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AmerisourceBergen Reports Record Operating Revenue of $14 Billion and $0.61 Diluted Earnings Per Share from Continuing Operations for the March Quarter

04/26/06

VALLEY FORGE, Pa., Apr 26, 2006 (BUSINESS WIRE) -- AmerisourceBergen Corporation (NYSE:ABC) today reported results for its fiscal second quarter ended March 31, 2006. The following results are presented in accordance with U.S. generally accepted accounting principles (GAAP). All prior year share and per share amounts referenced in this news release were adjusted to reflect the Company's December 2005 two-for-one stock split.

Fiscal Second Quarter Highlights

    --  Diluted earnings per share from continuing operations of
        $0.61, including a $0.06 benefit from special items, up 33
        percent.

    --  Record operating revenue of $14.0 billion, up 15 percent.

    --  Cash flow from operations of $472 million.

Fiscal First Six Months Highlights

    --  Diluted earnings per share from continuing operations of
        $1.08, including a $0.09 benefit from special items, up 38
        percent.

    --  Record operating revenue of $27.6 billion, up 13 percent.

    --  Cash flow from operations of $703 million.

"Our outstanding performance in the March quarter continues our commitment to deliver solid and consistent growth," said R. David Yost, AmerisourceBergen's Chief Executive Officer. "Our record $14.0 billion in operating revenue was well above our expectations, and our outstanding earnings per share performance is the result of successful implementation of new fee-for-service agreements and generic opportunities, continued strong growth in our specialty business, and our significant financial leverage. We also completed three acquisitions in the quarter. With $1.8 billion in cash and short-term investments, our balance sheet continues to be strong and our financial flexibility significant."

Discussion of Results

AmerisourceBergen's operating revenue was a record $14.0 billion in the second quarter of fiscal 2006 compared to $12.2 billion for the same period last year, a 15 percent increase. Bulk deliveries in the quarter increased 24 percent to $1.2 billion from $0.95 billion in last fiscal year's second quarter.

Consolidated operating income in the fiscal 2006 second quarter increased 10 percent to $197.9 million, primarily due to the performance of the Pharmaceutical Distribution segment. In addition, a $9.4 million gain from the settlement of a pharmaceutical manufacturer antitrust litigation case, less $3.6 million of charges for facility consolidations, employee severance, and transition costs related to the outsourcing of information technology, had a net $5.8 million positive impact on consolidated operating income in the fiscal 2006 second quarter. In the previous fiscal year's second quarter, charges for facility consolidations and employee severance were $1.8 million and the Company incurred an impairment charge of $5.3 million.

Included in other income of $5.8 million for the second quarter of fiscal 2006 is $6.5 million relating to the sale of a small investment and an eminent domain settlement.

Net interest expense in the second quarter of fiscal 2006 was a low $7.3 million compared to $14.5 million in the prior year's second quarter, a 49 percent decrease.

The effective tax rate for the second quarter of fiscal 2006 was 34.5 percent, down from 38.4 percent in the previous fiscal year's second quarter, primarily due to $5.5 million of favorable tax adjustments in the quarter. Without the adjustments, the tax rate in the fiscal year 2006 second quarter would have been 37.3 percent, still down from the prior year's second quarter due to the shift of the Company's invested cash to more tax-free investments. The Company expects the tax rate for the remaining six months of fiscal 2006 to be between 37 percent and 38 percent.

Diluted earnings per share from continuing operations were $0.61 in the second quarter of fiscal 2006, compared to $0.46 in the previous fiscal year's second quarter, a 33 percent increase. Special items in the second quarter of fiscal 2006, which include the gain from the antitrust litigation, the investment sale and the eminent domain settlement, and the tax adjustments, less the charge for facility consolidation, employee severance and information technology transition costs, resulted in a benefit, net of tax, of $13.5 million or $0.06 per diluted share. In the same period of the previous fiscal year, there were $4.4 million of special charges, net of tax, which decreased diluted earnings per share by $0.02.

Diluted average shares outstanding for the second quarter of fiscal year 2006 were 210.8 million, down nearly 10 million from the previous fiscal year's second quarter due to share repurchases.

