AmerisourceBergen Reports Diluted Earnings Per Share from Continuing Operations of $0.63 for the September Quarter and $2.63 for Fiscal Year 2007

Business Wire, Nov 1, 2007

* Diluted earnings per share from continuing operations were up 3 percent to $0.63 in the fourth quarter of fiscal 2007 compared to $0.61 in the previous fiscal year's fourth quarter, and were up 16 percent to $2.63 in the fiscal 2007 from $2.26 in the previous fiscal year.

* The PharMerica Long-Term Care business, which was spun-off in July 2007, contributed diluted earnings per share of $0.01 and $0.08 in the 2007 fiscal fourth quarter and year, respectively, compared to $0.03 and $0.10 in the prior year's fourth quarter and fiscal year.

* Diluted average shares outstanding for the fourth quarter of fiscal year 2007 were 176.9 million, down nearly 25 million from the previous fiscal year's fourth quarter due to share repurchases, net of option exercises. For fiscal year 2007, diluted average shares outstanding were 187.9 million.

* A $24.6 million loss, net of tax, from discontinued operations in the fourth quarter of fiscal 2007 resulted from an adverse decision in litigation related to the contingent earn-out provisions within the acquisition agreement for our former Bridge Medical business, which the Company sold in fiscal 2005.

AmerisourceBergen operates in two reportable segments: Pharmaceutical Distribution (which includes the operations of AmerisourceBergen Drug Corporation, Specialty Group, and Packaging Group) and Other (which includes PharMerica Long-Term Care until July 31, 2007 and PMSI). Intersegment sales of $83.1 million in the fourth quarter of fiscal 2007 from AmerisourceBergen Drug Corporation to PharMerica Long-Term Care and PMSI, which are included in the Pharmaceutical Distribution Segment operating revenue, are eliminated for consolidated reporting purposes.

Pharmaceutical Distribution Segment Results

* Operating revenue of $15.2 billion in the fourth quarter of fiscal 2007 was up 5 percent compared to the same quarter in the previous fiscal year. Revenue in the quarter increased 4 percent in the Drug Corporation and 7 percent in the Specialty Group. Specialty Group revenue growth, which was 23 percent for the year, was negatively impacted in the quarter, as expected, by the anniversary of a large distribution contract and a large new product introduction as well as the decline in the anemia drug market. Segment operating revenue for fiscal year 2007 was $60.9 billion up 9 percent from the prior fiscal year.

* Anemia drugs represented 5 percent of Segment revenues in the fiscal year 2007 fourth quarter, reflecting a decrease of 26 percent compared with the previous year's fourth quarter and a 15 percent decrease sequentially from the third quarter of fiscal 2007.

* Segment operating income was down 4 percent in the fourth quarter, but up 14 percent for fiscal year 2007 compared with the previous year's fourth quarter and fiscal year. Very strong performance by the Drug Corporation positively impacted the fiscal 2007 fourth quarter due to excellent performance under the Company's branded manufacturer contracts; strong branded manufacturer price increases; an increase in sales in PRxO([R])Generics, its proprietary generics program; and solid operating leverage. This performance was offset by a $28 million write-down to market value of tetanus-diphtheria vaccine inventory in the Specialty Group, and a $13 million increase in bad debt expense over the previous year's fourth quarter due primarily to a regional chain in the West.