Dublin, Ohio, January 12, 2004 – Cardinal Health, Inc. (NYSE: CAH), the leading provider of products and services supporting the health care industry, today announced that it has entered into a five-year agreement with Jackson Memorial Hospital in Miami for pharmacy management services that is expected to realize $20 million in savings for the hospital system during the life of the agreement.

The agreement is part of an initiative at Jackson Memorial to reduce costs, improve patient care and enhance the integration of hospital systems. Financial terms of the agreement were not disclosed.

Jackson Memorial is the largest public hospital in the nation and Florida’s largest teaching hospital, in affiliation with the University of Miami School of Medicine. Under the agreement, savings are expected primarily from clinical and inventory management programs, enhanced use of automation and optimization of outpatient drug reimbursement processes.

“Jackson Memorial’s goal is to provide the highest levels of service in patient care and operate with greater efficiencies,” said Al Cook, vice president of logistics for Jackson Memorial Hospital. “Our focus is on producing results that can be measured and sustained. The expanded relationship with Cardinal Health will enable Jackson Memorial to aggressively manage drug expenditures, better coordinate automation, and identify new opportunities to improve patient care through comprehensive clinical programs.”

“Cardinal Health is excited about the opportunity to work more closely with Jackson Memorial to help improve productivity and enhance patient care,” said Dwight Winstead, group president of the Clinical Services and Consulting business of Cardinal Health. “Our expanded relationship for pharmacy management builds upon the services Cardinal Health already delivers to Jackson Memorial for pharmaceutical distribution, medical product supply and Pyxis automation systems.”

Additional cost-saving initiatives to be provided by Cardinal Health include implementing formulary strategies and advanced cost-monitoring systems to enhance clinical savings, monitoring pharmacy performance through an intervention tracking system, developing systems to enhance customer service levels and regulatory procedures, streamlining operations and optimizing staffing to provide 24-hour pediatric service, and implementing formal purchasing practices and reporting systems.


About Jackson Memorial
Jackson Memorial Hospital (www.um-jmh.org) is an accredited, non-profit, tertiary care hospital and the major teaching facility for the University of Miami School of Medicine. Jackson Memorial Hospital is also the hub of Jackson Health System, a countywide integrated system that includes a community hospital, two long-term care facilities and 12 primary care centers. With 1,757 licensed beds, and nearly 11,000 employees, Jackson Health System’s many roles in South Florida include being the only full-service provider for the indigent and medically indigent of Miami-Dade County, a regional referral center, and a magnet for medical research and innovation.

About Cardinal Health
Cardinal Health, Inc. (www.cardinal.com) 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, 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 approximately 50,000 people on six continents and produces annual revenues of more than $50 billion. Cardinal Health is ranked #19 on the current Fortune 500 list and was named one of ‘The World’s Best’ companies by Forbes magazine in 2002.

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 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 outsourcing patterns for healthcare products and/or services, the costs and other effects of governmental regulation and legal and administrative proceedings, and general economic conditions. Cardinal Health undertakes no obligation to update or revise any forward-looking statements.

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Contacts:

Alysia Turner – Media
Cardinal Health
Clinical Services and Consulting
281.749.4390

Stephen T. Fischbach – Investors
Cardinal Health, Inc.
614.757.7067