PHCC Priority Healthcare b (MM)

Priority Healthcare Corporation Enters Into Agreement to Acquire the Specialty Infusion Pharmacy and Medical Management Operations of SpectraCare, Inc. LAKE MARY, Fla., May 31 /PRNewswire-FirstCall/ -- Priority Healthcare Corporation (NASDAQ:PHCC) announced today that it has entered into a definitive agreement to acquire 100 percent of the outstanding stock of SpectraCare, Inc., a specialty infusion pharmacy with six branch pharmacies in four states. The transaction is expected to close within 30 days, subject to the satisfaction of various closing conditions. The transaction includes SpectraCare's specialty infusion operations and its medical management component, Care Continuum. SpectraCare's headquarters are in Louisville, Kentucky and will be combined into Priority Healthcare's Integrity Healthcare operations, also headquartered in Louisville. The acquisition does not include SpectraCare's home healthcare operations. "SpectraCare has an outstanding reputation for quality patient care and is a great addition for Priority Healthcare," said Steve Cosler, President and Chief Executive Officer of Priority Healthcare. "This in-market transaction will be integrated into our Integrity Healthcare operations and increases our presence in several key geographies. We continue to broaden our capabilities to provide and support high-touch therapies by establishing a larger presence with our pharmacy and clinical services. This acquisition leverages current opportunities while also continuing to position us well for the significant number of new drugs in the biotech pipeline requiring infusion support. In addition, with the acquisition of SpectraCare's medical management business, we are executing our strategic plan of providing a broader array of services to our customers." Francis "Chip" McNamara, Senior Vice President of Priority Healthcare and General Manager of Integrity Healthcare stated "we are very excited about merging SpectraCare into our operation. We have been operating in the same markets for 10 years and have great respect for their people and the level of service they provide. This acquisition will allow us to increase our capacity with improved operating efficiency." "The SpectraCare businesses that Priority will acquire generated revenues during the last year of approximately $32 million, added Steve Saft, Chief Financial Officer of Priority Healthcare. "The acquisition price is consistent with our historical valuations and the transaction should be accretive to EPS in the fourth quarter of 2005." About SpectraCare, Inc. SpectraCare, Inc. is a specialty infusion company with a medical management component headquartered in Louisville, Kentucky. Since its inception in 1988 it has grown from a single location in Louisville to six pharmacies in four states. SpectraCare offers full specialty infusion services with its pharmacies and network management on an administrative fee-for-services basis for managed care organizations under the name Care Continuum. About Integrity Healthcare Services Integrity Healthcare Services is the specialty infusion business of Priority Healthcare, headquartered in Louisville, KY. It operates 29 branches in 18 states. Integrity Healthcare provides comprehensive programs for patients, payors, and physicians across a number of disease states and conditions including cancer, growth deficiency, hepatitis C, RSV, infections, nutrition deficiency, autoimmune diseases, neurological disorders, and respiratory and cardiac conditions. About Priority Healthcare Corporation Priority Healthcare is the premier healthcare services company providing innovative, high quality and cost-effective solutions that enhance quality of life. As a national specialty pharmacy and distributor, Priority Healthcare provides biopharmaceuticals, complex therapies, related disease treatment programs and a portfolio of other service offerings for patients, payors, physicians and pharmaceutical manufacturers. The growing number of specialty areas serviced by Priority Healthcare include: oncology, gastroenterology, reproductive endocrinology, neurology, hematology, pulmonology, ophthalmology, rheumatology, endocrinology, infectious disease and nephrology, as well as ambulatory surgery centers. Additional information regarding Priority Healthcare is available online at http://www.priorityhealthcare.com/. Certain statements included in this press release, which are not historical facts, are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our expectations or beliefs and involve certain risks and uncertainties, including those described in our public filings with the United States Securities and Exchange Commission; also including, but not limited to, changes in interest rates, competitive pressures, changes in customer mix, changes in third party reimbursement rates, financial stability of major customers, changes in government regulations or the interpretation of these regulations, changes in supplier relationships, growth opportunities, cost savings, revenue enhancements, synergies and other benefits anticipated from acquisition transactions, difficulties relative to integrating acquired businesses, the accounting and tax treatment of acquisitions, and asserted and unasserted claims, which could cause actual results to differ from those in the forward-looking statements. The forward-looking statements by their nature involve substantial risks and uncertainties, certain of which are beyond our control, and actual results may differ materially depending on a variety of important factors. You are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date herein. http://www.newscom.com/cgi-bin/prnh/20030417/PHCLOGO http://photoarchive.ap.org/ DATASOURCE: Priority Healthcare Corporation CONTACT: Stephen Saft, Chief Financial Officer of Priority Healthcare Corporation, +1-407-804-6700 Web site: http://www.priorityhealthcare.com/

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