NCRX Neighborcare (MM)

NeighborCare Announces Medicare Part D Prescription Drug Benefit Agreement with Medco BALTIMORE, June 29 /PRNewswire-FirstCall/ -- NeighborCare, Inc. (NASDAQ:NCRX) today announced an agreement with Medco Health Solutions, Inc. (NYSE:MHS) to provide Long Term Care (LTC) pharmacy services to residents of LTC facilities who will be enrolled in the new Medicare Prescription Drug benefit that becomes effective January 1, 2006. In February, Medco announced its intent to be involved in the Medicare prescription drug benefit as a National Prescription Drug Plan (PDP) in 34 regions, with a focus on supporting its health plan clients who will offer Medicare Advantage (MA-PD) programs and its employer clients who offer retiree benefits. Under this agreement, NeighborCare's LTC pharmacies, servicing 34 states, will become key elements of the pharmacy network that Medco's Part D Plan sponsor clients will use to provide LTC pharmacy services to Medicare beneficiaries enrolled in PDP and MA-PD Plans. John J. Arlotta, NeighborCare's Chairman, President and CEO, said, "NeighborCare is delighted to be working with Medco Health Solutions under this important new pharmacy benefit program for America's seniors. We look forward to building on the existing Medco-NeighborCare relationship to offer the highest quality pharmaceutical services to LTC residents enrolled in Part D Plans established or served by Medco." About NeighborCare, Inc. NeighborCare, Inc. (NASDAQ:NCRX) is one of the nation's leading institutional pharmacy providers serving long term care and skilled nursing facilities, specialty hospitals, assisted and independent living communities, and other assorted group settings. NeighborCare also provides infusion therapy services, home medical equipment, respiratory therapy services, community-based retail pharmacies and group purchasing. In total, NeighborCare's operations span the nation, providing pharmaceutical services in 34 states and the District of Columbia. Visit our website at http://www.neighborcare.com/. Statements made in this document, our website and in our other public filings and releases, which are not historical facts contain "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "may," "target" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the effect of the spin-off on our operations, expected changes in reimbursement rates and inflationary increases in state Medicaid rates, expected bed count, expected SG&A expense, anticipated restructuring charges, our anticipated results of operations for fiscal 2005 and estimates of timing and costs savings related to cost improvement initiatives. Factors that could cause actual results to differ materially include, but are not limited to, the following: our ability, and the ability of our customers, to comply with Medicare or Medicaid reimbursement regulations or other applicable laws, changes in the reimbursement rates or methods of payment from Medicare and Medicaid, or the implementation of other measures to reduce the reimbursement for our services and the impact of the Medicare Prescription Drug, Improvement and Modernization Act of 2003, changes in pharmacy legislation and payment formulas, the impact of federal and state regulations, competition in our businesses, the impact of Omnicare, Inc.'s unsolicited tender offer to acquire all of our outstanding common stock, competition for qualified management and pharmacy professionals, the impact of investigations and audits relating to alleged violations of federal and/or state regulations, changes in the acuity of patients, payor mix and payment methodologies, further consolidation of managed care organizations and other third party payors, the effect of the expiration or termination of certain service and supply contracts, changes in or our failure to satisfy pharmaceutical manufacturers' rebate programs, an economic downturn or changes in the laws affecting our business in those markets in which we operate, the impact of acquisitions, and our ability to integrate acquired businesses, on our operations and finances, our ability to control operating costs and generate sufficient cash flow to meet operational and financial requirements, our ability, and the ability of our subsidiary guarantors, to fulfill debt obligations, our covenants and restrictions contained in financing agreements which limit our discretion in the operation of our business, our charter documents and the Pennsylvania Business Corporation Law of 1988, as amended, which could delay or prevent a change of control, availability of financial and other resources to us after the spin- off of GHC, operating inefficiencies and higher costs after the spin-off of GHC, federal income tax liabilities and indemnification obligations related to the spin-off of GHC, conflicts of interest as a result of our continuing relationship with GHC after the spin-off, the ability of GHC, as our largest customer, to operate as a separate entity and acts of God or public authorities, war, civil unrest, terrorism, fire, floods, earthquakes and other matters beyond our control. The forward-looking statements involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. We caution investors that any forward-looking statements made by us are not guarantees of future performance. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments. DATASOURCE: NeighborCare, Inc. CONTACT: Investor Contact: Tania Almond, NeighborCare, +1-410-528-7555, or Media Contacts: Denise DesChenes/Dan Gagnier, Citigate Sard Verbinnen, +1-212-687-8080 Web site: http://www.neighborcare.com/

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