Bergen Brunswig announces performance- based agreement with Northwestern Medical Corp.; contract validates Bergen's advance toward true one-stop shop.

ORANGE, Calif.--(BW HealthWire)--April 16, 1997--Bergen Brunswig Corporation (NYSE:BBC) announced today a comprehensive performance- based agreement with Northwestern Medical Corp., the Chicago-based parent of prestigious Northwestern Memorial Hospital and other medical facilities.

Northwestern Memorial Hospital is the primary teaching hospital for Northwestern University Medical School and one of the nation's pre-eminent medical centers.

The five-year agreement, expected to generate more than $200 million in revenues for Bergen Brunswig over the life of the contract, will provide for integrated distribution of pharmaceutical and medical-surgical supplies through the company's IntePlex(tm) subsidiary.

"This is one of the most fully integrated distribution models in the United States today," said Bill Elliott, president of Bergen Brunswig Medical Corporation and president of IntePlex. "It advances Bergen's one-stop-shop offering to all points in the continuum of care and gives us the opportunity to reduce costs throughout the supply chain for a valued and long-standing customer."

According to Donald R. Roden, president and chief executive officer of Bergen Brunswig Corporation, the joint offering demonstrates the effectiveness of the company's Office of the President in supporting the one-stop-shop goal.

"This attests to the synergies of our medical and drug companies in working together to present the combined offering," Roden said. "It is also further evidence of our continuing growth in the Midwest market."

With this performance-based agreement, Bergen and Northwestern have agreed to specific cost savings targets and a combination of guarantees and shared savings agreements. Bergen will also place two facilitators on-site at Northwestern Memorial Hospital to direct material management programs and to help drive cost reduction efforts.

"This is an example of true partnership to reduce costs in the supply chain," noted Elliott, adding that Bergen will use its advanced information technology and logistics services to assure success.

"Bergen's cost-saving technologies and overall quality of service were major factors in our decision to make them our business partner," said Eugene Principi, chief financial officer of Northwestern Medical Corporation. "We are confident they can help us compete more effectively in the growing managed care environment."

Bergen Brunswig Corporation, with national distribution of both pharmaceuticals and medical-surgical supplies, serves its customer base -- chain and independent pharmacies, hospitals, HMOs, nursing homes, clinics and physician groups -- with innovative logistics management programs that help them grow efficiently, improve the cost effectiveness of their operations and further support their focus on patient/consumer care. -0-

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CONTACT: Bergen Brunswig Corp., Orange

Lisa Riordan, 800/840-5131