BIOS BioPlus Acquisition Corporation

BioScrip, Inc. (Nasdaq: BIOS) today reported second quarter 2007 net income of $0.5 million, or $0.01 per diluted share, on revenues of $295.0 million. Operating profit for the quarter was $2.5 million and EBITDAO (earnings before interest, taxes, depreciation, amortization and option expense) was $4.6 million. Compared to the second quarter 2006, net income improved $6.2 million or $0.16 per diluted share. In addition, revenues increased $15.4 million and operating income increased $10.8 million, both over the same period. Chairman and CEO, Richard H. Friedman, stated, "BioScrip has made great strides this quarter and we positioned ourselves for continued Specialty growth, as exemplified by our recent contract announcement with UnitedHealthcare. We remain committed to executing on our vision of establishing BioScrip as an industry leader in providing superior specialty pharmaceutical healthcare services to patients, physicians, payors and pharmaceutical manufacturers.� Second Quarter Reported Results Total revenue for the second quarter 2007 was $295.0 million compared to $279.6 million for the same period a year ago. Second quarter 2007 Specialty Services revenue was $238.1 million, an increase of $27.6 million, or 13.1% over the prior year, due primarily to revenues associated with preferred drug distribution arrangements with manufacturers, strong growth in infusion and new business resulting from Medicare�s Competitive Acquisition Program (�CAP�). Second quarter 2007 PBM Services revenue was $56.9 million, a decrease of $12.2 million, or 17.7%, as compared to the second quarter of 2006. The decline in revenue is primarily due to the loss of previously reported PBM customers. Gross profit for the second quarter 2007 was $33.3 million, or 11.3% of total revenue, compared to $28.8 million, or 10.3% of total revenue, for the same period of 2006. Gross profit improved primarily due to favorable sales mix. Second quarter 2007 operating expenses decreased $6.3 million to $30.8 million, or 10.4% of total revenue from $37.1 million, or 13.3% of total revenue for the second quarter of 2006. The decrease is primarily due to our cost reduction efforts, along with lower bad debt expense as a result of improved credit and collection efforts as well as reduced amortization of intangibles. Six-Month Period Reported Results For the six-month period ended June 30, 2007, net loss was $0.9 million, or $0.02 per share compared to net loss of $6.9 million, or $0.18 per share in the same period a year ago. Revenues increased 2.1% to $591.3 million for the six-month period ended June 30, 2007 from $579.3 million reported in the same period of last year. Mr. Friedman added, �We have taken many critical steps to improve our current and future operational performance. The Company reported a $2.4 million sequential increase in quarterly operating income along with a 54.0% sequential improvement in quarterly EBITDAO.� CAP Update Although final election results have not yet been completed, preliminary information indicates an increase of approximately 35% in physician enrollment during the recent election period effective August 1, 2007. Second quarter 2007 CAP revenue was $9.2 million based on 2,450 physician enrollments. BioScrip continues to provide educational and marketing programs in order to support additional CAP utilization. UnitedHealthcare Contract As previously announced, UnitedHealthcare, a UnitedHealth Group (NYSE: UNH) company, has awarded BioScrip an agreement to serve as one of two national specialty pharmacy providers of HIV/AIDS and Solid Organ Transplant drugs and services to UnitedHealthcare and its participating affiliates. This agreement became effective on August 1, 2007, with an initial term running through December 31, 2008. Conference Call Information BioScrip will host a conference call to discuss second quarter 2007 financial results on Thursday, August 2, at 10:00 a.m. EDST. Interested parties may participate in the conference call by dialing 800-926-4402 (US), or 212-231-2901 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 12:30 p.m. EDST on August 2, through 11:59 p.m. EDST on August 8, by dialing 800-633-8284 (US), or 402-977-9140 (International), and entering reservation #21345640. An audio webcast and archive of the conference call will also be available under the investor relations section of the BioScrip website, www.bioscrip.com. About BioScrip, Inc. BioScrip, Inc. (www.bioscrip.com) (Nasdaq: BIOS) is a specialty pharmaceutical health care organization that partners with patients, physicians, health care payors and pharmaceutical manufacturers to provide access to medications and management solutions to optimize outcomes for chronic and other complex health care conditions. 