Priority Healthcare Corporation Issues 3rd Quarter Update

Priority Healthcare Corporation Issues 3rd Quarter Update 


LAKE MARY, Fla., Sept. 8  /PRNewswire-FirstCall/ -- Priority Healthcare
Corporation (NASDAQ:PHCC) announced today that it is adjusting its sales
guidance for the third quarter ending on October 2, 2004 due to the delays in
shipment and the release of Fluvirin(R), its primary flu vaccine product, and
the negative impact due to Hurricanes Charley and Frances.  Specific to the
delays in vaccine shipments, Chiron Corporation announced on August 26, 2004
its delay in releasing any Fluvirin until early October, after additional
quality checks could be conducted.

The Company is also adjusting earnings guidance down by $.01 to $.02 per share
for the third quarter due to the lower sales guidance and start up costs
related to its new agreement with Aetna.

Based on the above, third quarter sales guidance has been adjusted to $436
million to $446 million and earnings guidance has been adjusted to $.29 to $.30
per share.

Steve Cosler, Priority Healthcare President and CEO commented, "Although the
change in our third quarter guidance is minimal, and essentially isolated to
the third quarter, we believe it is appropriate to provide this update. The
largest single component of the anticipated earnings shortfall, the delay in
Fluvirin, should shift entirely to the fourth quarter, as this inventory is
presold and awaiting clearance for shipment.  Even with the adjusted sales
outlook for the quarter, revenues should increase 20% to 23% over the third
quarter of 2003, continuing our solid growth."

Mr. Cosler concluded, "We are very pleased with the execution of our disaster
contingency plans that were implemented in response to the two hurricanes, as
we were able to meet the needs of our customers that required immediate access
to our services.  Nonetheless, quarter to date, we have lost the equivalent of
approximately five workdays at our Florida locations, which impacts our sales
volumes given the vast majority of our inside sales force is located in our
Lake Mary facility."

About Priority Healthcare Corporation

Priority Healthcare Corporation is a national specialty pharmacy and
distributor that provides biopharmaceuticals, complex therapies, and related
disease treatment services.  Priority Healthcare provides comprehensive
programs for patients, payors, physicians, and pharmaceutical manufacturers for
a growing number of disease states including cancer, hepatitis C, respiratory
and pulmonary conditions, infertility, rheumatoid arthritis, hemophilia,
multiple sclerosis, Parkinson's disease, and macular degeneration

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. 

http://www.newscom.com/cgi-bin/prnh/20030417/PHCLOGODATASOURCE: Priority
Healthcare Corporation



CONTACT:  Stephen Saft, Chief Financial Officer of Priority Healthcare

Corporation, [phone]



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

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