Priority Healthcare Corporation Enters Into Agreement to Acquire the Specialty Infusion Pharmacy and Medical Management Operatio

Priority Healthcare Corporation Enters Into Agreement to Acquire
the Specialty Infusion Pharmacy and Medical Management Operations of
SpectraCare, Inc. 


LAKE MARY, Fla., May 31  /PRNewswire-FirstCall/ -- Priority Healthcare
Corporation (NASDAQ:PHCC) announced today that it has entered into a definitive
agreement to acquire 100 percent of the outstanding stock of SpectraCare, Inc.,
a specialty infusion pharmacy with six branch pharmacies in four states. The
transaction is expected to close within 30 days, subject to the satisfaction of
various closing conditions.  The transaction includes SpectraCare's specialty
infusion operations and its medical management component, Care Continuum.  
SpectraCare's headquarters are in Louisville, Kentucky and will be combined
into Priority Healthcare's Integrity Healthcare operations, also headquartered
in Louisville.  The acquisition does not include SpectraCare's home healthcare
operations.

"SpectraCare has an outstanding reputation for quality patient care and is a
great addition for Priority Healthcare," said Steve Cosler, President and Chief
Executive Officer of Priority Healthcare.  "This in-market transaction will be
integrated into our Integrity Healthcare operations and increases our presence
in several key geographies.  We continue to broaden our capabilities to provide
and support high-touch therapies by establishing a larger presence with our
pharmacy and clinical services. This acquisition leverages current
opportunities while also continuing to position us well for the significant
number of new drugs in the biotech pipeline requiring infusion support.  In
addition, with the acquisition of SpectraCare's medical management business, we
are executing our strategic plan of providing a broader array of services to
our customers." Francis "Chip" McNamara, Senior Vice President of Priority
Healthcare and General Manager of Integrity Healthcare stated "we are very
excited about merging SpectraCare into our operation.  We have been operating
in the same markets for 10 years and have great respect for their people and
the level of service they provide.  This acquisition will allow us to increase
our capacity with improved operating efficiency."

"The SpectraCare businesses that Priority will acquire generated revenues
during the last year of approximately $32 million, added Steve Saft, Chief
Financial Officer of Priority Healthcare. "The acquisition price is consistent
with our historical valuations and the transaction should be accretive to EPS
in the fourth quarter of 2005."

About SpectraCare, Inc.

SpectraCare, Inc. is a specialty infusion company with a medical management
component headquartered in Louisville, Kentucky.  Since its inception in 1988
it has grown from a single location in Louisville to six pharmacies in four
states.  SpectraCare offers full specialty infusion services with its
pharmacies and network management on an administrative fee-for-services basis
for managed care organizations under the name Care Continuum.

About Integrity Healthcare Services

Integrity Healthcare Services is the specialty infusion business of Priority
Healthcare, headquartered in Louisville, KY.  It operates 29 branches in 18
states. Integrity Healthcare provides comprehensive programs for patients,
payors, and physicians across a number of disease states and conditions
including cancer, growth deficiency, hepatitis C, RSV, infections, nutrition
deficiency, autoimmune diseases, neurological disorders, and respiratory and
cardiac conditions.

About Priority Healthcare Corporation

Priority Healthcare is the premier healthcare services company providing
innovative, high quality and cost-effective solutions that enhance quality of
life.  As a national specialty pharmacy and distributor, Priority Healthcare
provides biopharmaceuticals, complex therapies, related disease treatment
programs and a portfolio of other service offerings for patients, payors,
physicians and pharmaceutical manufacturers.  The growing number of specialty
areas serviced by Priority Healthcare include:  oncology, gastroenterology,
reproductive endocrinology, neurology, hematology, pulmonology, ophthalmology,
rheumatology, endocrinology, infectious disease and nephrology, as well as
ambulatory surgery centers.  Additional information regarding Priority
Healthcare is available online at http://www.priorityhealthcare.com/.

Certain statements included in this press release, which are not historical
facts, are forward-looking statements.  Such forward-looking statements are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.  These forward-looking statements represent our
expectations or beliefs and involve certain risks and uncertainties, including
those described in our public filings with the United States Securities and
Exchange Commission; also including, but not limited to, changes in interest
rates, competitive pressures, changes in customer mix, changes in third party
reimbursement rates, financial stability of major customers, changes in
government regulations or the interpretation of these regulations, changes in
supplier relationships, growth opportunities, cost savings, revenue
enhancements, synergies and other benefits anticipated from acquisition
transactions, difficulties relative to integrating acquired businesses, the
accounting and tax treatment of acquisitions, and asserted and unasserted
claims, which could cause actual results to differ from those in the
forward-looking statements.  The forward-looking statements by their nature
involve substantial risks and uncertainties, certain of which are beyond our
control, and actual results may differ materially depending on a variety of
important factors.  You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date herein. 

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DATASOURCE: Priority Healthcare Corporation



CONTACT:  Stephen Saft, Chief Financial Officer of Priority Healthcare

Corporation, [phone]



Web site:  http://www.priorityhealthcare.com/

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