Acquisition of Industry-Leading Pharmacy System Further Strengthens McKessonHBOC Medication Management Solution.

Business Editors/Health Writers

ATLANTA--(BUSINESS WIRE)--Sept. 25, 2000

McKessonHBOC Information Technology Business to Acquire

Health Care System Inc.'s MED-Solution Pharmacy Line

In a move to further strengthen its medication management strategy, the Information Technology Business of McKesson HBOC, Inc. (McKessonHBOC)(NYSE: MCK) signed a definitive agreement to acquire the MED-Solution pharmacy information product line of Health Care Systems, Inc. (HCSI), a privately held company based in Montgomery, Ala.

HCSI's MED-Solution system will be known as Pathways Meds Manager, and fills a niche in McKessonHBOC's strategy to help caregivers reduce the incidence of adverse drug events (ADEs). Reducing ADEs continues to be a critical healthcare issue, as cited by the 1999 Institute of Medicine report, To Err is Human: Building a Safer Health System.

"Finding IT solutions to help their caregivers prevent medication errors is a great concern for our customers," said Graham King, president of McKessonHBOC's Information Technology Business. "McKessonHBOC is committed to improving patient safety by providing a world-class medication management solution. Pathways Meds Manager further strengthens our solution set and helps caregivers 'close the medication loop.' "

Through Automated Healthcare, Health Systems Group and the Information Technology Business, McKessonHBOC is the only company in the healthcare industry that provides automation and IT solutions at every point of the medication process: ordering, filling, dispensing and administration. McKessonHBOC's point-of-care clinical systems are used by more than 150 healthcare organizations, while more than 650 organizations nationwide operate its automatic drug dispensing devices in either the central pharmacy or patient care areas. Now, Pathways Meds Manager adds to this strength with 55 systems in use. McKessonHBOC's total solution for automated medication management helps providers ensure that the "five rights" of medication management occur: right medication, right patient, right time, right dose and right route. Organizations using McKessonHBOC medication management solutions have reported significant decreases in medication errors and improved caregiver decision-making and productivity.

Pathways Meds Manager will also play a key role in McKessonHBOC's clinical solution suite. "Pathways Meds Manager is a natural fit for our Pathways 2000(R) client/server systems and our HorizonWP(TM) Internet offerings, especially the HorizonWP Physician Portal," King said. "It is a strategic addition to our clinical IT solution, which we have been steadily enhancing to give physicians and clinicians easy access to information whenever and wherever it's needed."

Under terms of the agreement, HCSI president Dwight Henderson and all other personnel associated with sales, installation, development and support of the former MED-Solution will become part of McKessonHBOC's Atlanta-based Information Technology Business unit, but will remain in Montgomery, Ala. Health Care Systems, Inc., will continue to support and enhance its MEDICS system and will also serve as distributor for those customers that want to upgrade.

"By aligning with the No. 1 vendor of healthcare information systems, we will be able to propel Pathways Meds Manager to the next level of information technology," said Henderson. "This is a natural fit for McKessonHBOC's medication management solution, and we're excited about our ability to work with the established market leader in helping healthcare organizations to improve patient safety."

Pathways Meds Manager is a Windows(R)-based system that integrates with most information systems and automated dispensing devices. It features quick, efficient order entry, advanced clinical screening, simplified dispensing, and clinical documentation and supports an organization's enterprisewide pharmacy needs for all care settings.

"Pathways Meds Manager has been rated as the No. 1 pharmacy system by customers and industry consultant Klas Enterprises for performance, value, customer service and technology," said Barry Chaiken, M.D., McKessonHBOC vice president of clinical marketing.

McKesson HBOC, Inc., a Fortune 40 corporation, is the world's largest pharmaceutical supply management and healthcare information technology company. McKesson HBOC, Inc., provides pharmaceutical supply management and information technologies across the entire continuum of healthcare, including market-leading businesses in pharmaceutical and medical-surgical distribution, information technology for healthcare providers, services for payors and outsourcing. McKessonHBOC is the only single-source provider of automated and information technologies to help healthcare organizations reduce the rate of ADEs. Using these solutions, McKessonHBOC customers report significant positive impact to their medication management programs. More information about McKesson HBOC, Inc. is available at the company's Web site at www.mckhboc.com.

McKessonHBOC's Information Technology Business solutions include enterprisewide patient care, clinical, financial and strategic management software solutions, as well as Internet-based and networking technologies, electronic commerce, outsourcing and other services to healthcare organizations throughout the world. For product information, call 1-800-981-8601 or visit the Web site at www.hboc.com.