Counsel Corporation Completes Acquisition of 65 Percent of Stadtlander Drug Co. a Leading U.S. Specialty Pharmacy Services Company Adds Revenues In Excess of US $100 Million.

TORONTO--(BUSINESS WIRE)--July 8, 1996--Counsel Corporation(TSE: CXS NASDAQ: CXSNF) Allan Silber, Chairman and CEO of Counsel Corporation, today announced the completion of the previously announced acquisition of 65 percent of Stadtlander Drug Company, Inc. ("Stadtlanders") a privately held Pittsburgh based specialty pharmacy services Company. Its 1996 revenues are expected to be in excess of US $100 million.

Stadtlanders is a leading U.S. provider of disease-specific pharmaceutical care to high-risk, high-cost patient populations, including HIV/AIDS, transplant, oncology, and infertility. Stadtlanders was selected by Merck & Company, Inc., to serve as the primary distributor in the U.S. for the new HIV/AIDS drug, Crixivan(R). It is medically important for individuals to take this drug as prescribed, without interruption of therapy. Stadtlanders counts, tracks and sends each prescription from its automated Pittsburgh facility and monitors patient compliance, as part of their contract with the manufacturer.

Stadtlanders' services are designed to improve the quality of life and decrease the overall cost of medical care for these patient populations through outcomes-oriented pharmaceutical care. When patients that require specialized or complex medication regimens are compliant with their medication therapy, they are more likely to avoid costly adverse medical problems.

Specific Stadtlanders services include express delivery of prescription and over-the-counter medications, and managing of insurance reimbursement for patients. Stadtlanders pharmacists are specially trained in the medication regimens used to treat these disease states, and are available 24-hours a day, toll-free, for urgent medication questions and counselling. Stadtlanders also provides educational and wellness materials pertinent to specific diseases, so patients can better manage their own health.

Counsel Corporation has been active in the U.S. health care sector since 1983. It is engaged in two health care segments, home health care and institutional pharmacy services.

Its 27 percent-owned American HomePatient Inc. (NASDAQ - AHOM) is the third largest diversified home health care company in the U.S. The Company's primary lines of business include respiratory therapy, infusion therapy and the sale and lease of medical equipment and supplies which are provided through 259 locations in 28 states.

Counsel's 25 percent-owned Capstone Pharmacy Services, Inc. is a leading supplier of extended care pharmacy services to nursing homes, correctional facilities and HMOs. It is also the largest provider of pharmacy services to correctional systems in the U.S. supplying over 110 prisons with 120,000 inmates in 24 states.

CONTACT: Counsel Corporation

Morris Perlis, 416/866-3193

or

Counsel Corporation

Ivan Shaffer, 416/866-3187

E-MAIL: [e-mail]