Dendrite International (DRTE) 8-K Dendrite Reports Solid Third Quarter Revenue and Earnings Growth

Exhibit 99.1

	Dendrite Reports Solid Third Quarter Revenue and Earnings Growth
	•GAAP EPS of $0.18 grows 53% from prior year •Adjusted EPS of $0.20 up 29% from prior year •Adjusted Operating Margin climbs to 13.8% of sales; GAAP Operating Margin at 12.6% Bedminster, N.J., October 21, 2004  - Dendrite International, Inc. (NASDAQ: DRTE) today announced solid earnings growth, reporting third quarter 2004 GAAP diluted earnings of $0.18 per share, up 53% compared to GAAP diluted earnings of $0.12 per share for the third quarter of 2003. Excluding approximately $1.2 million this quarter of non-cash amortization expense pertaining to acquisition-related intangible assets, third quarter 2004 adjusted earnings were $0.20 per diluted share, an improvement of 29% from an adjusted $0.15 per diluted share reported in the same period of the prior year. THIRD QUARTER RESULTS Revenues for the quarter were $99.4 million, an increase of 7% from the same period of the prior year. International operations reported 44% growth.  This growth included revenues from a global software and services agreement with one of the world’s leading pharmaceutical companies that was signed in September.  “We are very pleased that, even with the exclusion of approximately $5-6 million of acquisition revenue and approximately $2 million of foreign currency favorability, our foreign operations still exhibited mid-teen revenue growth when compared to the third quarter of 2003,” stated Senior VP and CFO Kathy Donovan. Strong performance in the Company’s foreign operations was offset by a decline in domestic revenues.  Year over year comparisons were challenging in the US due to one-time roll-outs in the third quarter of 2003 that the Company has previously discussed. This effect was compounded by delays in two large projects and a general slowness in decision-making among some larger US
1405/1425 ROUTE 206 SOUTH • BEDMINSTER, NJ • 07921 P: 908.443.2000 • F: 908.443.2100

customers.  US emerging market customers, however, continued to show strength, delivering approximately 20% growth year-to-date.

“We are very pleased with the significant events that took place in the quarter,” stated Chairman and CEO John Bailye.  “We had one of our strongest license fee revenue quarters in nearly two years, even as we witnessed a move in Europe towards our software rental model. The multi-country global agreement is a very significant new business acquisition for us.”

As a percentage of revenues, both GAAP and adjusted operating margins improved approximately one percentage point sequentially.  GAAP operating margins grew from 11.6% in the second quarter to 12.6% in the third quarter.  Adjusted operating margins climbed to 13.8% in the third quarter versus 12.8% in the second quarter.  Adjusted operating margins for the quarter exclude approximately $1.2 million of non-cash amortization expense pertaining to acquisition-related intangible assets.  Additional detail on acquisition-related intangible asset amortization expense can be found on table 7 of the accompanying financial tables.

“Operating margin expansion has been one of our key financial goals for 2004.  We are very pleased that in each quarter of this year, we have been able to execute and deliver sequential operating margin growth, driving adjusted operating margins up from 11.0% in the first quarter to 13.8% this quarter,” stated Senior VP and CFO Kathy Donovan.

A reconciliation of adjusted actual results to GAAP amounts can be found on the financial tables attached to this press release.  In addition, the Company noted that quarterly 2003-2004 GAAP and adjusted income statements in its new format can be found on its website at www.dendrite.com in the Investors’ Highlights Section. A description of some of the format changes will also be discussed during the Company's earnings call.

KEY OPERATING STATISTICS

Dendrite added approximately $5 million to its cash balance, ending the third quarter of 2004 with $46.1 million in cash and cash equivalents.  Cash from operations continued to be strong, with the Company reporting $12.0 million of cash from operations in the third quarter, including approximately $1.1 million

