BIOS BioPlus Acquisition Corporation

BioScrip, Inc. (Nasdaq: BIOS) today reported fourth quarter 2007 net income of $2.5 million, or $0.06 per diluted share, on revenues of $309.2 million. Fourth quarter EBITDAO (earnings before interest, taxes, depreciation, amortization and option expense) was $5.9 million. Full year 2007 net income was $3.3 million or $0.09 per diluted share on revenues of $1.2 billion. EBITDAO for the full year was $18.9 million. Chairman and CEO, Richard H. Friedman, stated, �BioScrip�s fourth quarter results are indicative of the successful execution of our strategic initiatives. Our focus on a service driven approach to specialty pharmacy management is resulting in positive outcomes for our customers. This service model is being accepted in the market and differentiates BioScrip from commoditized specialty drug distribution.� Fourth Quarter Reported Results Total revenue for the fourth quarter 2007 increased 5.9% to $309.2 million compared to $292.1 million for the same period a year ago. Net income increased $30.6 million to $2.5 million or $0.81 per diluted share. In the fourth quarter of 2006, BioScrip established a non-cash reserve of $25.7 million against its deferred tax assets primarily associated with its net operating loss carry forwards (�NOL�). Fourth quarter 2007 Specialty Services revenue increased 10.4% to $256.7 million, an increase of $24.2 million over the prior year, primarily due to additional revenues associated with preferred drug distribution arrangements with manufacturers, specialty contracts with payors and Medicare�s Competitive Acquisition Program (�CAP�). As a result of previously reported losses of certain PBM customers, fourth quarter 2007 PBM Services revenue decreased $7.1 million to $52.5 million as compared to the fourth quarter 2006. Fourth quarter 2007 operating income increased $5.5 million to $3.1 million compared to an operating loss of $2.4 million for the fourth quarter of 2006. The increase is primarily due to higher sales, improved drug acquisition costs, lower bad debt and lower amortization expense partially offset by an increase in employee incentives resulting from the Company�s improved performance. Year End 2007 Period Results For the twelve-month period ended December 31, 2007, net income was $3.3 million, or $0.09 per share compared to a net loss of $38.3 million, or $1.03 per share for the same period a year ago. The 2006 financial results include a non-cash reserve associated with the Company�s deferred tax assets discussed above. Revenues for the twelve-month period ended December 31, 2007 totaled $1,197.7 million compared to $1,151.9 million in 2006. The improvement includes an increase in Specialty Services revenue of $107.6 million or 12.4% to $974.2 million for the twelve-month period ended December 31, 2007. Partially offsetting the Specialty Services increase was the previously reported loss of significant PBM customers totaling $61.8 million. Operating income for the full year 2007 increased $25.1 million to $8.9 million as compared to an operating loss of $16.2 million for the full year of 2006. The increase is primarily due to higher sales, improved drug acquisition costs, lower bad debt and lower amortization expense. These improvements were partially offset by an increase in employee incentives resulting from the Company�s improved performance. Conference Call Information BioScrip will host a conference call to discuss fourth quarter and year end 2007 financial results on Tuesday, March 4, at 10:00 am. ET. Interested parties may participate in the conference call by dialing 800-732-5617 (US), or 212-231-2900 (International), 5-10 minutes prior to the start of the call. A replay of the conference call will be available from 12:00 p.m. ET on March 4, through 12:00 p.m. ET on March 10, by dialing 800-633-8284 (US), or 402-9797-9140 (International), and entering reservation #21375994. 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. 