(NASDAQ: IRGI)

William Blair Growth Stock Conference

June 25, 2003

54787062

Statements contained in this presentation that are forward-looking are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Factors that might cause such a difference include, but are not limited to, risks associated with: the reduction in research and development activities by pharmaceutical and biotechnology clients, changes in government regulations, the effects of interest rate and foreign exchange fluctuations, our ability to attract and retain employees, the loss or delay of contracts due to economic uncertainty or other factors, our ability to efficiently manage backlog, our ability to expand our business through strategic acquisitions, competition within the industry and the potential adverse impact of health care reform. Further information about these risks and uncertainties can be found in the information included in the company’s recent filings with the Securities and Exchange Commission, including the company’s Registration Statement on Form S-1 and Form 10-K filed on February 18, 2003.

Safe Harbor Disclaimer

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Building the world’s leading and most profitable drug development

services company

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Strategy for Profitable Growth

Operational Overview

2002 Financial Overview

First Quarter 2003 Financial Overview

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Investment Summary

• Global market presence

• Full-service drug development capability

• Large market opportunity

• Established leadership position in pre-clinical development

• Unique position in clinical development

• Diversified revenue mix and client base

• Proven management team

• Track record of growth and profitability

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Company History

1964 Inveresk performs first pharmacology/toxicology studies (in Edinburgh)

1965 CTBR (Pre-clinical Americas) founded (in Montreal)

1988 Inveresk Clinical Research founded (in Edinburgh)

1989 ClinTrials Research founded (in Nashville)

1996 ClinTrials Research and CTBR merge

2001 Acquisition of ClinTrials by Inveresk Research

2002 NASDAQ listing (“IRGI”)

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Global Market Coverage

Origin of Clients - 2002

USA 56%

Europe 31%

Japan 7%

RoW 6%

Client Type

Pharma 56%

Biotech32%

Other 12%

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Full-service Drug Development Capability

Pre-clinical Testing, Toxicology, Drug Metabolism &

Pharmacokinetic Studies (DMPK)

Final Patent Application

File IND

Marketing Application

Market Approval

DiscoveryResearch

Development ResearchRegulatory

ReviewPost-Mktg

Review

Market segments covered by Inveresk Research

Basic Research

Genomics

Proteomics

Virtual chemistry

Synthesis

Biological testing

Pharmacological screening

Phase I

Phase II

Phase III

Phase IV

Clinical Trials

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Large Market Opportunity

100

110

120

130

140

150

160

170

180

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Source: CMR International, IMS Health

Growth in R&D vs. Revenue (Indexed)

R&D Growth

Revenue Growth

8.5

9.811.0

12.5

14.3

16.3

7.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

1999 2000 2001 2002F 2003F 2004F 2005F

Market for Outsourced Drug Development Services

($ in billions)

Source: Frost & Sullivan

CAGR – 13.7%

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Pre-clinical Overview

• World #3 in toxicology

• World #1 in speciality toxicology

• Integrated laboratory sciences

• Established over 35 years ago

• 85% repeat business

• Diverse client base

• Focus on quality, value-added

• Clients - USA, Europe and Japan

% of 2002 Net Service Revenue

64%

Revenues - $142.2 million

1,830 Employees

Locations – Edinburgh, Scotland and

Montreal, Canada

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Clinical Overview

% of 2002 Net Service Revenue

36%

Revenues - $80.3 million

720 Employees

Locations – USA, UK, Germany, France, Spain, Italy,

Belgium, Poland, Czech Republic

• Key global capability

• Phase I-IV coverage

• European #4

• World class Phase I - 62 bed clinic with “first-into-man” focus

• ClinTrials integration completed successfully

• Further opportunity for revenue growth and improved profitability

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0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Major Pharma

Major Pharma

Biotech

Major Pharma

Major Pharma

Biotech

Major Pharma

Biotech

Biotech

Biotech

Major Pharma

Major Pharma

Major Pharma

Major Pharma

Pharma

Pharma

Biotech

Biotech

Biotech

Biotech

Highly Diversified Client Base

Top client – 5.9%

Top 5 clients – 21.1%

Top 20 clients – 43.2%

Percentage of 2002 Net Service Revenue

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Proven Management Team

Walter Nimmo

President & CEO

(15 years)