Cash generated from operations in the second quarter of fiscal year 2006 was $472 million and in the first six months of fiscal 2006 was $703 million.

For the first six months of fiscal 2006, AmerisourceBergen's operating revenue was $27.6 billion compared to $24.4 billion for the same period last year, a 13 percent increase. Bulk deliveries in the first half of the fiscal year decreased 4 percent to $2.3 billion.

Consolidated operating income in the first six months of the fiscal year increased 16 percent to $364.5 million primarily due to improved gross margin in the Pharmaceutical Distribution segment.

For the first six months of fiscal 2006, diluted earnings per share from continuing operations were $1.08, compared to $0.78, before the cumulative effect of a change in accounting, in the same six-month period last year.

"For the fiscal 2006 second quarter, excellent operating performance in the Pharmaceutical Distribution segment more than offset the weak performance in PharMerica," said Kurt J. Hilzinger, AmerisourceBergen's President and Chief Operating Officer.

"Strong revenues from our larger, lower-margin customers and new business drove the Drug Corporation's revenue growth, while contributions from our fee-for-service agreements and generic pharmaceuticals programs were the primary drivers of gross margin. Benefits from Optimiz(R), our program to enhance the efficiency of our distribution center network, continued to improve our cost structure and remains on schedule and on budget. Our customer-focused Transform program to improve value to the customer and deliver better margins for the Drug Corporation was also a contributor in the quarter. During the quarter we also purchased a Western Canadian distributor to expand our operations in Canada.

"With annualized operating revenue of more than $8.5 billion, our Specialty Group continued its strong growth and performance. Its market-leading oncology businesses, which continue to grow faster than the overall pharmaceutical market, its other distribution businesses in such areas as plasma and nephrology, and its manufacturing services, including reimbursement consulting, all contributed to the Group's accelerating revenue and earnings performance. In February, the Group completed the acquisition of Network for Medical Communications & Research, a provider of accredited physician education and analytical research in oncology.

"The Packaging Group continued to deliver solid results on its growing pipeline of contract packaging programs for manufacturers and to expand its compliance packaging solutions for healthcare providers. In March, the Group acquired Brecon Pharmaceuticals, a contract and clinical trials packager located in Wales, United Kingdom. The addition will expand the Group's geographical reach to include packaging for the European and Asian markets.

"Our PharMerica segment continued to be negatively impacted in the second quarter as its business model transitions under Medicare Part D. Revenue, however, improved 6 percent over the previous fiscal year's second quarter, due to the long-term care business' ability to capitalize on its national footprint and deploy new technology offerings to customers."

Segment Review

AmerisourceBergen operates in two reportable segments: Pharmaceutical Distribution (which includes the operations of AmerisourceBergen Drug Corporation, Specialty Group, and Packaging Group) and PharMerica (which includes the long-term care pharmacy and workers' compensation businesses). Intersegment sales of $241.1 million in the second quarter of fiscal 2006 from AmerisourceBergen Drug Corporation to PharMerica, which are included in the Pharmaceutical Distribution segment operating revenue, are eliminated for consolidated reporting purposes.

Pharmaceutical Distribution Segment

Record operating revenue of $13.9 billion in the second quarter of fiscal 2006 was up 15 percent compared to the same quarter in the previous fiscal year.

Strong growth in the Drug Corporation, primarily in large accounts and new business, coupled with continued strong performance in the Specialty Group, drove operating revenues above the Company's expectations. Pharmaceutical Distribution customer mix in the second quarter of fiscal 2006 was 59 percent institutional and 41 percent retail.

For the segment, gross profit as a percentage of operating revenue in the second quarter of fiscal 2006 was 3.16 percent compared to 3.21 percent in the same period in the prior fiscal year. Operating expenses as a percentage of operating revenue in the fiscal 2006 second quarter were 1.89 percent, down 0.04 percent from 1.93 percent in the prior year's second quarter.

