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• 13.8% consolidated service revenue growth - Integrated Healthcare Services segment grew service revenues by 32.6% compared to the third quarter of 2013
• Consolidated book-to-bill ratio of 1.42 results from 12.8% growth in net new business compared to the third quarter of 2013
• Third quarter diluted adjusted EPS increased 22.6% to $0.65 per share compared to the third quarter of 2013
• Third quarter GAAP reported diluted EPS increased 42.0% to $0.71 per share compared to the third quarter of 2013
• Adjusted full year 2014 service revenue guidance of $4.16 billion - $4.19 billion and increased diluted adjusted EPS guidance to $2.61 - $2.68 per share, representing diluted adjusted EPS growth of 26.7% to 30.1% compared to full year 2013

Quintiles Transnational Holdings Inc. (“Quintiles” or the “Company”) (NYSE: Q) today reported its financial results for the third quarter ended September 30, 2014.

For the three months ended September 30, 2014, the Company’s service revenues were $1.06 billion which represents growth of 13.8%, or $128.3 million compared to the same period last year at actual foreign exchange rates. The Company’s growth in service revenues, excluding the impact of foreign currency fluctuations (“constant currency”), was 14.0% with 7.9% growth in the Product Development segment and 33.9% growth in the Integrated Healthcare Services segment.

Adjusted income from operations was $150.9 million in the third quarter of 2014, representing growth of 13.9% compared to the same period last year. The adjusted income from operations margin was 14.2%, which is consistent with the same period last year. Adjusted net income was $85.0 million in the third quarter of 2014, representing growth of 20.2% compared to the same period last year. Diluted adjusted earnings per share was $0.65 in the quarter ended September 30, 2014, representing growth of 22.6% compared to the same period last year.

Reported GAAP income from operations was $149.1 million, reported GAAP net income was $92.7 million and reported GAAP diluted earnings per share was $0.71 for the three months ended September 30, 2014. Reconciliations of the non-GAAP measures, including adjusted income from operations, adjusted net income and diluted adjusted earnings per share to the corresponding GAAP measures are attached to this press release.

Net new business grew 12.8% compared to the same period last year to $1.51 billion representing a book-to-bill ratio of 1.42 in the quarter ended September 30, 2014. This net new business contributed to an ending backlog of $10.75 billion at September 30, 2014.

“Quintiles is a story of consistent performance with a focus on industry leadership, and I am proud to report that this story continued in the third quarter of 2014,” said Chief Executive Officer Tom Pike. “For the third quarter, our consolidated revenue increased by 13.8% compared to the same period last year.”

“Further, I am pleased to report that net new business, revenues, and EPS for the third-quarter grew at double-digit rates,” Pike said. “We finished the quarter with revenue growth of 32.6% in our IHS segment, showcasing significant progress. The third quarter net new business allowed Quintiles to keep its industry-leading backlog of $10.75 billion. Our strong performance continues to strengthen our platform which allows us to capitalize on strategic priorities and create value for our customers and investors,” Pike explained.

The Product Development segment net new business totaled $1.27 billion in the quarter ended September 30, 2014 which translates to a book-to-bill ratio of 1.64. The net new business increased 47% compared to the same period in 2013, led by the five-year renewal of a significant contract in our clinical and data management functional resourcing services businesses. Product Development’s service revenues grew 8.0% compared to the same period last year to $771.4 million at actual foreign exchange rates. At constant currency exchange rates, Product Development’s service revenues grew 7.9%, or $56.3 million during the third quarter of 2014 compared to the same period last year. The service revenue growth resulted from volume-related increases in global laboratory services, clinical trial support services, services provided on a functional resource basis and from the Novella acquisition in 2013, partially offset by the conclusion of a large clinical solutions project which was delivered throughout 2013. Product Development’s income from operations margin was 20.5% for the third quarter, representing an improvement of 80 basis points compared to the same period last year, including 30 basis points from favorable currency fluctuations.

