1293243--3/3/2006--PRA

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{regulation, government, change}

{stock, price, operating}

{personnel, key, retain}

{operation, international, foreign}

{acquisition, growth, future}

{stock, price, share}

{system, service, information}

{competitive, industry, competition}

{product, liability, claim}

{product, market, service}

{cost, contract, operation}

{cost, regulation, environmental}

{tax, income, asset}

{product, candidate, development}

{customer, product, revenue}

Our quarterly operating results may vary, which could negatively affect the market price of our common stock. We depend on a limited number of clients and a loss of or significant decrease in business from them could affect our business. Because most of our clinical development service revenue is from long-term fixed-fee contracts, we would lose money in performing these contracts if our costs of performing them were to exceed the fixed fees payable to us. Our business depends on our senior management team, and the loss of any member of the team may harm our business. If we are unable to recruit and retain qualified personnel, we may not be able to expand our business or remain competitive. Our business could be harmed if we are unable to manage our growth effectively. Our exposure to exchange rate fluctuations could negatively impact our results of operations. We are subject to certain risks associated with our foreign operations. We provide services to emerging companies which may be unable to pay us. We have a significant amount of goodwill on our balance sheet, and a downturn in our business or industry could require us to take a charge to earnings, which may negatively affect the market price of our common stock. Our business depends significantly on the continued effectiveness of our information technology infrastructure, and failures of such technology could harm our operations. Our business could be harmed if we cannot successfully integrate future acquisitions. We compete in a highly competitive market and if we do not compete successfully our business could be harmed. Risks Related to Our Industry Our business could be harmed if the companies in the pharmaceutical and biotechnology industries to whom we offer our services reduce their research and development activities or reduce the extent to which they outsource clinical development. Our business and the businesses of our customers are subject to extensive regulation, and our results of operations could be harmed if regulatory standards change significantly or if we fail to maintain compliance with evolving, complex regulations. Circumstances beyond our control could cause the CRO industry to suffer reputational or other harm that could result in an industry-wide reduction in demand for CRO services, which could harm our business. If we incur liability for hazardous material contamination, our business would be harmed. Our services are subject to evolving industry standards and rapid technological changes. Our clinical research services create a risk of liability and, if we are required to pay damages or to bear the costs of defending any claim not covered by contractual indemnity or insurance, this could cause material harm to our business. Health care industry reform could reduce or eliminate our business opportunities. Risks Related to Our Common Stock The price of our common stock may fluctuate significantly, and you could lose all or part of your investment. The sale of a substantial number of our shares of common stock in the public market could reduce the market price of our shares, which in turn could negatively impact your investment in us.

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1293243--3/3/2006--PRA_International