Segment operating income for the fiscal 2006 second quarter was $176.0 million, a 14 percent increase over the same period in fiscal 2005. Operating income as a percentage of operating revenue in the second quarter of fiscal 2006 was 1.27 percent, slightly below the 1.28 percent in the same quarter last fiscal year, and in the first six months of fiscal 2006 was 1.16 percent, an increase over the 1.04 percent in the first half of fiscal 2005.

PharMerica

PharMerica's revenue for the second quarter of fiscal 2006 was a record $412.7 million, a 6 percent increase over the previous year's second quarter. Operating income for the second quarter of fiscal 2006 was $16.2 million, compared to $32.0 million for the same quarter last year, reflecting increased bad debt expense and the cost of implementing Medicare Part D. Operating income as a percentage of revenue was 3.92 percent in the second quarter of fiscal 2006, below expectations. The second quarter of the previous fiscal year benefited from a $4.0 million reduction in sales tax liability. The Company continues to expect operating margins to be in the 4 percent to 5 percent range for fiscal year 2006.

Looking Ahead

"With the anticipation that operating revenue will be approximately $14 billion in each of the remaining two quarters of this fiscal year, we expect the fiscal year 2006 operating revenue growth to be in a range of 10 percent to 12 percent, an increase from our previous range of 7 percent to 9 percent," said Yost. "We also are increasing our expectations for diluted earnings per share from continuing operations on a GAAP basis in the 2006 fiscal year to a range of $2.06 to $2.21 from the previous range of $1.98 to $2.13. This increase reflects the expected net benefit of $0.08 from special items including litigation gains; facility consolidation, severance and information technology transition charges; and the second quarter's investment sale, eminent domain settlement, and tax adjustments. Fiscal 2006 diluted earnings per share from continuing operations expectations continue to include the impact of a $0.04 to $0.05 charge for equity compensation expense. Our expectation for cash flow from operations for fiscal 2006 is being raised to a range $600 million to $700 million from the previous anticipation of $500 million to $600 million.

"For fiscal 2006, we continue to expect operating margins from the Pharmaceutical Distribution segment to be in the range of 1.15 percent to 1.25 percent. With the operating revenue growth in the segment coming primarily from our largest customers, it is likely that the higher we may be in the operating revenue growth range the lower we will be in the operating margin range."

AmerisourceBergen has repurchased $132 million of its stock during the first half of fiscal 2006 and continues to expect to repurchase a total of approximately $400 million to $450 million of its stock during fiscal 2006.

Conference Call

he Company will host a conference call to discuss its results at 11:00 a.m. Eastern Daylight Time on April 26, 2006. Participating in the conference call will be: R. David Yost, Chief Executive Officer; Kurt J. Hilzinger, President and Chief Operating Officer; and Michael D. DiCandilo, Executive Vice President and Chief Financial Officer.

o access the live conference call via telephone:

            Dial in: 612-288-0318, no access code required.

To access the live webcast:

Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.

A replay of the telephone call and webcast will be available from 2:30
p.m. April 26, 2006 until 11:59 p.m. May 3, 2006.  The Webcast replay
will be available for 30 days.

To access the replay via telephone:

Dial in:    (800) 475-6701 from within the U.S., access code: 825083
            (320) 365-3844 from outside the U.S., access code: 825083

To access the archived webcast:

Go to the Quarterly Webcasts section on the Investor Relations page at
http://www.amerisourcebergen.com.


About AmerisourceBergen

AmerisourceBergen (NYSE:ABC) 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 pharmacy services for skilled nursing and assisted living facilities, reimbursement and pharmaceutical consulting services, and physician education. With more than $54 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 13,000 people. AmerisourceBergen is ranked #27 on the Fortune 500 list. For more information, go to www.amerisourcebergen.com.

Forward-Looking Statements

This news release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. Forward-looking statements may include statements addressing AmerisourceBergen's future financial and operating results and the benefits, efficiencies and savings to be derived from the Company's integration plans to consolidate its distribution network.

