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AmerisourceBergen Reports Record Revenue, Up 10 Percent, and $0.70 in Diluted EPS from Continuing Operations for the June Quarter

07/24/08

Significant Operating Margin Expansion

VALLEY FORGE, Pa.--(BUSINESS WIRE)--July 24, 2008--AmerisourceBergen Corporation (NYSE:ABC) today reported that in its fiscal year 2008 third quarter ended June 30, 2008, total revenue increased 10 percent to a record $18.0 billion, diluted earnings per share from continuing operations were $0.70 including $0.03 in special charges, up 4 percent, and the Pharmaceutical Distribution operating margin increased 10 basis points.

AmerisourceBergen also announced that the Company has signed an agreement to sell its PMSI workers' compensation business to H.I.G. Capital, LLC for approximately $40 million, plus a contingency payment of up to an additional $10 million and subject to adjustments at closing. As a result, AmerisourceBergen is taking a non-cash charge of $222 million in the June quarter of fiscal 2008. The Company expects to complete the transaction by the end of September this year. In addition, results for the current and prior fiscal year for PMSI, including the charge, have been reclassified as a discontinued operation.

    Fiscal Third Quarter Highlights

    --  Record total revenue of $18.0 billion, up 10 percent.

    --  Diluted earnings per share from continuing operations of
        $0.70, including $0.03 in special charges, a 4 percent
        increase; and up 30 percent when excluding PharMerica LTC in
        the third quarter of fiscal 2007 and special items in the same
        period of fiscal years 2007 and 2008.

    --  Pharmaceutical Distribution operating margin of 1.14 percent,
        up 10 basis points.

    --  Cash flow from operations of $131 million.

    --  $159 million of share repurchases.

    Fiscal First Nine Months Highlights

    --  Record total revenue of $53.0 billion, up 7 percent.

    --  Record diluted earnings per share from continuing operations
        of $2.16, including $0.03 in special charges, a 13 percent
        increase; and up 24 percent when excluding PharMerica LTC in
        fiscal 2007 and special items in the same period of fiscal
        years 2007 and 2008.

    --  Pharmaceutical Distribution operating margin of 1.19 percent,
        up 4 basis points.

    --  Cash flow from operations of $223 million.

    --  $554 million in share repurchases.

"Our outstanding June quarter results in continuing operations were driven by excellent performance across the core distribution businesses, including our specialty business," said R. David Yost, AmerisourceBergen's President and Chief Executive Officer. "Above-market revenue growth, solid manufacturer price appreciation, and outstanding expense management all played a key role in delivering the results. This superior performance was achieved in a pharmaceutical market that was soft by historical standards. Our working capital management remains exceptional; we improved our liquidity in the quarter; and we continue to have a strong balance sheet."

Commenting on the sale of PMSI, Yost said, "We were very disappointed with PMSI's performance in this quarter, and after re-evaluating our alternatives, we decided to sell the PMSI workers' compensation business in order to focus our full attention on our pharmaceutical distribution and related businesses and allow H.I.G. to focus on the opportunities at PMSI.

"Based on our strong performance, we have raised our expectations for diluted earnings per share from continuing operations for fiscal year 2008 to a range of $2.81 to $2.89 from the previous range of $2.77 to $2.87. This guidance includes $0.03 of special charges and no contribution from PMSI."

    Consolidated Results

    --  Total revenue was $18.0 billion in the third quarter of fiscal
        2008 compared to $16.3 billion for the same period last year,
        a 10 percent increase, reflecting an 11 percent increase in
        the Pharmaceutical Distribution Segment.

    --  Despite the 22 percent increase in operating income in the
        Pharmaceutical Distribution Segment, consolidated operating
        income in the fiscal 2008 third quarter decreased 3 percent to
        $197.5 million from $202.9 million in the previous fiscal
        year's third quarter. Special charges in the fiscal year
        2008's third quarter, primarily for employee severance as the
        Company continues to streamline its organization, had a $7.9
        million negative impact on consolidated operating income. In
        the previous fiscal year's third quarter, special items had a
        net positive impact of $28.4 million and PharMerica Long-Term
        Care (LTC), which was spun off in July 2007, contributed $6.1
        million.

