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EPL and Flagship Biosciences Form a Strategic Alliance to Provide Preclinical Pathology and Quantitative Services DullesVA - April 1, 2010 - Experimental Pathology Laboratories, Inc (EPL), a leading toxicologic pathology contract laboratory known worldwide for excellence in providing GLP preclinical pathology for both industry and government announced today it has formed a strategic alliance with Flagship Biosciences LLC, a provider of digital pathology services. The goal of the alliance is two-fold - to eliminate geographic restrictions on simultaneous multi-site or remote site slide examination by using whole slide imaging (telepathology) and to advance pathology towards a more quantitative discipline through whole-slide image analysis. Flagship provides digital pathology services, including slide scanning services, digital hosting, whole slide archiving, searchable databases, and quantitative pathology. These services will enhance EPL's renowned world-class GLP offerings, eventually enabling its pathologists to eliminate geographic limitations for peer reviews and other activities. A consortium called VIPR (Virtual Imaging in Peer Reviews) has already been formed by a group of pharmaceutical companies and Flagship; the expertise of EPL's pathologists will be essential to investigate and eliminate the roadblocks that remain in using digital slide images for remote peer reviews. With EPL's experienced toxicologic pathologists, there are substantial opportunities for improving the use of image analysis to allow pathologists to make more accurate and reproducible quantitative measurements in tissue. With Flagship's whole section analysis expertise, the two firms will offer novel image analysis approaches to biotech and pharmaceutical clients in biomarker discovery and investigative pathology. "As a small company, Flagship's expertise is in the application of digital pathology in real-world pharmaceutical settings. We are excited about working with EPL with its tradition of excellence in regulatory toxicologic pathology. Digital pathology will be part of investigative and toxicologic pathology of the future and this alliance is an important step in the beginnings of that future in preclinical pathology" commented Dave Young, President of Flagship Biosciences LLC. Dr. Jerry Hardisty, President of EPL, says, "We recognize that digital pathology will eventually allow our pathologists to simultaneously and remotely review, evaluate and share slides anywhere in the world, and will significantly impact the peer review process. In addition, we believe that image analysis, when it is properly utilized as a tool in the hands of trained pathologists, will complement the pathologist's diagnostic skills with the ability to maintain reproducibility and accuracy. Working with Flagship Biosciences will allow EPL to apply these technologies appropriately, in steps, without overpromising what the technology is ready to do, and using it in those situations where accurate and quantitative assessments are necessary for robust statistical analysis." Flagship Biosciences LLC, located in Flagstaff, Arizona is a pathologist-owned company focused on utilizing whole slide imaging for quantitative pathology in pharmaceutical and device applications. Experimental Pathology Laboratories (EPL), founded in 1971, is a privately-held, employee-owned contract research organization with facilities in Sterling, Virginia and Research Triangle Park, North Carolina. EPL operates in full compliance with U.S. and International GLPs and is recognized nationally and internationally for its ability to meet the demands of the scientific community and the challenges of safety testing involving toxicologic pathology.

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