BioScrip, Inc.

Stanley G. Rosenbaum, 952-979-3768

Executive Vice President and Chief Financial Officer

srosenbaum@bioscrip.com

or

In-Site Communications

Lisa M. Wilson, 917-543-9932

lwilson@insitecony.com

BioScrip, Inc. (Nasdaq: BIOS) today announced a fourth quarter net loss of $76.6 million, or $1.98 per share, on revenues of $366.6 million, which includes a goodwill impairment charge and intangible write off totaling $80.2 million, net of taxes. These results compare to net income of $2.5 million, or $0.06 per diluted share, on revenue of $309.2 million for the fourth quarter of 2007. Excluding the goodwill impairment and intangible write off, the Company would have reported net income of $3.6 million, or $0.09 per diluted share. EBITDAO was $6.6 million for the fourth quarter, compared to $5.9 million for the same period a year ago, a 11.9% increase.

For the year ended December 31, 2008, the Company reported a net loss of $74.0 million, or $1.93 per share, on revenues of $1.4 billion, which includes the $80.2 million impairment charge, net of tax. This compares to net income of $3.3 million, or $0.09 per share, on revenues of $1.2 billion for the same period a year ago. Excluding the impairment charge and intangible write off, the Company would have reported 2008 net income of $6.2 million, or $0.16 per diluted share. The Company's goodwill impairment and intangible write off was prompted by adverse equity and other market conditions which caused a decrease in current market valuations in the healthcare services industry and BioScrip's stock price relative to its book value at December 31, 2008.

Richard H. Friedman, BioScrip's Chairman and Chief Executive Officer, stated, "Our operating performance is in-line with our expectations and continues to be driven by solid organic growth at our specialty pharmacies, demonstrating the underlying strength and consistency of our business. We strengthened and expanded our infusion capabilities over the last year and will continue to focus on strategic growth areas as we increase our national footprint in 2009. We believe that this will yield positive results in 2009."

Results of Operations

Fourth Quarter Highlights

Revenue for the fourth quarter of 2008 totaled $366.6 million compared to $309.2 million for the same period a year ago. Fourth quarter 2008 Specialty Services revenues were $314.0 million, an increase of $56.9 million, or 22.1% over the same period a year ago. The increase was due primarily to growth from managed care and network contracts in conjunction with direct to physician sales efforts for specialty therapies. PBM Services revenues remained substantially the same year-over-year.

Consolidated gross profit for the fourth quarter of 2008 was $38.0 million, an increase of $1.8 million from $36.2 million for the fourth quarter of 2007. Fourth quarter 2008 gross margin was 10.4% compared to 11.7% for the same period a year ago. Gross margin was negatively impacted by the lower margin Medicare Competitive Acquisition Program ("CAP") and United Healthcare Group ("UHG") organ transplant and HIV/AIDS contract. As previously reported, the CAP relationship ended on December 31, 2008 and the UHG exclusive agreement for HIV/AIDS and organ transplant terminate January 31, 2009 and March 31, 2009, respectively. Total revenues associated with those contracts represented an aggregate of approximately $180 million in 2008.

Fourth quarter operating income, excluding the impairment charge increased to approximately $4.0 million, a 29% increase over last year's fourth quarter. This increase was primarily due to sales growth and cost-containment efforts, partially offset by a return to normalized bad debt expense.

2008 Reported Results

Year-end 2008 Highlights:

For the year ended December 31, 2008, the Company reported a net loss of $74.0 million, or $1.93 per share compared to net income of $3.3 million, or $0.09 per share for the same period a year ago. As discussed above, the Company had an after-tax impairment charge of $80.2 million, or $2.09 per share, which was prompted by adverse equity and other market conditions which caused a decrease in current market valuations in the healthcare services industry and BioScrip's stock price relative to its book value at December 31, 2008.

Excluding the impairment charge, the Company would have reported net income of $6.2 million, or $0.16 per diluted share, a $2.9 million improvement in net income over the prior year. Revenues increased to $1.4 billion for the year ended December 31, 2008 from $1.2 billion in 2007.