Accredo Health Acquires Pharmacare Resources, Inc.

Business Editors, Health & Medical Writers

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 4, 2001

Accredo Health, Incorporated (NASDAQ:ACDO) announced today that it had acquired 100% of the outstanding stock of privately-held Pharmacare Resources, Inc. and its sister company, NCL Management, Inc. Pharmacare is a leading provider of pharmaceutical care for certain chronic, long-term patient populations, including those requiring intravenous immunoglobulin ("IVIG"). Pharmacare serves patients in the tri-state area of New York, New Jersey and Connecticut from its headquarters and pharmacy location in Elmsford, New York. Maritza Yamin and Nicole Ward, the founders of Pharmacare, will continue in their present capacity to operate and lead Pharmacare's growth and expansion.

Accredo Health is already engaged in the IVIG business primarily through its subsidiary Sunrise Health Management, Inc. Located in Norcross, Georgia, Sunrise was acquired in December 1999.

"Pharmacare had revenues of approximately $12.6 million in calendar year 2000, and we expect this acquisition to be immediately accretive to Accredo Health's earnings," said Accredo Health Chairman and CEO David D. Stevens. "We are excited to add Pharmacare's management expertise and regional reputation to our IVIG platform. This acquisition follows our strategy of purchasing strong regional providers as we further penetrate the national IVIG market."

IVIG is a plasma-derived product, manufactured from a source of pooled human plasma containing concentrated dosages of disease-fighting antibodies normally present in human plasma. This manufactured immunoglobulin contains a wide variety of antibodies from thousands of donors, which is prescribed for adults and children whose immune systems cannot function sufficiently to fight disease. IVIG therapy is administered to patients with various types of immunodeficient conditions, most commonly to patients with primary immune deficiencies or autoimmune disorders. Patients receiving IVIG therapy for primary immune deficiencies usually receive the therapy for life. Patients receiving IVIG therapy for autoimmune disorders receive the therapy intermittently over a period of months, depending on their condition.

Accredo Health, Incorporated, and its two wholly-owned subsidiaries, Hemophilia Health Services, Inc. and Nova Factor, Inc., provide specialized contract pharmacy and related services pursuant to agreements with biotech drug manufacturers relating to the treatment of patients with certain costly, chronic diseases. The Company's services include collection of timely drug utilization and patient compliance information, patient education and monitoring through the use of written materials and telephonic consultation, reimbursement expertise and overnight drug delivery.

In addition to historical information, certain of the statements in the preceding paragraphs, particularly those anticipating future financial performance, business prospects and growth and operating strategies constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as anticipate, believe, estimate, expect, intend, predict, hope or similar expressions. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, the loss of a biopharmaceutical relationship, our inability to sell existing products, the impact of pharmaceutical industry regulation, the difficulty of predicting FDA and other regulatory authority approvals, the regulatory environment and changes in healthcare policies and structure, acceptance and demand for new pharmaceutical products and new therapies, the impact of competitive products and pricing, the ability to obtain products from suppliers, reliance on strategic alliances, the ability to expand through joint ventures and acquisitions, the ability to maintain pricing arrangements with suppliers that preserve margins, the need for and ability to obtain additional capital, the seasonality and variability of operating results, the Company's ability to implement its strategies and achieve its objectives and the risks and uncertainties described in reports filed by Accredo with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation, cautionary statements made in Accredo's 2000 Annual Report on Form 10-K and Accredo's latest quarterly report on Form 10-Q under the heading "Risk Factors."