EXHIBIT 99.2
Contacts: Media
Larry Kurtz
Vice President, Corporate Communications
415-983-8418
Or
Investors
Janet Bley
Vice President, Investor Relations
415-983-9357
McKESSON HBOC, INC. BEGINS OPERATIONS AS THE
WORLD'S LARGEST HEALTHCARE SERVICES COMPANY
SAN FRANCISCO, January 13, 1999 -- McKesson HBOC, Inc. (McKessonHBOC)
(NYSE:MCK), the world's largest healthcare services company, began operations
today. McKessonHBOC provides pharmaceutical supply management and information
technologies across the entire continuum of healthcare, including market-
leading businesses in pharmaceutical and medical-surgical distribution,
information technology for healthcare providers, services for payors and
outsourcing.
McKessonHBOC serves approximately 5,000 hospitals, 25,000 retail
pharmacies, 200,000 physicians, 10,000 long-term care sites, 750 home care
agencies, 600 healthcare payors, 450 pharmaceutical manufactures and 2,000
medical-surgical manufacturers. While more than 95 percent of the company's
revenues come from the U.S. healthcare market, McKessonHBOC also has customers
in 10 other countries.
"McKessonHBOC has a proven track record for providing information-based
solutions that reduce costs and improve quality for our customers across the
full continuum of healthcare," said Mark A. Pulido, president and chief
executive officer. "We are dedicated to improving healthcare performance by
delivering the right products and information to the right place at the right
time to advance the success of our customers as they restructure healthcare
delivery."
"McKesson HBOC, Inc. is the leader in fast-growing healthcare segments,
with favorable dynamics driving growth in each of our markets. McKessonHBOC
pharmaceutical sales are growing in excess of 15 percent per year and healthcare
information technology revenues are increasing at a rate of more than 25 percent
per year."
McKessonHBOC Begins Operations
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"By coordinating our product and service offerings, we can reduce steps
in the healthcare delivery process," Pulido continued. "As a result, we
anticipate acceleration of our historically strong growth to create further
value for our shareholders. And, we will continue an aggressive acquisition
program to capitalize on supply management and healthcare technology
opportunities."
Four HBOC executives have joined McKesson's existing corporate officers
on the new McKessonHBOC Executive Operating Committee:
-- Charles W. McCall, chairman of the McKessonHBOC Board of Directors,
formerly HBO & Company (HBOC) chairman and chief executive officer.
-- Albert J. Bergonzi, group president, Healthcare Information
Technology, reporting to Pulido. Bergonzi was formerly HBOC president and chief
operating officer.
-- David A. Schenk, in the new position of senior vice president,
Affiliation Team, reporting to Pulido. Schenk will lead a dedicated team
selected from McKessonHBOC operating and functional units to identify and fully
capitalize on opportunities to accelerate revenue growth through cross-selling,
leveraging customer relationships, enhancing existing products and creating new
products. Schenk, who joined HBOC in 1982, had been senior vice president,
Enterprise Services, with responsibility for HBOC's Enterprise Services as well
as the services functions of the Charlotte Product Group and CyCare Business
Group. He also led all enterprise project management efforts.
-- E. Christine Rumsey, senior vice president, Human Resources and
Administration, also reporting to Pulido. Rumsey, who had been senior vice
president for Human Resources for HBOC, replaces William A. Armstrong, who is
retiring after 26 years with McKesson. She joined HBOC in 1981.
"The newly formed McKessonHBOC Affiliation Team has a goal to identify
two to three major projects that will deliver significant incremental pre-tax
income each year," concluded Pulido. "They have a target of pre-tax synergies in
excess of $75 million in fiscal year 2000 from a combination of cost savings and
cross-selling initiatives, and a target of $125 million in the following fiscal
year."
McKessonHBOC Begins Operations
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In addition to McCall and Pulido, the McKessonHBOC Board of Directors
includes:
-- Alfred C. Eckert III, president, Greenwich Street Capital Partners,
Inc.,
-- Tully M. Friedman, chairman and chief executive officer, Friedman
Fleischer & Lowe, LLC,
-- Alton F. Irby III, chief executive, Hawkpoint Partners Limited,
-- Gerald E. Mayo, chairman, Midland Financial Services, Inc.,
-- James V. Napier, chairman of the board, Scientific-Atlanta, Inc.,
-- Carl E. Reichardt, chairman and chief executive officer, retired, Wells
Fargo & Company,
-- Alan Seelenfreund, chairman and chief executive officer, retired,
McKesson Corporation, and
-- Jane E. Shaw, chairman of the board and chief executive officer,
AeroGen, Inc.
The merger of McKesson and HBOC to form McKessonHBOC will be accounted for
as a pooling of interests. McKessonHBOC will have a fiscal year end of March 31.
The quarter ending March 31, 1999, will be the company's first quarter of
combined financial results and will include a charge for merger-related costs.
For the quarter ended December 31, 1998, McKessonHBOC will report separate
financial results for McKesson and HBOC respectively on January 25, 1999, at
4:30 PM EST.
McKesson HBOC, Inc., a Fortune 100 Corporation, is the world's largest
healthcare services company. McKessonHBOC provides pharmaceutical supply
management and information technologies across the entire continuum of
healthcare, including market-leading businesses in pharmaceutical and medical-
surgical distribution, information technology for healthcare providers, services
for payors and outsourcing. For the twelve months ended September 30, 1998,
McKessonHBOC would have had pro-forma combined revenues of approximately $21
billion. The company has customers in the United States and 10 other countries,
employs approximately 25,000 people and has approximately 263.5 million common
shares outstanding and approximately 290 million fully diluted shares on a pro-
forma basis for the quarter ended December 31, 1998. More information about
McKessonHBOC is available on the World Wide Web at: http://www.mckhboc.com.
McKessonHBOC Begins Operations
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Except for the historical information contained herein, the matters
discussed in this press release may constitute forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those projected. These statements may be identified by their
use of forward-looking terminology such as "believes," "expects," "may,"
"should," "intends," "plans," "estimates," "anticipates" and similar words.
Risks and uncertainties include the speed of integration of acquired
businesses, impact of continued competitive pressures, success of strategic
initiatives, implementation of new technologies, continued industry
consolidation, changes in customer mix, changes in pharmaceutical
manufacturers' pricing and distribution policy, the changing U.S. healthcare
environment and other factors discussed from time to time in reports filed by
McKesson HBOC, Inc. with the Securities and Exchange Commission. The company
assumes no obligation to update information contained in this press release.
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