The Integrated Healthcare Services segment net new business totaled $244 million which translates to a book-to-bill ratio of .84 for the quarter ended September 30, 2014. At actual foreign exchange rates, Integrated Healthcare Services’ service revenues increased 32.6%, or $71.1 million, during the third quarter of 2014 compared to the same period last year to $289.6 million including $19.2 million from the Encore acquisition, partially offset by $2.8 million of unfavorable foreign currency impacts. On a constant currency basis, Integrated Healthcare Services’ service revenues increased 33.9% during the third quarter of 2014 compared to the same period last year, primarily due to increases in commercial solutions in Japan and North America as well as growth in real-world and late phase research services partially offset by a decline in commercial solutions in Europe. Integrated Healthcare Services’ income from operations margin was 6.9% for the third quarter, representing an improvement of 160 basis points compared to the same period last year, including unfavorable currency fluctuations of 30 basis points.

General corporate and unallocated expenses were $27.2 million during the quarter ended September 30, 2014 compared to $19.8 million for the same period last year.

Interest expense was $25.1 million during the quarter ended September 30, 2014 compared to $28.8 million for the same period last year. Interest expense was lower than the same period in 2013 due to a decrease in the average rate of interest.

Other income, net was $7.8 million during the quarter ended September 30, 2014 compared to $3.2 million of net expenses for the same period last year. Other income, net was higher than the same period in 2013 due to a change in fair value of contingent consideration payable for an acquisition, partially offset by other expenses.

The GAAP effective income tax rate was 31.1% for the quarter ended September 30, 2014 compared to 29.1% for the same period in 2013 as a higher percentage of income was delivered in the United States during the current period compared to the same period last year.

For the nine months ended September 30, 2014, the Company’s constant currency service revenue growth was 10.3%, or $289.7 million as compared to the same period in 2013. At actual foreign exchange rates, the Company’s service revenues of $3.1 billion for the nine months ended September 30, 2014, grew 10.6% compared to the same period in 2013 which included a positive foreign currency impact of $7.7 million. Adjusted income from operations for the nine months ended September 30, 2014 was $435.2 million representing growth of 16.1% compared to the same period in 2013. Adjusted income from operations margin was 14.0% representing 60 basis points of margin expansion compared to the same period last year of which 50 basis points was from favorable currency fluctuations. Adjusted net income was $261.6 million for the nine months ended September 30, 2014 representing growth of 36.9% compared to the same period last year. Diluted adjusted earnings per share was $1.98 for the nine months ended September 30, 2014 representing growth of 31.1% compared to the same period last year. Reported GAAP income from operations was $431.5 million, reported GAAP net income was $268.0 million and reported GAAP diluted earnings per share was $2.03 for the nine months ended September 30, 2014.

Financial Guidance

Prior guidance was based on foreign currency exchange rates at June 30, 2014. Because of significant changes in foreign currency exchange rates occurring after that date, 2014 service revenues are estimated to be approximately $40.0 million less than prior guidance, of which the third quarter was negatively impacted by approximately $10.0 million. The Company has adjusted its full year 2014 guidance, which includes service revenues estimated to be between $4.16 billion and $4.19 billion, representing growth of 9.2% to 10.0% compared to 2013, and raised diluted adjusted earnings per share to $2.61 to $2.68 per share representing growth of 26.7% to 30.1% compared to 2013, with diluted GAAP earnings per share between $2.61 and $2.68 per share. The annual effective income tax rate is estimated to be approximately 30%. This financial guidance is based on the actual results for the nine month period ended September 30, 2014 combined with our estimates for the remaining three months of 2014, assuming the foreign currency exchange rates at September 30, 2014 stay in effect for the remainder of the year, and does not reflect the impact of any future equity repurchases.

