Bergen Brunswig rolls out unique asset management program designed to free up pharmacy working capital.

ORANGE, Calif.--(BUSINESS WIRE)--July 8, 1996--In an unprecedented move, Bergen Brunswig Corporation (NYSE:BBC) announced today that its drug company subsidiary will offer pharmacy customers a method to avoid investment in pharmaceutical inventory until it is dispensed and a program to relieve the pharmacists from the collection process of third-party receivables under two new customer asset management programs.

Industry research indicates that approximately 90% of a retail pharmacy's working capital is tied up in owned inventory and accounts receivable. The programs Bergen is introducing are designed to free up much of this investment.

Bergen's new initiatives, called Timed Inventory Management System (TIMS) and Timed Asset Management System (TAMS), continue to move Bergen beyond the distribution role and into the business management capacity. TIMS raises stockless distribution functionality to a new level.

Under the TIMS program, Bergen assumes responsibility for the procurement of prescription pharmaceuticals for its customers and relieves them from the ownership of inventory until the prescription is filled. On a daily basis, Bergen will receive a record of the transaction information at which time the pharmacy will be charged for the exact number of units dispensed. At the same time, notification will be sent to the local Bergen division beginning the auto-replenishment process.

Addressing the burden of third-party receivables, Bergen will offers TAMS, a sister program, which will provide for immediate payment of those third-party claims which traditionally take up to 45 days to be paid.

"As part of our new strategic direction, it is our intention to leverage our assets and expertise in a manner that affords our provider-customers more time to do what they do best -- caring for their patients," explained Donald R. Roden, President and Chief Operating Officer.

"With the TIMS and TAMS programs, we are supporting the business management of key assets fundamental to our customers' businesses so they can become more focused on those functions critical to the growth of their pharmacy. This strategy is designed to position us to better help our customers, not compete with or own them."

To deliver these breakthrough financial services for its customers, Bergen has formed agreements in principle with The Pharmacy Fund, Inc. (PFI) and National Data Corporation (NYSE:NDC) for its unique national health care network.

Commenting on the partnerships, Mr. Roden said, "The alliance with PFI and NDC combines their highly sophisticated systems with our inventory management expertise, enabling us to provide our customers with an unrivaled seamless portfolio of revolutionary services. By teaming with these industry leaders, we can implement the TIMS and TAMS programs with little or no impact on the day-to-day operations of our customers. Additionally, the risk of the receivables ownership for the pharmacists is eliminated because PFI has developed a proprietary financial credit base of over 4,500 insurance companies, self-insured employers, and HMOs to evaluate a third-party's ability to pay by assessing overall financial and claims payment history."

"Through Bergen's Timed Management programs, pharmacists nationwide have wider access to improved cash flow and profitability," said Fred B. Tarter, chairman of The Pharmacy Fund. "This joint program is our response to the greatest challenge facing pharmacists today -- the soaring cost of managing inventory and third-party receivables. Bergen, NDC and PFI are deeply committed to supporting the changing needs of U.S. pharmacists as our healthcare system continues to rapidly develop."

"With their access to thousands of pharmacies around the country, Bergen and NDC are ideal partners to implement this program," Tarter added. "Working together, we will turn the tide for pharmacies facing shrinking profit margins and growing business expenses. For Bergen's customers, this plan is a win-win solution."

These new services are part of Bergen's PlusCare Program all of which will be officially introduced to its pharmacy customers at the Bergen Brunswig Trade Show in Reno, Nevada, July 19-22. Bergen is also marketing similar customer asset management programs to its managed care and hospital customers.

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 and improve the cost effectiveness of their operations and further support their focus on patient/consumer care. Bergen Brunswig Corporation's operating teams include Bergen Brunswig Drug Company, Durr Medical, IntePlex (TM), Alternate Site Distributors, and Good Neighbor Pharmacy (R).

The Pharmacy Fund, Inc., headquartered in New York, was founded in 1993 by Fred B. Tarter. Johnson & Johnson; Centre Financial Services Holdings Limited, a subsidiary of Zurich Centre Investments Limited; Mutual of Omaha's principal life insurance affiliate, United of Omaha; and others have made investments in The Pharmacy Fund.

NDC is the world's largest processor of health care claims, processing at an annual rate of more than 850 million, serving more than 65,000 health care providers. National Data Corporation is a leading provider of information systems and services for the health care and payment systems markets.

Bergen Brunswig news releases are available at no charge through the Company's Faxline. To receive a directory of available releases, call [phone] and follow the voice-prompt instructions.

CONTACT: Bergen Brunswig

Lisa Riordan, Director, Investor Relations 

800/840-5131

or

LobsenzStevens for The Pharmacy Fund

Liz Dodson

212/684-6300, Ext. 329