PDI, Inc. Announces New Multi-Year Win Valued At up to $150 Million and Provides Outlook for 2012

   PDI, Inc. Announces New Multi-Year Win Valued At up to $150 Million and
                          Provides Outlook for 2012

PR Newswire

PARSIPPANY, N.J., Oct. 25, 2012

PARSIPPANY, N.J., Oct. 25, 2012 /PRNewswire/ --PDI, Inc. (Nasdaq: PDII) today
announced the signing of a new multi-year Sales Services contract with a Top 5
global pharmaceutical company to provide a dedicated sales team that will
target primary care physicians, pediatricians and psychiatrists. The contract
is expected to generate revenue to PDI of approximately $48 million in 2013
and up to $150 million over the life of the agreement. The FDA-approved
product is expected to be marketed beginning early in the first quarter of
2013 after completion of certain non-FDA regulatory approvals and third party
agreements. PDI expects to record less than $1 million of revenue from this
contract in the fourth quarter of 2012. In addition to the Sales Services
contract, PDI will be providing services to deliver HCP digital communications
in support of the product through PDI's Group DCA division. 

"This new major win affirms the value we provide to our customers," said Nancy
Lurker, Chief Executive Officer of PDI, Inc. "At PDI, we focus on providing
customers with a high return on their investment in our outsourcing services
and the strategic flexibility to make the most effective use of their
resources."

2012 Outlook:

As a part of PDI's ongoing focus on cost reduction, the company continues to
streamline its operations. As a result, the company expects to record charges
in the fourth quarter for severance of approximately $1.0 million and
facilities realignment of approximately $1.1 million.

"Including the contract win we announced today, we have won more than $250
million of new contracts and renewals in 2012," said Lurker. "Due to the
timing of these wins and the execution timelines of these contracts we expect
that only approximately $40 million will impact revenue in 2012 however, we
expect to be entering 2013 with a strong backlog of business under contract.
Factoring in this activity, we now estimate that total revenue for the full
year of 2012 will be in the range of $127 - $130 million.

"As we previously stated, the gross margin on new Sales Services business in
2012 continues to trend lower than historical rates, including the $150
million win announced today. While on a total company basis we expect the
gross margin percentage for the full year of 2012 to approximate 2011's level,
we also anticipate that the company's overall gross margin percentage will
decline in 2013 as new wins are executed and the competition for new
assignments increases as fewer large new pharmaceutical products are approved
in relation to those loosing patient exclusivity. We continue to be optimistic
that outsourcing will continue to grow and become more the standard in the
pharmaceutical industry. From an operating standpoint, excluding the severance
and facilities charges previously referenced, we expect a small operating loss
for the full year of 2012 and positive adjusted EBITDA in the range of 1% - 2%
of revenue," concluded Lurker.

About PDI, Inc.
PDI is a leading health care commercialization company providing superior
insight-driven, integrated multi-channel message delivery to established and
emerging health care companies. The company is dedicated to enhancing
engagement with health care practitioners and optimizing commercial
investments for its clients by providing strategic flexibility, full product
commercialization services, innovative multi-channel promotional solutions,
and sales and marketing expertise. For more information, please visit the
company's website at http://www.pdi-inc.com.

Forward-Looking Statements
This press release contains forward-looking statements regarding future events
and financial performance. These statements are based on current expectations
and assumptions involving judgments about, among other things, future
economic, competitive and market conditions and future business decisions, all
of which are difficult or impossible to predict accurately and many of which
are beyond PDI's control. These statements also involve known and unknown
risks, uncertainties and other factors that may cause PDI's actual results to
be materially different from those expressed or implied by any forward-looking
statement.

For example, with respect to statements regarding projections of future
revenues, growth and profitability, actual results may differ materially from
those set forth in this release based on the loss, early termination or
significant reduction of any of our existing service contracts, the failure to
meet performance goals in PDI's incentive-based arrangements with customers or
the inability to secure additional business. Additionally, all forward-looking
statements are subject to the risk factors detailed from time to time in PDI's
periodic filings with the Securities and Exchange Commission, including
without limitation, PDI's Annual Report on Form

10-K for the year ended December 31, 2011, and PDI's subsequently filed
quarterly reports on Form 10-Q and current reports on Form 8-K. Because of
these and other risks, uncertainties and assumptions, undue reliance should
not be placed on these forward-looking statements. In addition, these
statements speak only as of the date of this press release and, except as may
be required by law, PDI undertakes no obligation to revise or update publicly
any forward-looking statements for any reason.

Non-GAAP Financial Measures

PDI presents certain non-GAAP financial measures such as operating income
excluding certain charges and Adjusted EBITDA on a forward-looking basis as
part of its outlook for 2012. The company believes that these non-GAAP
financial measures, when presented in conjunction with comparable GAAP
financial measures, are useful to both management and investors in analyzing
the company's future business and future operating performance. The company
believes that providing the non-GAAP information to investors, in addition to
the GAAP presentation, allows investors to view the company's outlook results
in the way that management views financial outlook.

Operating income excluding certain charges is a non-GAAP metric used by
management to assess the future performance of the core operating business.
Information to reconcile this measure to GAAP based operating income is
contained in the release.

Adjusted EBITDA is a non-GAAP metric used by management to measure future cash
flow of the core operating business and liquidity. Adjusted EBITDA is defined
as operating income (loss), plus depreciation and amortization, non-cash
stock-based compensation, and other non-cash expenses. The company estimates
depreciation of approximately $2.0 million, non-cash stock compensation of
$1.9 million and no other non-cash expenses for the full year of 2012.





SOURCE PDI, Inc.

Website: http://www.pdi-inc.com
Contact: INVESTOR AND MEDIA: Melody Carey, Rx Communications Group, LLC,
+1-917-322-2571, Mcarey@RxIR.com
 
Press spacebar to pause and continue. Press esc to stop.