In 1994, the concept of Managed Care was becoming a reality in long-term care. In order to take a proactive approach with the Ohio Medicaid Program, several independent, institutional pharmacy operators formed NetRx, Inc.

NetRx began with a buying co-op. This initiative allowed the network pharmacies to realize discounted pricing at levels that were the same or better than those offered to the largest national, institutional pharmacy companies.

Consequently, NetRx became very attractive to independent, institutional pharmacies nationwide. Today, its competitive bidding power for managed care contracts enables NetRx to offer national coverage for institutional pharmacy services across the post-acute continuum. The NetRx network is comprised of locally based, long-term care pharmacies with reputations for personalized service, high-quality products, and cost-effective prices.

NetRx has a history of making the tough decisions necessary to strengthen the organization - and the vision to perceive future developments in the industry and the effects they will have on our business. These opportunities and successes stem from carefully planned strategic partnering with organizations that can help us grow and diversify in the long-term care industry.

History of Growth :

.25% CAGR in number of members and patient beds served by Net Rx members

.Operating in one state, Ohio, in 1994, Net Rx now serves 190 members in 22 states

.35.3% Compound Annual Growth Rate (CAGR) in pharmaceutical purchases •