Mike Ankcorn

President - CTBR

(24 years)

Brian Bathgate

President - Europe

(12 years)

Pre-clinical

Nick Thornton

Corp. Development

(2 years)

Alastair McEwan President

(7 years)

Clinical

Paul Cowan

CFO (1

year)

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51.658.2 63.9 65.5

180.6

222.5

0.0

50.0

100.0

150.0

200.0

250.0

1997 1998 1999 2000 2001PF 2002

Track Record of Growth and Profitability

Acquisition of ClinTrials – April, 2001

(i) Excludes amortization of goodwill prior to 2002 and exceptional charges related to our IPO in 2002 of $54.6 million.

Net Service Revenue ($ in millions)

8.1 9.4 10.3 11.1

20.9

45.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1997 1998 1999 2000 2001PF 2002PF

Acquisition of ClinTrials – April, 2001

Income From Operations(i) ($ in millions)

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Operational Overview

Strategy for Profitable Growth

2002 Financial Overview

First Quarter 2003 Financial Overview

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Response to Market Characteristics

IRGI ResponseKey Market Drivers

Drug Industry Trends:• Huge demand for new therapeutics• Impact of new technologies - genomics• Growth of “biotech” and biotech products• Increased “pharma” competition

Impact on Research & Development:• Increasingly demanding regulation• Escalating R&D expenditures• Need for improved R&D productivity

Industry Response:• Increasing and more focussed R&D• Greater trend to outsourcing• Need for global drug development

Strategic:• Continue focus in earlier development

stages – Pre-clinical, Phase I through early Phase III

• Differentiate through a higher value-added service offering

• Maintain global reach • Concentrate on areas with the highest

barriers to entry – toxicology, lab sciences• Maintain diverse, high quality client base• Provide solutions, not just scienceService Offering:• Focus on quality and responsiveness• Maintain broad based service offering• Address both pharma and biotech • Continue emphasis on speciality services• Leverage Pre-clinical/Clinical cross selling

opportunity

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Financials - Key Growth Drivers

• Maintain revenue growth in Pre-clinical, accelerate in Clinical

• Controlled capacity expansion in Pre-clinical and Phase I – to sustain/enhance operating margins

• Progress margin expansion in Clinical - towards target levels of 15% to 20%

• Continue migration of “old ClinTrials” clinical contracts to higher margin business – to be completed in 2003

• Maintain emphasis on cost control and improved business processes across all business areas

Target bottom line growth of over 20% per annum

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200520042003

Stage 1 - Montreal

Toxicology and Lab Sciences

Stage 1 - Edinburgh

Toxicology

Stage 2 - Edinburgh

Lab Sciences

Stage 2 - Montreal

Toxicology & Lab Sciences

Stage 1 – Clinical Europe

Phase I

Stage 1 – Clinical Americas Phase I

Key Elements for Organic Growth

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Operational Overview

2002 Financial Overview

Strategy For Profitable Growth

First Quarter 2003 Financial Overview

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2002 Key Highlights

• IPO completed in June; 12 million shares sold at $13.00 per share

• Net revenue up 42% to $222.5 million

• Pro forma operating income up 104% to $45.6 million

• Full-year operating margin 20.5%

• 2002 diluted EPS of $0.88, pro forma

• Cash flow from operations $51.3 million(i)

• Stage 1 Montreal pre-clinical expansion completed, on time and within budget, and pre-sold on a multi-year basis

• Reorganization and integration of former loss-making ClinTrials clinical businesses has progressed beyond expectations

(i) Before payment of accumulated shareholder loan interest.

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2002 Segment Results – Pro Forma

(i) Pro forma, excluding amortization in 2001 and exceptional charges in 2002 relating to the Company’s IPO.

