SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--

2008 Second Quarter and Six Month Financial and Business Highlights:

• Net service revenue for the second quarter of 2008 grew to $18.7 million versus $7.6 million, an increase of $11.1 million or 146% compared to the second quarter of 2007
• Net operating income for the second quarter of 2008 increased to $1.04 million which includes non-cash depreciation and amortization charges of $1 million principally due to the business combination with Hesperion Ltd.
• Net service revenue of $34.4 million for the six months ended June 30, 2008 increased by $20 million or 139% compared to net service revenue of $14.4 million for the six months ended June 30, 2007
• Net operating income of $487 thousand for the six months ended June 30, 2008 includes $2 million of non-cash depreciation and amortization charges principally related to the Hesperion acquisition compared to a significant net operating loss for the comparable six month period of 2007
• Net service revenue for our operations in Europe grew significantly during the second quarter and six months ended June 30, 2008
• Net loss from continuing operations includes significant non-cash amortization charges of debt discount of $900 thousand and $2.1 million for the three months and six months ended June 30, 2008
• Our backlog at June 30, 2008 increased to $68.8 million from $43.9 million at June 30, 2007
• Averion continued to expand its global footprint by opening an office in Ukraine
• Integration of the Hesperion business in the United States and Europe proceeding as planned
• Averion has named Lawrence R. Hoffman, Chief Financial Officer to strengthen its senior management team. Mr. Hoffman brings more than 30 years of corporate finance, accounting, legal and operational expertise including direct experience in the clinical research industry

Averion International Corp. (OTC BB: AVRO), a full service international clinical research organization specializing in oncology, cardiovascular diseases and medical devices, today announced financial results for the three months and six months ended June 30, 2008. These financial results include six months in 2008 of combined operations following the October 31, 2007 closing of Averion’s business combination with Hesperion Ltd., a full service clinical research organization based in Basel, Switzerland.

Markus H. Weissbach, MD, PhD, Chief Executive Officer of Averion International commented, “During the six months ended June 30, 2008, we began to see the positive trend of increasing our net service revenue while decreasing our direct and selling, general and administrative expenses as a percentage of net service revenue. This improvement reflects the efficiencies of our expanded international operations through the integration of Hesperion and Averion. We are very encouraged by the growth in our net service revenue and the achievement of net operating income during the second quarter and first six months of this year. We expect these positive results to continue during the remainder of this year.”

Dr. Weissbach continued, “As illustrated by the recent opening of our Ukraine office, we are increasing our global footprint in order to better meet the needs of our clients. We are continuing to evaluate other opportunities to increase the scope of our existing geographic and therapeutic capabilities in emerging regions of the world. We are continuing to pursue new business opportunities that utilize the scope of our significantly enhanced capabilities in North America and Europe. Our pipeline of new business opportunities is very robust at this time.”

Dr. Philip Lavin, Executive Chairman, added, “Averion has made great progress over the past two years to expand our operations and core expertise while maintaining our core values. The Board is pleased with the execution of the Company’s growth strategies and its many accomplishments.”

2008 Second Quarter Financial Results

Net service revenue for the three months ended June 30, 2008 increased $11.1 million to $18.7 million as compared to $7.6 million for the three months ended June 30, 2007, an increase of 146%. The increase in net service revenue was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007.

Direct expenses for the three months ended June 30, 2008 increased by $5.2 million to $9.8 million from $4.6 million during the same period prior year. The increase in direct expenses was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007 which contributed $5.4 million in direct expenses during the three months ended June 30, 2008. As a percentage of net service revenue, direct expenses decreased to 52% during the three months ended June 30, 2008 from 60% during the comparable period in 2007. The improvement in direct expenses as a percentage of net service revenue was principally the result of an increase in the number of clinical study activities being conducted and an increase in the rate of staff utilization.

Selling, general and administrative expenses (SG&A) for the three months ended June 30, 2008 were $6.8 million or 36% of net service revenue, as compared to $2.6 million or 35% of net service revenue for the three month period ended June 30, 2007. The increase in SG&A of $4.2 million was the result of a larger administrative structure due to the scope of our global operations and a one-time increase in professional service fees during the quarter associated with the Hesperion acquisition.