During the third quarter of 2014, the Company began excluding changes from adjustments to estimated contingent consideration from business combinations from adjusted net income and diluted adjusted earnings per share. All periods presented in the tables accompanying this press release have been adjusted to reflect this change.

Webcast & Conference Call Details

Quintiles will host a conference call at 8:00 a.m. EDT today to discuss its third quarter 2014 financial results. To participate, please dial +1 (855) 484-7367 or +1 (631) 259-7541 outside the United States approximately 15 minutes before the scheduled start of the call. The conference call will also be accessible, live via webcast, on the Investors section of the Quintiles website at www.quintiles.com/investors. An archived replay of the conference call will be available online at www.quintiles.com/investors after 1:00 p.m. EDT today.

About Quintiles

Quintiles (NYSE: Q), a Fortune 500 company, is the world’s largest provider of biopharmaceutical development and commercial outsourcing services.  With a network of more than 32,000 employees conducting business in approximately 100 countries, we helped develop or commercialize all of 2013’s top-100 best-selling drugs on the market. Quintiles applies the breadth and depth of our service offerings along with extensive therapeutic, scientific and analytics expertise to help our customers navigate an increasingly complex healthcare environment as they seek to improve efficiency and effectiveness in the delivery of better healthcare outcomes.  To learn more about Quintiles, please visit www.quintiles.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements reflect, among other things, the Company’s current expectations and anticipated results of operations, all of which are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, market trends or industry results to differ materially from those expressed or implied by such forward-looking statements. Therefore, any statements contained herein that are not statements of historical fact may be forward-looking statements and should be evaluated as such. Without limiting the foregoing, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “guidance,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. Actual results may differ materially from the Company’s expectations due to a number of factors, including that most of the Company’s contracts may be terminated on short notice, and that the Company may be unable to maintain large customer contracts or to enter into new contracts; the Company may under-price its contracts, overrun its cost estimates, or fail to receive approval for or experience delays in documenting change orders; the historical indications of the relationship of backlog to revenues may not be indicative of their future relationship; the Company may be unable to maintain information systems or effectively update them; customer or therapeutic concentration could harm the Company’s business; the Company’s business is subject to risks associated with international operations, including economic, political and other risks such as compliance with a myriad of laws and regulations, complications from conducting clinical trials in multiple countries simultaneously and changes in exchange rates; the market for the Company’s services may not grow as the Company expects; government regulators or customers may limit the scope of prescription or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; the Company may be unable to successfully develop and market new services or enter new markets; the Company’s failure to perform services in accordance with contractual requirements, regulatory standards and ethical considerations may subject it to significant costs or liability, damage its reputation and cause it to lose existing business or not receive new business; the Company’s services are related to treatment of human patients, and it could face liability if a patient is harmed; the Company’s effective income tax rate may fluctuate, which may adversely affect our operations, earnings and earnings per share; the Company may be unable to successfully identify, acquire and integrate businesses, services and technologies; and the Company has substantial indebtedness and may incur additional indebtedness in the future, which could adversely affect the Company’s financial condition. For a further discussion of the risks relating to the Company’s business, see the “Risk Factors” in Quintiles’ annual report on Form 10-K for the fiscal year ended December 31, 2013, filed with the SEC on February 13, 2014, as such factors may be amended or updated from time to time in Quintiles’ periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Quintiles’ filings with the SEC. The Company assumes no obligation to update any such forward-looking statement after the date of this release, whether as a result of new information, future developments or otherwise.

Use of Non-GAAP Financial Measures

This press release includes adjusted EBITDA, adjusted income from operations, adjusted income from operations margin, adjusted net income and diluted adjusted earnings per share, each of which is a financial measure not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Management believes that these non-GAAP measures provide useful supplemental information to management and investors regarding the underlying performance of the Company’s business operations and are more indicative of core operating results as they exclude certain items whose fluctuations from period-to-period do not necessarily correspond to changes in the core operations of the business. These non-GAAP measures are performance measures only and are not measures of the Company’s cash flows or liquidity, nor are they alternatives for measures of financial performance prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. Investors and potential investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures attached to this press release.

