LANCASTER, CA, May 8, 2006 - 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 companys 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 clients ongoing research methodologies and its use continues growing within the companys 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 Companys third fiscal quarter ends on May 31.
About Simulations Plus, Inc.
Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. The Company's Words+ subsidiary produces assistive technology and communication devices for persons with disabilities.  The Company also produces a line of educational simulation software under the umbrella name FutureLab™, which is based on its proprietary software technologies. Simulations Plus, Inc., is headquartered in Southern California. For more information, visit our Web sites at www.simulations-plus.com and www.words-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. The actual future results of the Company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: the ability of the Company to continue to book revenues and earnings in accordance with existing accounting standards, the ability of the Company to maintain its competitive advantage, the general economics of the disability and pharmaceutical industries, the ability of the Company to attract and maintain sufficient scientific and technical staff to sustain its R&D and customer support functions, and a sustainable market. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission.
For further information:
Simulations Plus, Inc.
42505 10th Street West
Lancaster, CA
93534-7059 USA
www.simulations-plus.com
CONTACT: investor relations:
Contact: Renee Bouche