McKessonHBOC and Wegmans Food Markets Sign Primary Pharmaceutical Supply Agreement.

SAN FRANCISCO and ROCHESTER, N.Y.--(BUSINESS WIRE)--Sept. 13, 1999--

McKesson HBOC, Inc. (NYSE:MCK) (McKessonHBOC), and Wegmans Food Markets announced today that they have signed a new four-year agreement designating McKessonHBOC the primary supplier of pharmaceuticals to in-store pharmacies at 58 Wegmans Food Markets.

McKessonHBOC had previously supplied pharmaceuticals to Wegmans warehouse. McKessonHBOC estimates that the supply agreement will generate approximately $280 million in incremental direct-store revenues over the four-year term.

"Our new, enhanced relationship with McKessonHBOC is an excellent strategic fit for us," said Merle Clor, Wegmans' Pharmacy Category Manager. "Wegmans is pleased to finalize the terms of this partnership, which will permit us to capitalize on the synergies that McKessonHBOC's full line of services affords."

Mark Majeske, group president for McKessonHBOC's Retail and Customer Operations, said that the new agreement reflects McKessonHBOC's world-class, broad-based product and service offerings that the company uniquely can offer chains like Wegmans. "Our specialized services like OmniLink(SM) pre- and post-third-party prescription-adjudication program; ARLink(SM) and InfoLink(SM) Internet-based information resources and automated central refill centers supported by our distribution network set us apart from our competitors. In addition, our Customer Care team's demonstrated responsiveness to customer needs shows McKessonHBOC's adherence to our customer-centered values."

Wegmans, founded in 1916 and based in Rochester, N.Y., is a privately held supermarket retailer with 59 Wegmans Food Markets in New York, New Jersey and Pennsylvania. The group also owns 16 Chase-Pitkin Home & Garden Centers; its own commercial bakery, egg farm and meat-processing center. More information about Wegmans is available on its World Wide Website at http://www.wegmans.com.

McKesson HBOC, Inc., a Fortune 100 corporation, is the world's largest pharmaceutical supply management and healthcare information technology company. McKessonHBOC provides pharmaceutical supply management and information technologies across the entire continuum of healthcare, including market-leading businesses in pharmaceutical and medical-surgical distribution, information technology for healthcare providers, services for payors and outsourcing. More information about McKessonHBOC is available on the company's World Wide Website at: http://www.mckhboc.com.

Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "may," "should," "intends," "plans," "estimates," "anticipates" and similar words. Risks and uncertainties include: the resolution or outcome of pending litigation and government investigations relating to the Company's previously announced financial restatement; the Company's ability to recognize revenues in subsequent periods that had initially been improperly recorded in prior periods; the Company's ability to successfully integrate and operate acquired businesses and the risks associated with such businesses, including the merger that created McKessonHBOC; the changing U.S. healthcare environment, including potential changes in private and governmental reimbursement for healthcare services, the method by which such services are delivered, legislation or regulations governing such services or mandated benefits, or changes in manufacturers' pricing or distribution policies; the ability of the Company's Healthcare Information Technology business to retain existing customers and to attract new customers in light of rapid technological advances, slowing of demand for software products because of Year 2000 concerns and challenges in integrating the Company's software products; the effect of the events relating to, or arising out of, the Company's restatement of financial results on the Company's ability to manage its businesses and to attract and retain employees and management; the Company's ability and the ability of the Company's vendors and customers to complete the necessary actions to achieve a Year 2000 conversion for computer systems and applications; and other factors discussed from time to time in reports filed by McKesson HBOC, Inc. with the Securities and Exchange Commission. The company assumes no obligation to update information contained in this release.

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