exv99w1

Exhibit 99.1

eResearchTechnology Reports Third Quarter 2007 Results

Net Income Increasing by 50% with EPS of $0.07 vs. $0.05 in Q3 2006
Q3 Revenues Increase to $24.0 Million and New Bookings Increase to $35.5 Million

PHILADELPHIA, November 1, 2007/PRNewswire-FirstCall/ — eResearchTechnology, Inc. (eRT), (Nasdaq: ERES - News), a leading provider of centralized ECG, eClinical technology, ePRO and other services to the pharmaceutical, biotechnology, medical device and related industries, announced today results for the third quarter of 2007 and nine-month period ended September 30, 2007.

Highlights of the Third Quarter were:

	•		ECG volume was up 40% in the third quarter of 2007 compared to the same quarter a year ago;

	•		$35.5 million in new bookings of contracts and work orders, an increase of 40.3% from the same quarter a year ago;

	•		Seven new Thorough ECG study agreements were signed, valued at approximately $7.2 million, translating into an average Thorough ECG study size of more than $1 million.

	•		Backlog increased to $115.0 million as of September 30, 2007. An increase of 23.4% from the same quarter a year ago. The annualized cancellation rate for the quarter was 13.4%.

	•		The book-to-bill ratio for the third quarter was 1.5, an increase from the previous quarter’s book-to-bill ratio of 1.4 and from the book to bill ratio of 1.1 for the third quarter of 2006.

	•		The newly-formed Consulting Practice recorded significant new sales and bookings; and ePro, which was initiated in June of this year, recorded its first sales bookings.

The Company reported revenues of $24.0 million for the third quarter of 2007, a 7.9% increase from $22.2 million in the third quarter of 2006, which included $1.2 million for the ending of a franchise agreement during the same period in 2006. The Company reported net income of $3.7 million for the third quarter of 2007, a 50.3% increase from $2.5 million in the third quarter of 2006. This resulted in net income per diluted share of $0.07 in the third quarter of 2007, compared to $0.05 in the third quarter of 2006.

The Company’s gross margin percentage in the third quarter of 2007 was 48.0% compared to 49.2% in the third quarter of 2006. As previously noted, the third-quarter of 2006 included revenue of $1.2 million for the ending of a franchise agreement; without which the third quarter of 2006 gross margin would have been 46.3%. Pre-tax income margin in the third quarter of 2007 was 24.8% compared to 17.4% in the third quarter of 2006. The Company’s tax rate for the third quarter of 2007 was 37.7% compared to 36.3% in the third quarter of 2006.

For the nine months ended September 30, 2007, the Company reported revenues of $69.8 million compared to $66.4 million for the nine months ended September 30, 2006. The Company reported net income of $10.1 million, or $0.20 per diluted share, for the nine months ended September 30, 2007 compared to net income of $6.1 million, or $0.12 per diluted share, for the nine months ended September 30, 2006.

The Company’s gross margin percentage for the nine months ended September 30, 2007 was 49.9% compared to 49.1% for the nine months ended September 30, 2006. Pre-tax income margin for the nine months ended September 30, 2007 was 23.5% compared to 14.9% for the nine months ended September 30, 2006. The Company’s tax rate was 38.5% for the nine months ended September 30, 2007 compared to 38.6% for the nine months ended September 30, 2006.

eRT ended the quarter with $71.0 million in cash, cash equivalents and investments, an increase of $7.6 million from $63.4 million at the end of the second quarter of 2007.

“We are pleased with our third quarter results.” said Dr. Michael McKelvey, President and CEO of eRT. “Our Company demonstrated strong growth during the quarter, led by our core cardiac safety business. Both our volume and new bookings growth of 40% in the quarter were impressive. The third quarter is a seasonally slow period due to vacations and the tendency of sponsors to not initiate Thorough ECG trials in the summer months. We were able to leverage our SG&A structure to produce net income growth of 50.3% compared to the same quarter a year ago; year to date our net income is up 66.4% from the previous year. Our earnings per diluted share have already exceeded that attained in all of 2006.”