2

	of payments related to acquisition liabilities.  Accounts receivable days sales outstanding (DSO) was 63 days, in line with the Company’s current target range of 60-63 days.
	RECENT HIGHLIGHTS
Dendrite reported success in many aspects of its business. Highlights included:
	•Adding or upgrading almost 5,000 users on Dendrite’s software systems including its flagship sales force automation application, WebForce™. •Signing more than 45 new agreements, not only in its sales automation offerings, but across the Dendrite suite of solutions, with customers in North America, Europe, Latin America and Asia/Pacific, including continued adoption of Dendrite’s analytics solutions driven by longitudinal prescription data. •Launching the pharmaceutical industry’s first dedicated sales force automation solution designed to take advantage of Microsoft’s Tablet operating system. •Launching Dendrite's First Source Integrated MarketingSM solution designed for coordinated, targeted marketing campaign planning, execution and measurement. OUTLOOK The Company provided its customary six-month rolling outlook. “We currently believe that the combined revenue for the fourth quarter of 2004 and first quarter of 2005 will be in the range of approximately $210-$220 million,” said Ms. Donovan.  Based on achieving this targeted revenue, we would anticipate delivering GAAP earnings in the range of $0.36 to $0.40 per diluted share over the next six months.  Excluding approximately $0.04 of projected non-cash amortization expense pertaining to acquisition-related intangible assets, we would expect adjusted earnings to be in the range of $0.40 to $0.44 per diluted share for that same period.” This outlook is based on our current expectations and assumptions and constitutes “forward-looking information.”  The Company can give no assurance that such expectations and assumptions will prove to be correct.  The Company does not intend to update such outlook to reflect actual results or changes in expectations or assumptions during the period other than in connection with regularly scheduled earnings releases. To participate in our earnings call webcast on October 21, 2004 at 5 p.m. EDT, or to obtain replay information, please visit the Investors' Highlights Section of our website at www.dendrite.com.

3

ABOUT DENDRITE

Dendrite develops and delivers solutions that increase the productivity of sales, marketing, and clinical processes for pharmaceutical and other life science clients. For more information, visit www.dendrite.com.

Investor Relations
Christine Croft
908-541-5865
christine.croft@dendrite.com

Note: Dendrite is a registered trademark of Dendrite International, Inc.

This document contains forward-looking statements that may be identified by such forward-looking terminology as “expect,” “believe,” “anticipate,” “will,” “intend,” “plan,” “target,” “outlook,” “guidance,” and similar statements or variations. Such forward-looking statements are based on our current expectations, estimates, assumptions and projections and involve significant risks and uncertainties, including risks which may result from our dependence on the pharmaceutical industry; fluctuations in quarterly revenues due to lengthy sales and implementation cycles for our products; our fixed expenses in relation to fluctuating revenues and variations in customers’ budget cycles; dependence on certain major customers; changes in demand for our products and services attributable to any weakness experienced in the economy or mergers, acquisitions and consolidations in the pharmaceutical industry; successful and timely development and introduction of new products and versions; rapid technological changes; risks associated with foreign currency fluctuations as they affect our non-U.S. operations;  increased competition; risks associated with our expanded international operations and our ability to adopt and respond successfully to the unique risks involved in our non-U.S. operations; acquisitions, including the success of the acquisition of Synavant and other acquisitions and the risks associated with the integration of acquisitions; our ability to effectively manage our growth; the protection of our proprietary technology; our ability to compete in the Internet-related products and services market; the continued demand for Internet-related products and services; the ability of our third party vendors to respond to technological change; our ability to maintain our relationships with third-party vendors;  less favorable than anticipated results from strategic relationships; dependence of data solutions on strategic relationships; events which may affect the U.S. and world economies; and catastrophic events which could negatively affect our information technology infrastructure. Other important factors that should be reviewed and carefully considered are included in the Company’s 10-K, 10-Qs, and other reports filed with the SEC. Actual results may differ materially. The Company assumes no obligation for updating any such forward-looking statements to reflect actual results, changes in expectations or assumptions or other changes affecting such forward-looking statements.

