Cardinal Health, (CAH) Eli Lilly and Company (LLY) Sign Multi-Year Distribution Service Agreement 
10/19/2005 5:12:24 PM

DUBLIN, Ohio, Dec. 8 /PRNewswire-FirstCall/ -- Cardinal Health, Inc. , the leading provider of products and services supporting the health care industry, today announced a multi-year distribution service agreement to distribute Eli Lilly and Company's products to hospitals and pharmacies nationwide.

Under terms of the contract, Cardinal Health will be paid service fees to distribute Lilly's market-leading pharmaceuticals via Cardinal Health's highly efficient network of 26 distribution centers. The performance-based distribution fees will be based on predetermined service levels and the unique handling requirements of Lilly's product portfolio. The agreement builds on a relationship between the companies that already spans product development, manufacturing and distribution.

"Lilly has long been an innovative leader in the pharmaceutical industry, so it is no surprise that they have completed such a forward-looking agreement to ensure long-term, low-cost, highly reliable access to their industry- leading products," said Mark Parrish, Cardinal Health's chairman and CEO of Pharmaceutical Distribution and Provider Services. "We are pleased to reach such an important agreement with such an important and long-standing customer."

Jack Bailey, vice president of Lilly's Business-to-Business division said, "Distributors such as Cardinal Health serve a critical role in providing safe, reliable and low-cost access to the U.S. pharmaceutical supply. We appreciate the customized, collaborative and fact-based approach that Cardinal Health employed during our discussions, which ultimately led to this mutually beneficial distribution service agreement. We believe patients and shareholders alike are the ultimate beneficiaries of our agreement with Cardinal Health."

About Cardinal Health

Cardinal Health, Inc. ( ) is the leading provider of products and services supporting the health care industry. Cardinal Health develops, manufactures, packages and markets products for patient care; develops drug-delivery technologies; distributes pharmaceuticals and medical, surgical and laboratory supplies; and offers consulting and other services that improve quality and efficiency in health care. Headquartered in Dublin, Ohio, Cardinal Health employs more than 55,000 people on six continents and produces annual revenues of more than $65 billion. Cardinal Health is ranked No. 17 on the current Fortune 500 list and named one of the best U.S. companies by Forbes magazine for 2004.

Except for historical information, all other information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. The most significant of these uncertainties are described in Cardinal Health's Form 10-K, Form 8-K and Form 10-Q reports (including all amendments to those reports) and exhibits to those reports, and include (but are not limited to) the costs, difficulties, and uncertainties related to the integration of acquired businesses, the loss of one or more key customer or supplier relationships or changes to the terms of those relationships, changes in the distribution patterns or reimbursement rates for health care products and/or services, the results, consequences, effects or timing of any inquiry or investigation by any regulatory authority or any legal and administrative proceedings, the impact of previously announced restatements, and general economic and market conditions. Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

Cardinal Health, Inc.

CONTACT: Media, Jim Mazzola, +1-614-757-3690,, or Investors, Jim Hinrichs, +1-614-757-7828,, both of Cardinal Health, Inc.