The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: competitive pressures; the loss of one or more key customer or supplier relationships; customer defaults or insolvencies; changes in customer mix; supplier defaults or insolvencies; changes in pharmaceutical manufacturers' pricing and distribution policies or practices; adverse resolution of any contract or other disputes with customers (including departments and agencies of the U.S. Government) or suppliers; regulatory changes; changes in U.S. government policies (including reimbursement changes arising from the Medicare Modernization Act); further declines in the amounts of market share rebates offered by pharmaceutical manufacturers to the PharMerica long-term care business and/or the inability of the business to offset the rebate reductions that have already occurred, market interest rates; operational or control issues arising from AmerisourceBergen's outsourcing of information technology activities; the Pharmaceutical Distribution segment's ability to continue to successfully transition its business model to fee-for-service; success of integration, restructuring or systems initiatives; fluctuations in the U.S. dollar - Canadian dollar exchange rate and other foreign exchange rates; economic, business, competitive and/or regulatory developments in Canada, the United Kingdom and elsewhere outside of the United States; acquisition of businesses that do not perform as we expect or that are difficult for us to integrate or control; and other economic, business, competitive, legal, regulatory and/or operational factors affecting the business of AmerisourceBergen generally.

More detailed information about these and other risk factors is set forth in AmerisourceBergen's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for fiscal 2005.

AmerisourceBergen is under no obligation to (and expressly disclaims any such obligation to) update or alter any forward looking statements whether as a result of new information, future events or otherwise.


                     AMERISOURCEBERGEN CORPORATION
                           FINANCIAL SUMMARY
                 (In thousands, except per share data)
                              (unaudited)

                      Three                  Three
                   Months Ended   % of    Months Ended   % of
                     March 31,  Operating   March 31,  Operating   %
                       2006      Revenue      2005      Revenue Change
                   ------------ --------- ------------ --------- -----

Revenue:
  Operating
   revenue         $14,049,175    100.00% $12,241,739    100.00%   15%
  Bulk deliveries
   to customer
   warehouses        1,171,504                948,428              24%
                   ------------           ------------
Total revenue       15,220,679             13,190,167              15%

Cost of goods sold  14,659,916             12,688,417              16%
                   ------------           ------------

Gross profit           560,763      3.99%     501,750      4.10%   12%

Operating
 expenses:
  Distribution,
   selling and
   administrative      339,113      2.41%     295,246      2.41%   15%
  Depreciation and
   amortization         20,149      0.14%      20,152      0.16%    0%
  Facility
   consolidations,
   employee
   severance, and
   other                 3,577      0.03%       1,837      0.02%   95%
  Impairment charge          -      0.00%       5,259      0.04%  N/A
                   ------------           ------------

Operating income       197,924      1.41%     179,256      1.46%   10%

Other (income)          (5,826)    -0.04%        (383)     0.00%  N/A

Interest expense,
 net                     7,344      0.05%      14,519      0.12%  -49%
                   ------------           ------------

Income from
 continuing
 operations before
 income taxes          196,406      1.40%     165,120      1.35%   19%

Income taxes            67,816      0.48%      63,407      0.52%    7%
                   ------------           ------------

Income from
 continuing
 operations            128,590      0.92%     101,713      0.83%   26%

(Income) loss from
 discontinued
 operations, net
 of tax                   (411)                 2,291
                   ------------           ------------

Net income            $129,001      0.92%     $99,422      0.81%   30%
                   ============           ============


Earnings per share:
 Basic
   Continuing
    operations           $0.62                  $0.46              35%
   Discontinued
    operations               -                  (0.01)
                   ------------           ------------
    Net income           $0.62                  $0.45              38%
                   ============           ============

 Diluted
   Continuing
    operations           $0.61                  $0.46              33%
   Discontinued
    operations               -                  (0.01)
                   ------------           ------------
    Net income           $0.61                  $0.45              36%
                   ============           ============

Weighted average
 common shares
 outstanding:
 Basic                 208,050                219,290
 Diluted               210,771                220,468



                    AMERISOURCEBERGEN CORPORATION
                          FINANCIAL SUMMARY
                (In thousands, except per share data)
                             (unaudited)

                       Six                    Six
                   Months Ended   % of    Months Ended   % of
                     March 31,  Operating   March 31,  Operating   %
                       2006      Revenue      2005      Revenue Change
                   ------------ --------- ------------ --------- -----

