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OMNICARE NAMES FOXMEYER EXCLUSIVE WHOLESALE DRUG DISTRIBUTOR; $400 MILLION IN POTENTIAL VALUE FOR MULTI-YEAR CONTRACT

 OMNICARE NAMES FOXMEYER EXCLUSIVE WHOLESALE DRUG DISTRIBUTOR;
 $400 MILLION IN POTENTIAL VALUE FOR MULTI-YEAR CONTRACT
 DALLAS, July 14 /PRNewswire/ -- FoxMeyer Corporation (NYSE: FOX) and Omnicare, Inc. (NYSE: OCR) today announced the signing of a multi-year agreement under which its subsidiary, FoxMeyer Drug Company, will serve as the exclusive supplier of pharmaceuticals and related products to Omnicare's Sequoia Pharmacy Services Group, which comprises its long- term care pharmacy business.
 FoxMeyer is the nation's third largest pharmaceuticals distributor, with record sales of $3.1 billion for the fiscal year ended March 31, 1992. In May the company acquired Harris Wholesale Company, which at that time was the seventh largest pharmaceutical distributor in the United States. Harris is expected to add approximately $800 million in sales to FoxMeyer this fiscal year.
 "We're extremely pleased to sign on as the exclusive supplier of pharmaceuticals for Omnicare's Sequoia Pharmacy Services Group," said Robert L. King, FoxMeyer president and chief executive officer. "Through its aggressive acquisition program and solid internal growth, the Sequoia Group is building a strong network of institutional pharmacy companies across the country. We estimate that this new agreement could generate up to $400 million in product sales for FoxMeyer over the term of the agreement. However, we will be supplying more than medications -- we will provide additional services aimed at improving the efficiency of Omnicare's facilities. Accordingly, we believe that this strategic partnership will be important to the future growth of both companies."
 Omnicare's Sequoia Group today serves over 53,000 patients in more than 600 nursing homes and other long-term care facilities in Ohio, Kentucky, Indiana, Illinois, Missouri and Oklahoma. The total sales of the Sequoia Group are currently running at an annualized rate of nearly 100 million, up from $10 million for the year ended Dec. 31, 1989, the company's first full year in the long-term care pharmacy business.
 Commenting on the new pact, Joel F. Gemunder, president of Omnicare, stated, "Our new agreement with FoxMeyer is an excellent example of the major benefits that can be realized from the consolidation of the long- term care pharmacy industry and Omnicare's strategy to build a large, national pharmacy operation. Made possible by our rapid growth and increasingly sizable market position in the long-term care pharmacy industry, this contract allows us to benefit from substantial economies of scale in purchasing pharmaceuticals and in distribution."
 Kenneth W. Chesterman, executive vice president of Omnicare and president of its Sequoia Pharmacy Services Group, said, "With its proven track record of consistent high quality service, FoxMeyer is a valuable partner in the growth of our organization. The geographic coverage and expansion plans of Omnicare and FoxMeyer are in lock step, making this alliance mutually attractive. FoxMeyer's drug distribution capabilities are second to none. Moreover, the enhanced services and computer capabilities offered under this new agreement will add significantly to our operating efficiency and this, in turn, will enable us to better serve our nursing home clients."
 FoxMeyer is based in Dallas. Its 16 distribution centers serve customers throughout the United States, except for Alaska and Hawaii.
 Omnicare, headquartered in Cincinnati, is a leading provider of professional pharmacy services for the long-term care market, and medical and dental products for the private practice market.
 -0- 7/14/92
 /CONTACT: J. Warren Henry of FoxMeyer, 214-446-4270, or Cheryl D. Hodges of Omnicare, 513-762-6967/
 (FOX OCR) CO: FoxMeyer Corporation; Omnicare, Inc. ST: Texas, Ohio IN: MTC SU:


KD -- NY057 -- 9112 07/14/92 12:36 EDT
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Date:Jul 14, 1992
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