PSS World Medical Announces Issuance of Florida Rx Licenses

JACKSONVILLE, Fla.--(BUSINESS WIRE)--PSS World Medical, Inc. (NASDAQ GS:PSSI) announced today that its licenses required for the sale and distribution of pharmaceutical products in the state of Florida have been issued by the Florida Department of Health. As a result of this action, the Company will begin shipments (including freight-intensive products, such as sterile water and solutions) from its Orlando, Florida facility to Florida-based customers during the week of March 24, 2008. Inventory previously quarantined by the Florida Department of Health has been inspected and released for sale.

Operating costs that have been associated with delivering products to Florida customers from facilities outside the state will gradually decrease over the next 50-75 days and are expected to cease during the Company’s first quarter of fiscal year 2009.

David A. Smith, Chairman and Chief Executive Officer of PSS World Medical, Inc, commented, “We are very pleased to begin improving our pharmaceutical-related customer services in Florida. Our team worked diligently to complete the third-party and state inspections. As a result of this event and cooperative efforts with state agencies, we have significantly improved processes and systems to comply with pedigree legislation, protect the public interest and better serve our customers. We remain committed to achieving our goal of $0.81 - $0.85 diluted earnings per share for fiscal year 2008.”

PSS World Medical, Inc. is a national distributor of medical products to physicians and elder care providers through its two business units. Since its inception in 1983, PSS has become a leader in the two market segments that it serves with a focused market approach to customer services, a consultative sales force, strategic acquisitions, strong arrangements with product manufacturers and a unique culture of performance.

All statements in this release that are not historical facts, including, but not limited to, statements regarding anticipated growth in revenue, gross and operating margins, and earnings, statements regarding the Company’s current business strategy, the Company’s ability to complete and integrate acquired businesses and generate acceptable rates of return, the Company’s projected sources and uses of cash, and the Company’s plans for future development and operations, are based upon current expectations. Specifically, forward-looking statements in this Press Release include, without limitation, the Company’s expected results in GAAP EPS for the consolidated company; the expected operational cash flow in fiscal year 2008; the expected impact on earnings during the remainder of fiscal 2008 from the Company’s strategy to invest and participate in the marketing and sales of healthcare information technology products and services (HCIT); the expected impact on earnings during the remainder of 2008 related to the integration of acquired assets; as well as other expectations of growth and financial and operational performance. These statements are forward-looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. Among the factors that could cause results to differ materially are the following: pricing and customer credit quality pressures; the loss of any of our distributorship agreements and our reliance on relationships with our suppliers and vendors; our reliance on a limited number of chain business elder care customers; the availability of sufficient capital to finance the Company’s business plans on terms satisfactory to the Company; lower revenue and earnings that may result from competition; the ability of the Company to adequately defend or reach a settlement on outstanding litigation matters and investigations involving the Company or its management; changes in labor, equipment and capital costs; changes in legislation and regulations affecting the Company’s business, such as the Medicare cliffs, changes in malpractice insurance rates and tort reform; future acquisitions or strategic partnerships; general business, competitive and economic factors and conditions; and other factors described from time to time in the Company’s reports filed with the Securities and Exchange Commission. Many of these factors are outside the control of the Company. The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company also wishes to caution readers that it undertakes no duty or is under no obligation to update or revise any forward-looking statements.

(NASDAQ GS:PSSI) - G