    --  The effective tax rate for the third quarter of fiscal 2008
        was 37.6 percent, compared to 34.8 percent in the previous
        fiscal year's third quarter. The Company expects its ongoing
        effective tax rate to be slightly above 38 percent.

    --  Diluted earnings per share from continuing operations were up
        4 percent to $0.70 in the third quarter of fiscal 2008
        compared to $0.67 in the previous fiscal year's third quarter.

    --  Excluding the benefits in the third quarter of fiscal year
        2007 of $0.02 from PharMerica LTC and $0.09 in special items,
        as well as the $0.03 special charge in the same quarter of
        2008, AmerisourceBergen's diluted earnings per share from
        continuing operations in the third quarter of fiscal year 2008
        increased 30 percent.

    --  Average diluted shares outstanding for the third quarter of
        fiscal year 2008 were 161 million, down 27 million shares from
        the previous fiscal year's third quarter due to share
        repurchases, net of option exercises.

    --  In the first nine months of fiscal 2008, total revenue was
        $53.0 billion, a 7 percent increase over the $49.4 billion in
        total revenue in the previous fiscal year's first nine months.

    --  For the first nine months of fiscal 2008 diluted earnings per
        share from continuing operations were $2.16 compared to $1.91
        for the same period of the previous fiscal year, a 13 percent
        increase, and up 24 percent when excluding PharMerica LTC in
        fiscal 2007 and special items in the same period of both
        fiscal years 2007 and 2008. In the first nine months of fiscal
        2008, diluted earnings per share from continuing operations
        were reduced by $0.03 from the net impact of special items. In
        the prior year nine-month period, earnings per share from
        continuing operations benefited $0.06 per diluted share due to
        the net impact of special items, and the PharMerica LTC
        business added $0.08 to diluted earnings per share in the
        period.

AmerisourceBergen consists of the following two reportable segments: Pharmaceutical Distribution (which includes the operations of AmerisourceBergen Drug Corporation, Specialty Group, Packaging Group and Bellco Health) and Other (which includes PharMerica Long-Term Care through July 31, 2007, and excludes PMSI, which has been reclassified to discontinued operations in all periods presented).

    Pharmaceutical Distribution Segment Results

    --  Total revenue of $18.0 billion in the third quarter of fiscal
        2008 was up 11 percent compared to the same quarter in the
        previous fiscal year, due to an 8 percent increase in
        AmerisourceBergen Drug Corporation revenue, primarily from its
        institutional customers, and a 3 percent contribution from
        Bellco Health, which was acquired at the beginning of the
        fiscal year. Specialty Group total revenue was up 4 percent.

    --  Gross profit as a percentage of total revenue increased 1
        basis point to 2.77 percent in the fiscal 2008 third quarter
        compared to the same period in the previous year driven by
        solid price appreciation, including branded pharmaceuticals
        and select generic drug increases, and increased contribution
        from generic drugs. The LIFO charge in the fiscal 2008 third
        quarter was $5.0 million compared with a $1.7 million credit
        in the previous year's third quarter. For the first nine
        months of fiscal 2008, the LIFO charge was $17.7 million
        compared to a $7.1 million charge in the same period last
        year.

    --  Operating expenses as a percentage of total revenue in the
        fiscal third quarter of 2008 were 1.63 percent, down 10 basis
        points from the same period in the previous fiscal year, due
        to improved productivity and the benefits of the Company's
        streamlined organization. Almost all of the year-over-year
        dollar increase in expenses in the quarter was due to the
        Bellco acquisition.

    --  Operating income increased a robust 22 percent to $205.4
        million in the fiscal 2008 third quarter compared with the
        previous year's third quarter due to excellent revenue growth,
        improved gross profit and exceptional expense management.

    --  As a percentage of total revenue, the operating margin in the
        fiscal 2008 third quarter was 1.14 percent, a 10 basis point
        increase over the same period in the previous fiscal year.

    Other Segment Results

    --  In the fiscal 2008 third quarter, the Other Segment had no
        results because the PMSI workers' compensation business was
        reclassified as a discontinued operation. In the third quarter
        of 2007, the Other Segment included PharMerica LTC, which
        contributed revenue of $306.7 million and operating income of
        $6.1 million.