4

TABLE 1

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended September 30,												Nine Months Ended September 30,
	2004			%		2003			%		Change		2004				%		2003 (1)			%		Change
Revenues:
Services & Technology:
Sales support	$	71,629		72.0	%	$	71,593		77.1	%	0	%	$	214,673			72.9	%	$	187,723		84.5	%	14	%
Marketing support	23,834			24.0	%	18,122			19.5	%	32	%	67,847				23.0	%	30,280			13.6	%	124	%
			��
Shipping	3,965			4.0	%	3,147			3.4	%	26	%	11,879				4.0	%	4,097			1.8	%	190	%
Total revenues	99,428			100.0	%	92,862			100.0	%	7	%	294,399				100.0	%	222,100			100.0	%	33	%
Operating Costs & Expenses:
Operating costs (including shipping)	51,578			51.9	%	46,688			50.3	%	10	%	151,807				51.6	%	110,839			49.9	%	37	%
Selling, general and administrative	32,832			33.0	%	33,780			36.4	%	-3	%	98,923				33.6	%	74,535			33.6	%	33	%
Research and development	1,673			1.7	%	2,863			3.1	%	-42	%	7,417				2.5	%	8,775			4.0	%	-15	%
Amortization of acquired intangible assets	1,214			1.2	%	1,251			1.3	%	-3	%	3,467				1.2	%	2,168			1.0	%	60	%
Other operating (income)	(368		)	-0.4	%	—			0.0	%	NM		(707			)	-0.2	%	—			0.0	%	NM
Total costs & operating expenses	86,929			87.4	%	84,582			91.1	%	3	%	260,907				88.6	%	196,317			88.4	%	33	%
Operating income	12,499			12.6	%	8,280			8.9	%	51	%	33,492				11.4	%	25,783			11.6	%	30	%
Interest expense (income), net	14			0.0	%	(58		)	-0.1	%	-124	%	11				0.0	%	(612		)	-0.3	%	-102	%
Other (income) expense, net	(190		)	-0.2	%	55			0.1	%	445	%	(251			)	-0.1	%	21			0.0	%	1295	%
Income before income taxes	12,675			12.7	%	8,283			8.9	%	53	%	33,732				11.5	%	26,374			11.9	%	28	%
Income taxes	4,880			4.9	%	3,314			3.6	%	47	%	12,987				4.4	%	11,158			5.0	%	16	%
Net income	$	7,795		7.8	%	$	4,969		5.4	%	57	%	$		20,745		7.0	%	$	15,216		6.9	%	36	%
Net income per share:
Basic	$	0.19				$	0.12				52	%	$		0.50				$	0.38				33	%
Diluted	$	0.18				$	0.12				53	%	$		0.48				$	0.37				30	%
Shares used in computing net income per share:
Basic	41,620					40,442							41,335						40,225
Diluted	42,939					41,859							42,942						41,090

(1) Includes Synavant’s operating results for the period June 16, 2003 to September 30, 2003.

NM - Not meaningful

TABLE 2

DENDRITE INTERNATIONAL, INC.

ADJUSTED CONSOLIDATED STATEMENT OF OPERATIONS (NON-GAAP)

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended September 30, (1)												Nine Months Ended September 30, (2)
	2004			%		2003			%		Change		2004			%		2003			%		Change
Revenues:
Services & Technology:
Sales support	$	71,629		72.0	%	$	71,593		77.1	%	0	%	$	214,673		72.9	%	$	187,723		84.5	%	14	%
Marketing support	23,834			24.0	%	18,122			19.5	%	32	%	67,847			23.0	%	30,280			13.6	%	124	%
Shipping	3,965			4.0	%	3,147			3.4	%	26	%	11,879			4.0	%	4,097			1.8	%	190	%
Total revenues	99,428			100.0	%	92,862			100.0	%	7	%	294,399			100.0	%	222,100			100.0	%	33	%
Operating Costs & Expenses:
Operating costs (including shipping)	51,578			51.9	%	46,688			50.3	%	10	%	151,807			51.6	%	110,839			49.9	%	37	%
Selling, general and administrative	32,832			33.0	%	32,560			35.1	%	1	%	98,923			33.6	%	73,221			33.0	%	35	%
Research and development	1,673			1.7	%	2,863			3.1	%	-42	%	7,417			2.5	%	8,775			4.0	%	-15	%
Other operating (income)	(368		)	-0.4	%	—			0.0	%	NM		(707		)	-0.2	%	—			0.0	%	NM
Total costs & operating expenses	85,715			86.2	%	82,111			88.4	%	4	%	257,440			87.4	%	192,835			86.8	%	34	%
Operating income	13,713			13.8	%	10,751			11.6	%	28	%	36,959			12.6	%	29,265			13.2	%	26	%
Interest expense (income), net	14			0.0	%	(58		)	-0.1	%	-124	%	11			0.0	%	(612		)	-0.3	%	-102	%
Other (income) expense, net	(190		)	-0.2	%	55			0.1	%	445	%	(251		)	-0.1	%	21			0.0	%	1295	%
Income before income taxes	13,889			14.0	%	10,754			11.6	%	29	%	37,199			12.6	%	29,856			13.4	%	25	%
Income taxes	5,347			5.4	%	4,302			4.6	%	24	%	14,322			4.9	%	11,943			5.4	%	20	%
Net income	$	8,542		8.6	%	$	6,452		6.9	%	32	%	$	22,877		7.8	%	$	17,913		8.1	%	28	%
Net income per share:
Basic	$	0.21				$	0.16				29	%	$	0.55				$	0.45				24	%
Diluted	$	0.20				$	0.15				29	%	$	0.53				$	0.44				22	%
Shares used in computing net income per share:
Basic	41,620					40,442							41,335					40,225
Diluted	42,939					41,859							42942					41,090