Dr. McKelvey continued, “The 23.4% growth in our backlog to $115.0 million from a year ago, combined with a continued robust sales environment and stabilizing prices shows a solid market demand for our services. We were particularly pleased with the strong showing of our bookings, which showed the fourth quarter in a row of growth quarter over quarter, and the growth of our newly-formed consulting business. In addition, we are working more closely with some of our key CRO partners in a number of different areas. Our operations team is executing very well and we continue to make good progress on the expense line; while we continue to invest in eClinical, Consulting and ePRO. The net effect of this is our achievement of pre-tax margins of 24.8% for the third quarter of 2007.”

2007 Guidance

The Company issued guidance for the fourth quarter of 2007. eRT anticipates revenues of between $27 million and $28.5 million and net income per diluted share of $0.09 to $0.11 for the fourth quarter ending December 31, 2007. For the full year ending December 31, 2007, management anticipates revenues will be around the midpoint of the previously issued guidance of $95 million and $103 million. Management raised its anticipated net income per diluted share to $0.29 to $0.31 from the previously issued guidance of the high end of the range of $0.25 to $0.30.

Conference Call

Dr. McKelvey and Richard Baron, the Company’s Chief Financial Officer, will hold a conference call to discuss these results. The conference call will take place at 5:00 p.m. EDT on November 1, 2007. For the conference call interested participants should dial 866-700-7173 when calling within the United States or 617-213-8838 when calling internationally along with the pass code 33801742. There will be a playback available through 11:59 p.m. (Eastern) on November 8, 2007. To listen to the playback, please call 888-286-8010 when calling within the United States or 617-801-6888 when calling internationally. Please use pass code 94063678 for the replay.

This call is being webcast by Thomson Financial and can be accessed at eRT’s web site at http://www.eRT.com. The webcast may also be accessed at www.streetevents.com. The webcast can be accessed until November 1,2008 on either site.

About eResearchTechnology, Inc.

Based in Philadelphia, PA, eResearchTechnology, Inc. (http://www.eRT.com) is a provider of technology and services to the pharmaceutical, biotechnology and medical device industries on a global basis. The Company is a market leader in providing centralized core-diagnostic electrocardiographic (ECG) technology and services to evaluate cardiac safety in clinical development. The Company is also a leader in providing technology and services to streamline the clinical trials process by enabling its customers to automate the collection, analysis, and distribution of clinical data in all phases of clinical development.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, including, but not limited to, 2007 financial guidance, involve a number of risks and uncertainties such as the Company’s ability to obtain new contracts and accurately estimate net revenues due to uncertain regulatory guidance, variability in size, scope and duration of projects, and internal issues at the sponsoring client, competitive factors, technological development, and market demand. As a result, actual results may differ materially from any financial outlooks stated herein. Further information on potential factors that could affect the Company’s financial results can be found in the Company’s Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.


Contact:
Richard Baron		Robert East
eResearchTechnology, Inc.		Westwicke Partners, LLC
215-282-5566		410-321-9652

eResearchTechnology, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2006		2007		2006		2007
Net revenues:
Licenses	$	602	$	651	$	2,336	$	2,013
Services		14,493		16,453		42,040		47,982
Site support		7,131		6,867		22,067		19,794


Total net revenues		22,226		23,971		66,443		69,789


Costs of revenues:
Cost of licenses		75		70		228		199
Cost of services		6,674		7,567		19,130		21,590
Cost of site support		4,548		4,831		14,492		13,143


Total costs of revenues		11,297		12,468		33,850		34,932


Gross margin		10,929		11,503		32,593		34,857


Operating expenses:
Selling and marketing		2,471		2,487		8,687		8,079
General and administrative		3,945		2,527		11,758		8,915
Research and development		980		1,128		3,328		3,155


Total operating expenses		7,396		6,142		23,773		20,149


Operating income		3,533		5,361		8,820		14,708
Other income, net		339		584		1,067		1,703


Income before income taxes		3,872		5,945		9,887		16,411
Income tax provision		1,407		2,239		3,821		6,318


Net income	$	2,465	$	3,706	$	6,066	$	10,093


Basic net income per share	$	0.05	$	0.07	$	0.12	$	0.20


Diluted net income per share	$	0.05	$	0.07	$	0.12	$	0.20


Shares used to calculate basic net income per share		49,540		50,594		49,302		50,430


Shares used to calculate diluted net income per share		51,376		51,829		51,525		51,681

eResearchTechnology, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts)