Revenue:
  Operating
   revenue         $27,585,029    100.00% $24,443,848    100.00%   13%
  Bulk deliveries
   to customer
   warehouses        2,288,797              2,383,155              -4%
                   ------------           ------------
Total revenue       29,873,826             26,827,003              11%

Cost of goods sold  28,784,685             25,870,661              11%
                   ------------           ------------

Gross profit         1,089,141      3.95%     956,342      3.91%   14%

Operating expenses:
  Distribution,
   selling and
   administrative      670,972      2.43%     590,071      2.41%   14%
  Depreciation and
   amortization         41,236      0.15%      40,701      0.17%    1%
  Facility
   consolidations,
   employee
   severance, and
   other                12,404      0.04%       6,970      0.03%   78%
  Impairment charge          -      0.00%       5,259      0.02%  N/A
                   ------------           ------------

Operating income       364,529      1.32%     313,341      1.28%   16%

Other (income)          (5,043)    -0.02%      (1,441)    -0.01%  N/A

Interest expense,
 net                    13,856      0.05%      36,597      0.15%  -62%
Loss on early
 retirement of debt          -                  1,015      0.00%  N/A
                   ------------           ------------

Income from
 continuing
 operations before
 income taxes and
 cumulative effect
 of change in
 accounting            355,716      1.29%     277,170      1.13%   28%

Income taxes           129,150      0.47%     106,434      0.44%   21%
                   ------------           ------------

Income from
 continuing
 operations before
 cumulative effect
 of change in
 accounting            226,566      0.82%     170,736      0.70%   33%

Loss from
 discontinued
 operations, net
 of tax                    298                 10,196
Cumulative effect
 of change in
 accounting, net
 of tax                      -                 10,172
                   ------------           ------------

Net income            $226,268      0.82%    $150,368      0.62%   50%
                   ============           ============


Earnings per share:
 Basic
   Continuing
    operations           $1.09                  $0.79              38%
   Discontinued
    operations               -                  (0.05)
   Cumulative
    effect of
    change in
    accounting               -                  (0.05)
   Rounding                  -                   0.01
                   ------------           ------------
    Net income           $1.09                  $0.70              56%
                   ============           ============

 Diluted
   Continuing
    operations           $1.08                  $0.78              38%
   Discontinued
    operations               -                  (0.05)
   Cumulative
    effect of
    change in
    accounting               -                  (0.05)
   Rounding              (0.01)                  0.01
                   ------------           ------------
    Net income           $1.07                  $0.69              55%
                   ============           ============

Weighted average
 common shares
 outstanding:
 Basic                 208,160                215,168
 Diluted               210,570                221,864



                     AMERISOURCEBERGEN CORPORATION
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                             (unaudited)

                  ASSETS
                                             March 31,   September 30,
                                               2006          2005
                                           ------------- -------------
Current assets:
  Cash and cash equivalents                  $1,051,725      $966,553
  Short-term investment securities
   available-for-sale                           783,945       349,130
  Accounts receivable, net                    2,990,279     2,640,646
  Merchandise inventories                     4,353,870     4,003,690
  Prepaid expenses and other                     25,294        27,673
                                           ------------- -------------
    Total current assets                      9,205,113     7,987,692

Property and equipment, net                     524,341       514,758
Other long-term assets                        3,052,114     2,878,724
                                           ------------- -------------

    Total assets                            $12,781,568   $11,381,174
                                           ============= =============


   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                           $6,319,118    $5,292,253
  Current portion of long-term debt               3,043         1,232
  Other current liabilities                     810,292       758,611
                                           ------------- -------------
    Total current liabilities                 7,132,453     6,052,096

Long-term debt, less current portion          1,077,533       951,479

Other long-term liabilities                     104,990        97,242

Stockholders' equity                          4,466,592     4,280,357
                                           ------------- -------------

    Total liabilities and stockholders'
     equity                                 $12,781,568   $11,381,174
                                           ============= =============



                    AMERISOURCEBERGEN CORPORATION
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (in thousands)
                             (unaudited)

