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

Other Segment Results

* The Company spun off the PharMerica Long-Term Care business on July 31, 2007. In the fourth quarter of fiscal year 2007, PharMerica contributed $104.3 million in revenue and $2.7 million of operating income, respectively, compared to $305.0 million and $8.5 million in the previous fiscal year's fourth quarter. For fiscal year 2007 revenues were $1.0 billion and operating income was $25.0 million.

* In the fiscal 2007 fourth quarter, PMSI contributed $112.2 million in revenue and $4.1 million of operating income compared to $117.4 million and $13.1 million, respectively, in the previous fiscal year's fourth quarter. The decline in operating income in the fiscal 2007 fourth quarter was due to a significant increase in operating expenses including bad debt expenses and costs related to the ongoing IT infrastructure and customer-facing projects. For fiscal 2007, revenue was $461.4 million and operating income was $28.2 million. PMSI's performance was below the Company's expectations for the quarter and the fiscal year, and the business is implementing an aggressive turnaround plan and receiving greater AmerisourceBergen management focus in fiscal year 2008.

Fiscal Year 2008 Expectations

"Looking ahead, we expect fiscal 2008 performance to meet or exceed our long-term goals," said Yost. "Although this fiscal year's December quarter is expected to be a difficult comparison due to the strength of the same quarter in the prior year, we expect fiscal year 2008 diluted earnings per share to be in the range of $2.77 to $2.95. This diluted earnings per share range represents an increase of about 13 percent to 20 percent over the $2.46 per share from continuing operations for fiscal year 2007, which excludes the $0.09 benefit from special items and the $0.08 contribution from PharMerica Long-Term Care in fiscal year 2007.

"Including the acquisition in October of Bellco Health, key assumptions supporting our diluted earnings per share expectations in fiscal 2008 are: operating revenue growth of between 5 percent and 7 percent; operating margin expansion by single digit basis points in the Pharmaceutical Distribution Segment; and free cash flow in the range of $450 million to $525 million, which includes capital expenditures in the $125 million range. Also, subject to the approval of our Board of Director and market conditions, we expect to spend $400 million to $500 million to repurchase our common shares in fiscal 2008."

Conference Call

The Company will host a conference call to discuss its results at 11:00 a.m. Eastern Standard Time on November 1, 2007. Participating in the conference call will be: R. David Yost, President and Chief Executive Officer and Michael D. DiCandilo, Executive Vice President and Chief Financial Officer.

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About AmerisourceBergen

AmerisourceBergen is one of the world's largest pharmaceutical services companies serving the United States, Canada and selected global markets. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen's service solutions range from pharmacy automation and pharmaceutical packaging to reimbursement and pharmaceutical consulting services. With more than $66 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 11,500 people. AmerisourceBergen is ranked #29 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.