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News Release

BioScrip and United Healthcare to Exit Specialty Services Agreement in 2009

September 11, 2008 at 8:55 AM EDT

Financial Impact Estimated at $2.0 Million for 2009

ELMSFORD, N.Y., Sep 11, 2008 (BUSINESS WIRE) -- BioScrip, Inc. (Nasdaq: BIOS) announced today that UnitedHealthcare, a UnitedHealth Group (NYSE: UHG) company, has notified the Company of its intention to internalize services for HIV/AIDS and Solid Organ Transplant drugs for United members effective January 31, 2009 and March 31, 2009, respectively.

This contract termination will have no impact on 2008 operating results. For 2009, the Company expects a loss of revenue of $100.0 million and a loss of $2.0 million of operating income associated with this contract.

The Company also stated that it believes that the lost profit from exiting both the United agreement and the previously announced Aetna business, along with the benefit of exiting its CAP business, will result in an aggregate decrease in operating profit of approximately $1.5 million for 2009. The Company also expects that the decline in profitability will be positively impacted by the implementation of a detailed cost reduction plan and the impact of additional new sales and contracts associated with its business segments.

Richard H. Friedman, Chairman and Chief Executive Officer of BioScrip, stated, "Although we are disappointed with United's decision to internalize its HIV/AIDS and Solid Organ Transplant services, we believe that we have a solid pipeline of opportunities from which to continue to grow our business and increase our profitability."

About BioScrip, Inc.

BioScrip, Inc. ( (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 and our success with respect to the integration and consolidation. 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.

BioScrip, Inc.
Craig Allison, 914-460-1636
Director, Corporate Communications
In-Site Communications
Lisa M. Wilson, 917-543-9932