    Fiscal Year 2008 Expectations

"We have raised our expectations for diluted earnings per share from continuing operations for fiscal year 2008 to a range of $2.81 to $2.89 from the previous range of $2.77 to $2.87," said Yost. "This new range implies a fourth quarter fiscal 2008 range of $0.65 to $0.73. The midpoint of the new expectations for fiscal year 2008, excluding the $0.03 of special charges in fiscal 2008, represents a 22 percent increase over the $2.36 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 LTC in fiscal year 2007. The fiscal year 2008 range reflects no contributions from PMSI because it is classified as a discontinued operation and includes $0.03 of special charges.

"Our revenue assumptions supporting our diluted earnings per share from continuing operations expectations in fiscal year 2008 remain unchanged in a range of 7 percent to 9 percent, and we expect to be at the low end of the range. Our assumption for operating margin expansion in the Pharmaceutical Distribution Segment improves to the low to mid single-digit basis point range from the low single-digit basis point range.

"In the first nine months of fiscal 2008, we repurchased $554 million of our shares and expect to use the majority of the $144 million remaining in our current share repurchase authorization during the remainder of this fiscal year, substantially exceeding our original expectation of repurchasing $400 million to $500 million of our shares in fiscal year 2008. We continue to expect free cash flow for fiscal year 2008 in the range of $450 million to $525 million, which includes capital expenditures in the $125 million range."

Fiscal Year 2009 Preview

Looking ahead to fiscal year 2009, Yost commented, "Although we are in the middle of our detailed planning process for fiscal year 2009, I remain confident that even if pharmaceutical market growth is in the 2 percent to 3 percent range next year, we see a clear path to delivering low double-digit diluted earnings per share from continuing operations growth in fiscal year 2009 through continued expense management, operating margin expansion and strong cash generation. As in the past, we expect to announce our diluted earnings per share expectations for fiscal year 2009 when we release our fiscal year 2008 results, currently scheduled for October 30, 2008."

Conference Call

The Company will host a conference call to discuss its results at 11:00 a.m. Eastern Time on July 24, 2008. Participating in the conference call will be: R. David Yost, President and Chief Executive Officer and Michael D. DiCandilo, Executive Vice President, Chief Financial Officer and Chief Operating Officer for AmerisourceBergen Drug Corporation.

To access the live conference call via telephone:

     Dial in: (612) 332-0806, 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 1:00 p.m. July 24, 2008 until 11:59 p.m. July 31, 2008. 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: 953331
         (320) 365-3844 from outside the U.S., access code: 953331

To access the archived webcast:

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

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 $70 billion in annualized revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs approximately 11,200 people. AmerisourceBergen is ranked #28 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. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: changes in pharmaceutical market growth rates; competitive pressures; the loss of one or more key customer or supplier relationships; changes in customer mix; customer or 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 (including increased government regulation of the pharmaceutical supply channel); government enforcement initiatives (including (i) the imposition of increased obligations upon pharmaceutical distributors to detect and prevent suspicious orders of controlled substances (ii) the commencement of further administrative actions by the U. S. Drug Enforcement Administration seeking to suspend or revoke the license of any of the Company's distribution facilities to distribute controlled substances, (iii) the commencement of any enforcement actions by any U.S. Attorney alleging violation of laws and regulations regarding diversion of controlled substances and suspicious order monitoring), or (iv) the commencement of any administrative actions by the board of pharmacy of any state seeking to suspend, revoke or otherwise restrict the ability of any of the Company's distribution facilities or businesses to distribute or dispense pharmaceuticals in such state; changes in U.S. government policies (including reimbursement changes arising from federal legislation, including the Medicare Modernization Act and the Deficit Reduction Act of 2005); changes in regulatory or clinical medical guidelines, reimbursement practices and/or labeling for the pharmaceuticals we distribute, including erythropoiesis-stimulating agents (ESAs) used to treat anemia patients; price inflation in branded pharmaceuticals and price deflation in generics; fluctuations in market interest rates; operational or control issues arising from the Company's outsourcing of information technology activities; 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; the inability of the Company to complete the divestiture of its PMSI workers' compensation business; an increase in the impairment charge related to PMSI if the divestiture is not completed; any disruption to or other adverse effects on the Company related to its exit from the PMSI workers' compensation business and classification of that business as a discontinued operation; the incurrence of additional costs, expenses or liabilities in the future related to discontinued operations; the inability of the Company to successfully complete any other transaction that the Company may wish to pursue from time to time; changes in tax legislation or adverse resolution of challenges to our tax positions; and other economic, business, competitive, legal, tax, regulatory and/or operational factors affecting the business of the Company generally. Certain additional factors that management believes could cause actual outcomes and results to differ materially from those described in forward-looking statements are set forth (i) in Item 1A (Risk Factors) in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2007 and elsewhere in that report and (ii) in other reports filed by the Company pursuant to the Securities Exchange Act of 1934.


