PHYSICIAN SALES & SERVICES, INC. EXPANDS DISTRIBUTION NETWORK AND RECEIVES NOTICE FROM F.T.C

PHYSICIAN SALES & SERVICES, INC. EXPANDS DISTRIBUTION NETWORK AND RECEIVES NOTICE FROM F.T.C

Jacksonville, Florida–(BUSINESS WIRE)–May 15, 1995– Physician Sales & Service, Inc. (Nasdaq:PSSI) today said it has acquired A-Med Roanoke, Inc. of Roanoke, Virginia and entered into an agreement to acquire a distributor in Kansas City, Kansas.

The Company today announced that it acquired the assets of A-Med Roanoke, Inc. (A-Med), located in Roanoke, Virginia. A-Med is strategically located to service western Virginia and southern West Virginia markets. A-Med had unaudited sales of $3.4 million for the 12 month period ended December 31, 1994.

Separately, the Company entered into an agreement to purchase the assets of a distributor in Kansas City, Kansas with revenues of approximately $1.0 million for the previous 12 months.

In addition, The Federal Trade Commission has notified PSS that it has granted early termination of its antitrust review of the merger of PSS and Taylor Medical, Inc. PSS is targeting late July to early August for the closing of this merger.

Patrick Kelly, Chairman and CEO said, “The addition of A-Med completes our service center needs in the Virginia market and will allow us to expand into West Virginia.” “We are very excited about moving forward with the Taylor merger, and we remain confidant that we can achieve our goal to be in position to serve virtually every office-based physician in the United States by 1997.”

PSS is a leading distributor of medical supplies, equipment and pharmaceuticals to primary care and other office-based physicians. PSS operates 56 service centers distributing to approximately 57,000 office sites in 48 states. The company’s primary market is the approximate 389,000 physicians who practice medicine in about 187,000 office sites.

CONTACT: FOR: Physician Sales & Service, Inc.

David A. Smith

Vice President

Chief Financial Officer

904/281-0011

or

Robert P. Jones/Laurie Schultz

Morgen-Walke Associates

212/850-5600

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