CompScript signs letter of intent to acquire Hytree Pharmacy, Inc.

BOCA RATON, Fla.--(BUSINESS WIRE)--Feb. 3, 1997--

Company Announces Appointment of W. Gary Erwin, Pharm.D. To

Board of Directors

CompScript, Inc. (Nasdaq SmallCap Market: CPRX), a provider of integrated pharmacy services to the long-term care and sub-acute care industries, today announced that it has signed a letter of intent to acquire privately-held Hytree Pharmacy, Inc. ("Hytree"), a Mentor, Ohio-based provider of integrated pharmacy services. Hytree operates profitably with 1996 annual revenues of approximately $12.5 million. Terms were not disclosed.

Through its four divisions, Hytree provides institutional pharmacy services (Hytree Institutional Pharmacy Services); homecare (Hytech Homecare); durable medical equipment and medical supplies (Hytech Medical Supply); and operates two retail pharmacies (Hytree Retail Pharmacies). Hytree provides these services to long-term and sub-acute care facilities and clients throughout northeastern Ohio. The acquisition, which is subject to, among other things, the completion of due diligence by both parties and the signing of a definitive agreement, is expected to close by March 31, 1997.

Brian Kahan, President and Chief Executive Officer of CompScript, stated, "This acquisition would significantly strengthen our position as a single source provider of pharmacy management services. Each of Hytree's four divisions offers CompScript significant opportunities for growth, both as stand-alone entities and through the integration of each into our continuum of care philosophy. Hytech Homecare is one of the largest independent home health agencies in the state of Ohio and is ranked in the top 150 nationally. Through its Asthma Education and Intervention Program, Hytech Homecare proactively manages the respiratory diseases of its home health patients. This value added service promotes improved patient outcomes, and complements the disease management efforts of CompScript's mail order division. The acquisition of Hytech Medical Supply will allow us to offer institutions a broader array of healthcare products and result in increased purchasing efficiencies. The company's Hytree Retail Pharmacies will be integrated into our national network of 32,000 retail pharmacies which provide pharmacy benefit management services."

Mr. Kahan continued, "We are pleased to announce that upon completion of the acquisition, David Hytree, R.Ph., Robert Hytree, R.Ph., Dennis Wollschleger, R.Ph. and Joseph Lewarski, RRT will continue to serve our combined companies. They have earned an outstanding reputation throughout Ohio for providing high-quality, customer oriented service and will be valuable assets as we continue to expand our industry presence."

David Hytree, President of Hytree Pharmacy, Inc., stated, "This agreement is a tremendous opportunity for our company and customers. Led by a strong senior management team, CompScript is becoming one of the nation's premier integrated pharmacy services providers. We believe that the integration of CompScript's proprietary, state-of-the-art computer systems will enhance our customer service capabilities and provide the competitive edge necessary for future growth."

The Company also announced that W. Gary Erwin, Pharm.D. has been appointed to its Board of Directors. Dr. Erwin, the Company's fourth outside director, succeeds Gerard Altieri who resigned from the Board citing the importance of increasing the number of outside directors. Mr. Altieri remains with CompScript leading the Company's sales and marketing team for mail order services and pharmacy benefit management. With the appointment of Dr. Erwin, CompScript's Board remains at six members.

Dr. Erwin, 44, is Vice President for Professional Programs, and Professor of Clinical Pharmacy, Philadelphia College of Pharmacy and Science. He specializes in the areas of geriatrics and utilization management of pharmaceuticals.

An active member of his industry's professional organizations, Dr. Erwin is Chairman of the Board of Trustees of the American Society of Consultant Pharmacist's Research and Education Foundation, and Co-Chairperson of the Pennsylvania Medicaid DUR board. Dr. Erwin is also Co-Director of the Technology Assessment and Pharmacoeconomic Service Center of Excellence, a joint effort with the Office of Health Policy and Clinical Outcomes at Thomas Jefferson University Hospital. He has been principal investigator on over 75 grants or contracts dealing with utilization management strategies, educational initiatives and drug use review.

Commenting on Dr. Erwin's appointment, Brian Kahan stated, "We are delighted that Dr. Erwin has agreed to join CompScript's Board of Directors. In light of his expertise and contributions to the field, we expect that Dr. Erwin will be an active and visionary director."

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 services and pharmacy benefits management, infusion therapy, mail order and consulting.

CONTACT: CompScript, Inc.

Brian A. Kahan, Chief Executive Officer

John F. Chiste, Chief Financial Officer

[phone]

or

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Devin Sullivan [phone]

Robert Goldstein [phone]