Net loss from continuing operations for the three months ended June 30, 2008 increased to $600 thousand or $0.00 per share, as compared to a nominal net loss from continuing operations for the three months ended June 30, 2007.

At June 30, 2008 we had cash and cash equivalents of $3.9 million as compared to $7.4 million at December 31, 2007.

2008 Six Months Financial Results

Net service revenue for the six months ended June 30, 2008 increased $20.0 million to $34.4 million as compared to $14.4 million for the six months ending June 30, 2007, an increase of 139%. The increase in net service revenue was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007.

Direct expenses increased by $10.4 million to $19.5 million for the six months ended June 30, 2008 from $9.1 million for the six months ended June 30, 2007. The increase in direct expenses was primarily related to the inclusion of results from the Hesperion acquisition completed on October 31, 2007 which contributed $10.2 million in direct expenses during the six months ended June 30, 2008. As a percentage of net service revenues, direct expenses decreased to 56% during the six months ended June 30, 2008 versus 65% during the comparable period in 2007.

Selling, general and administrative expenses (SG&A) for the six months ended June 30, 2008 were $12.4 million or 36% of net service revenue, as compared to $5.5 million or 39% of net service revenue for the six month period ended June 30, 2007. The increase in SG&A of $7.0 million was the result of the increased administrative cost structure associated with the Hesperion acquisition and expenses associated with increased professional fees related to the acquisition. The improvement in SG&A expenses as a percentage of net service revenue during the six months ended June 30, 2008 as compared to the similar period in 2007 was principally the result of increased net service revenue which offset the effect of a 128% increase in SG&A expenses.

For the six months ended June 30, 2008, the Company experienced a foreign currency exchange loss of approximately $800 thousand. This loss was primarily due to the net effect of a weaker U.S. dollar against the Swiss Franc and the Euro.

Net loss from continuing operations for the six months ended June 30, 2008 increased to $3.3 million or $0.01 per share, as compared to a net loss from continuing operations of $1.7 million, or $0.01 per share, for the six months ended June 30, 2007.

Backlog

Our backlog at June 30, 2008 increased to $68.8 million from $43.9 million at June 30, 2007 due to the Hesperion acquisition.

About Averion International Corp.

Averion International Corp. is a leading international CRO with proven expertise in supporting global clinical trials for pharmaceutical, biotechnology and medical device companies. The Company has a therapeutic focus in oncology, cardiovascular diseases and medical devices. Averion’s core competencies are in FDA and product registration support, site selection, project management, medical and site monitoring, data management, biometrics, pharmacovigilance, medical writing, and full clinical trial management services throughout the clinical trials lifecycle. The Company has supported FDA approvals for products in many therapeutic areas including oncology, cardiovascular diseases and medical devices.

Averion is headquartered in Southborough, Mass., with European operations based in Basel, Switzerland. Averion has additional U.S. offices in California, Maryland and New York; and additional offices outside the U.S. in France, the Netherlands, the United Kingdom, Poland, Russia, Israel, Germany, Austria, and Ukraine. We have additional operation centers in the Czech Republic, Slovakia and Hungary, and research partnerships in India, Asia and South America. For more information, visit www.averionintl.com.

Forward-Looking Statement

Statements contained in this press release that are not historical information are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected or implied. Those risks and uncertainties include, but are not limited to: our ability to attract, retain or integrate key personnel, including scientific and technical personnel; the termination, modification or delay of contracts which would, among other things, adversely impact our recognition of revenue included in backlog and our cash-on-hand; risks associated with our pursuit of strategic acquisitions or investment in new markets; our ability to acquire and integrate new businesses; our dependence on certain industries and clients; our ability to adequately protect sensitive patient information and confidential information of clients; our ability to keep pace with rapid technological changes; fluctuation in our operating results; our ability to service our outstanding debt and comply with requirements, including financial covenants, associated with that debt; our ability to recruit suitable volunteers for the clinical trials of our clients; our exposure to exchange rate fluctuations and international economic, political and other risks; our ability to develop and market new services in the U.S., Europe and internationally; the highly competitive nature of our market; our exposure to changes in outsourcing trends in the pharmaceutical and biotechnology industries; the impact of government regulation on our business; whether we can achieve and maintain effective internal controls; and other risks. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the Company's annual report on Form 10-KSB for the period ending December 31, 2007 and in the Company's other periodic reports filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date of this press release, and the Company assumes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.

