# Exhibit 99  Risk Factors

Forward-Looking Statements

From time to
time, the Company may make or publish forward-looking statements relating to
such matters as anticipated financial performance, business prospects,
technological developments, new products, and similar matters. Such statements
are necessarily estimates reflecting the Companys best judgment based on
current information. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. Such statements are
usually identified by the use of words or phases such as believes,
anticipates, expects, estimates,
intends, planned, outlook, and
goal. Because forward-looking statements involve risks and
uncertainties, the Companys actual results could differ materially. In
order to comply with the terms of the safe harbor, the Company notes that a
variety of factors could cause the Companys actual results and experience
to differ materially from the anticipated results or other expectations
expressed in the Companys forward-looking statements.

While it is impossible to identify
all such factors, the risks and uncertainties that may affect the operations,
performance and results of the Companys business include the following:

| | 1. | The Companys revenues are highly dependent on research and development
expenditures and compliance testing expenditures by the pharmaceutical and
biotechnology industries. Decreases in such expenditures, including those
resulting from a general economic decline in these industries, would decrease
the demand for the services and products provided by the Company and could have
a material adverse effect on the Company.
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| | 2. | The Companys product, Culex® Automated Blood Sampler device, is a significant
product. Non-acceptance or major difficulties with the device could have a material
adverse effect on the Companys gross profit.
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| | 3. | The Company has benefited from the growing tendency of companies to engage independent
organizations to conduct development and testing projects. Any reduction in the
outsourcing of research, development or testing activities, or any reduction in public
funding of science and technology would decrease the demand for the services and products
provided by the Company and could have a material adverse effect on the Companys
business, operations and financial condition.
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| | 4. | During 2003, Pfizer and Pharmacia, the Companys two largest clients in 2002 and
2001, merged. Treated as a single entity during 2004, 2003, 2002 and 2001, Pfizer would have
accounted for approximately 12.5%, 16.0%, 28.3% and 30.6%, respectively, of the Companys
total revenue and 11.0%, 17.2% and 22.0% of total trade accounts receivable at September 30, 2004, 2003
and 2002, respectively. Although this merger negatively affected the Companys
preclinical research business as Pharmacia was absorbed and restructured, other
relationships were not affected. The Company deals with at least 20 different research
groups within the new Pfizer, each focused on a particular development function, each
having little intercourse with any other. This is typical among the Companys large,
multinational clients. The Company treats most of these as separate, virtually unrelated,
entities. There can be no assurance that the Companys business will not continue to
be dependent on continued relationships with Pfizer or other clients, or that annual
results will not be dependent on the performance of a few large projects. In addition,
there can be no assurance that significant clients in any one period will continue to be
significant clients in other periods.
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| | 5. | The Companys business is labor intensive and involves delivery of highly
specialized professional services. The Companys future growth and success depends in
large part upon its ability to attract, train, manage and retain highly skilled
professional, scientific and technical operating staff. There is significant competition
from the Companys competitors as well as from the in-house research departments of
pharmaceutical and biotechnology companies and other enterprises for employees with the
skills required to perform the services offered by the Company. Although the Company has
confidentiality agreements with its scientific and technical operating personnel, the
Company does not have in place covenants not to compete that would directly preclude its
employees from being employed by a competitor. There can be no assurance that the Company
will be able to attract, train, manage and retain a sufficient number of highly skilled
employees in the future or that it will continue to be successful in training, retaining
and managing its current employees. The loss of a significant number of employees or the
Companys inability to hire sufficient numbers of qualified employees could have a
material adverse effect on the Companys ability to obtain and perform contracts to
provide its services.
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| | 6. | The Company relies to a significant extent on a number of key executives, including
Peter T. Kissinger, Ph.D., its Chief Executive Officer and Chairman of the Board. The
Company maintains key man life insurance on Dr. Kissinger in the amount of $1.0 million.
The loss of the services of any of the Companys key executives could have a material
adverse effect on the Company.
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| | 7. | The Companys revenues are dependent, in part, upon continued compliance with
governmental requirements applicable to facilities and techniques used in the manufacture
of products for clinical use and the provision of services. The Companys facilities
are subject to scheduled periodic regulatory inspections to ensure compliance with FDA
requirements. Failure on the part of the Company to comply with applicable requirements
could result in the termination of ongoing research, the discontinuance of selected
operations of the Company, the disqualification of data for submission to regulatory
authorities and fines and penalties being assessed against the Company.
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| | 8. | Risk of accidental contamination or injury from hazardous materials cannot be
completely eliminated. In the event of such an accident, the Company could be held liable
for any damages that result. Such damages could have a material adverse effect on the
Companys business and results of operations.
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| | 9. | With respect to its products, the Company competes with several large equipment
manufacturers and, with respect to its services, the Company primarily competes against
in-house research departments of pharmaceutical and biotechnology companies and other
full-service CROs. Many of the Companys competitors possess substantially greater
capital, technical and other resources than the Company. The Companys failure to
compete effectively in any one or more of these areas could have a material adverse effect
on the Companys business, operations and financial condition.
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| | 10. | Generally, the Companys research contracts are terminable by the client upon 30
days written notice at any time. In fiscal year 2004, 67% of revenues were from contract
research. Most service contracts have cancellation charges. Those charges vary, depending
on the type of service provided and the investment in materials and the facilities and
people committed. Cancellation fees after contract signing but before study commencement
can vary from $5,000 to $30,000, depending on the total contracted costs of the study and
how much notice is given before the study is scheduled to begin. In virtually all recorded
studies cancelled while in progress, the Company has recovered all prepaid costs, normally
