SFCC Sfbc (MM)

SFBC International, Inc. (NASDAQ:SFCC) ("the Company" or "SFBC"), a provider of drug development services to branded pharmaceutical, biotechnology, generic drug and medical device companies, today announced that it has reached an agreement with East Bay Corporation ("East Bay"), to settle all pending litigation regarding a land lease at SFBC's Miami facility. The terms of the settlement include the cancellation of the existing land lease. Additionally, if East Bay's parcel is sold or re-leased to a third party anytime within the next four years, SFBC will receive six percent of East Bay's net proceeds. This settlement does not impact the adjacent parcel of land SFBC acquired in the first quarter of 2005. Including this adjacent parcel of land, SFBC owns approximately 56% of the land area at 11190 Biscayne Boulevard, where the Company's Miami facility is located. East Bay continues to own the remaining 44%. As previously disclosed, SFBC expects to sell its land on Biscayne Boulevard because it no longer serves any business purpose for future SFBC operations. While SFBC does not anticipate an immediate sale of its property, SFBC and East Bay have agreed to cooperate with each other and believe that a combined sale of their respective properties may maximize their value. Based upon estimated current market prices and current zoning, the value of SFBC's land owned at this location combined with the Company's former CPA building in the Miami area, which is currently for sale, is estimated to be approximately $9 million to $12 million. In the event the Company is able to obtain more favorable zoning for the Miami land, the Company believes that the value of the land will increase. As required under the existing covenants of the Company's credit facility, any proceeds received from the sale of these properties in excess of $500,000 will be used to pay down the amount outstanding under the Company's credit facility. All other terms of the settlement will remain confidential. About SFBC International, Inc. SFBC International is an international drug development services company offering a comprehensive range of clinical development, clinical and bioanalytical laboratory, and consulting services to the branded pharmaceutical, biotechnology, generic drug and medical device industries. SFBC has more than 30 offices, facilities and laboratories with more than 2,000 employees strategically located throughout the world. For more information, visit the Company's Web site at http://www.sfbci.com or http://www.pharmanet.com. Forward-Looking Statements Certain statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include, but are not limited to, our ability to leverage the strong reputation of PharmaNet, whether adverse publicity relating to SFBC's Miami operations causes clients to select competitors, not only for early stage branded clinical trials but also for other aspects of SFBC's business; SFBC's ability to resolve open issues relating to its Miami property including whether it can successfully appeal and/or enjoin the Miami-Dade County Unsafe Structures Board ruling and any related fines or expenses if we are unsuccessful; the associated costs and expenses with discontinuing the Company's operations in Miami and Ft. Myers; whether SFBC will achieve its estimated value for its Miami property; whether SFBC will be able to obtain more favorable zoning for its Miami property; continued adverse publicity related to actions of the United States Senate Finance Committee; developments with respect to the SEC's inquiry and securities class action lawsuits and derivative lawsuits; SFBC's assessment of its current FDA inspections; SFBC's ability to successfully achieve and manage the technical requirements of specialized clinical trial services, while complying with applicable rules and regulations; regulatory changes; changes affecting the clinical research industry; a reduction of outsourcing by pharmaceutical and biotechnology companies; SFBC's ability to compete internationally in attracting clients in order to develop additional business; cancellation of contracts; SFBC's ability to retain and recruit new employees; SFBC's clients' ability to provide the drugs and medical devices used in its clinical trials; SFBC's future stock price; SFBC's financial guidance; and the national and international economic climate as it affects drug development operations. Further information can be found in SFBC's risk factors contained in its Form 10-K filed with the SEC in 2006 and other filings with the Securities and Exchange Commission.