Internet Posting of Information: The Company routinely posts information that may be important to investors in the 'Investors' section of the Company’s website at www.Quintiles.com. The Company encourages investors and potential investors to consult the Company’s website regularly for important information about the Company.

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QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)         Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013   Service revenues $ 1,061,013 $ 932,727 $ 3,101,777 $ 2,804,400 Reimbursed expenses   339,021     263,112     947,133     915,960   Total revenues 1,400,034 1,195,839 4,048,910 3,720,360 Costs of revenue, service costs 691,051 600,694 2,009,287 1,829,469 Costs of revenue, reimbursed expenses 339,021 263,112 947,133 915,960 Selling, general and administrative 219,027 199,573 657,283 627,713 Restructuring costs   1,793     7,201     3,749     11,897   Income from operations 149,142 125,259 431,458 335,321 Interest income (602 ) (1,119 ) (2,851 ) (2,356 ) Interest expense 25,050 28,756 74,552 96,682 Loss on extinguishment of debt — — — 16,543 Other (income) expense, net   (7,776 )   3,224     (9,564 )   1,378   Income before income taxes and equity in earnings (losses) of unconsolidated affiliates 132,470 94,398 369,321 223,074 Income tax expense   41,260     27,459     111,049     68,407   Income before equity in earnings (losses) of unconsolidated affiliates 91,210 66,939 258,272 154,667 Equity in earnings (losses) of unconsolidated affiliates   1,523     (355 )   9,785     (1,574 ) Net income 92,733 66,584 268,057 153,093 Net (income) loss attributable to noncontrolling interests   (79 )   185     (100 )   502   Net income attributable to Quintiles Transnational Holdings Inc. $ 92,654   $ 66,769   $ 267,957   $ 153,595     Earnings per share attributable to common shareholders: Basic $ 0.73 $ 0.52 $ 2.08 $ 1.25 Diluted $ 0.71 $ 0.50 $ 2.03 $ 1.22 Weighted average common shares outstanding: Basic 127,462 128,923 128,780 122,467 Diluted 130,626 133,267 131,903 126,195     QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data)   September 30, December 31, 2014 2013 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 645,034 $ 778,143 Restricted cash 3,519 2,712 Trade accounts receivable and unbilled services, net 1,032,553 924,205 Prepaid expenses 51,534 42,801 Deferred income taxes 94,175 92,115 Income taxes receivable 17,394 16,171 Other current assets and receivables   94,394     89,541   Total current assets   1,938,603     1,945,688   Property and equipment, net 190,863 199,578 Investments in debt, equity and other securities 33,723 40,349 Investments in and advances to unconsolidated affiliates 34,737 22,927 Goodwill 468,620 409,626 Other identifiable intangibles, net 288,266 298,054 Deferred income taxes 31,278 32,864 Deposits and other assets   120,625     117,711   Total assets $ 3,106,715   $ 3,066,797     LIABILITIES AND SHAREHOLDERS’ DEFICIT Current liabilities: Accounts payable and accrued expenses $ 830,388 $ 861,805 Unearned income 526,000 538,585 Income taxes payable 19,219 35,778 Current portion of long-term debt and obligations held under capital leases 20,681 10,433 Other current liabilities   30,492     35,646   Total current liabilities 1,426,780 1,482,247 Long-term debt and obligations held under capital leases, less current portion 2,022,595 2,035,586 Deferred income taxes 25,578 37,541 Other liabilities   167,994     178,908   Total liabilities   3,642,947     3,734,282   Commitments and contingencies Shareholders’ deficit: Common stock and additional paid-in capital, 300,000 shares authorized, $0.01 par value, 127,696 and 129,652 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively 368,010 478,144 Accumulated deficit (877,224 ) (1,145,181 ) Accumulated other comprehensive loss   (27,045 )   (376 ) Deficit attributable to Quintiles Transnational Holdings Inc.’s shareholders (536,259 ) (667,413 ) Deficit attributable to noncontrolling interests   27     (72 ) Total shareholders’ deficit   (536,232 )   (667,485 ) Total liabilities and shareholders’ deficit $ 3,106,715   $ 3,066,797       QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)   Nine Months Ended September 30, 2014 2013 Operating activities: Net income $ 268,057 $ 153,093 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 89,113 76,950 Amortization of debt issuance costs and discount 4,787 16,944 Share-based compensation 22,388 16,960 (Earnings) loss from unconsolidated affiliates (9,763 ) 1,454 Gain on investments, net (4,806 ) (62 ) Benefit from deferred income taxes (11,529 ) (15,883 ) Excess income tax benefits from share-based award activities (12,802 ) (145 ) Changes in operating assets and liabilities: Change in accounts receivable, unbilled services and unearned income (118,721 ) (74,533 ) Change in other operating assets and liabilities   (50,927 )   3,133   Net cash provided by operating activities 175,797 177,911 Investing activities: Acquisition of property, equipment and software (57,782 ) (73,940 ) Acquisition of businesses, net of cash acquired (92,201 ) (144,970 ) Proceeds from sale of equity securities 5,861 60 Investments in and advances to unconsolidated affiliates, net of payments received (2,137 ) (5,944 ) Other   332     802   Net cash used in investing activities (145,927 ) (223,992 ) Financing activities: Repayment of debt and principal payments on capital lease obligations (6,729 ) (385,807 ) Issuance of common stock, net of costs (105 ) 489,560 Stock issued under employee stock purchase and option plans 23,201 364 Repurchase of common stock (165,131 ) — Payroll taxes remitted on repurchase of stock options (8,415 ) — Excess income tax benefits from share-based award activities   12,802     145   Net cash (used in) provided by financing activities (144,377 ) 104,262 Effect of foreign currency exchange rate changes on cash   (18,602 )   (16,199 ) (Decrease) increase in cash and cash equivalents (133,109 ) 41,982 Cash and cash equivalents at beginning of period   778,143     567,728   Cash and cash equivalents at end of period $ 645,034   $ 609,710       QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED SEGMENT OPERATIONS (in thousands) (unaudited)   Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 Service revenues Product Development $ 771,361 $ 714,244 $ 2,323,376 $ 2,144,721 Integrated Healthcare Services   289,652     218,483     778,401     659,679   Total service revenues 1,061,013 932,727 3,101,777 2,804,400   Costs of revenue, service costs Product Development 458,731 426,094 1,374,492 1,296,996 Integrated Healthcare Services   232,320     174,600     634,795     532,473   Total costs of revenue, service costs 691,051 600,694 2,009,287 1,829,469   Selling, general and administrative Product Development 154,460 147,534 471,697 438,341 Integrated Healthcare Services 37,447 32,221 103,069 96,792 General corporate and unallocated   27,120     19,818     82,517     92,580   Total selling, general and administrative 219,027 199,573 657,283 627,713   Income from operations Product Development 158,170 140,616 477,187 409,384 Integrated Healthcare Services 19,885 11,662 40,537 30,414 General corporate and unallocated (27,120 ) (19,818 ) (82,517 ) (92,580 ) Restructuring costs   (1,793 )   (7,201 )   (3,749 )   (11,897 ) Total income from operations $ 149,142   $ 125,259   $ 431,458   $ 335,321       QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (in thousands, except per share data) (unaudited)   Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013