                                                 Six          Six
                                             Months Ended Months Ended
                                              March 31,    March 31,
                                                 2006         2005
                                             ------------ ------------

Operating Activities:
  Net income                                    $226,268     $150,368
  Adjustments to reconcile net income to net
   cash provided by operating activities         105,965       91,912
  Changes in operating assets and
   liabilities                                   370,405      950,726
                                             ------------ ------------
Net cash provided by operating activities        702,638    1,193,006
                                             ------------ ------------

Investing Activities:
  Capital expenditures                           (60,149)    (123,246)
  Cost of acquired companies, net of cash
   acquired                                     (238,427)        (588)
  Proceeds from sale-leaseback transactions       28,143       20,732
  Proceeds from sale of discontinued
   operations                                          -        3,560
  Proceeds from sales of property and
   equipment                                       6,012            -
  Proceeds from sale of investment                 3,769            -
  Net purchases of short-term investment
   securities available-for-sale                (434,815)    (299,745)
                                             ------------ ------------
Net cash used in investing activities           (695,467)    (399,287)
                                             ------------ ------------

Financing Activities:
  Net debt borrowings (repayments)               124,916     (180,000)
  Exercise of stock options                       97,804       53,503
  Cash dividends on common stock                 (10,464)      (5,381)
  Purchases of common stock                     (132,226)    (675,348)
  Deferred financing costs and other              (2,029)      (4,149)
                                             ------------ ------------
Net cash provided by (used in) financing
 activities                                       78,001     (811,375)
                                             ------------ ------------

Increase (decrease) in cash and cash
 equivalents                                      85,172      (17,656)

Cash and cash equivalents at beginning of
 period                                          966,553      871,343
                                             ------------ ------------

Cash and cash equivalents at end of period    $1,051,725     $853,687
                                             ============ ============



                    AMERISOURCEBERGEN CORPORATION
                     SUMMARY SEGMENT INFORMATION
                        (dollars in thousands)
                             (unaudited)

                                      Three Months Ended March 31,
                                  ------------------------------------
Operating Revenue                    2006         2005       % Change
--------------------------------- ------------------------------------

Pharmaceutical Distribution       $13,877,560  $12,068,776         15%
PharMerica                            412,685      391,090          6%
Intersegment eliminations            (241,070)    (218,127)       -11%
                                  ------------ ------------

   Operating revenue              $14,049,175  $12,241,739         15%
                                  ============ ============




                                      Three Months Ended March 31,
                                  ------------------------------------
Operating Income                     2006         2005       % Change
--------------------------------- ------------------------------------

Pharmaceutical Distribution          $175,951     $154,381         14%
PharMerica                             16,171       31,971        -49%
Facility consolidations, employee
 severance, and other                  (3,577)      (1,837)       -95%
Gain on antitrust litigation
 settlement                             9,379            -        N/A
Impairment charge                           -       (5,259)       N/A
                                  ------------ ------------

   Operating income                  $197,924     $179,256         10%
                                  ============ ============




Percentages of operating revenue:

Pharmaceutical Distribution
   Gross profit                          3.16%        3.21%
   Operating expenses                    1.89%        1.93%
   Operating income                      1.27%        1.28%

PharMerica
   Gross profit                         27.48%       29.25%
   Operating expenses                   23.56%       21.07%
   Operating income                      3.92%        8.17%

AmerisourceBergen Corporation
   Gross profit                          3.99%        4.10%
   Operating expenses                    2.58%        2.63%
   Operating income                      1.41%        1.46%



                    AMERISOURCEBERGEN CORPORATION
                     SUMMARY SEGMENT INFORMATION
                        (dollars in thousands)
                             (unaudited)

                                       Six Months Ended March 31,
                                  ------------------------------------
Operating Revenue                    2006         2005       % Change
--------------------------------- ------------------------------------

Pharmaceutical Distribution       $27,225,713  $24,110,544         13%
PharMerica                            821,943      776,711          6%
Intersegment eliminations            (462,627)    (443,407)        -4%
                                  ------------ ------------

   Operating revenue              $27,585,029  $24,443,848         13%
                                  ============ ============