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 and improved cash flows. About BioScrip, Inc. BioScrip, Inc. (www.bioscrip.com) (Nasdaq: BIOS) is a specialty pharmaceutical healthcare organization that partners with patients, physicians, healthcare payors and pharmaceutical manufacturers to provide access to medications and management solutions to optimize outcomes for chronic and other complex healthcare 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. BIOSCRIP, INC � � CONSOLIDATED BALANCE SHEETS SCHEDULE 1 (in thousands, except for share amounts) � � � December 31, December 31, 2007 2006 (unaudited) � ASSETS Current assets Cash and cash equivalents $ - $ - Receivables, less allowance for doubtful accounts of $12,083 and $13,774 at December 31, 2007 and December 31, 2006 respectively 128,969 135,139 Inventory 33,598 33,471 Prepaid expenses and other current assets 1,434 2,090 Total current assets 164,001 170,700 Property and equipment, net 11,742 10,409 Other assets and investments 478 681 Goodwill 114,824 114,991 Intangible assets, net 5,777 8,675 Total assets $ 296,822 $ 305,456 � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Line of credit $ 33,778 $ 52,895 Accounts payable 57,342 51,724 Claims payable 5,164 9,548 Amounts due to plan sponsors 4,568 10,280 Accrued expenses and other current liabilities 13,936 9,230 Total current liabilities 114,788 133,677 Deferred taxes 12,754 9,946 Unrecognized tax benefits 3,077 -- Total liabilities 130,619 143,623 Stockholders' equity Common stock, $.0001 par value; 75,000,000 shares authorized, 41,331,346 shares issued and 38,250,633 outstanding at December 31, 2007; 40,680,233 shares issued and 37,488,257 outstanding at December 31, 2006 4 4 Treasury stock, 2,436,642 and 2,247,150 shares at cost (9,399 ) (8,002 ) Additional paid-in capital 244,186 239,315 Accumulated deficit (68,588 ) (69,484 ) Total stockholders' equity 166,203 161,833 Total liabilities and stockholders' equity $ 296,822 $ 305,456 � � � Schedule 2 � � BIOSCRIP, INC Reconciliation between GAAP and Non-GAAP Measures (in thousands) (unaudited) � � Three Months Twelve Months Ended December 31, Ended December 31, 2007 2006 2007 2006 � Net Income (loss) $ 2,516 $ (28,035 ) $ 3,317 $ (38,289 ) Addback items: Amortization of intangibles 484 1,639 2,898 6,538 Depreciation 1,081 1,163 4,192 4,316 Net interest 602 920 3,270 3,018 Taxes (59 ) 24,753 2,264 19,030 Stock option expense 1,269 810 3,004 2,529 � Earnings before interest, taxes, depreciation amortization and stock option expense (EBITDAO) $ 5,893 $ 1,250 $ 18,945 $ (2,858 ) � � � Schedule 3 � � BIOSCRIP, INC CONSOLIDATED STATEMENTS OF OPERATIONS (1) (in thousands, except per share amounts) (unaudited) � � Three Months Twelve Months Ended December 31, Ended December 31, 2007 2006 2007 2006 � Revenue $ 309,196 $ 292,125 $ 1,197,732 $ 1,151,940 Cost of revenue 273,017 261,868 1,060,717 1,033,884 Gross profit 36,180 30,257 137,015 118,056 % of Revenue 11.7 % 10.4 % 11.4 % 10.2 % Operating expenses Selling, general and administrative expenses 32,323 27,995 120,147 115,258 Bad debt expense 314 2,985 5,119 12,443 Amortization of intangibles 484 1,639 2,898 6,538 Merger related expenses -- -- -- 58 Total operating expenses 33,121 32,619 128,164 134,297 % of Revenue 10.7 % 11.2 % 10.7 % 11.7 % Income (loss) from operations 3,059 (2,362 ) 8,851 (16,241 ) Interest (expense), net (602 ) (920 ) (3,270 ) (3,018 ) Income (loss) before income taxes 2,457 (3,282 ) 5,581 (19,259 ) Provision for (benefit from) income taxes (59 ) 24,753 2,264 19,030 Net income (loss) $ 2,516 $ (28,035 ) $ 3,317 $ (38,289 ) � Basic weighted average shares 37,991 37,402 37,647 37,304 Diluted weighted average shares 40,013 37,402 38,491 37,304 � Basic net income (loss) per share $ 0.07 $ (0.75 ) $ 0.09 $ (1.03 ) Diluted net income (loss) per share $ 0.06 $ (0.75 ) $ 0.09 $ (1.03 ) � � � (1) Certain amounts have been reclassified to conform to the current presentation. Such classifications have had no impact on income from operations or net income.