Bergen Brunswig Announces Sole Source Agreement With Fred's Inc.

ORANGE, Calif.--(BW HealthWire)--Dec. 10, 1999--

Partnership Will Utilize Bergen's Managed Care And Internet

Initiatives To Build Fred's E-Commerce Capabilities

Bergen Brunswig Drug Company, a subsidiary of Bergen Brunswig Corporation (NYSE:BBC), today announced an agreement under which it will serve as primary supplier to 200 pharmacies operated throughout the Southeast by Fred's, Inc.

According to John Casey, executive vice president of Fred's pharmacy division, the agreement also represents the start of a partnership through which Fred's will accelerate its e-commerce pharmaceutical activities and expand the marketing strength of its mail order and Internet pharmacy operation.

"We believe we have found in Bergen the right strategic partner to help accelerate Fred's e-commerce pharmaceutical activities," Casey said. "Their partnership with PDX, as well as their managed care, central fill and e-commerce fulfillment initiatives, are among the most far-reaching in the industry and we are confident that they will greatly expand the marketing strength of Fred's mail order and Internet pharmacy operation, National Pharmaceutical Network Inc. (NPN), and significantly enhance the offering of NPN's Pharmacy Benefits Management (PBM) services to employer groups throughout the United States."

Fred's will also fully participate in Bergen's Generic Purchasing Program (GPP)(R) as part of its strategic purchasing arrangement.

"Fred's is a very well-respected presence in the Southeast with an aggressive plan for expanding operations nationwide in the most rapidly growing segment of the industry -- the e-commerce sector," said David Neu, president, retail division, for Bergen Brunswig Drug Company. "We are delighted to welcome them into the Bergen family and look forward to a mutually beneficial relationship."

Fred's, Inc. (Nasdaq: FRED), founded in 1947, is a progressive, customer-motivated retail chain with stores in cities throughout 10 southeastern states. Headquartered in Memphis, Tennessee, the company operates 320 discount general merchandise stores including approximately 200 pharmacies.

Bergen Brunswig Corporation, headquartered in Orange County, California, is a leading supplier of pharmaceuticals, medical-surgical supplies and specialty healthcare products as well as information management solutions and consulting services. Bergen's customers include the nation's healthcare providers (hospitals, nursing homes and physicians) drug stores, manufacturers and patients.Through its subsidiaries, Bergen provides product distribution; logistics; pharmacy management programs; and Internet fulfillment strategies designed to reduce costs and improve patient outcomes across the entire healthcare spectrum.

Certain of the information set forth in this press release, such as estimates regarding future sales and the impact of programs designed to enhance customers' revenues, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those projected or implied. Such statements may be identified by the use of forward-looking language such as "may," "will," "should," "expect," "anticipate," "estimate" or "continue" or the negatives or other variations thereof or other similar terminology. Such risks and uncertainties include the risks described in exhibit 99 to the Company's Quarterly Report on Form 10Q for the quarter ended June 30, 1999 and in other reports and exhibits filed with the Securities and Exchange Commission.

Bergen Brunswig press releases are available on the company's website at www.bergenbrunswig.com.