SFBC Files Form 10-Q with Expanded Disclosure.

Business Editors

MIAMI--(BUSINESS WIRE)--May 15, 2003

SFBC International, Inc. (NASDAQ: SFCC), a provider of specialized, outsourced drug development services to the pharmaceutical and biotechnology industries, today announced that it is expanding its financial disclosure to

SFBC International provides services in the U.S. and internationally. The international market, which includes Canada, is served primarily by Anapharm. For the first quarter ended March 31, 2003, SFBC recorded net revenues by geographic region of $8,842,870 from international operations and $9,827,166 from U.S. operations.

As SFBC has previously publicly disclosed, the U.S business is subject to seasonal demand for its overall service offering, and therefore the company has historically recognized a greater percentage of its annual revenue and net income in the second half of the calendar year with the fourth quarter being the largest. In 2002, excluding SFBC New Drug Services, Inc., U.S. operations recorded approximately 40 percent of its U.S. revenue and profits in the first half of the year and 60 percent in the second half of the year. SFBC expects the same trend to continue for its U.S. operations during 2003.

In addition, due to expectations of a higher percentage of revenue and profits from U.S. operations in the second half of the calendar year and additional reasons described in detail below, SFBC expects that the average tax rate for the second half of the calendar year will be higher than the first half.

Arnold Hantman, Chief Executive Officer of SFBC International, stated, "During the first quarter of 2003, Anapharm, Inc., our Canadian subsidiary, continued to deliver strong revenue growth and operating results for SFBC. Anapharm has met or exceeded our internal expectations every quarter since SFBC acquired it in March of 2002. Given the steady growth, year-over-year and sequentially, for Anapharm and the lack of seasonality in its core generic business, Anapharm provides a steady base of business to balance some of the seasonality in SFBC's U.S.-based operations, which are concentrated in branded pharmaceutical and biotechnology products. In addition, given the historical revenue trends, we anticipate the first half of the year will include a greater percentage of business and profits from our Canadian operations."

Pro Forma Financial Information

The following tables reflect our actual results of operations for the quarter ended March 31, 2003 and our pro forma results of operations for the quarter. The pro forma adjustment reflects the application of the $750,149 in Canadian tax credits and reclassifies the credits to the costs which generated them. Under United States generally accepted accounting principles ("GAAP"), the tax credits are applied as a reduction of "Income Tax Expense" on the income statement rather than against the actual costs that generated the credits.

The Canadian government uses its tax laws and tax credits to encourage employers, like Anapharm, to create jobs and hire persons who perform roles in research and development. Because of Anapharm's clinical research and bioanlaytical laboratory activities, the cost of its research personnel is partially subsidized through these credits. We have allocated these credits between direct costs and selling, general and administrative costs in accordance with the activities of our employees. The pro forma table reflects the changed percentages and is useful in comparing the adjusted gross profit margins to actual gross profit margins as well as historical margins before our acquisition of Anapharm. The end result is that the net income is identical under both the actual and pro forma approaches.

In addition, the actual tax rate in the Province of Quebec (including the federal government), prior to the application of any credits, is approximately 33% compared to approximately 40% in the United States.

Mr. Hantman concluded, "The lower actual tax rate of the Province of Quebec compared to the U.S. tax rate, combined with the tax incentives the Canadian government offers to corporations to increase research and development jobs in Canada, creates an additional incentive to refer work to Anapharm whenever commercially practical to do so.

We believe that the pro forma presentation, which is a non-GAAP financial measure, is more indicative of income from operations and operating margins; it also assists management in calculating earnings before income taxes, depreciation and amortization ("EBITDA") and comparing EBITDA to other companies in our sector. For these reasons, we believe the pro forma table is useful to investors.

SFBC INTERNATIONAL, INC. AND SUBSIDIARIES
SELECTED PRO FORMA QUARTERLY DISCLOSURES
FOR THE PERIOD ENDED MARCH 31, 2003 (all in $USD)


Recast pro forma income statement to reflect the impact
-------------------------------------------------------
of Canadian tax credits
-----------------------
                                                    (UNAUDITED)
                                                      ADJUSTED
                                                      PROFORMA
                                         CANADIAN      INCOME
                      (UNAUDITED)          TAX       REFLECTING
                       REPORTED           CREDIT      CANADIAN
                        ACTUAL            RECLASS    TAX CREDITS
                     RESULTS FOR          FOR THE      FOR THE
                      THE PERIOD          PERIOD       PERIOD
                        ENDED              ENDED        ENDED
                      3/31/2003          3/31/2003    3/31/2003
                                            (A)         (B)

