Express Scripts Awarded TRICARE Retail Pharmacy Contract.

Business Editors/Health/Medical Writers

ST. LOUIS--(BUSINESS WIRE)--Sept. 26, 2003

The Department of Defense (DoD) announced today that it has awarded the contract for its TRICARE Retail Pharmacy (TRRx) program to Express Scripts, Inc., one of the nation's largest pharmacy benefit management firms. The contract term is for one year with four subsequent option years exercisable by DoD.

The TRRx program will provide retail pharmacy services to the approximately 2.5 million DoD beneficiaries who currently utilize the retail pharmacy benefit. Overall, there are 8.7 million eligible DoD beneficiaries.

Under the TRRx contract, Express Scripts will provide access to a retail pharmacy network, claims processing services, drug utilization and safety review services, prior authorization services, beneficiary communication materials and a call center to handle beneficiary inquiries.

Full TRRx retail service will begin in approximately six months, following the initial phase-in period of contract performance.

"Everyone at Express Scripts is filled with pride to serve the men and women of our nation's armed forces as we make the use of prescription drugs safer and much more affordable for them and their dependents," said Barrett Toan, chairman and chief executive officer of Express Scripts.

Express Scripts was awarded a five year contract for the DoD's TRICARE Mail Order Pharmacy (TMOP) program a year ago. The TMOP program began operation on March 1, 2003, and recently passed the 2.5 million mark in the number of mail pharmacy prescriptions filled under the program.

Express Scripts performs TMOP operations from a new facility in Tempe, AZ, built initially to serve the DoD account. On average, 20,000 mail prescriptions per business day are shipped from the Tempe facility.

Express Scripts, Inc. (Nasdaq: ESRX) is one of the largest pharmacy benefit management (PBM) companies in North America. Express Scripts provides integrated PBM services, including network pharmacy claims processing, mail pharmacy services, benefit design consultation, drug utilization review, formulary management, disease management, medical and drug data analysis services and medical information management services. The company also provides distribution services for specialty pharmaceuticals through its Specialty Distribution subsidiary. Express Scripts is headquartered in St. Louis, Missouri. More information can be found at http://www.express-scripts.com, which includes expanded investor information and resources.

SAFE HARBOR STATEMENT

This press release contains forward-looking statements, including, but not limited to, statements related to the Company's plans, objectives, expectations (financial and otherwise) or intentions. Actual results may differ significantly from those projected or suggested in any forward-looking statements. Factors that may impact these forward-looking statements include but are not limited to:

-- risks associated with our acquisition of NPA, including

integration risks and costs, risks of client retention and

repricing of client contracts, and risks associated with the

operations of acquired businesses

-- risks associated with our ability to maintain growth rates, or

to control operating or capital costs

-- continued pressure on margins resulting from client demands

for lower prices, enhanced service offerings and/or higher

service levels, and the possible termination of, or

unfavorable modification to, contracts with key clients or

providers

-- competition in the PBM industry, and our ability to consummate

contract negotiations with prospective clients, as well as

competition from new competitors offering services that may in

whole or in part replace services that we now provide to our

customers

-- adverse results in regulatory matters, the adoption of new

legislation or regulations, more aggressive enforcement of

existing legislation or regulations, or a change in the

interpretation of existing legislation or regulations

(including, without limitation, the Compliance Guidelines for

Pharmaceutical Manufacturers issued by the Office of Inspector

General of HHS relating to the Federal Medicare/Medicaid

Anti-Kickback Statute)

-- increased compliance risks relating to our contracts with the

Department of Defense Tricare Plan and various state

governments

-- risks arising from investigations of certain PBM practices and

pharmaceutical pricing, marketing and distribution practices

currently being conducted by the U.S. Attorney offices in

Philadelphia and Boston and the Attorney General of the State

of New York, and other regulatory agencies

-- the possible loss, or adverse modification of the terms, of

relationships with pharmaceutical manufacturers, or changes in

pricing, discount or other practices of pharmaceutical

manufacturers

-- adverse results in litigation, including a number of purported

class action cases challenging aspects of our business

practices

-- risks associated with the use and protection of the

intellectual property we use in our business

-- risks associated with our leverage and debt service

obligations, including the effect of certain covenants in our

borrowing agreements

-- risks associated with our ability to continue to develop new

products, services and delivery channels

-- general developments in the health care industry, including

the impact of increases in health care costs, changes in drug

utilization and cost patterns and introductions of new drugs

-- uncertainties regarding the implementation and the ultimate

terms of proposed government initiatives, including a Medicare

prescription drug benefit

-- increase in credit risk relative to our clients due to adverse

economic trends

-- risks associated with our inability to attract and retain

qualified personnel

-- other risks described from time to time in our filings with

The Securities and Exchange Commission

We do not undertake any obligation to release publicly any revisions to such forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.