Note:	The non-GAAP financial information set forth above is not prepared in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The Company believes that disclosing non-GAAP statements of operations provide further insight into the operating performance of the Company and are useful to investors to help them analyze operating trends and perform comparisons across periods. Management uses the adjusted numbers to manage the business and evaluate operating performance on a period-to-period comparative basis.
(1)	See Table 3 for the Statement of Operations reconciliation from GAAP to non-GAAP for the three months ended September 30, 2004 and 2003.
(2)	See Table 4 for the Statement of Operations reconciliation from GAAP to non-GAAP for the nine months ended September 30, 2004 and 2003.

NM - Not meaningful

TABLE 3

DENDRITE INTERNATIONAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED (NON-GAAP) STATEMENT OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Three Months Ended September 30, 2004									Three Months Ended September 30, 2003
	Total Adjusted			Amortization (1)			GAAP			Total Adjusted			Amortization (1)			Other Charges (2)			GAAP
Revenues:
Services & Technology:
Sales support	$	71,629		—			$	71,629		$	71,593		—			—			$	71,593
Marketing support	23,834			—			23,834			18,122			—			—			18,122
Shipping	3,965			—			3,965			3,147			—			—			3,147
Total revenues	99,428			—			99,428			92,862			—			—			92,862
Operating Costs & Expenses:
Operating costs (including shipping)	51,578			—			51,578			46,688			—			—			46,688
Selling, general and administrative	32,832						32,832			32,560			—			1,220			33,780
Research and development	1,673			—			1,673			2,863			—			—			2,863
Amortization of acquired intangible assets	—			1,214			1,214			—			1,251			—			1,251
Other operating (income)	(368		)	—			(368		)	—			—			—			—
Total costs & operating expenses	85,715			1,214			86,929			82,111			1,251			1,220			84,582
Operating income	13,713			(1,214		)	12,499			10,751			(1,251		)	(1,220		)	8,280
Interest expense (income), net	14			—			14			(58		)	—			—			(58		)
Other (income) expense, net	(190		)	—			(190		)	55			—			—			55
Income before income taxes	13,889			(1,214		)	12,675			10,754			(1,251		)	(1,220		)	8,283
Income taxes	5,347			467			4,880			4,302			500			488			3,314
Net income	$	8,542		$	(747	)	$	7,795		$	6,452		$	(751	)	$	(732	)	$	4,969
Net income per share: (3)
Basic	$	0.21		$	(0.02	)	$	0.19		$	0.16		$	(0.02	)	$	(0.02	)	$	0.12
Diluted	$	0.20		$	(0.02	)	$	0.18		$	0.15		$	(0.02	)	$	(0.02	)	$	0.12
Shares used in computing net income (loss) per share:
Basic	41,620			41,620			41,620			40,442			40,442			40,442			40,442
Diluted	42,939			42,939			42,939			41,859			41,859			41,859			41,859

(1)Represents exclusion of acquisition related amortization expense of definite lived intangible assets.  This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.

(2)Includes Dendrite severance and facility closure costs incurred as a result of the acquisition of Synavant along with other integration costs.

(3)EPS does not appear to foot across due to the mathematical rounding of the individual calculations.