AVERION INTERNATIONAL CORP.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
		June 30,			December 31,
		2008			2007
		(unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	3,930		$	7,384
Accounts receivable (net of allowance for doubtful accounts of $539 and $376 for 2008 and 2007, respectively)		11,736			14,293
Unbilled accounts receivable		7,464			2,571
Prepaid and other current assets		1,736			2,413
Total Current Assets		24,866			26,661
Property and equipment, net		6,701			6,509
Goodwill		51,451			48,717
Finite life intangibles (net of accumulated amortization of $2,756 and $1,614 for 2008 and 2007, respectively)		12,327			13,469
Deposits		733			658
Other non-current assets		2,199			1,878
Total Assets		$	98,277		$	97,892
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable		$	2,892		$	2,737
Accrued payroll and employee benefits		4,288			3,405
Deferred revenue		19,891			18,532
Current portion of notes payable		527			813
Current portion of accrued lease obligations		—			610
Deferred rent		487			510
Current portion of capital lease obligations		20			25
Deferred transaction obligation		520			3,683
Other accrued liabilities		2,583			4,313
Total Current Liabilities		31,208			34,628
Capital lease obligations, less current portion		—			8
Notes payable, less current portion		27,945			24,266
Accrued lease obligations, less current portion		3,671			2,966
Deferred income taxes		2,941			1,047
Other long-term liabilities		50			29
Total Liabilities		$	65,815		$	62,944
Stockholders’ Equity:
Common stock, $.001 par value, 750,000,000 shares authorized, 635,024,122 shares issued and outstanding		$	635		$	626
Convertible warrants		164			164
Common stock to be issued		837			837
Additional paid-in capital		48,076			47,308
Other comprehensive loss		(233		)	(316		)
Retained deficit		(17,017		)	(13,671		)
Total Stockholders’ equity		32,462			34,948
Total Liabilities and Stockholders’ Equity		$	98,277		$	97,892

The accompanying notes are an integral part of these consolidated financial statements.

AVERION INTERNATIONAL CORP.
Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
		For the three months ended June 30,						For the six months ended June 30,
			2008			2007			2008			2007
Net service revenue		$	18,694		$	7,642		$	34,439		$	14,377
Reimbursement revenue			2,168			537			4,168			1,025
Total revenue			20,862			8,179			38,607			15,402
Operating expenses:
Direct expenses			9,813			4,611			19,458			9,087
Reimbursable out-of-pocket expenses			2,168			537			4,168			1,025
Sales, general and administrative expenses			6,804			2,647			12,447			5,466
Depreciation and amortization expense			1,030			352			2,047			706
Restructuring charges			—			23			—			723
Total operating expenses			19,815			8,170			38,120			17,007
Net operating income (loss)			1,047			9			487			(1,605	)
Other income (expense):
Interest income			57			79			90			171
Interest expense			(618	)		(147	)		(1,075	)		(294	)
Foreign currency exchange gain (loss)			25			—			(753	)		—
Amortization of debt discount			(903	)		—			(2,059	)		—
Other			34			29			54			29
Total other income (expense)			(1,405	)		(39	)		(3,743	)		(94	)
Loss from continuing operations before income taxes			(358	)		(30	)		(3,256	)		(1,699	)
Income tax expense			219			—			90			—
Net loss from continuing operations		$	(577	)	$	(30	)	$	(3,346	)	$	(1,699	)
Loss from discontinued operations			—			(577	)		—			(852	)
Net loss		$	(577	)	$	(607	)	$	(3,346	)	$	(2,551	)
Net loss per share
Net loss from continuing operations		$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Loss from discontinued operations			—		$	(0.00	)		—		$	(0.00	)
Net loss		$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Weighted average number of common shares outstanding			625,802,419			498,466,957			625,717,437			498,423,137

The accompanying notes are an integral part of these consolidated financial statements.

Investor Contact:
Averion International Corp.
Lawrence R. Hoffman, 508-597-6000
(larry.hoffman@averionintl.com)
or
Media Contact:
Averion International Corp.
Gillian Dellacioppa, 508-597-6000
(gillian.dellacioppa@averionintl.com)