CompScript announces 1996 results.

BOCA RATON, Fla.--(BUSINESS WIRE)--April 16, 1997--CompScript, Inc. (Nasdaq Small Cap Issues: CPRX), a comprehensive provider of integrated pharmacy management services, today announced financial results for the fourth quarter and year ended December 31, 1996 (See attached tables). Results for these periods have been restated to reflect the acquisitions of Delta Pharmacy Services, Inc. ("Delta") and SecuRx, Inc., each of which was accounted for as a pooling of interests.

During 1996 and into 1997, CompScript moved aggressively, both through acquisitions and internal development, to be a dominant, single source provider of integrated pharmacy management services. In addition to the 1996 acquisitions of Delta and SecuRx, during the first quarter of 1997 the Company acquired Medical Services Consortium, Inc. a Florida-based provider of institutional pharmacy and related services, Campo's Medical Pharmacy, a Louisiana-based provider of institutional pharmacy services, and Hytree Pharmacy Services, an Ohio-based provider of integrated pharmacy services to long-term and sub-acute care facilities and clients throughout northeastern Ohio. As a result of these acquisitions, CompScript's current annual revenue run rate is approximately $46 million or more than double 1996 reported revenues. In a highly fragmented industry, the Company will continue to pursue strategic, synergistic acquisitions.

The acquisitions of Delta and SecuRx, coupled with strong internal growth as a result of increased marketing efforts and the expansion and integration of new and existing products and services, lead to record revenues for the year ended December 31, 1996. Revenues for the year increased 28.8% to $20,049,771 from $15,571,030 last year.

Gross profit margins for the year decreased to 35.9% from 43.6% in 1995, primarily as the result of higher costs associated with the Company's mail order operations during 1996. Selling, general and administrative expenses ("S,G & A") as a percentage of revenues decreased 11.0% to 38.1% for the year ended December 31, 1996 from 42.8% in the comparable prior year period, the result of ongoing efforts to leverage corporate overhead over a larger revenue base.

The Company believes that its acquisition strategy will enable it to continue to reduce these expenses as a percentage of revenues in the future, as the Company believes it has developed the infrastructure necessary to absorb additional acquisitions without corresponding percentage increases in S,G & A. CompScript is successfully applying its purchasing economies to all of its acquisitions and contract-based business in order to improve gross profit margins.

Operating results for the fourth quarter and year included $573,550 and $875,223 in non-recurring, pre-tax merger costs associated with acquisitions. In order to take advantage of expanded capabilities and marketplace opportunities, operating results for the 1996 fourth quarter and year also include approximately $1,100,000 in non-recurring expenses related to the development of the Company's mail order division. As a result of these factors, the Company reported a net loss for the 1996 fourth quarter of $2,048,999, or $.19 per share, and a net loss for the year of $1,998,342, or $.20 per share. Management noted that were it not for the aforementioned non-recurring merger and mail order pharmacy costs, the net loss for the 1996 year would have been $373,119, or $.04 per share.

Brian Kahan, Chief Executive Officer of CompScript, Inc., stated, "During 1996 we made significant investments to accelerate our growth strategy and increase our marketshare, which we view as investments in our future as each will facilitate our ability to expand CompScript's industry presence. Since coming public in April 1996, we have exceeded our internal goals and achieved several significant corporate milestones. We have acquired five companies with an aggregate $27,200,000 in annual revenue, increased our credit facility with SunTrust Bank from $750,000 to $5,000,000 and strengthened our senior management team. Earlier this year, in response to increased customer demand we opened institutional pharmacies in Jackson, Mississippi and Tampa, Florida. The opening of these new pharmacies, coupled with recent acquisitions, has significantly strengthened CompScript's presence in the southeastern United States. We doubled our leased space at our Boca Raton facility and upgraded our technology to a state-of-the-art computer and automation system. With these capabilities, we believe that CompScript is poised for growth throughout 1997."

This press release contains forward looking statements which involve numerous risks and uncertainties. Actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission.

CompScript, Inc. is a comprehensive provider of pharmacy management services to managed care networks, long-term and sub-acute care facilities, home health patients and recipients of managed care. These services include pharmacy benefits management, infusion therapy, mail order and consulting. -0-

COMPSCRIPT, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

Three Months Ended Year Ended

December 31, December 31,

1996 1995 1996 1995

(As Restated) (As Restated)

Sales $4,433,083 $5,049,028 $20,049,771 $15,571,030 Cost of sales 3,462,540 3,159,139 12,846,113 8,784,308 Gross profit 970,543 1,889,889 7,203,658 6,786,722 Selling, general and administrative expenses 2,741,312 2,198,658 8,642,480 6,825,402 Merger costs 573,550 0 875,223 0 Goodwill impairment charge 0 3,636,362 0 3,636,362 Operating loss  (2,344,319) (3,945,131) (2,314,045) (3,675,042)

Other:

Interest and

other income (5,432) 3,722 29,462 71,419

Interest expense 22,241 25,625 113,759 (96,115) Loss before provision for income taxes (2,371,992) (3,967,034) (2,398,342) (3,699,738) Income tax provision (benefit) (322,993) (39,475) (400,000) 148,907 Net loss $(2,048,999)$(3,927,559) $(1,998,342) $ (3,848,645)

Net loss per share $(0.19) $(1.74) $ (0.20) $(0.44)

Weighted average shares outstanding 10,772,141 2,258,867 9,841,648 8,714,469

CONTACT: CompScript, Inc.

Brian A. Kahan, Chief Executive Officer

John F. Chiste, Chief Financial Officer

561/994-8585

or

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Devin Sullivan [phone]

Robert Goldstein [phone]