AmeriSource Net Income Up 23% and Board Declares Two-for-One Stock Split

January 27, 1999




















www.AmeriSource.com







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


                     Three                 Three
                    Months    % of        Months      % of                               
                     Ended   Operating     Ended    Operating     %                 
                   Dec. 31,   Revenue    Dec. 31,    Revenue    Change              
                      1998                  1997
                   --------  ---------   --------   ---------   ------          
Revenue:                                                                                                                                                       
Operating 
 revenue         $2,160,904    100.00% $2,254,560     100.00%      -4%           
Bulk deliveries 
 to customer 
 warehouses           8,762                24,998                                            
                 ----------            ----------
Total revenue     2,169,666             2,279,558                                            
                                                                                                                                                               
                                                                                                                                                               
Cost of 
 goods sold:                                                                                                                                            
Operating cost 
 of goods sold    2,059,211     95.29%  2,148,954      95.32%      -4%
Cost of goods 
sold - bulk 
 deliveries           8,762                24,998                                            
                  ---------             ---------
Total cost 
 of goods sold    2,067,973             2,173,952
                  ---------             ---------
                                                                                                                                                               
                                                                                                                                                               
Gross profit        101,693      4.71%    105,606      4.68%       -4%
                                                                                                                                                               
                                                                                                                                                               
Operating 
 expenses:
Selling and 
 administrative      61,013      2.82%     65,765      2.92%       -7%
Depreciation          3,500      0.16%      3,155      0.14%       11%           
Amortization            256      0.01%        282      0.01%       -9%
                     ------                   ---
                                                                                                                                                               
Operating income     36,924      1.71%     36,404      1.61%        1%           
                                                                                                                                                               
Interest expense      8,141      0.38%     12,662      0.56%      -36%           
                      -----                ------
                                                                                                                                                               
                                                                                                                                                               
Income before taxes  28,783      1.33%     23,742      1.05%       21%           

Taxes on income      10,938      0.51%      9,259      0.41%       18%           
                     ------                 -----
                                                                                                                                                               
Net income          $17,845      0.83%    $14,483      0.64%       23%           
                    =======               =======
                                                                                                                                                               

Earnings per share:                                                                                                                                            
Basic                 $0.74                 $0.61
Assuming dilution      0.73                  0.60                                            
                                                                                                                                                               
Weighted average 
common shares                                                                                                                                 
outstanding:                                                                                                                                             
Basic                24,184                23,856                                            
Assuming dilution    24,434                24,224
                                                                                                                                                               

                    AMERISOURCE HEALTH CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                        (dollars in thousands)
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
        ASSETS        (unaudited)                                                        
                        Dec. 31,       Sept. 30,         Increase                  
                          1998           1998           (Decrease)                 
                     --------------  ------------      -------------              
Current assets:                                                                                                                                   
 Cash  and cash 
  equivalents           $44,406         $48,461          ($4,055)              
 Restricted cash         31,526          37,044           (5,518)              
 Accounts  
  receivable, 
  less allowance 
  for doubtful 
  accounts              522,044         458,238           63,806               
                                                                                                                                                        
 Merchandise 
  inventories         1,066,567         870,223          196,344               
 Prepaid expenses 
  and other               3,150           4,356           (1,206)              
                     --------------  -----------       -------------              
   Total current 
    assets            1,667,693       1,418,322          249,371               
                                                                                                                                                        
Property  and  
 equipment, net          59,851          60,789             (938)              
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
Other assets, 
 less accumulated 
 amortization            79,374          73,171            6,203               
                     -------------- ------------       -------------              
                                                                                                                                                        
   Total assets      $1,806,918      $1,552,282         $254,636               
                    =============== ============       =============               
                                                                                                                                                        
                                                                                                                                                        
        LIABILITIES AND STOCKHOLDERS' EQUITY                                                                       
                                                                                                                                                        
                                                                                                                                                        
Current 
 liabilities:                                                                                                                              
  Accounts 
   payable             $908,529        $873,181          $35,348               
  Accrued  
   expenses and 
   other                 42,158          48,532           (6,374)              
  Accrued  
   income taxes          11,629              78           11,551               
                                                                                                                                                        
 Deferred  income 
  taxes                  97,430          93,385            4,045               
                      -----------     -----------      -----------              
    Total  current  
     liabilities      1,059,746       1,015,176           44,570               
                                                                                                                                                        
Long-term debt:                                                                                                                                   
                                                                                                                                                        
 Revolving credit 
  facility              331,660         145,000          186,660               
 Receivables 
  securitization 
  financing             299,956         299,948                8               
                                                                                                                                                        
Other debt                8,654           8,813             (159)              
                                                                                                                                                        
Other  liabilities        8,730           8,036              694               
                                                                                                                                                        
Stockholders' equity:                                                                                                                             
 Common stock and 
  capital in excess 
  of par value          249,956         244,938            5,018               
 Retained earnings 
  (deficit)            (145,564)       (163,409)          17,845               
 Cost of common 
  stock in treasury      (6,220)         (6,220)               0               
                      ------------    ------------     ------------              
    Total  
     stockholders' 
     equity              98,172          75,309           22,863               
                      ------------    ------------     ------------              
                                                                                                                                                        
    Total 
     liabilities and 
     stockholders' 
     equity          $1,806,918      $1,552,282         $254,636               
                   =============   =============     ============              
                                                                                                                                                        

     
     CONTACT:  AmeriSource Health Corp.  
               MaryBeth Alvin, 610/296-4480                      
               malvin@amerisource.com