AmeriSource and Premier Announce Strategic Agreement for Pharmaceutical Supply Management.

MALVERN, Pa. and SAN DIEGO--(BUSINESS WIRE)--Jan. 4, 1999-- Effective January 2, 1999, Premier, Inc., and AmeriSource Health Corporation formed a strategic partnership naming AmeriSource as Premier's second preferred business partner for pharmaceutical supply management to Premier hospitals and health systems across the country.

The agreement is for five years.

"AmeriSource's expertise and reputation in the institutional environment and its technologically innovative pharmaceutical management systems were preeminent factors leading to Premier's selection of AmeriSource as a preferred pharmaceutical distributor," said Lynn Detlor, president of Premier Purchasing Partners, L.P., Premier's group purchasing arm. "Another defining point was AmeriSource's straightforward and clear vision of its strategic plan and direction which focuses on its core competency of distribution. We are confident in AmeriSource's ability and commitment to provide pharmaceutical and related product distribution to our membership."

"We are very proud of this latest designation by Premier with whom we've had a relationship lasting many years," said R. David Yost, president and chief executive officer of AmeriSource. "This selection underscores our strategy of delivering outstanding locally driven service coupled with a leading edge technology offering which allows us to forward integrate into Premier member hospital information systems and dispensing technologies. This designation also underscores AmeriSource's leadership position in providing pharmaceutical supply management services to hospitals and health systems across the U.S."

Premier member hospitals will have access to a wide array of other services offered by AmeriSource, including many new compliance features in its Echo(R) and Echo(R) Plus inventory management systems. AmeriSource said these systems include complete interfaces with an extensive list of pharmacy automation and management systems, an invoice verification module designed to streamline processing, and innovative scanning technology for both ordering and receiving product. In addition, AmeriSource's pharmaceutical packaging division, American Health Packaging (AHP) also has been designated an approved supplier of pharmaceuticals to Premier member hospitals.

Premier, Inc. is the nation's largest strategic alliance of leading hospitals and healthcare systems across the country, representing 217 owners and the 800 hospitals and healthcare facilities they operate, and approximately 900 other affiliated hospital and healthcare organizations. Premier maintains major offices in Charlotte, NC, Chicago, IL, San Diego, CA and Washington DC. Total annual purchases of pharmaceutical products by Premier acute care sites are estimated at $3.5 billion. When incorporating medical-surgical purchases, that figure rises to $9 billion.

On behalf of its owner health systems, this strategic alliance enterprise engages in business activities that capitalize on the large scale of the group, provide vehicles for risk-sharing, and apply collective knowledge and experience. In addition to group purchasing services, Premier operates substantial business units providing insurance services, clinical equipment technology management, physician practice management, comparative information and databases, advocacy and policy support, and extensive consulting and performance-improvement resources for hospitals and health care. More information about Premier is available through its website at www.premierinc.com.

AmeriSource Health Corporation is a Fortune 200 company with revenues of $8.6 billion for its fiscal year ended September 30, 1998. 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 twenty pharmaceutical and three specialty products distribution facilities. For further information on AmeriSource please contact the Company on-line at www.amerisource.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 those describe in the Company's Form 10-K for its 1997 fiscal year, and Form 10-Q's for its 1998 fiscal quarters ended December 31, 1997, March 31, 1998 and June 30, 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.