McKesson Wins Pharmaceutical Distribution Business from Brookshire Grocery Co

Business Wire, March 19, 2003

Health/Medical Writers

SAN FRANCISCO--(BUSINESS WIRE)--March 19, 2003

McKesson Corporation today announced that it has entered an exclusive three-year agreement with Brookshire Grocery Co. to be the primary supplier of pharmaceutical products to the company's 103 stores with pharmacies. These locations will also utilize various McKesson technologies and services to improve pharmacy operations.

"McKesson is a strong leader in pharmaceutical distribution. They offer more than just basic supply solutions to their customers," said Jim Cousineau, vice president, Pharmacy, Brookshire Grocery Co. "We look forward to the technologies and synergies that McKesson can offer."

"This business relationship with Brookshire Grocery Co. will enable McKesson to do what we do best -- manage the supply and technology needs of the customer. In turn, Brookshire can concentrate on its core business, serving its retail and pharmacy customers," said Paul Julian, president, McKesson Supply Solutions.

Brookshire Grocery Co. currently operates 152 retail stores in Texas, Louisiana, Arkansas and Mississippi under the trade names Brookshire's Food Stores and Super 1 Foods Stores. Corporate offices are located in Tyler, Texas. Distribution centers are located in Tyler and Monroe, La.

McKesson Corporation is the leading provider of supply, information and care management products and services designed to reduce costs and improve quality across healthcare. McKesson solutions empower healthcare professionals with the tools they need to deliver care more effectively and efficiently. Founded in 1833, with annual revenues of more than US $50 billion, McKesson ranks as the 31st largest industrial company in the United States. For more information, visit our website at http://www.mckesson.com.

Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involves 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. The most significant of these risks and uncertainties are described in the Company's Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: the resolution or outcome of pending litigation and government investigations relating to the Company's previously announced financial restatement ("Restatement"); the effect of the events relating to, or arising out of, the Restatement on the Company's ability to attract and retain employees and management; the changing U.S. healthcare environment, including potential changes in private and governmental reimbursement for healthcare products and services, the method by which such products and services are delivered, legislation or regulations governing such products and services, or mandated benefits or changes in manufacturer's pricing or distribution policies; substantial defaults in payment or a material reduction in purchases by large customers; the ability of the Company's Information Technology Business to retain existing customers and to attract new customers in light of rapid technological advances, challenges in integrating the Company's software products, or the slowing or deferral of demand for such products resulting from the impact of current or pending government regulations; and the Company's ability to successfully integrate and operate acquired businesses, and manage the risks associated with such businesses, including the acquisition that created McKesson. The Company assumes no obligation to update information contained in this release.