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Simulations Plus Receives Multi-Year Pharmaceutical Software License; Large Pharmaceutical Company Renews Multi-Year License

Posted on: Monday, 8 May 2006, 18:05 CDT

Simulations Plus, Inc. (AMEX:SLP), a leading provider of software for pharmaceutical discovery and development, today announced that a large pharmaceutical company has signed a second multi-year global software license agreement.

Ron Creeley, vice president of marketing and sales for Simulations Plus, said: "We're pleased to announce another multi-year license agreement for Simulations Plus software. This customer signed a two-year license for our GastroPlus software at each of its research sites two years ago, and now has signed another two-year license. This company's scientists have been among our longest-standing users, beginning in 1998, and have provided numerous suggestions for added functionalities and improvements over the years. Our software is now a necessary component of this client's ongoing research methodologies and its use continues growing within the company's community of world-class scientists. Because of this, this new contract is larger than before in both number of software licenses and sales. I'd truly like to be able to identify this pharmaceutical giant for the public but, like most of our clients, they want their use of our software in their research to remain confidential as they consider it a competitive advantage."

Momoko Beran, chief financial officer for Simulations Plus, added, "As we announced earlier, multi-year licenses are now being authorized for operation and the revenues are being recognized one year at a time to avoid the undulating revenues and earnings that we experienced in the past when we recognized revenues from multi-year licenses up-front. Even so, the contribution of this license to the current quarter is significant."

The Company's third fiscal quarter ends on May 31.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development software, which is licensed to and used in the conduct of drug research by pharmaceutical, biotechnology, and drug delivery companies worldwide. The Company has two other businesses, Words+, Inc. and FutureLab(TM), which are based on its proprietary software technologies. Simulations Plus, Inc., is headquartered in Southern California and trades on the AMEX under the symbol "SLP." For more information, visit our Web site at www.simulations-plus.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.

Source: Business Wire

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