Covalent Group, Inc. Looks to Further Its Impressive Growth with the Addition of Two Seasoned Healthcare Advisors and Private Stock Transfer

    WAYNE, Pa., Nov. 10 /PRNewswire/ -- Covalent Group, Inc. (Nasdaq:   CVGR)
 today announced that Richard Propper, M.D., a veteran medical researcher and
 venture capitalist, and Michael Chermak, an experienced executive in the
 healthcare information and supply software industries have purchased
 1,000,000 shares of the Company's common stock owned by Bruce LaMont, its
 Chairman and Chief Executive Officer.  The transaction reduces Mr. LaMont's
 direct holdings to 42% of the outstanding common stock of the Company, while
 retaining his original voting control of 50.2%.
     Mr. LaMont said, "Dr. Propper and Mr. Chermak have agreed to act in
 advisory roles to assist the Company as it continues to grow into a major
 international clinical research provider.  We are extremely fortunate to be
 able to attract someone of Dr. Propper's stature and capabilities to Covalent.
 He brings with him an extensive network of contacts and relationships in the
 medical and financial communities, compiled during 10 years of innovative
 international clinical research at Harvard Medical School and 15 years of
 successful medical venture capital experience.  These skills should make him
 an immediate contributor to Covalent's future success."
     "Michael Chermak is an exciting addition as well due to his extensive
 involvement with healthcare information software applications and his
 entrepreneurial experience working with growing healthcare companies.  Dr.
 Propper and Mr. Chermak have worked together before, the latest being the
 founding of medibuy.com."
     Dr. Propper received his MD degree from the Stanford University School of
 Medicine, and has served as an assistant professor in Pediatrics at Harvard
 Medical School, a research fellow in hematology at the Children's Hospital
 Medical Center in Boston, and a research fellow in Pediatric Oncology at the
 Dana Farber Cancer Center.  In 1984, Dr. Propper founded Montgomery Medical
 Ventures, a seed stage capital firm that directly managed $135 million in
 investments.  He served as managing General Partner of that fund until 1993.
     Mr. Chermak brings to Covalent nearly 20 years of experience in the areas
 of healthcare planning, development and marketing.  Mr. Chermak was the
 founder and CEO of Healthdemographics, Inc., a leading healthcare information
 and decision support systems company that was sold to Caredata (formerly
 Medirisk) in 1998.
     In 1998, Dr. Propper and Mr. Chermak co-founded medibuy.com, a B2B e-
 commerce healthcare supply chain intermediary.  Medibuy links buyers and
 vendors of medical supplies and equipment worldwide.  Medibuy has received
 funding from venture capitalists Kleiner, Perkins, Caulfield and Byers,
 Sequoia Capital, and Oak Investment Partners.  Dr. Propper and Mr. Chermak,
 with their expertise and recent successes with medibuy.com, should bring added
 value to Covalent as the Company explores its strategy of internet
 applications to drug development.
     Dr. Propper said, "Mr. Chermak and I are impressed with how Covalent has
 positioned itself to become a leader in the field of clinical research.  The
 Company currently has contracts with a number of top-tier drug and device
 manufacturers, and strong strategic alliances throughout the industry.  Dr.
 Kenneth Borow, the COO and Chief Medical Officer of Covalent, and I worked
 together successfully at Harvard Medical School, and I have followed his
 career with interest over the ensuing years.  Since his latest move to
 Covalent three years ago, I have been impressed with his abilities in clinical
 research design, operations and business development.  I believe that the
 experience and contacts that Mr. Chermak and I can bring to Covalent will help
 the Company grow into one of the leading international clinical research
 organizations."
     The private investment firm Covalent Partners, LLC, formed by Dr. Propper
 and Mr. Chermak, has acquired an option through January 15, 2000 to purchase
 the balance of shares of common stock held by Mr. LaMont.
 
     Covalent Group, Inc. provides drug development services and health
 management solutions to pharmaceutical, biotechnology, and device
 manufacturers as well as managed care organizations.  To aid its customers,
 Covalent has developed several proprietary products utilizing interactive
 speech recognition technology that significantly improves the efficiency of
 conducting clinical trials, including TeleTrial(R), and Virtual HouseCall(R),
 a disease assessment system.
 
     This document contains statements of a forward-looking nature.  Actual
 results may differ from those projected in, expressed, or implied by this
 document.  Potential risks and uncertainties that could affect the Company's
 future operation results include, without limitation: (i) the Company's
 success in attracting new business; (ii) the size, duration, and timing of
 clinical trials; and (iii) the termination, delay, or cancellation of clinical
 trials.  Additional information concerning factors that could cause actual
 results to materially differ from those referred to in this document is
 contained in Covalent's SEC filings, including its registration statements
 under the Securities Act of 1933 and its periodic reports under the Securities
 Exchange Act of 1934, as amended, copies of which are available upon request
 from Covalent's investor relations department.
 
 

SOURCE Covalent Group, Inc.

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