Encorium Group, Inc. Announces $1.7 Million Contract With Japanese Biotechnology Company For Phase 2 Clinical Trial For Major Depressive Disorder

Encorium Group, Inc. (Nasdaq:ENCO), a leader in the design, development, and management of complex clinical trials and patient registries for many of the world's leading pharmaceutical and biotechnology companies, today announced the signing of a $1.7 million contract with a Japanese biotechnology company for a Phase 2 clinical trial of a new drug for Major Depressive Disorder (MDD). Encorium will provide multiple services including program consulting, project management, site management and monitoring, data management, biostatistical support, and medical writing. Revenue recognition will begin during the current third quarter and continue on a proportional performance basis over the life of the contract as services are performed. Kai E. Lindevall, M.D., Ph.D. Encorium Group’s President, International Operations, Europe and Asia commented, "This is a landmark event in our long-term commitment to provide the Japanese biopharmaceutical industry with quality solutions in a cost efficient and timely manner. Our regulatory and medical consultancy capabilities, combined with our ability to successfully execute clinical trials in Europe differentiated us from the competition. We are seeing increasing interest within the Japanese biopharmaceutical industry for the mix of capabilities and geography that Encorium offers. We anticipate that this clinical trial will be an important starting point for other potential long-term collaborations in this very influential segment of the biopharmaceutical industry.” Kenneth M. Borow, M.D., Encorium Group’s Chief Executive Officer, commented, "This contract is an excellent example of our increasing commitment to globalizing our product offerings and client base. Including this announcement, over the past three weeks Encorium has announced $8.5 million of new contract signings across multiple geographies and therapeutic areas. Importantly, revenue recognition for all of these contracts will begin in the current third quarter.” About Major Depressive Disorder Major Depressive Disorder (MDD), or clinical depression, affects 7-12% of men and 20-25% of women in their lifetime. Approximately 10-30% of subjects with MDD have a chronic course with episodes that last two or more years. Clinical efficacy trials indicate that one-third of patients respond to medications with remission in six to eight weeks. Mood disorders rank among the top 10 causes of worldwide disability. Suicide is the worst complication of MDD with 10–15% of patients formerly hospitalized with depression committing suicide. MDD accounts for nearly one-third of all deaths by suicide. Recognizing the magnitude of this healthcare problem, the U.S. Surgeon General issued a Call to Action on Suicide in 1999. About Encorium Group, Inc. Encorium Group, Inc. is a global clinical research organization that is a leader in the design and management of complex clinical trials and Patient Registries for the pharmaceutical, biotechnology and medical device industries. The Company’s mission is to provide its clients with high quality, full-service support for their biopharmaceutical and medical device development programs. Encorium offers therapeutic expertise, experienced team management and advanced technologies. The Company has drug and biologics development as well as clinical trial experience across a wide variety of therapeutic areas such as infectious diseases, cardiovascular, vaccines, oncology, endocrinology/metabolism, diabetes, gene therapy, immunology, neurology, gastroenterology, dermatology, hepatology, women’s health and respiratory medicine. Encorium believes that its leadership in the design of complex clinical trials, its therapeutic expertise and commitment to excellence, and its application of innovative technologies, offer its clients a means to more quickly and cost effectively move products through the clinical development process. Encorium is headquartered in Wayne, Pennsylvania with its European base of operations in Espoo, Finland. The Company has a geographic footprint that includes over one billion people in North America, Western/Central/Eastern Europe, Scandinavia, and the Baltics. This press release contains forward-looking statements identified by words such as "estimate,” "project,” "expect,” "intend,” "believe,” "anticipate” and similar expressions. Actual results might differ materially from those projected in, expressed in or implied by the forward-looking statements. Potential risks and uncertainties that could affect the Company's future operating results and financial condition include, without limitation: (i) our success in attracting new business and retaining existing clients and projects; (ii) the size, duration, and timing of clinical trials we are currently managing may change unexpectedly; (iii) the termination, delay or cancellation of clinical trials we are currently managing could cause revenues to decline unexpectedly; (iv) the timing difference between our receipt of contract milestone or scheduled payments and our incurring costs to manage these trials; (v) outsourcing trends in the pharmaceutical, biotechnology and medical device industries; (vi) the ability to maintain profit margins in a competitive marketplace; (vii) our ability to attract and retain qualified personnel; (viii) the sensitivity of our business to general economic conditions; (ix) other economic, competitive, governmental and technological factors affecting our operations, markets, products, services and prices; (x) announced awards received from existing and potential customers are not definitive until fully negotiated contracts are executed by the parties;(xi) our backlog may not be indicative of future revenues and may not generate the revenues expected;(xii) our ability to successfully integrate the businesses of Encorium and Remedium Oy which we acquired on November 1, 2006; and (xiii) ability of the combined businesses to operate successfully, generate revenue growth and operating profits. You should not place any undue reliance on these forward looking statements which speak only as of the date of this press release. Additional information concerning factors that might affect our business or stock price which could cause actual results to materially differ from those in forward-looking statements is contained in Encorium Group's SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2006 and other periodic reports under the Securities Exchange Act of 1934, as amended, copies of which are available upon request from Encorium Group's investor relations department or The Equity Group Inc.