22.3

4.5

22.4

43.5

9.0

45.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Pre-clinical Clinical Total

+104%+95%

+100%

Income From Operations (i)

($ in millions)

95.2

61.1

156.3142.2

80.3

222.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Pre-clinical Clinical Total

+49%

+31%

+42%

Net Service Revenue

($ in millions)

2001 2002

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Relative Profitability - 2002

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Peer Group - Mean

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Review of Cash Flows

• Net cash provided by operations: $51.3 million, before deducting accumulated interest of $21.5 million on pre-IPO shareholder loans

• Capital expenditure: $25.5 million

• Cash flow (before accumulated shareholder loan interest paid) as a % of Pro forma net income - 155%

• Net DSO’s at year end: 30 (45 at December 30, 2001)

• Cash and equivalents at year end: $19.9 million

• Gross financial debt at year end: $68.0 million

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Operational Overview

First Quarter 2003 Financial Overview

Strategy For Profitable Growth

2002 Financial Overview

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Q1, 2003 Financial Highlights• Net service revenue up 8.5% to $57.7 million ($53.2 million in Q1, 2002)

• Income from operations $8.6 million ($5.2 million in Q1, 2002)

• Pro forma income from operations $9.2 million ($9.8 million in Q1, 2002)

• Significant rebound in activity levels at our Montreal-based pre-clinical operations

• Clinical revenues grew 14.3% year-on-year. Operating margin increased to 10.6% in Q1, 2003, from 4.1% in Q1, 2002

• Diluted EPS of $0.20, compared to a loss per share of $0.02 in 2002

• Pro forma diluted EPS of $0.22, a 22% increase over Q1, 2002

• Cash flow from operations $4.8 million, before capex of $4.3 million

• New business signings $76.6 million in Q1, 2003

• Confirmed backlog - $222 million at March 31, 2003

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Q1, 2003 Financial Results by Segment

10.4

0.8

5.2

9.8

8.8

2.3

8.69.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

34.5

18.7

53.2

36.3

21.4

57.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Net Service Revenue ($ millions)

Income from Operations ($ millions)

+5%

+14%

+9%

-6%

+194%

-15%

20032002

Total Reported

Total Pro Forma

+64%

ClinicalPre-clinical

Pre-clinical

Clinical Total Reported

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Key Factors Influencing Q1, 2003 Results

• Volatility in short-term business flows in Montreal-based pre-clinical operations – strong rebound experienced in March/April

• Reduced levels of pass-through costs in European pre-clinical operation deflate revenue, but not profitability

• Continued recovery in clinical business – in terms of growth and profitability

• Transaction exchange losses recorded totaling $1.5 million – now hedged

• Social security costs on employee share option exercises booked in Q1 totaling $0.2 million

• Negative mark-to-market adjustment on interest rate swaps of $0.2 million

• Share offering costs of $0.7 million expensed in quarter

• Positive impact of Canadian and UK tax credits, reduced Canadian corporate tax rates and newly available UK tax deductions for share option expenses

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Moving Annual Total of Signed Contracts

Moving Annual Total of Signed Contracts – cumulative previous twelve months new signed contracts, net of cancellations

242.9

265.1 266.3 262.1271.2 274.4

100

125

150

175

200

225

250

275

300

325

350

Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03

$ m

illio

ns

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Confirmed Backlog

148.5165.0 171.8

193.2202.0 206.1 209.8

222.0

0

25

50

75

100

125

150

175

200

225

250

275

300

Jun 01 Sep 01 Dec 01 Mar 02 Jun 02 Sep 02 Dec 02 Mar 03

$ m

illio

ns

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Outlook and Strategy

• Continued strength in new business signings across all operations

• Rebound in Montreal-based pre-clinical operations experienced in March and April

• European pre-clinical operations experiencing continued strong demand for both toxicology and laboratory sciences services

• Clinical businesses continuing strong performance of 2002

• 2003 EPS forecast to total between $1.07 and $1.09, on revenue growth of 11% to 14%

• Continue to service our clients with quality, high value-added services

• Pre-clinical expansion on track, Stage 1 Montreal expansion pre-sold – leveraging our world leading capability

• Diverse revenue and client base, positions IRGI well for the future

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Investment Summary

• Global market presence

• Full-service drug development capability

• Large market opportunity

• Established leadership position in pre-clinical development

• Unique position in clinical development

• Diversified revenue mix and client base

• Proven management team

• Track record of growth and profitability