Omnicare Comments on Medicare Drug Benefit Regulations

    Business Editors

    COVINGTON, Ky.--(BUSINESS WIRE)--Jan. 24, 2005--Omnicare, Inc. (NYSE: OCR) today commented on the release by the Centers for Medicare & Medicaid Services (CMS) of final regulations concerning the Prescription Drug Benefit, scheduled to take effect beginning in 2006:
    "Omnicare is in the process of reviewing the final Medicare Drug Benefit regulations, which were released this past Friday afternoon. The Company, in concert with its regulatory and legal advisors, is conducting a thorough review of these regulations. At this point, although our review is not yet complete, we believe the regulations will not materially adversely affect Omnicare's business.
    "Based on our preliminary review, we remain encouraged by CMS's commitment to meet the specialized needs and services required by the long-term care population. We believe that Omnicare's experience and expertise in geriatric pharmaceutical care and our commitment to programs that provide the most appropriate medication cost-effectively for our clients and the residents they serve, will add significant value for those who choose to sponsor Prescription Drug Plans under the new Medicare Drug Benefit.
    "We look forward to working with CMS as it develops its sub-regulatory guidance."

    About Omnicare, Inc.

    Omnicare, Inc. (NYSE:OCR), a Fortune 500 company based in Covington, Kentucky, is a leading provider of pharmaceutical care for the elderly. Omnicare serves residents in long-term care facilities comprising approximately 1,071,000 beds in 47 states, making it the nation's largest provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers. Omnicare also provides clinical research services for the pharmaceutical and biotechnology industries in 30 countries worldwide.

    Statements in this press release concerning Omnicare's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of Omnicare based on currently available information. Such forward-looking statements involve actual known and unknown risks, uncertainties, contingencies and other factors that could cause actual results, performance or achievements to differ materially from those stated. Such risks, uncertainties, contingencies and other factors, many of which are beyond the control of Omnicare, include, but are not limited to, overall economic, financial and business conditions; trends for the continued growth of the business of Omnicare; trends in the long-term healthcare industry generally; the impact of the NeighborCare acquisition on Omnicare's earnings; the impact and pace of pharmaceutical price increases; delays and further reductions in reimbursement by the government and other payors to customers and to Omnicare as a result of pressure on federal and state budgets due to the continuing economic downturn and other factors; the overall financial condition of Omnicare's customers; Omnicare's ability to assess and react to the financial condition of its customers; the ability of vendors and business partners to continue to provide products and services to Omnicare; the continued successful integration of acquired companies, pricing and other competitive factors in the industry; increases or decreases in reimbursement; the effect of new government regulations, executive orders and/or legislative initiatives, trends in healthcare funding issues, including, but not limited to, state Medicaid budgets, enrollee eligibility, escalating drug prices due to higher utilization among seniors and the aging of the population; expectations concerning increasing Medicare admissions and improving occupancy rates; the introduction of more expensive medications and the increasing use of generic medications; the impact of any changes in healthcare policy relating to the future funding of the Medicaid and Medicare programs; the cost-effectiveness of pharmaceuticals in treating chronic illnesses for the elderly; the impact of the Medicare drug benefit, signed into law in December 2003 and effective in 2006, and its implementing regulations; the effect of any changes and considerations in long-term healthcare funding policies for Medicare and Medicaid programs; the ability of Omnicare to utilize its expertise in geriatric pharmaceutical care and pharmaceutical cost management and its database on drug utilization and outcomes in the elderly to meet the anticipated challenges of the healthcare environment and the implementation of the Medicare drug benefit; efforts by payors to control costs; the outcome of litigation; the failure of Omnicare or the long-term care facilities it serves to obtain or maintain required regulatory approvals or licenses; the ability to attract and retain needed management; the impact and pace of technological advances; the ability to obtain or maintain rights to data, technology and other intellectual property; the impact of consolidation in the pharmaceutical and long-term care industries; volatility in the market for Omnicare's stock and in the financial markets generally; access to capital and financing; the demand for Omnicare's products and services; variations in costs or expenses; changes in tax law and regulation; changes in accounting rules and standards; and other risks and uncertainties described in Omnicare's reports and filings with the Securities and Exchange Commission. There can be no assurance that such factors will not affect the accuracy of such forward-looking statements and, except as otherwise required by law, Omnicare does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or to update the information in this release.

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CONTACT: Omnicare Cheryl Hodges, 859-392-3331 or Joele Frank, Wilkinson Brimmer Katcher Joele Frank / Steve Silva, 212-355-4449

KEYWORD: KENTUCKY INDUSTRY KEYWORD: GOVERNMENT HARDWARE SOFTWARE MEDICAL PHARMACEUTICAL SOURCE: Omnicare, Inc.

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