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. 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. Earnings before interest, taxes, depreciation, amortization, and option expense ("EBITDAO") is a non-GAAP financial measure as defined under U.S. Securities and Exchange Commission Regulation G. As required by Regulation G, BioScrip has provided on Schedule 2 a reconciliation of this measure to the most comparable GAAP financial measure. The non-GAAP measure presented provides important insight into the ongoing operations and a meaningful benchmark to evidence the Company's trend towards a return to profitability. SCHEDULE 1 BIOSCRIP, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts) � June 30, 2007 December 31, 2006 (unaudited) � ASSETS Current assets Cash and cash equivalents $ - $ - Receivables, less allowance for doubtful accounts of $13,056 and $13,774 at June 30, 2006 and December 31, 2006, respectively 130,638 135,139 Inventory 34,800 33,471 Prepaid expenses and other current assets � 1,324 � � � 2,090 � � � Total current assets 166,762 170,700 � Property and equipment, net 9,761 10,409 Other assets and investments 464 681 Goodwill 114,824 114,991 Intangible assets, net � 6,744 � � � 8,675 � � Total assets $ 298,555 � � $ 305,456 � � � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Line of credit $ 41,865 $ 52,895 Accounts payable 56,032 51,724 Claims payable 7,301 9,548 Amounts due to Plan Sponsors 9,362 10,280 Accrued expenses and other current liabilities � 8,948 � � � 9,230 � � Total current liabilities 123,508 133,677 � Deferred taxes 11,380 9,946 Unrecognized tax benefits � 4,187 � � - � � Total liabilities � 139,075 � � � 143,623 � � � Stockholders' equity Common stock, $.0001 par value; 75,000,000 shares authorized, 40,921,186 shares issued and 37,531,367 outstanding at June 30, 2007; 40,680,233 shares issued and 37,488,257 � outstanding at December 31, 2006; 4 4 Treasury stock, 2,263,500 and 2,247,150 shares at cost (8,073 ) (8,002 ) Additional paid-in capital 240,318 239,315 Accumulated deficit � (72,769 ) � � (69,484 ) � Total stockholders' equity � 159,480 � � � 161,833 � � Total liabilities and stockholders' equity $ 298,555 � � $ 305,456 � SCHEDULE 2 BIOSCRIP, INC. Reconciliation between GAAP and Non-GAAP Measures (in thousands) (unaudited) � Three Months Ended Six Months Ended June 30, June 30, � 2007 � 2006 2007 � 2006 � Net Income (loss) $ 482 $ (5,710 ) $ (865 ) $ (6,866 ) � Addback items: � Amortization of intangibles 484 1,639 1,931 3,261 Depreciation 1,007 1,042 2,051 2,073 Interest 856 731 1,940 1,182 Taxes 1,165 (3,321 ) 1,563 (4,223 ) FAS 123R stock option expense 575 506 916 1,130 � � � � � � � Earnings before interest, taxes, depreciation amortization and stock option expense (EBITDAO) $ 4,569 � $ (5,113 ) $ 7,536 � � $ (3,443 ) SCHEDULE 3 BIOSCRIP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) � Three Months Ended Six Months Ended June 30, June 30, � � 2007 � � � 2006 � � 2007 � � � 2006 � � � Revenue $ 295,004 $ 279,585 $ 591,345 $ 579,303 � Cost of revenue � 261,683 � � � 250,791 � � 525,077 � � � 520,178 � � Gross profit 33,321 28,794 66,268 59,125 % of Revenue 11.3 % 10.3 % 11.2 % 10.2 % � Selling, general and administrative expenses 29,290 31,100 57,660 59,003 Bad debt expense 1,044 4,355 4,039 6,654 Amortization of intangibles 484 1,639 1,931 3,261 Merger related expenses - � � - � - � � � 114 � � Total operating expenses 30,818 37,094 63,630 69,032 % of Revenue 10.4 % 13.3 % 10.8 % 11.9 % � Income (loss) from operations 2,503 (8,300 ) 2,638 (9,907 ) � Interest (expense), net � (856 ) � � (731 ) � (1,940 ) � � (1,182 ) � � Income (loss) before income taxes 1,647 (9,031 ) 698 (11,089 ) � Provision for (benefit from) Income taxes � 1,165 � � � (3,321 ) � 1,563 � � � (4,223 ) � � Net Profit (loss) income $ 482 � � $ (5,710 ) $ (865 ) � $ (6,866 ) � Basic net income (loss) per share $ 0.01 $ (0.15 ) $ (0.02 ) $ (0.18 ) Diluted net income (loss) per share $ 0.01 $ (0.15 ) $ (0.02 ) $ (0.18 ) � � � � � � � Basic weighted-average shares 37,499 37,222 37,495 37,212 Diluted weighted-average shares � 37,824 � � � 37,222 � � 37,495 � � � 37,212 