Simulations Plus, Inc. (NASDAQ:SLP – News), a leading provider of simulation and modeling software for pharmaceutical discovery and development, announced today that its board of directors has approved an extension of its share repurchase program through December 1, 2009.

Ms. Momoko Beran, chief financial officer of Simulations Plus, said: “Originally, the board of directors authorized a share repurchase program enabling the buyback of up to $2.5 million in shares during a 12-month period beginning Monday, October 27, 2008. The actual buyback, however, was not initiated until December 2, 2008. Thus, the board of directors has approved its extension through December 1, 2009, to provide a full trading year. Repurchases may be made in the open market, through a broker, or through privately negotiated transactions, subject to market conditions, applicable legal requirements, and other factors. Simulations Plus has no obligation to repurchase shares under the repurchase program, and the timing, actual number, and price of shares to be purchased will depend on the performance of Simulations Plus’ stock price, general market conditions, and various other factors. Such purchases, if any, will be made in accordance with applicable insider trading and other securities laws and regulations within the discretion of management. As of the close of the market on August 20, 2009, the company had repurchased 799,161 shares at an average price of $1.23. Thus, in nearly 8 months, we have only used less than 40% of our allocated funds for repurchase due to the limitations imposed by the SEC Safe Harbor rules for buybacks, hence the extension through December 1, 2009.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “At this time, the board believes that the undervaluation of our stock has continued, and our accumulation of cash has continued in spite of the shares that have already been bought back, and that continuing to use some of our cash for this purpose is warranted, subject to management’s discretion and market conditions, as described by Ms. Beran. This extension is not expected to interfere with potential acquisitions or with meeting operating requirements, which the board believes are of utmost priority.”