	December 31, 2006			September 30, 2007
				(unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	15,497		$	27,198
Short-term investments		41,416			43,591
Accounts receivable, net		17,866			21,790
Prepaid income taxes		2,819			754
Prepaid expenses and other		2,761			3,613
Deferred income taxes		912			913

Total current assets		81,271			97,859

Property and equipment, net		31,129			33,127
Goodwill		1,212			1,212
Long-term investments		928			244
Other assets		524			311


Total assets	$	115,064		$	132,753


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	4,360		$	2,505
Accrued expenses		3,445			4,968
Income taxes payable		781			966
Current portion of capital lease obligations		40			1,621
Deferred revenues		11,325			12,415

Total current liabilities		19,951			22,475

Capital lease obligations, excluding current portion		—			66
Deferred tax liabilities		1,491			2,203


Total liabilities		21,442			24,744


Stockholders’ equity:
Preferred stock-$10.00 par value, 500,000 shares authorized, none issued and outstanding		—			—
Common stock-$.01 par value, 175,000,000 shares authorized, 58,356,546 and 58,854,254 shares issued, respectively		584			589
Additional paid-in capital		83,493			87,331
Accumulated other comprehensive income		1,510			1,961
Retained earnings		70,225			80,318
Treasury stock, 8,247,119 shares at cost		(62,190	)		(62,190	)


Total stockholders’ equity		93,622			108,009


Total liabilities and stockholders’ equity	$	115,064		$	132,753

eResearchTechnology, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)


	Nine Months Ended September 30,
	2006			2007
Operating activities:
Net income	$	6,066		$	10,093
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,537			11,066
Cost of sales of equipment		3,483			1,004
Non-cash share-based compensation		2,319			1,576
Changes in operating assets and liabilities:
Accounts receivable		44			(3,777	)
Prepaid expenses and other		(452	)		(595	)
Accounts payable		1,966			(1,888	)
Accrued expenses		(1,156	)		1,500
Income taxes		(3,062	)		2,749
Deferred revenues		(8,744	)		995

Net cash provided by operating activities		9,001			22,723


Investing activities:
Purchases of property and equipment		(12,269	)		(10,066	)
Purchases of investments		(24,516	)		(50,108	)
Proceeds from sales of investments		21,040			48,617

Net cash used in investing activities		(15,745	)		(11,557	)


Financing activities:
Repayment of capital lease obligations		(114	)		(1,962	)
Proceeds from exercise of stock options		3,548			1,600
Stock option income tax benefit		3,702			628
Repurchase of common stock for treasury		(5,803	)		—

Net cash provided by financing activities		1,333			266


Effect of exchange rate changes on cash		244			269


Net (decrease) increase in cash and cash equivalents		(5,167	)		11,701
Cash and cash equivalents, beginning of period		18,432			15,497


Cash and cash equivalents, end of period	$	13,265		$	27,198

eResearch Technology, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Information
For the Three and Nine Months Ended September 30, 2006 and 2007
(in thousands)
(unaudited)


	Three Months				Nine Months
	Ended September 30				Ended September 30
	2006		2007		2006		2007
Gross margin:
GAAP gross margin	$	10,929	$	11,503	$	32,593	$	34,857
		—		—		—		—

Non-GAAP income gross margin	$	10,929	$	11,503	$	32,593	$	34,857


Reconciliation of GAAP to Non-GAAP operating income:
GAAP operating income	$	3,533	$	5,361	$	8,820	$	14,708

Cost of efficiency improvements		—		—		—		676
CEO and CFO transition		714		—		1,914		—
Settlement of contract dispute		—		—		646		—

Subtotal of reconciling items		714		—		2,560		676

Non-GAAP operating income	$	4,247	$	5,361	$	11,380	$	15,384


Reconciliation of GAAP to Non-GAAP net income and net income per diluted share:
GAAP net income	$	2,465	$	3,706	$	6,066	$	10,093

Cost of efficiency improvements		—		—		—		412
CEO and CEO transition		440		—		1,158		—
Settlement of contract dispute		—		—		391		—

Subtotal of reconciling items		440		—		1,549		412

Non-GAAP net income	$	2,905	$	3,706	$	7,615	$	10,505


GAAP net income per diluted share	$	0.05	$	0.07	$	0.12	$	0.20


Non-GAAP net income per diluted share	$	0.06	$	0.07	$	0.15	$	0.20