Accredo Health Announces Second Early Release Of Lockup Restrictions.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 21, 1999--

Accredo Health, Incorporated (Nasdaq: ACDO) today announced that Hambrecht & Quist LLC (H&Q), on behalf of the underwriters of the Company's recent initial public offering of common stock has concluded that, due to favorable market conditions for the Company's stock, it will allow the early release of additional shares subject to a 180 day lockup restriction.

Accredo Health, Incorporated's initial public offering of common stock was effective on April 15, 1999. In connection with the offering, certain shareholders of the Company, including the majority shareholder, Welsh, Carson, Anderson & Stowe, VII, L.P., agreed, pursuant to the terms of a lockup agreement with Hambrecht & Quist, LLC as representative of the underwriters of the offering, not to sell their shares until 180 days from the effective date of the offering.

A total of 9,144,887 ACDO shares are outstanding, of which 5,627,087 shares were subject to the lockup agreements. H&Q previously released approximately 30 percent of the shares held by restricted shareholders from the lockup restrictions effective July 16, 1999. An additional 30 percent of the shares held by restricted shareholders are now being released from the lockup restrictions effective September 20, 1999. The remaining shares subject to the lockup will be released October 14, 1999.

In addition, 1,529,700 shares of registered Accredo common stock have been reserved for future stock awards under stock plans and for issuance upon the exercise of outstanding awards. Options to purchase 860,683 of these registered shares have been granted and not yet exercised. These shares are freely tradeable upon exercise, except to the extent that the holders are deemed to be affiliates of Accredo, in which case the transferability of such shares will be subject to the volume limitations of Rule 144, and except to the extent that the holders remain subject to lock-up restrictions.

Accredo Health, Incorporated provides specialized contract pharmacy and related services pursuant to agreements with biotechnology 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.

This press release contains forward-looking statements that involve various risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements due to certain factors, including without limitation, business and economic conditions. These and other risks and uncertainties are detailed in the Company's reports filed with the Securities and Exchange Commission.