TABLE 4

DENDRITE INTERNATIONAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED (NON-GAAP) STATEMENT OF OPERATIONS

NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

	Nine Months Ended September 30, 2004									Nine Months Ended September 30, 2003
	Total Adjusted			Amortization (1)			GAAP			Total Adjusted			Amortization (1)			Other Charges (2)			GAAP
Revenues:
Services & Technology:
Sales support	$	214,673		—			$	214,673		$	187,723		—			—			$	187,723
Marketing support	67,847			—			67,847			30,280			—			—			30,280
Shipping	11,879			—			11,879			4,097			—			—			4,097
Total revenues	294,399			—			294,399			222,100			—			—			222,100
Operating Costs & Expenses:
Operating costs (including shipping)	151,807			—			151,807			110,839			—			—			110,839
Selling, general and administrative	98,923			—			98,923			73,221			—			1,314			74,535
Research and development	7,417			—			7,417			8,775			—			—			8,775
Amortization of acquired intangible assets	—			3,467			3,467			—			2,168			—			2,168
Other operating (income)	(707		)	—			(707		)	—			—			—			—
Total costs & operating expenses	257,440			3,467			260,907			192,835			2,168			1,314			196,317
Operating income	36,959			(3,467		)	33,492			29,265			(2,168		)	(1,314		)	25,783
Interest expense (income), net	11			—			11			(612		)	—			—			(612		)
Other (income) expense, net	(251		)	—			(251		)	21			—			—			21
Income before income taxes	37,199			(3,467		)	33,732			29,856			(2,168		)	(1,314		)	26,374
Income taxes	14,322			1,335			12,987			11,943			867			(82		)	11,158
Net income	$	22,877		$	(2,132	)	$	20,745		$	17,913		$	(1,301	)	$	(1,396	)	$	15,216
Net income per share: (3)
Basic	$	0.55		$	(0.05	)	$	0.50		$	0.45		$	(0.03	)	$	(0.03	)	$	0.38
Diluted	$	0.53		$	(0.05	)	$	0.48		$	0.44		$	(0.03	)	$	(0.03	)	$	0.37
Shares used in computing net income (loss) per share:
Basic	41,335			41,335			41,335			40,225			40,225			40,225			40,225
Diluted	42,942			42,942			42,942			41,090			41,090			41,090			41,090

(1)Represents exclusion of acquisition related amortization expense of definite lived intangible assets.  This amortization was previously included within Total Costs of Sales and Selling, General & Administrative costs in our prior presentations.

(2)Includes Dendrite severance and facility closure costs incurred as a result of the acquisition of Synavant along with other integration costs. Income taxes were adjusted $608 due to a foreign tax valuation adjustment in connection with the integration of Synavant.

(3)EPS does not appear to foot across due to the mathematical rounding of the individual calculations.

TABLE 5

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE DATA)

(UNAUDITED)

	September 30, 2004			December 31, 2003 (1)
Assets
Current Assets:
Cash and cash equivalents	$	46,134		$	30,405
Accounts receivable, net	69,589			71,383
Prepaid expenses and other current assets	7,843			7,949
Deferred taxes	4,976			8,844
Income tax receivable	3,045			—
Facility held for sale	—			6,900
Total current assets	131,587			125,481
Property and equipment, net of accumulated amortization of $53,096 and $43,946	42,613			28,140
Other assets	5,851			2,538
Long-term receivable	—			3,157
Goodwill	85,952			70,403
Intangible assets, net	20,067			18,574
Purchased capitalized software, net	1,208			1,666
Capitalized software development costs, net	8,015			6,126
Deferred taxes	6,462			6,372
	$	301,755		$	262,457
Liabilities and Stockholders’ Equity
Current Liabilities:
Current installments of long-term debt	$	422		$	—
Accounts payable	9,666			4,990
Income taxes payable	9,502			6,194
Capital lease obligations	1,345			1,033
Accrued compensation and benefits	15,198			16,104
Accrued professional and consulting fees	6,330			7,842
Other accrued expenses	22,808			21,038
Purchase accounting restructuring accrual	3,600			3,203
Deferred revenues	11,512			16,379
Total current liabilities	80,383			76,783
Capital lease obligations	2,651			187
Purchase accounting restructuring accrual	4,452			8,627
Deferred rent	1,295			369
Long-term debt, excluding current installments	1,041			—
Other non-current liabilities	3,546			356
Stockholders’ Equity:
Preferred stock, no par value, 15,000,000 shares authorized, none issued	—			—
Common stock, no par value, 150,000,000 shares authorized, 43,881,862 and 43,013,428 shares issued: 41,659,162 and 40,790,728 shares outstanding at September 30, 2004 and December 31, 2003, respectively	111,556			100,448
Retained earnings	118,681			97,936
Deferred compensation	(91		)	(56		)
Accumulated other comprehensive loss	(883		)	(1,317		)
Less treasury stock, at cost	(20,876		)	(20,876		)
Total stockholders’ equity	208,387			176,135
	$	301,755		$	262,457

(1) Amounts reflect reclassifications to conform to current year presentation.