Adjusted EBITDA

Net income attributable to Quintiles Transnational Holdings Inc. $ 92,654 $ 66,769 $ 267,957 $ 153,595 Net income (loss) attributable to noncontrolling interests 79 (185 ) 100 (502 ) Interest expense, net 24,448 27,637 71,701 94,326 Income tax expense 41,260 27,459 111,049 68,407 Depreciation and amortization 30,180 27,324 89,113 76,950 Restructuring costs 1,793 7,201 3,749 11,897 Management fees (1) — — — 27,694 Loss on extinguishment of debt — — — 16,543 Other expense (income), net (7,776 ) 3,224 (9,564 ) 1,378 Equity in (earnings) losses from unconsolidated affiliates   (1,523 )   355     (9,785 )   1,574   Adjusted EBITDA $ 181,115   $ 159,784   $ 524,320   $ 451,862    

Adjusted Income from Operations

Income from operations, as reported $ 149,142 $ 125,259 $ 431,458 $ 335,321 Restructuring costs 1,793 7,201 3,749 11,897 Management fees (1)   —     —     —     27,694   Adjusted income from operations $ 150,935   $ 132,460   $ 435,207   $ 374,912    

Adjusted Net Income

Net income attributable to Quintiles Transnational Holdings Inc. $ 92,654 $ 66,769 $ 267,957 $ 153,595 Restructuring costs 1,793 7,201 3,749 11,897 Management fees (1) — — — 27,694 Loss on extinguishment of debt — — — 16,543 Adjustment to estimated contingent consideration (2) (8,757 ) (1,224 ) (8,839 ) (1,455 ) Tax effect of adjustments (3) (705 ) (2,032 ) (1,298 ) (20,303 ) Other income tax adjustments (4)   —     —     —     3,057   Adjusted net income $ 84,985   $ 70,714   $ 261,569   $ 191,028     Diluted weighted average common shares outstanding 130,626 133,267 131,903 126,195 Diluted adjusted earnings per share $ 0.65 $ 0.53 $ 1.98 $ 1.51   (1) Management fees were previously paid to affiliates of certain of the Company’s shareholders pursuant to a management agreement. The nine month period ended September 30, 2013 includes a $25.0 million fee paid in connection with the termination of the management agreement.   (2) During the third quarter of 2014, the Company began excluding changes from adjustments to estimated contingent consideration from business combinations from adjusted net income and diluted adjusted earnings per share. Consistent with the other adjustments to adjusted net income and diluted adjusted net income per share, management believes that changes to the estimated value of contingent consideration are not indicative of its core operating results as the fluctuations from period-to-period do not necessarily correspond to changes in the core operations of the business. There was no contingent consideration impact to EPS during three months ended March 31, 2014 or June 30, 2014.   (3) The tax effect of adjustments was based on the income tax rate of the respective transactions, which was 38.5%, with the exception of i) restructuring costs which were tax effected at 39.3% and 27.5% during the three months ended September 30, 2014 and 2013, respectively, and 34.6% and 27.5% during the nine months ended September 30, 2014 and 2013, respectively and ii) contingent consideration which is not tax effected as it represents a permanent difference between book and tax income.   (4) Other income tax adjustments remove the impact of certain discrete adjustments on the Company’s income tax expense in the nine month period in 2013. The Company’s effective income tax rate in the 2013 periods was impacted by the Company’s change in assertion regarding the undistributed earnings of most of the Company’s foreign subsidiaries, which are now considered to be indefinitely reinvested outside of the United States. As a result of the assertion change, in the second quarter of 2013, the Company recorded an $8.1 million discrete income tax benefit to reverse the deferred income tax liability previously recorded on undistributed foreign earnings. In addition, in the second quarter of 2013, the Company settled certain intercompany notes that had previously been considered long term investments, which resulted in an $11.2 million discrete income tax expense.     QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Continued)

(in thousands, except per share data)

(unaudited)   Three Months Ended Year Ended March 31, June 30, September 30, December 31, December 31, 2013 2013 2013   2013 2013

