Dendrite Announces Its Largest Customer Extends US Services Contract Through 2007

  
    
  
  
    
      Dendrite International, Inc. (NASDAQ: DRTE) today announced that its 
      largest customer has extended its contract covering Dendrite’s 
      sales force support services in the US through the end of 2007, at 
      current pricing, but plans an orderly transition of many of these 
      support services in-house and to one or more third-party vendors. The 
      customer will continue with support, maintenance and enhancements of 
      Dendrite’s sales force effectiveness products 
      up to 2011. Contracts with this customer outside of the US are not 
      affected.
    
    
      The value of the services the customer intends to transfer represents 
      approximately 10% of Dendrite’s expected 2006 
      total revenues, although it represents a larger percentage of its annual 
      operating income due to the high levels of service integration and 
      customization. These services are expected to represent less than 10% of 
      the Company’s total anticipated 2007 revenues.
    
    
      The extension of the contract plus the transition services are expected 
      to have a positive impact on 2007 results. Dendrite expects incremental 
      one-time revenue from transition services during 2007 and anticipates 
      additional cost reductions, investments in new and complementary 
      business lines and future new business to mitigate the overall impact of 
      the contract contraction beyond 2007.
    
    
      The Company will provide additional detail on the contract renewal on 
      its third quarter earnings conference call scheduled for November 2, 
      2006.
    
    
      About Dendrite
    
    
      Founded in 1986, Dendrite International (NASDAQ: DRTE) enables sales, 
      marketing, clinical and compliance solutions for the global, 
      pharmaceutical industry. The Company’s clients 
      are located in more than 50 countries and include the world's top 20 
      pharmaceutical companies. For more information, please visit www.dendrite.com.
    
    
      FORWARD LOOKING INFORMATION: This document contains 
      forward-looking statements that may be identified by such 
      forward-looking terminology as “expect,” 
      “believe,” “anticipate,” 
      “will,” “intend,” 
      “plan,” “target,” 
      “outlook,” “guidance,” 
      and similar statements or variations. Such forward-looking 
      statements are based on our current expectations, estimates, assumptions 
      and projections and involve significant risks and uncertainties, 
      including risks which may result from our dependence on the 
      pharmaceutical industry; our ability to achieve additional cost 
      reductions, further expansion into complementary businesses and further 
      expansion of existing business services; fluctuations in quarterly 
      revenues due to lengthy sales and implementation cycles for our 
      products; our fixed expenses in relation to fluctuating revenues and 
      variations in customers' budget cycles; dependence on certain major 
      customers; changes in demand for our products and services attributable 
      to any weakness experienced in the economy or mergers, 
      acquisitions and consolidations in the pharmaceutical industry; 
      successful and timely development and introduction of new products and 
      versions; risks associated with foreign currency fluctuations as they 
      affect our non-U.S. operations; increased competition; risks associated 
      with our expanded international operations and our ability to adopt and 
      respond successfully to the unique risks involved in our non-U.S. 
      operations; risks associated with acquisitions; the ability of our third 
      party vendors to respond to technological change; any difference between 
      estimated and actual stock option expense; less favorable than 
      anticipated results from strategic relationships or acquisitions; 
      dependence of data solutions on strategic relationships; events which 
      may affect the U.S. and world economies; and catastrophic events which 
      could negatively affect our information technology infrastructure. Other 
      important factors that should be reviewed and carefully considered are 
      included in the Company's 10-K under “Factors 
      That May Affect Future Results” and its 10-Qs 
      and other reports filed with the SEC. Actual results may differ 
      materially. The Company assumes no obligation for updating any such 
      forward-looking statements to reflect actual results, changes in 
      expectations or assumptions or other changes affecting such 
      forward-looking statements, even if such results or changes make it 
      clear that any such projected results will not be achieved. Any outlook 
      and other forward-looking information is as of the date of this release 
      only. At any such time in the future as the Company may provide 
      revenue, earnings and other outlook information, prior related 
      outlook should no longer be considered current. Our outlook and other 
      forward-looking information does not take into account or reflect any 
      possible future acquisitions, dispositions or similar transactions which 
      may occur.
    
  
Dendrite International, Inc. (NASDAQ: DRTE) today announced that
its largest customer has extended its contract covering Dendrite's
sales force support services in the US through the end of 2007, at
current pricing, but plans an orderly transition of many of these
support services in-house and to one or more third-party vendors. The
customer will continue with support, maintenance and enhancements of
Dendrite's sales force effectiveness products up to 2011. Contracts
with this customer outside of the US are not affected.

   The value of the services the customer intends to transfer
represents approximately 10% of Dendrite's expected 2006 total
revenues, although it represents a larger percentage of its annual
operating income due to the high levels of service integration and
customization. These services are expected to represent less than 10%
of the Company's total anticipated 2007 revenues.

   The extension of the contract plus the transition services are
expected to have a positive impact on 2007 results. Dendrite expects
incremental one-time revenue from transition services during 2007 and
anticipates additional cost reductions, investments in new and
complementary business lines and future new business to mitigate the
overall impact of the contract contraction beyond 2007.

   The Company will provide additional detail on the contract renewal
on its third quarter earnings conference call scheduled for November
2, 2006.

   About Dendrite

   Founded in 1986, Dendrite International (NASDAQ: DRTE) enables
sales, marketing, clinical and compliance solutions for the global,
pharmaceutical industry. The Company's clients are located in more
than 50 countries and include the world's top 20 pharmaceutical
companies. For more information, please visit www.dendrite.com.

   FORWARD LOOKING INFORMATION: This document contains
forward-looking statements that may be identified by such
forward-looking terminology as "expect," "believe," "anticipate,"
"will," "intend," "plan," "target," "outlook," "guidance," and similar
statements or variations. Such forward-looking statements are based on
our current expectations, estimates, assumptions and projections and
involve significant risks and uncertainties, including risks which may
result from our dependence on the pharmaceutical industry; our ability
to achieve additional cost reductions, further expansion into
complementary businesses and further expansion of existing business
services; fluctuations in quarterly revenues due to lengthy sales and
implementation cycles for our products; our fixed expenses in relation
to fluctuating revenues and variations in customers' budget cycles;
dependence on certain major customers; changes in demand for our
products and services attributable to any weakness experienced in the
economy or mergers, acquisitions and consolidations in the
pharmaceutical industry; successful and timely development and
introduction of new products and versions; risks associated with
foreign currency fluctuations as they affect our non-U.S. operations;
increased competition; risks associated with our expanded
international operations and our ability to adopt and respond
successfully to the unique risks involved in our non-U.S. operations;
risks associated with acquisitions; the ability of our third party
vendors to respond to technological change; any difference between
estimated and actual stock option expense; less favorable than
anticipated results from strategic relationships or acquisitions;
dependence of data solutions on strategic relationships; events which
may affect the U.S. and world economies; and catastrophic events which
could negatively affect our information technology infrastructure.
Other important factors that should be reviewed and carefully
considered are included in the Company's 10-K under "Factors That May
Affect Future Results" and its 10-Qs and other reports filed with the
SEC. Actual results may differ materially. The Company assumes no
obligation for updating any such forward-looking statements to reflect
actual results, changes in expectations or assumptions or other
changes affecting such forward-looking statements, even if such
results or changes make it clear that any such projected results will
not be achieved. Any outlook and other forward-looking information is
as of the date of this release only. At any such time in the future as
the Company may provide revenue, earnings and other outlook
information, prior related outlook should no longer be considered
current. Our outlook and other forward-looking information does not
take into account or reflect any possible future acquisitions,
dispositions or similar transactions which may occur.