India's Jubilant Organosys Ltd. Buys Target Research For $33.5 Million

NOIDA, India, Oct. 5 /PRNewswire/ -- Jubilant Organosys Ltd. (Jubilant), an integrated pharmaceuticals company, has acquired Target Research Associates, Inc. (Target), a US-based, full service Clinical Research Organization (CRO). This is the first ever acquisition of a U.S. CRO by an Indian company, and it represents a major initiative supporting Jubilant's plan to expand its CRO services globally. This acquisition makes Jubilant the largest Indian CRO having operations in India and USA. Jubilant provides products and services to the global life sciences industry and has reported revenues of US$ 270 million in its fiscal year ended 31st March 2005.

Jubilant has acquired a 100% equity stake in Target for a payment of US$ 33.5 million in cash. The purchase price assumes zero closing working capital on the date of acquisition and is subject to adjustment in case of any change in working capital. Target is a debt free company with a healthy EBITDA margin, and it has been consistently profitable with a solid operating base in the CRO industry. The acquisition is earnings accretive to Jubilant. It provides an established and robust business platform for the rapid growth and development of Jubilant's clinical research business.

Jubilant has an Indian subsidiary, Jubilant Clinsys Ltd., which conducts bioavailability studies through its world-class, 54-bed facility and bioanalytical laboratory. The company also has the skills to provide clinical Phase I-IV services.

Target is now able to offer its U.S. based clients all of the benefits of providing clinical research services out of India, including high quality, cost competitive data management services and access to a large patient population of diversified ethnicity. This will enable faster patient enrollment, thus reducing the time taken to complete clinical studies. This will also allow clients to accelerate the process of obtaining marketing authorization for their new drugs, resulting in faster realization of revenues from their investments.

Target, founded in 1992 and headquartered in Berkeley Heights, New Jersey, conducts clinical trials in Phases I to IV. Target is the preferred services provider for clinical research for some of the leading global pharmaceutical players. It offers services in study protocol development, investigator recruitment, project management, monitoring, data management, biostatistical analyses, medical writing, regulatory affairs, quality assurance, and drug safety for the pharmaceutical and biotech industry. Target has particularly strong experience in the oncology, pulmonary, allergy, dermatology, cardiovascular, gastrointestinal, transplant, and anti-infective therapeutic areas.

Commenting on the proposed acquisition, Shyam S Bhartia, Chairman & Managing Director and Hari S Bhartia, Co-Chairman & Managing Director of Jubilant said:

"Target fits very well with Jubilant's strategy to expand its strong relationships with many of the leading pharmaceutical companies in the world. We are one of the largest players in India providing discovery services to pharmaceutical companies in their drug development efforts. Clinical research is an important part of drug development, and it is natural for us to have a significant presence in this segment as well. The acquisition of Target further enables Jubilant to increase its presence in the U.S. market, which has the highest concentration of pharmaceutical and biotech companies.

This acquisition offers a great opportunity to Jubilant to strengthen its position as a preferred outsourcing partner to pharma companies to reduce their drug development costs and time to market. Further, integration of Jubilant Clinsys, our Indian CRO, with Target will enhance business potential in the area of data management and clinical research services."

According to Lloyd Baroody, Chief Executive Officer and Co-Founder of Target:

"India, with its large cadre of highly educated professionals in the healthcare and medical fields and competitive cost environment, has become a very attractive country for conducting clinical research. Its large, untapped patient population will allow us to accelerate our clients' clinical studies and deliver quality and cost-effective services to our clients at a time when they are seeking much greater value from their service providers.

We are very excited about our future prospects with Jubilant as our parent company. They have a world-class management team, and their goals of continuously strengthening their operations as a global CRO are in perfect alignment with those of Target. Jubilant's large local presence in India will give us a definite competitive edge. Target will maintain its global face in the U.S. while operating as part of a strong integrated pharmaceutical industry player out of India. I believe that this acquisition of a U.S. CRO by an Indian company is a milestone event in the CRO industry."

About Jubilant Organosys Ltd.

Jubilant Organosys Limited is an integrated pharmaceutical company providing products and services to the global life sciences industry. Jubilant has a presence across the value chain from drug discovery services to finished dosage forms and including Custom Research and Manufacturing Services (CRAMS), Active Pharmaceutical Ingredients (APIs), and Contract Research Services.

For further information please contact: In India: Abhinav Rahul Jubilant Organosys Limited Tel: (0120) 2594313, 2516601-11 ext. 1313 Fax: (0120) 2516627 E-mail: abhinav_rahul@jubl.com Abhinandan Singh Citigate Dewe Rogerson Tel: (022) 2284 2728 Fax: (022) 2284 4561 E-mail: abhinandan@cdr-india.com Margaret Hawkins Target Research Associates, Inc. 908-464-7500, ext. 1238

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. Jubilant Organosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.

Target Research Associates, Inc.

CONTACT: In India: Abhinav Rahul of Jubilant Organosys Limited, Tel:(0120) 2594313, 2516601-11 ext. 1313, Fax: (0120) 2516627, E-mail:abhinav_rahul@jubl.com; or Abhinandan Singh of Citigate Dewe Rogerson, Tel:(022) 2284 2728, Fax: (022) 2284 4561, E-mail: abhinandan@cdr-india.com;Margaret Hawkins, Target Research Associates, Inc., +1-908-464-7500, ext.1238

Web site: http://www.jubilantorganosys.com/