PDI Announces Termination of Promotion Agreement with Novartis Corporation

PDI Announces Termination of Promotion Agreement with Novartis Corporation

SADDLE RIVER, N.J. — PDI, Inc. , a pioneer in providing contract sales and commercialization services to the biopharmaceutical industry, today announced that PDI and Novartis have agreed to terminate a promotion agreement that was entered into in April 2008 under PDI's product commercialization initiative whereby PDI deployed a sales field force and provided other promotional activities to promote a Novartis branded product in the United States. PDI discontinued all promotional activities related to the product effective as of April 22, 2009. In connection with the termination of this agreement, Novartis will receive credits for services that PDI is currently providing to Novartis under a fee for service sales force agreement for another Novartis branded product.

In the fourth quarter of 2008 PDI recorded a contract loss accrual of approximately $10.3 million, representing the anticipated future loss expected to be incurred to fulfill its obligations under this contract through February 1, 2010, which was the early termination date in the contract. While PDI is currently evaluating the net impact on earnings of the termination of this contract on April 22, 2009 and the credits to be provided to Novartis for other services, it currently anticipates a net positive impact on earnings.

About PDI

PDI provides commercialization services for established and emerging biopharmaceutical companies. The Company is dedicated to maximizing the return on investment for its clients by providing strategic flexibility, sales, marketing and commercialization expertise.

PDI currently operates in three business segments: Sales Services, Marketing Services and Product Commercialization. Our sales services include Performance Sales TeamsTM, which are dedicated pharmaceutical sales force teams for specific customers; Select AccessTM, our targeted sales solution that leverages an existing sales force and infrastructure; and PDI ON DEMAND, a suite of innovative sales services that provide rapid, customized sales force solutions tailored to meet the local, regional and seasonal needs of our customers. Our marketing services include marketing research and consulting services through TVG, and medical communications services through Pharmakon. Our product commercialization solutions leverage our considerable sales and marketing expertise to manage products throughout their lifecycles. PDI's experience extends across multiple therapeutic categories and includes office- and hospital-based initiatives.

For more information, please visit the Company's website at www.pdi-inc.com.