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


                         Three                Three
                      Months Ended  % of   Months Ended  % of
                        June 30,    Total    June 30,    Total    %
                          2008     Revenue     2007     Revenue Change
                      ------------ ------- ------------ ------- ------

Revenue:
   Operating revenue  $17,507,497          $ 15,289,657            15%
   Bulk deliveries to
    customer
    warehouses            489,169             1,054,319           -54%
                      ------------         ------------
Total revenue          17,996,666  100.00%   16,343,976 100.00%    10%

Cost of goods sold     17,498,621            15,773,173            11%
                      ------------         ------------

Gross profit              498,045    2.77%      570,803   3.49%   -13%

Operating expenses:
   Distribution,
    selling and
    administrative        271,098    1.51%      341,855   2.09%   -21%
   Depreciation and
    amortization           21,557    0.12%       22,595   0.14%    -5%
   Facility
    consolidations,
    employee severance
    and other               7,865    0.04%        3,496   0.02%   125%
                      ------------         ------------

Operating income          197,525    1.10%      202,857   1.24%    -3%

Other loss                    768       -         3,516   0.02%   -78%

Interest expense, net      15,966    0.09%        6,313   0.04%   153%
                      ------------         ------------

Income from continuing
 operations before
 income taxes             180,791    1.00%      193,028   1.18%    -6%

Income taxes               68,026    0.38%       67,147   0.41%     1%
                      ------------         ------------

Income from continuing
 operations               112,765    0.63%      125,881   0.77%   -10%

(Loss) income from
 discontinued
 operations, net of
 tax                     (220,785)                4,027
                      ------------         ------------

Net (loss) income     $  (108,020)         $    129,908
                      ============         ============


   Basic earnings per
    share:
      Continuing
       operations     $      0.71          $       0.68             4%
      Discontinued
       operations           (1.38)                 0.02
      Rounding              (0.01)                    -
                      ------------         ------------
         Total        $     (0.68)         $       0.70
                      ============         ============

  Diluted earnings per
   share:
     Continuing
      operations      $      0.70          $       0.67             4%
     Discontinued
      operations            (1.37)                 0.02
                      ------------         ------------
         Total        $     (0.67)         $       0.69
                      ============         ============

Weighted average
 common shares
 outstanding:
   Basic                  159,532               185,172
   Diluted (1)            161,117               187,951

(1) Includes the dilutive effect of stock options and restricted
 stock.

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


                          Nine                 Nine
                      Months Ended  % of   Months Ended  % of
                        June 30,    Total    June 30,    Total    %
                          2008     Revenue     2007     Revenue Change
                      ------------ ------- ------------ ------- ------

Revenue:
   Operating revenue  $50,857,011          $46,067,640             10%
   Bulk deliveries to
    customer
    warehouses          2,174,876            3,311,953            -34%
                      ------------         ------------
Total revenue          53,031,887  100.00%  49,379,593  100.00%     7%

Cost of goods sold     51,512,338           47,662,277              8%
                      ------------         ------------

Gross profit            1,519,549    2.87%   1,717,316    3.48%   -12%

Operating expenses:
   Distribution,
    selling and
    administrative        821,404    1.55%   1,031,651    2.09%   -20%
   Depreciation and
    amortization           63,550    0.12%      64,248    0.13%    -1%
   Facility
    consolidations,
    employee severance
    and other               9,426    0.02%       9,654    0.02%    -2%
                      ------------         ------------