Adjusted Net Income

Net income attributable to Quintiles Transnational Holdings Inc. $     48,309 $ 38,517 $ 66,769 $ 72,996 $ 226,591 Restructuring costs 1,859 2,837 7,201 2,174 14,071 Management fees (1) 1,334 26,360 — — 27,694 Loss on extinguishment of debt — 16,543 — 3,288 19,831 Adjustment to estimated contingent consideration (2) (231 ) — (1,224 ) (3,455 ) (4,910 ) Tax effect of adjustments (3) (1,183 ) (17,088 ) (2,032 ) (2,001 ) (22,304 ) Other income tax adjustments (4)       7,301     (4,244 )   —       —     3,057   Adjusted net income $     57,389   $ 62,925   $ 70,714     $ 73,002   $ 264,030     Diluted weighted average common shares outstanding 118,740 126,578 133,267 132,861 127,862 Diluted adjusted earnings per share $ 0.48 $ 0.50 $ 0.53 $ 0.55 $ 2.06   (1) Management fees were previously paid to affiliates of certain of the Company’s shareholders pursuant to a management agreement. The quarter ended June 30, 2013 and the year ended December 31, 2013 include a $25.0 million fee paid in connection with the termination of the management agreement.   (2) During the third quarter of 2014, the Company began excluding changes from adjustments to estimated contingent consideration from business combinations from adjusted net income and diluted adjusted earnings per share. Consistent with the other adjustments to adjusted net income and diluted adjusted net income per share, management believes that changes to the estimated value of contingent consideration are not indicative of its core operating results as the fluctuations from period-to-period do not necessarily correspond to changes in the core operations of the business. To conform to the current period presentation, all the periods for fiscal year 2013 in the table above reflect the inclusion of this adjustment.   (3) The tax effect of adjustments was based on the income tax rate of the respective transactions, which was 38.5%, with the exception of i) restructuring costs which were tax effected at 36.0%, 20.1%, 27.5%, 32.3% and 28.2% during the three months ended March 31, 2013, June 30, 2013, September 30, 2013, December 31, 2013 and for the year ended December 31, 2013, respectively and ii) contingent consideration which is not tax effected as it represents a permanent difference between book and tax income.   (4) Other income tax adjustments remove the impact of certain discrete adjustments on the Company’s income tax expense in 2013. The Company’s effective income tax rate in the 2013 periods was impacted by the Company’s change in assertion regarding the undistributed earnings of most of the Company’s foreign subsidiaries, which are now considered to be indefinitely reinvested outside of the United States. As a result of the assertion change, in the second quarter of 2013, the Company recorded an $8.1 million discrete income tax benefit to reverse the deferred income tax liability previously recorded on undistributed foreign earnings. In addition, in the second quarter of 2013, the Company settled certain intercompany notes that had previously been considered long term investments, which resulted in an $11.2 million discrete income tax expense.     QUINTILES TRANSNATIONAL HOLDINGS INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Continued) (in millions, except per share data) (unaudited)   Reconciliation of GAAP to Non-GAAP Full Year 2014 Guidance Adjusted Net Income Diluted Adjusted Earnings Per Share Low High Low High Net income attributable to Quintiles and diluted earnings per share $ 344 $ 354 $ 2.61 $ 2.68 Restructuring costs 13 13 0.10 0.10 Adjustment to estimated contingent consideration (9 ) (9 ) (0.07 ) (0.07 ) Tax effect of adjustments (1)   (4 )   (4 )   (0.03 )   (0.03 ) Adjusted net income and diluted adjusted earnings per share $ 344   $ 354   $ 2.61   $ 2.68     (1) Restructuring costs are tax effected at approximately 30.0%. Contingent consideration is not tax effected as it represents a permanent difference between book and tax income.

QuintilesPhil Bridges, Media Relations (phil.bridges@quintiles.com)919-998-1653 (office), 919-457-6347 (mobile)orKarl Deonanan, Investor Relations (InvestorRelations@quintiles.com)919-998-2789