News

Debt relief on the horizon for Horizon Pharmacies

March 26, 2002

DENISON, Texas - Horizon Pharmacies Inc. (Amex: HZP) (Frankfurt: HPZ) and McKesson HBOC Inc. (NYSE: MCK) agreed today that McKesson will not collect debts owed it by Horizon until either the company decides to cease business, or Monday, June 25, 2001.

Horizon had planned to develop a kiosk network as an addition to its retail pharmacies, home medical equipment stores, home healthcare agency, Internet pharmacy and mail order pharmacies.

During the forbearance period, Horizon must submit a plan to McKesson to restructure its operations. McKesson may end the agreement for Horizon to use insurance payments if McKesson rejects Horizon's restructuring plan on June 4, 2001.

Horizon has more than one million customers.