Operating income          625,169    1.18%     611,763    1.24%     2%

Other loss                    513       -        3,958    0.01%   -87%

Interest expense, net      51,081    0.10%      24,324    0.05%   110%
                      ------------         ------------

Income from continuing
 operations before
 income taxes             573,575    1.08%     583,481    1.18%    -2%

Income taxes              219,573    0.41%     218,430    0.44%     1%
                      ------------         ------------

Income from continuing
 operations               354,002    0.67%     365,051    0.74%    -3%

(Loss) income from
 discontinued
 operations, net of
 tax                     (218,350)              16,540
                      ------------         ------------

Net income            $   135,652          $   381,591
                      ============         ============


   Basic earnings per
    share:
      Continuing
       operations     $      2.18          $      1.93             13%
      Discontinued
       operations           (1.35)                0.09
      Rounding               0.01                    -
                      ------------         ------------
         Total        $      0.84          $      2.02
                      ============         ============

   Diluted earnings
    per share:
      Continuing
       operations     $      2.16          $      1.91             13%
      Discontinued
       operations           (1.33)                0.09
      Rounding                  -                (0.01)
                      ------------         ------------
         Total        $      0.83          $      1.99
                      ============         ============

Weighted average
 common shares
 outstanding:
   Basic                  162,047              188,795
   Diluted (1)            163,977              191,590

(1) Includes the dilutive effect of stock options and restricted
 stock.

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


                   ASSETS
                                              June 30,   September 30,
                                                2008         2007
                                            ------------ -------------
Current assets:
   Cash and cash equivalents                $    583,086 $     640,204
   Short-term investment securities
    available-for-sale                                 -       467,419
   Accounts receivable, net                    3,667,083     3,415,772
   Merchandise inventories                     4,116,250     4,097,811
   Prepaid expenses and other                     27,420        31,828
   Assets held for sale                           53,952       284,818
                                            ------------ -------------
      Total current assets                     8,447,791     8,937,852

Property and equipment, net                      521,223       493,647
Other long-term assets                         3,019,326     2,878,565
                                            ------------ -------------

      Total assets                          $ 11,988,340 $  12,310,064
                                            ============ =============


    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                         $  7,039,074 $   6,964,594
   Current portion of long-term debt               1,872           476
   Other current liabilities                     809,783       872,703
   Liabilities held for sale                      20,773        26,337
                                            ------------ -------------
      Total current liabilities                7,871,502     7,864,110

Long-term debt, less current portion           1,231,199     1,227,077

Other long-term liabilities                      161,674       119,157

Stockholders' equity                           2,723,965     3,099,720
                                            ------------ -------------

      Total liabilities and stockholders'
       equity                               $ 11,988,340 $  12,310,064
                                            ============ =============

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

                                                 Nine         Nine
                                             Months Ended Months Ended
                                               June 30,     June 30,
                                                 2008         2007
                                             ------------ ------------

Operating Activities:
   Net income                                $   135,652  $   381,591
   Loss (income) from discontinued operations    218,350      (16,540)
                                             ------------ ------------
      Income from continuing operations          354,002      365,051
   Adjustments to reconcile income from
    continuing operations to net cash
    provided by operating activities             140,558      133,730
   Changes in operating assets and
    liabilities                                 (279,987)     558,585
                                             ------------ ------------
      Net cash provided by operating
       activities - continuing operations        214,573    1,057,366
      Net cash provided by operating
       activities - discontinued operations        8,382       22,961
                                             ------------ ------------
   Net cash provided by operating activities     222,955    1,080,327
                                             ------------ ------------

Investing Activities:
   Capital expenditures                          (80,621)     (79,026)
   Cost of acquired companies, net of cash
    acquired                                    (162,220)     (85,652)
   Proceeds from sales of property and
    equipment                                      1,417        6,443
   Proceeds from sales of other assets             1,176        4,852
   Net short-term investment activity            467,419     (886,360)
                                             ------------ ------------
      Net cash provided by (used in)
       investing activities - continuing
       operations                                227,171   (1,039,743)
      Net cash used in investing activities -
       discontinued operations                    (1,273)     (88,497)
                                             ------------ ------------
   Net cash provided by (used in) investing
    activities                                   225,898   (1,128,240)
                                             ------------ ------------

