Bindley Western Announces a Five-Year Supply Agreement With Associated Pharmacies, Inc.

Business Editors, Health & Medical Writers

INDIANAPOLIS--(BW HealthWire)--Oct. 3, 2000

Bindley Western Industries, Inc. (NYSE:BDY) announced today that its wholesale drug division, Bindley Western Drug Company, and Associated Pharmacies, Incorporated (API) have signed a five-year pharmaceutical supply agreement.

The new agreement appoints Bindley Western as the distributor for this independent buying cooperative and warehousing operation. API supplies pharmaceuticals and health and beauty aid items to independently owned pharmacies throughout the United States with a concentration in the Southeast.

"Bindley Western is very excited to be a partner and primary wholesaler for the API member stores. API is established as a major force among group purchasing organizations and one that truly understands the dynamics of supply-chain management. With the assistance of API, our sales team is currently contacting each store to ensure an efficient and effective transition to our distribution network," stated Ed Petrella, Senior Vice President, Retail Sales.

"API is a premier retail cooperative in the Southeast that provides value to its independent druggist members through reduced inventory cost. Our agreement is structured to further enhance those benefits by combining the best from all parties into one package; I am very excited about the synergies for member stores, API and Bindley Western," commented Mike Wilkerson, Southeast Regional Vice President.

Don Copeland, CEO of Associated Pharmacies, observed, "For nearly 14 years, Associated Pharmacies has been training independent pharmacies to think, act and perform like a chain when it comes to product procurement. By combining API's commitment and expertise with Bindley Western's superior replenishment process, chain level pricing, advanced technological service and premium customer service, we are assured of reaching a higher level than has ever been achieved."

Indianapolis-based Bindley Western, with annualized revenues of $10 billion, is a Fortune 500 company that provides a synergistic array of cost effective pharmaceutical and supply channel management products and services from 17 distribution facilities located in 14 states and from 32 specialty pharmacies located in 15 states. Customers include independent drug stores, chain drug stores, supermarkets and mass retailers with their own pharmacies, hospitals, clinics, HMOs, and managed care organizations, all of which are dedicated to lowering the cost of healthcare and improving the quality of patient care. Information on Bindley Western is available on-line at www.bindley.com. Information on Central Pharmacy Services is available on-line at www.centralpharmacy.com.

Certain information in this press release contains forward-looking statements as defined in Section 27A of the Securities Act and 21E of the Exchange Act. Certain factors could cause actual results to differ materially from those in the forward-looking statements. The most significant of such uncertainties are described in the company's Forms 10-K, 10-Q and 8-K and in exhibits to those reports.