                                       Six Months Ended March 31,
                                  ------------------------------------
Operating Income                     2006         2005       % Change
--------------------------------- ------------------------------------

Pharmaceutical Distribution          $314,827     $251,252         25%
PharMerica                             34,678       55,493        -38%
Facility consolidations, employee
 severance, and other                 (12,404)      (6,970)       -78%
Gain on antitrust litigation
 settlements                           27,428       18,825         46%
Impairment charge                           -       (5,259)       N/A
                                  ------------ ------------

   Operating income                  $364,529     $313,341         16%
                                  ============ ============


Percentages of operating revenue:

Pharmaceutical Distribution
   Gross profit                          3.07%        2.97%
   Operating expenses                    1.91%        1.93%
   Operating income                      1.16%        1.04%

PharMerica
   Gross profit                         27.64%       28.47%
   Operating expenses                   23.42%       21.33%
   Operating income                      4.22%        7.14%

AmerisourceBergen Corporation
   Gross profit                          3.95%        3.91%
   Operating expenses                    2.63%        2.63%
   Operating income                      1.32%        1.28%



                     AMERISOURCEBERGEN CORPORATION
                          EARNINGS PER SHARE
                 (In thousands, except per share data)
                              (unaudited)

Basic earnings per share is computed on the basis of the weighted
average number of shares of common stock outstanding during the
periods presented. Diluted earnings per share is computed on the basis
of the weighted average number of shares of common stock outstanding
during the period plus the dilutive effect of stock options and
restricted stock. Additionally, the diluted earnings per share
calculations for the three and six months ended March 31, 2005
consider the convertible subordinated notes as if converted during the
periods that the notes were outstanding and, therefore, the effect of
interest expense related to those notes is added back to net income in
determining income from continuing operations available to common
stockholders for the periods that the notes were outstanding.

                               Three Months Ended   Six Months Ended
                                    March 31,           March 31,
                                 2006      2005      2006      2005
                               --------- --------- --------- ---------

Income from continuing
 operations before cumulative
 effect of change in
 accounting                    $128,590  $101,713  $226,566  $170,736
Interest expense - convertible
 subordinated notes, net of
 income taxes                         -        28         -     2,539
                               --------- --------- --------- ---------
Income from continuing
 operations available to
 common stockholders           $128,590  $101,741  $226,566  $173,275
                               ========= ========= ========= =========

Weighted average common shares
 outstanding - basic            208,050   219,290   208,160   215,168
Effect of dilutive securities:
  Stock options and restricted
   stock                          2,721       954     2,410       900
  Convertible subordinated
   notes                              -       224         -     5,796
                               --------- --------- --------- ---------

Weighted average common shares
 outstanding - diluted          210,771   220,468   210,570   221,864
                               ========= ========= ========= =========


Earnings per share:
  Basic
    Continuing operations         $0.62     $0.46     $1.09     $0.79
    Discontinued operations           -     (0.01)        -     (0.05)
    Cumulative effect of
     change in accounting             -         -         -     (0.05)
    Rounding                          -         -         -      0.01
                               --------- --------- --------- ---------
      Net income                  $0.62     $0.45     $1.09     $0.70
                               ========= ========= ========= =========

  Diluted
    Continuing operations         $0.61     $0.46     $1.08     $0.78
    Discontinued operations           -     (0.01)        -     (0.05)
    Cumulative effect of
     change in accounting             -         -         -     (0.05)
    Rounding                          -         -     (0.01)     0.01
                               --------- --------- --------- ---------
      Net income                  $0.61     $0.45     $1.07     $0.69
                               ========= ========= ========= =========

SOURCE: AmerisourceBergen Corporation

AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com

Corporate Overview

AmerisourceBergen is one of the largest global pharmaceutical sourcing and distribution services companies, helping both healthcare providers and pharmaceutical and biotech manufacturers improve patient access to products and enhance patient care. With services ranging from drug distribution and niche premium logistics to reimbursement and pharmaceutical consulting services, AmerisourceBergen delivers innovative programs and solutions across the pharmaceutical supply channel..

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