Priority Healthcare Resolves Contract Dispute

Priority Healthcare Resolves Contract Dispute 


LAKE MARY, Fla., Dec. 13  /PRNewswire-FirstCall/ -- Priority Healthcare
Corporation (NASDAQ:PHCC) announced that it has resolved its previously
disclosed dispute with one if its payor customers.

As disclosed in the company's July 3, 2004 and October 2, 2004 Form 10-Qs, a
payor contacted the company claiming that one of the company's subsidiaries was
not in compliance with certain provisions of the payor's contract going back to
1997.  The payor demanded $8.6 million in overcharges and threatened to
terminate that subsidiary's participation in the payor's network.  The company
has agreed to settle the dispute and pay a total of $4.2 million over a period
of approximately one year.  The company will be expensing the settlement and
the related costs of the settlement as a one-time charge in the quarter ending
January 1, 2005.

"We are pleased to have this dispute behind us, as we have had a strong
relationship with this payor over the past several years," stated Steve Cosler,
President and Chief Executive Officer.  "We look forward to continuing a
mutually beneficial relationship in the future."

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. 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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