TABLE 6

DENDRITE INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

(UNAUDITED)

	For the Nine Months Ended September 30,
	2004			2003
Operating activities:
Net income	$	20,745		$	15,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,958			14,924
Restructuring adjustment	(407		)	—
Amortization of deferred compensation, net of forfeitures	149			(40		)
Other adjustments for non-cash items	901			608
Changes in assets and liabilities, net of effects from acquisitions:
Decrease in accounts receivable	7,424			15,443
Decrease in prepaid expenses and other current assets	926			1,399
Decrease in other assets	786			136
Decrease in accounts payable and accrued expenses	(3,464		)	(21,034		)
Decrease in purchase accounting restructuring accrual	(5,406		)	(6,969		)
Increase in income taxes payable	3,907			2,163
Decrease in accrued restructuring charge	—			(260		)
Decrease in deferred revenue	(5,505		)	(8,968		)
Increase in other non-current liabilities	860			288
Net cash provided by operating activities	36,874			12,906
Investing activities:
Sales of short-term investments	—			1,294
Proceeds from sale leaseback transaction	2,162			—
Acquisitions, net of cash acquired	(7,312		)	(53,161		)
Purchases of property and equipment	(15,083		)	(5,038		)
Additions to capitalized software development costs	(4,087		)	(2,362		)
Other, net	—			(50		)
Net cash used in investing activities	(24,320		)	(59,317		)
Financing activities:
Borrowings from line of credit	—			8,000
Repayments of line of credit	—			(8,000		)
Repayments of long-term debt	(1,773		)	—
Repayments of acquired loan	(624		)	—
Payments on capital lease obligations	(829		)	(469		)
Issuance of common stock	6,249			4,458
Net cash provided by financing activities	3,023			3,989
Effect of foreign exchange rate changes on cash	152			287
Net increase (decrease) in cash and cash equivalents	15,729			(42,135		)
Cash and cash equivalents, beginning of period	30,405			68,308
Cash and cash equivalents, end of period	$	46,134		$	26,173

TABLE 7

DENDRITE INTERNATIONAL, INC.

PURCHASED INTANGIBLE ASSET AMORTIZATION

(DOLLARS IN THOUSANDS)

(UNAUDITED)

	2004
	Actuals						Projections*				Full Year Projections*
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		2004		2005 (b)		2006 (b)		2007 (b)		2008 (b)		Thereafter (b)
Synavant Intangible Detail
Covenants not to compete	$	263	$	263	$	263	$	263	$	1,052	$	481	$	—	$	—	$	—	$	—
Backlog (a)	129		129		129		129		516		87		—		—		—		—
Pharbase Database	65		65		65		65		260		260		260		260		260		1,159
Customer relationships	112		112		112		112		448		446		446		446		446		3,328
Synavant Amortization Total	569		569		569		569		2,276		1,274		706		706		706		4,487
PharmaVision Amortization (c)	76		86		72		76		310		344		201		—		—		—
SAI Amortization	322		322		322		322		1,288		610		445		—		—		—
UTO Brain Amortization (c)	60		58		60		60		238		176		176		176		175		927
MDM Amortization	—		191		191		191		573		749		704		279		93		232
Total Amortization Expense	$	1,027	$	1,226	$	1,214	$	1,218	$	4,685	$	3,153	$	2,232	$	1,161	$	974	$	5,646

(a) Backlog is amortized as the backlog revenue is recognized.

(b) Amortization is calculated on a straight-line basis.

(c) Amortization expense will fluctuate based upon movements in foreign currency.

  * See “Forward-looking” statement included as part of this release.  It does not reflect or assume any additional acquisitions.