Net revenue          $18,670,036  100.0%            $18,670,036 100.0%

Costs and expenses
  Direct costs        10,568,592   56.6% $(635,562)   9,933,030  53.2%
  Selling, general
   and administrative
   expenses            5,814,860   31.1%  (114,587)   5,700,273  30.5%
                     ------------        ---------- ------------
    Total costs and
     expenses         16,383,452   87.8%  (750,149)  15,633,303  83.7%
    Earnings from
     operations        2,286,584   12.2%   750,149    3,036,733  16.3%
Other income(expense)
  Interest income         52,015                         52,015
  Interest expense       (74,439)                       (74,439)
                     ------------                   ------------
    Total other
     income (expense)    (22,424)                       (22,424)
                     ------------        ---------- ------------
    Earnings before
     taxes             2,264,160           750,149    3,014,309
Income tax expense      320,876    14.2%   750,149    1,071,025  35.5%
                     ------------        ---------- ------------
    Net earnings     $ 1,943,284   10.4% $      (0) $ 1,943,284  10.4%
                     ============        ========== ============
Earnings per share:
  Basic              $      0.27                    $      0.27
                     ============                   ============
  Diluted            $      0.26                    $      0.26
                     ============                   ============
Shares used in
 computing earnings
 per share:
  Basic                7,219,558                      7,219,558
                     ============                   ============
  Diluted              7,582,589                      7,582,589
                     ============                   ============


(A) The Canadian government encourages R&D activities by subsidizing
    them through tax credits. Under US generally accepted accounting
    principles ("GAAP") these credits are applied against "Income tax
    expense" on the income statement (thus reducing Income tax
    expense) rather than against the underlying "Direct costs" or
    Selling, general and administrative expenses" that generated the
    credits. The Company's current statutory rate on profits for US
    operations is approximately 40%. The statutory tax rate in Quebec
    Province in Canada where the Company operates is approximately 33%
    (before the application of the tax credits).

(B) During the quarter ended March 31, 2003, Anapharm generated
    $750,149 in tax credits . This column shows the pro forma impact
    on the Company's operating results and ratios if these credits
    were applied against the underlying expense line items that
    generated the credit rather than applying the credits against
    Income tax expense. The Company believes that this presentation is
    more indicative of earnings from operations, operating margins and
    for calculating EBITDA when compared to other companies within its
    sector.

Fiscal 2003 Guidance

Based upon SFBC's historical business trends outlined above and its current activities, the Company anticipates 2003 revenue and earnings per share to be approximately $82-$85 million and $1.28-$1.33, respectively.

About SFBC International, Inc.

SFBC International, Inc. is a rapidly expanding comprehensive provider of specialized drug development services in the pharmaceutical and biotechnology industries. The Company is one of the leading providers of Phase I/II clinical trials in North America. SFBC recently expanded its Phase III capabilities, through the acquisition of New Drug Services, to include Biostatistics, Data Management, and Regulatory and Drug Submission. The Company currently provides cost-effective, accurate information to more than 100 of the largest branded and generic pharmaceutical and biotechnology companies globally. With a total of more than 880 beds and 13 discrete clinical units, SFBC's facilities are located in Miami and Fort Myers, Florida; Charlotte, North Carolina; Kennett Square and Philadelphia, Pennsylvania; and Montreal and Quebec City, Canada. These sites include two state-of-the-art-bioanalytical laboratories and two clinical laboratories. The Company has significant experience recruiting some of the most challenging special populations, including geriatrics, pediatrics, post-menopausal women, cardiac disease, diabetes, kidney disease, ophthalmology, HIV and dermatology. In addition to its core Phase I and Phase II services, SFBC also provides Phase III and Phase IV trial management services to the pharmaceutical and biopharmaceutical industry. Additional information is available at the Company's website, http://www.sfbci.com.

Forward-Looking Statements

The statements made in this press release discussing the lack of seasonality in Anapharm's business, 2003 guidance, anticipated increase in the United States' business in the second half of 2003 and the effective tax rate for the balance of the year are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally words such as "seek" "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include, but are not limited to, changes affecting the clinical research industry, a reduction of outsourcing by pharmaceutical and biotechnology companies, our ability to compete nationally in attracting pharmaceutical companies in order to develop additional business, our continued ability to recruit participants for clinical studies, our clients' ability to provide the drugs and medical devices used in our clinical trials, the economic climate nationally and internationally as it affects drug development operations, and the future market price of our stock. Further information on the Company's risk factors is contained in the Company's prospectus, Form 10-KSB and other filings with the Securities and Exchange Commission.