Financing Activities:
   Net borrowings                                 13,762      103,679
   Deferred financing costs and other             (1,373)      (3,078)
   Purchases of common stock                    (553,675)    (888,390)
   Exercises of stock options                     72,220       89,958
   Cash dividends on common stock                (36,748)     (28,515)
                                             ------------ ------------
      Net cash used in financing activities -
       continuing operations                    (505,814)    (726,346)
      Net cash used in financing activities -
       discontinued operations                      (157)           -
                                             ------------ ------------
   Net cash used in financing activities        (505,971)    (726,346)
                                             ------------ ------------

Decrease in cash and cash equivalents            (57,118)    (774,259)

Cash and cash equivalents at beginning of
 period                                          640,204    1,261,268
                                             ------------ ------------

Cash and cash equivalents at end of period   $   583,086  $   487,009
                                             ============ ============

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


                                       Three Months Ended June 30,
                                    ----------------------------------
Total Revenue                           2008         2007     % Change
----------------------------------- ----------------------------------

Pharmaceutical Distribution         $17,996,666  $16,248,832       11%
Other                                         -      306,670      N/M
Intersegment eliminations                     -     (211,526)     N/M
                                    ------------ ------------

   Total revenue                    $17,996,666  $16,343,976       10%
                                    ============ ============




                                       Three Months Ended June 30,
                                    ----------------------------------
Operating Income                        2008         2007     % Change
----------------------------------- ----------------------------------

Pharmaceutical Distribution         $   205,390  $   168,312       22%
Other                                         -        6,122      N/M
Facility consolidations, employee
 severance and other                     (7,865)      (3,496)    -125%
Gain on antitrust litigation
 settlements                                  -       31,919      N/M
                                    ------------ ------------

   Operating income                 $   197,525  $   202,857       -3%
                                    ============ ============




Percentages of total revenue:

Pharmaceutical Distribution
   Gross profit                            2.77%        2.76%
   Operating expenses                      1.63%        1.73%
   Operating income                        1.14%        1.04%

Other
   Gross profit                             N/A        29.38%
   Operating expenses                       N/A        27.38%
   Operating income                         N/A         2.00%

AmerisourceBergen Corporation
   Gross profit                            2.77%        3.49%
   Operating expenses                      1.67%        2.25%
   Operating income                        1.10%        1.24%

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


                                        Nine Months Ended June 30,
                                    ----------------------------------
Total Revenue                           2008         2007     % Change
----------------------------------- ----------------------------------

Pharmaceutical Distribution         $53,031,887  $49,083,637        8%
Other                                         -      941,385      N/M
Intersegment eliminations                     -     (645,429)     N/M
                                    ------------ ------------

   Total revenue                    $53,031,887  $49,379,593        7%
                                    ============ ============




                                        Nine Months Ended June 30,
                                    ----------------------------------
Operating Income                        2008         2007     % Change
----------------------------------- ----------------------------------

Pharmaceutical Distribution         $   633,010  $   564,631       12%
Other                                         -       21,224      N/M
Facility consolidations, employee
 severance and other                     (9,426)      (9,654)       2%
Gain on antitrust litigation
 settlements                              1,585       35,562      -96%
                                    ------------ ------------

   Operating income                 $   625,169  $   611,763        2%
                                    ============ ============




Percentages of total revenue:

Pharmaceutical Distribution
   Gross profit                            2.86%        2.86%
   Operating expenses                      1.67%        1.71%
   Operating income                        1.19%        1.15%

Other
   Gross profit                             N/A        29.36%
   Operating expenses                       N/A        27.10%
   Operating income                         N/A         2.25%

AmerisourceBergen Corporation
   Gross profit                            2.87%        3.48%
   Operating expenses                      1.69%        2.24%
   Operating income                        1.18%        1.24%

    CONTACT: AmerisourceBergen Corporation
             Michael N. Kilpatric, 610-727-7118
             mkilpatric@amerisourcebergen.com

    SOURCE: AmerisourceBergen Corporation

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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