AAIPharma Establishes AAIOncology Business Unit and Expands Global Clinical Development Operations through Acquisition of Cvitkovic & Associes Consultants S.A.

WILMINGTON, N.C. -- AAIPharma Inc. today announced a definitive agreement to acquire Cvitkovic & Associes Consultants S.A. (CAC), an international contract research organization specializing in oncology drug development and medical consulting. The acquisition of CAC provides AAIPharma with additional therapeutic expertise, while further strengthening its global clinical development business.

With over ten years of international experience in all clinical phases of oncology drug development, CAC has extensive experience in performing lead assessment of new analogues of established drugs as well as novel target-oriented compounds. The company has developed expertise in a wide range of cancer therapies, including cytotoxics, cytostatics, monoclonal antibodies, cell-based therapies, vaccines, antiangiogenic agents, apoptosis inducers and hormonal therapies.

CAC brings to AAIPharma specialized, full-service capabilities in the early-stages of oncology drug development as well as in conducting large international Phase IIb/III studies. CAC is headquartered in Paris, France, and has offices in the United States, Europe (Western, Central & Eastern), and Latin America.

"The acquisition of CAC constitutes a major step in building a world class drug development organization that is focused on bringing content-rich and innovative services to its customers worldwide," said Ludo Reynders, Ph.D., AAIPharma president and CEO. "In addition to expanding the Company's therapeutic expertise, the capabilities of CAC complement the clinical services that AAIPharma currently provides its clients. We are committed to ensuring a smooth transition for CAC's customers, vendors and employees, and look forward to fully utilizing the new competencies and capabilities that CAC brings to accelerate and enhance the organic growth of our company."

Professor Esteban Cvitkovic, CAC chairman and founder, stated, "Having established our own model of clinical CRO services based on therapeutic specificity combined with medical and scientific know-how, CAC has now reached the limits of its organic growth. With AAIPharma, we can incorporate our oncology expertise and differentiation into a larger professional organization that shares our vision. The relationship between a CRO and industry must be a bridge between medical needs and new therapeutic possibilities. Passing on the successful critical mass of our efficient worldwide team to a larger structure will allow us to realize our model's full potential."

The acquisition, which is expected to close in the fourth quarter of 2006, is subject to customary closing conditions. Terms of the all cash transaction have not been disclosed.

About AAIPharma

AAIPharma Inc. is a global provider of product development and support services to the pharmaceutical, biotechnology and medical device industries. From a single test through a range of integrated service offerings, we create value to an industry in search of productivity and innovation. For more information on the Company, please visit AAIPharma's website at www.aaipharma.com.