Business Editors/Health & Medical Writers

SAN FRANCISCO--(BW HealthWire)--June 11, 2002

Children's National Medical Center (CNMC) in Washington, D.C., recently selected Horizon Clinicals(TM) from McKesson Corporation (NYSE:MCK) to help improve patient safety and automate paper-based processes that can lead to error. Horizon Clinicals is McKesson's comprehensive suite of next-generation, integrated solutions for physicians and other clinicians. The $8.7 million agreement includes a wide range of software and service solutions that will support CNMC's goal to enhance its reputation as a leader in pediatric patient care, advocacy, research and education. CNMC will implement key clinical solutions such as McKesson's Horizon Expert Orders(TM) clinical decision support/computerized physician order entry solution as well as systems for enterprise medication management, nursing point-of-care documentation, clinical alerts and a clinical data repository.

"As we reach out to children throughout the greater Washington area, our challenge is to provide access to patient information when and where it's needed to facilitate safe care and appropriate medical decisions," said Ned Zechman, CNMC chief executive officer. "The integration, access and safeguards that McKesson provides with Horizon Clinicals will enable us to improve the quality of care, prevent medication errors and improve customer service."

McKesson's proven ability to provide a comprehensive closed-loop medication management solution that incorporates automation, bar-code scanning and information technology played a key role in CNMC's decision to partner with McKesson, said Jody Burdell, CNMC vice president of strategic operations. "Even with diligent, manual double-checking of drug orders for accuracy, there is room for error, especially with the various handoffs that occur among doctors, pharmacists, nurses and unit clerks," Burdell said. "To eliminate the potential for medication errors, we must eliminate paper at every step, beginning when a physician places an order to its transcription in the pharmacy, to when it's dispensed, administered and checked for accuracy."

CNMC will use McKesson's Horizon Expert Orders solution to help physicians and other caregivers reduce medication errors at the first step in the medication management process, as physicians are making decisions and placing orders. Through a unique workflow design, Horizon Expert Orders contains embedded clinical knowledge that combines patient-specific information with experience-based, national and local best practices. "By making this information available as decisions are being made, we have the potential to greatly reduce errors that occur during the ordering process," Burdell said. "At the same time, Horizon Expert Orders provides a tool that will make physicians' jobs easier and allow them to focus more time caring for the children."

According to Peter Holbrook, M.D., CNMC chief medical officer, Horizon Expert Orders will affect both the quality and cost of healthcare. "Providing patient information and expert-based rules during the ordering process will enable our physicians to practice better medicine," said Holbrook. "Horizon Expert Orders also empowers physicians to make more cost-effective decisions. For example, by having cost considerations available when they place an order, physicians can choose a lower-cost generic drug if it is just as appropriate as a more expensive branded drug."

Holbrook noted that he expects CNMC physicians to quickly adopt Horizon Expert Orders. "Our physicians will immediately see the value of this system, and it will become an intrinsic part of their daily routine," he said.

Graham King, McKesson Information Solutions president, applauded CNMC's commitment to clinical quality and patient safety. "CNMC is a forward-thinking organization that recognizes the role that information technology plays in ensuring that patients receive the highest-quality, safest care possible," King said. "With this agreement, CNMC has furthered its commitment to providing caregivers with the IT tools they need to facilitate the clinical decision-making process, which will reduce variability of care and ensure medication and overall patient safety."

Children's National Medical Center, located in Washington, D.C., is a leader in the development of innovative new treatments for childhood illness and injury. Among the top pediatric hospitals in America, CNMC has been serving the nation's children for over 130 years. Visit CNMC's Web site at www.dcchildrens.com.

McKesson Corporation is the leading provider of supply, information and care management products and services designed to reduce costs and improve quality across healthcare. McKesson solutions empower healthcare professionals with the tools they need to deliver care more effectively and efficiently. Founded in 1833, with annual revenues of more than US$50 billion, McKesson ranks as the 31st largest industrial company in the United States. For more information, call 1-800-981-8601, or visit our Web site at http://www.mckesson.com.

Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those projected. These statements may be identified by their use of forward-looking terminology such as "believes," "expects," "anticipates," "may," "will," "should," "seeks," "approximates," "intends," "plans," "estimates" or the negative of these words or other comparable terminology. The most significant of these risks and uncertainties are described in the company's Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: the resolution or outcome of pending litigation and government investigations relating to the company's previously announced financial restatement ("Restatement"); the effect of the events relating to, or arising out of, the Restatement on the company's ability to attract and retain employees and management; the changing U.S. healthcare environment, including potential changes in private and governmental reimbursement for healthcare products and services, the method by which such products and services are delivered, legislation or regulations governing such products and services, or mandated benefits or changes in manufacturer's pricing or distribution policies; substantial defaults in payment or a material reduction in purchases by large customers; the ability of McKesson Information Solutions to retain existing customers and to attract new customers in light of rapid technological advances, challenges in integrating the company's software products, or the slowing or deferral of demand for such products resulting from the impact of current or pending government regulations; the timing and amounts of the ongoing customer settlement process; and the company's ability to successfully integrate and operate acquired businesses, and manage the risks associated with such businesses, including the acquisition of the business formerly known as HBO & Co. The company assumes no obligation to update information contained in this release.