News Release

ELMSFORD, N.Y. & MINNEAPOLIS, Oct 11, 2005 (BUSINESS WIRE) -- BioScrip, Inc. (NASDAQ:BIOS) today announced that it has acquired Northland Medical Pharmacy ("Northland"), a community-based specialty pharmacy, located in Columbus, Ohio.

Henry F. Blissenbach, BioScrip's President and Chief Executive Officer commented, "We are very excited to be able to add Northland to BioScrip's family of community-based specialty pharmacies. We are fortunate to partner with Northland and its founder, Jim DiCello, whose multi-specialty community pharmacy is consistent with and clearly complements BioScrip's expanding community model." As previously reported, one of BioScrip's key strategic initiatives involves the expansion of its community-based pharmacy model. Added Blissenbach, "Northland has successfully grown its business over time by expanding its capabilities and focus across an increasing number of specialty pharmacy therapy categories. Northland's success is representative of the opportunity we see to expand the number of therapies offered within our existing 30 community specialty pharmacies."

The purchase price consists of approximately $12 million in cash, plus a potential earn-out payment contingent on achieving certain future performance benchmarks. Northland currently generates approximately $25 million in annual revenue. BioScrip expects Northland to be accretive to earnings per share in calendar 2006.

About BioScrip, Inc.

BioScrip provides comprehensive pharmaceutical care solutions. We partner with healthcare payors, pharmaceutical manufacturers, government agencies, physicians, and patients to deliver cost effective programs that enhance the quality of patient life. We focus our products and services in two core areas: Specialty medication distribution and clinical management services, both nationally and community-based; and Pharmacy Benefit Management services. Our specialty medication distribution capabilities include condition-specific clinical management programs tailored to improve the care of individuals with complex health conditions such as HIV/AIDS, Cancer, Infusion IVIG, Hepatitis C, Rheumatoid Arthritis, Multiple Sclerosis, and Transplantation. Our complete pharmacy benefit management programs include customized benefit plan design, pharmacy network management and sophisticated reporting capabilities that deliver improved clinical and economic outcomes. In addition, we have 30 community pharmacy locations in 25 major metropolitan markets across the U.S., providing nationwide access and clinical management capabilities in a high-touch community-based environment.

Forward Looking Statements

This press release may contain statements which constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company and our success with respect to the integration and consolidation. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Important factors that could cause such differences are described in the Company's periodic filings with the Securities and Exchange Commission.

SOURCE: BioScrip, Inc.

BioScrip, Inc., Minneapolis
Investor Relations:
Brad Schumacher, 952-979-3942
bschumacher@bioscrip.com