25% to 50% of total project costs. Additional charges are often also applied. Contracts
may be terminated for a variety of reasons, including the clients decision to forego
a particular study, failure of products to satisfy safety requirements, and/or unexpected
or undesired product testing results. The loss of business from a significant client or
the cancellation of a major contract or series of commitments could have a material
adverse effect on the Companys revenues.
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| | 11. | The Companys business is dependent, in part, on its ability to obtain patents in
various jurisdictions on its current and future technologies and products, to defend its
patents and protect its trade secrets and to operate without infringing on the proprietary
rights of others. There can be no assurance that the Companys patents will not be
challenged by third parties or that, if challenged, those patents will be held valid. In
addition, there can be no assurance that any technologies or products developed by the
Company will not be challenged by third parties owning patent rights and, if challenged,
will be held not to infringe on those patent rights. The expense involved in any patent
litigation can be significant. The Company also relies on unpatented proprietary
technology, and there can be no assurance that others will not independently develop or
obtain similar products or technologies.
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| | 12. | In certain circumstances, the Company seeks to manage its liability risk through
contractual provisions with clients requiring the Company to be indemnified by the client
or covered by the clients product liability insurance policies. Although most of the
Companys clients are large, well-capitalized companies, the financial performance of
these indemnities is not secured. Therefore, the Company bears the risk that the
indemnifying party may not have the financial ability to fulfill its indemnification
obligations or the liability would exceed the amount of applicable insurance. Furthermore,
the Company could be held liable for errors and omissions in connection with the services
it performs. There can be no assurance that the Companys insurance coverage will be
adequate, or that insurance coverage will continue to be available on terms acceptable to
the Company, or that the Company can obtain indemnification arrangements or otherwise be
able to limit its liability risk.
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| | 13. | The Companys clinical research services business involves the introduction of
experimental pharmaceutical compounds into consenting human volunteers during studies of
such compounds. This activity may expose the Company to liability based upon adverse
reactions of these volunteers to the compounds being tested. The Company seeks to manage
its liability risk through contractual provisions with human clinical trial volunteers
requiring the volunteers to hold the Company harmless by maintaining insurance against
these claims and requesting indemnification by the study sponsor. The Company bears the
risk that any liability arising from its human clinical trial activity would exceed the
amount of applicable insurance. There can be no assurance that the Companys
insurance coverage will be adequate, or that insurance coverage will continue to be
available on terms acceptable to the Company, or that the Company can obtain hold-harmless
agreements with volunteers or otherwise be able to limit its liability risk.
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| | 14. | The Companys growth strategy includes making selective strategic acquisitions of
assets or business entities engaged in similar or complementary lines of business,
including the acquisition of certain assets of Pharmakinetics Laboratories, Inc. completed
in June 2003 and LC Resources, Inc. completed in December, 2002. If the Company issues its
common shares in these acquisitions, the voting power of existing shareholders of the
Company will be diluted. Moreover, depending on the level of earnings of the target
company and the number of shares of the Company issued in the transactions, the
Companys earnings per share may also be diluted. The Company and other companies in
the industry have encountered the following difficulties in implementing strategic
acquisitions: (i) identification, negotiation, completion and integration of these
acquisitions require significant commitments of capital and management time and attention;
(ii) expected benefits from the acquisition may not be fully realized, or realized within
the expected time frame, or at all, due to lower than expected revenues following the
merger; (iii) there may be greater than expected costs or difficulties related to
completing the acquisition and, following the acquisition, to the integration of the
businesses. Failure to successfully implement or integrate one or more strategic
acquisitions may have a material adverse effect on the business and financial condition of
the Company.
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| | 15. | Since October 1, 2002 the Company has applied the Financial Accounting Standards
Boards SFAS 142, Goodwill and Other Intangible Assets, which establishes
new accounting and reporting requirements for goodwill and other intangible assets. SFAS
142 requires that all intangible assets acquired that are obtained through contractual or
legal right, or are capable of being separately sold, transferred, licensed, rented or
exchanged must be recognized as an asset apart from goodwill. Goodwill and intangibles
with indefinite lives are no longer amortized, but are subject to an annual assessment for
impairment by applying a fair value based test. Through September 30, 2004 the Company has
completed the required fair value based impairment tests on its acquired goodwill, and the
tests have indicated that the fair value of the goodwill is equivalent to or greater than
the recorded value as of such dates; therefore, no adjustment has been made to the
carrying value of the goodwill in the Companys financial statements. However, there
is a risk that in the future the fair value based impairment testing will result in a
conclusion that the goodwill of an asset is not equivalent to or greater than the recorded
value, and the Company will be required to write down the value, which could materially
reduce or eliminate earnings in a quarter.
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| | 16. | The current regulatory environment for business continues to evolve toward more
stringent oversight. This has placed a legal, audit, and accounting burden on small public
companies that may be disproportionate to shareholder risk. Although the Company is
meeting and plans to continue meeting regulatory expectations, it cannot be assured that
this changing burden will not continue to further reduce earnings.
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| | 17. | The US Department of Health and Human Services has issued regulations under the Health
Insurance Portability and Accountability Act of 1996 (HIPAA). These
regulations demand greater patient privacy and confidentiality. Some state governments are
considering more stringent regulations. These regulations might require the company to
increase its investment in security or limit the services it offers. The Company could be
found legally liable if it fails to meet existing or proposed regulation on privacy and
security of health information.
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| | 18. | The Companys business may become subject to other risk factors which may be
identified from time to time in the Companys periodic SEC filings and other public
announcements.
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Should one
or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
described in the forward-looking statement. The Company does not intend to
update forward-looking statements.