AmeriSource and McKesson Terminate Merger Agreement.

MALVERN, Pa.--(BUSINESS WIRE)--Aug. 7, 1998--AmeriSource Health Corp. (NYSE:AAS) and McKesson Corp. (NYSE:MCK) announced Friday that the two companies have terminated their previously announced merger agreement.

"Although we are disappointed with the federal court's decision not to allow this synergistic deal to be executed, we respect Judge Sporkin's opinion. Given our size, we feel AmeriSource is in an excellent position to participate in the continuing consolidation in the drug distribution industry in an effort to drive costs out of the system. Since the operating economies of the drug wholesale business are at the distribution center level, AmeriSource is in an excellent position to compete over the long term," said R. David Yost, president and chief executive officer.

"We are very excited about our future as a stand alone company. We have posted 14 consecutive quarters of EPS growth of 20% or higher and our disciplined asset management continues to deliver strong return on committed capital.

"We are embarking on several new initiatives that will allow us to enhance our national presence, expand our value-added services and continue to improve our demonstrated low cost operating model.

"The delivery of healthcare is local and our decentralized management style puts our resources close to the customer, delivering customer value every day. The prospects for AmeriSource have never been brighter."

David M. Flowers, executive vice president Sales and Marketing stated, "The AmeriSource salesforce has emerged from this eleven month process totally intact and with renewed energy and commitment.

"The Company's offering of value-added services sets the industry standard on many fronts. We expect to announce several new accounts in the near future as we align ourselves with quality, long-term customers that share our philosophy of driving costs out of the system, while improving the quality of care."

AmeriSource Health Corp. is a Fortune 200 company with revenues of $7.8 billion for its fiscal year ended Sept. 30, 1997. The Company is the fourth largest distributor of pharmaceuticals and related health care products and services, and the third largest pharmaceutical prime vendor to the institutional and managed care markets in the United States.

The Company serves customers nationwide from nineteen pharmaceutical and three specialty products distribution facilities. For further information on AmeriSource please contact the Company on- line at www.amerisrc.com.

Certain information contained in this press release includes forward-looking statements (as defined in Section 27A of the Securities Act and Section 21E of the Exchange Act) that reflect the Company's current views with respect to future events and financial performance.

Certain factors such as changes in competitive pressures, success of strategic initiatives, continued industry consolidation, customer mix and other matters contained in the Company's Form 10-K for its 1997 fiscal year, and Form 10-Q's for its 1998 fiscal year quarters ended Dec. 31, 1997 and March 31, 1998 and other public documents could cause actual results to differ materially from those in the forward-looking statements.

The Company assumes no obligation to update the matters discussed in this press release.

CONTACT: AmeriSource

Meg Grady, Investor Relations, 610/296-4480