:2281-2290).'" Dr. Borow concluded, "Covalent and DVC are currently working together on the assessment of vaccines for protection against botulinum neurotoxin, Venezuelan equine encephalitis (VEE), and plague. We look forward to the opportunity to work closely with DVC on other vaccine development programs in the future. We believe that the development of successful vaccines against bioterrorist agents is a very valuable addition to the armamentarium against global terror. As such, we are proud to be on the cutting-edge of this important effort." About DynPort Vaccine Company LLC DynPort Vaccine Company LLC (DVC) is a biopharmaceutical company dedicated to the development and licensure of safe and efficacious biodefense vaccines for the Department of Defense and civilian populations. As the prime systems contractor for the Joint Vaccine Acquisition Program, DVC engages the expertise of subcontractors, research centers and biologics development industry leaders. Biodefense biologics in development include vaccinia immune globulin, smallpox vaccine, next-generation anthrax vaccine, plague vaccine, Venezuelan equine encephalitis vaccine, tularemia vaccine, botulinum bivalent and multivalent vaccines and botulinum polyclonal antitoxin. Founded in 1997, DVC employs nearly 120 professionals at its headquarters in Frederick, Md. For more information about DVC visit http://www.dynport.com/. About the U. S. Army Medical Research Institute of Infectious Diseases USAMRIID, located at Fort Detrick, Maryland, is the lead medical research laboratory for the U.S. Biological Defense Research Program, and plays a key role in national defense and in infectious disease research. The Institute's mission is to conduct basic and applied research on biological threats resulting in medical solutions (such as vaccines, drugs and diagnostics) to protect the warfighter. USAMRIID is a subordinate laboratory of the U.S. Army Medical Research and Materiel Command. About Covalent Group Covalent Group is a clinical research organization that is a leader in the design and management of complex clinical trials 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 clinical trials. Covalent offers therapeutic expertise, experienced team management and advanced technologies. The Company has clinical trial experience across a wide variety of therapeutic areas such as vaccines, biologics, gene therapy, immunology, cardiovascular, endocrinology/metabolism, diabetes, neurology, oncology, infectious diseases, gastroenterology, dermatology, hepatology, womens' health and respiratory medicine. Covalent believes that its leadership in the design of complex clinical trials, its application of innovative technologies, therapeutic expertise and commitment to quality offer its clients a means to more quickly and cost effectively develop products through the clinical trial process. In addition, the Company's use of its proprietary TeleTrial(R) technology to support its drug development services creates consistency in the way it conducts clinical trials globally. With its wholly-owned international subsidiary, Covalent Group, Ltd., as well as its Strategic Partners operating in South America, Eastern Europe, Russia and Ukraine, and Australia, New Zealand, and the Asia-Pacific region, Covalent is able to meet the global drug development needs of its clients. This press release contains forward-looking statements identified by words such as "estimate," "project," "expect," "intend," "believe," "anticipate" and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials; (iii) the termination, delay or cancellation of clinical trials; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; and (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices. Additional information concerning factors that could cause actual results to materially differ from those in forward-looking statements is contained in Covalent Group's SEC filings, including its Registration Statement on Form S-3, Annual Report on Form 10-K and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Covalent Group's investor relations department. Investor relations contact: John Capodanno, (646) 536-7026 Media contact: Cynthia Isaac, PhD., (646) 536-7028 Contact us on-line: http://www.covalentgroup.com/ DATASOURCE: Covalent Group, Inc. CONTACT: Investor relations - John Capodanno, +1-646-536-7026, or Media - Cynthia Isaac, PhD., +1-646-536-7028, both for Covalent Group, Inc. Web site: http://www.covalentgroup.com/ http://www.dynport.com/

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