Zacks Buy List Highlights: aaiPharma, Lawson Software, Apple, and eResearch Technology.

Business Editors

CHICAGO--(BUSINESS WIRE)--Jan. 2, 2004

Zacks.com releases another list of stocks that are currently members of the coveted Zacks #1 Ranked list which has produced an average annual return of +33.7% since inception in 1988 and has gained +100.3% since January 2000 when the market was in the grips of the worst bear market in 60 years. Among the #1 ranked stocks today we highlight the following companies: aaiPharma Inc. (NASDAQ:AAII) and Lawson Software, Inc. (NASDAQ:LWSN). Further they announced #2 Rankings (Buy) on two other widely held stocks: Apple (NASDAQ:AAPL) and eResearch Technology, Inc. (NASDAQ:ERES). To see the full Zacks #1 Ranked list or the rank for any other stock then visit. http://at.zacks.com/?id=88

Here is a synopsis of why these stocks have a Zacks Rank of 1 (Strong Buy). Note that a #1 Strong Buy rating is applied to 5% of all the stocks we rank:

aaiPharma Inc. (NASDAQ:AAII) is a science-based specialty pharmaceutical company with more than 24 years of drug development experience. Focusing on targeted therapeutic areas, AAII markets a growing portfolio of established branded products and applies innovative technologies to increase the commercial potential of these products. Based upon the company's current business performance and the overall outlook for 2004, aaiPharma expects net revenue for 2004 to be in the range of $340 million to $355 million and earnings to be in the range of $1.45 to $1.52 per diluted share. AaiPharma recently completed the acquisition of four C-II pain products and the launch and marketing promotion of these products are planned to begin in the first quarter of 2004. These products are expected to make a positive impact on the company's bottom line. After beating the third quarter's estimates by +72%, AAII looks poised to finish 2003 strongly. Over the past 30 days, analysts have raised this year's estimate by 2 cents and next year's by a full 13 cents or +10.2%. The strong pipeline has many analysts positive on the company and it might be worth a second look.

Lawson Software, Inc. (NASDAQ:LWSN) provides business process software solutions that help services organizations in the healthcare, retail, professional services, public sector, financial services, and other strategic markets achieve competitive advantage. Earlier this month Lawson reported revenues of $84.3 million for its fiscal 2004 second quarter ended Nov. 30, 2003. License fee revenues were slightly lower at $17.3 million in the second quarter, compared with $19.0 million in the fiscal 2003 second quarter. The company posted pro forma net income of $656,000, or 1 cent per diluted share, compared with the Street's estimate of a 3-cent loss. Improved pipeline execution combined with the restructuring actions and operating efficiency improvements have strengthened the overall health of their business in this fiscal year. The company signed 135 deals and 16 new customers in the quarter at an average selling price of $445,000, compared with 32 new customers at an average selling price of $319,000 in the second quarter of fiscal 2003. After beating the Street's estimates last quarter by +133%, analysts have raised this year's EPS estimates by a whopping +50% over the past 30 days. Things look to be headed in the right direction and LWSN could be the investment solution investors are looking for heading into 2004.

Here is a synopsis of why these stocks have a Zacks Rank of 2 (Buy). Note that a #2 Buy rating is applied to 15% of all the stocks we rank:

Apple (NASDAQ:AAPL) designs, manufactures and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. In October, Apple announced financial results for its fiscal 2003 fourth quarter ended September 27, 2003. For the quarter, the company posted a net profit of $44 million, or 12 cents per diluted share. This compares to a net loss of ($45 million), or (13 cents) per diluted share, in the year-ago quarter. Revenues for the quarter were $1.715 billion, up +19% from the year-ago quarter. Apple shipped 787 thousand Macintosh units during the quarter, up +7% from the year-ago quarter, as well as 336 thousand iPod units, up a remarkable +140% from the year-ago quarter. Apple's balance sheet remains strong and their working capital management is among the best in the industry. Looking ahead to the first quarter of fiscal 2004, the company expects a sequential increase in revenues to about $1.9 billion and a slight sequential increase in GAAP earnings relative to the September quarter. For the year, the company reported net income of $69 million on revenues of $6.21 billion compared to net income of $65 million on revenues of $5.74 billion in 2002. With new innovative products continually coming down the road, this company could be the apple of an investor's eye.

eResearch Technology, Inc. (NASDAQ:ERES) is a provider of integrated software applications and technology consulting services to the pharmaceutical, biotechnology and medical device industries. Last month, eResearch Technology announced that it is confident in its ability to meet or exceed its current guidance for the rest of 2003 and 2004. ERES expects to report fourth quarter revenues for the quarter ended December 31, 2003 of $18.7 to $19.0 million and earnings of 19 cents to 20 cents per diluted share. For the full year of 2003, it expects revenues of $64.5 to $64.8 million and expects diluted earnings per share of 57 cents to 58 cents. In 2004, ERES expects to report revenues of $99 to $101 million and earnings of $1.02 to $1.05 per diluted share. ERES reported solid third quarter results in October, including net income of 16 cents per diluted share that was almost +200% better than last year (split-adjusted) while 2 cents, or more than +14%, ahead of the consensus. Furthermore, revenues of $17.5 million in the quarter were +60% better than last year and +18% better than the previous quarter. The company has managed over the past 4 quarters to beat Wall Street's expectation by about +21%. Research said that it continues to see growing momentum in its commercial business, and have had active discussions with both large and mid-tier pharmaceutical companies that are seeking to secure committed ECG capacity through "Franchise" agreements. eResearch appears to be on the right course heading into the future and may help to add some first aid to your portfolio.

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For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988 the #1 Ranked stocks have generated an average annual return of +33.7% compared to the (a)S&P 500 return of only +12.1%. Plus this exclusive stock list has generated total gains of +100.3% since January 2000 as the market suffered its worst downturn in 60 years. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 170.3% annually (12.1% vs. 4.5% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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