PSS World Medical Reports Results For Fiscal Year 2011 Second Quarter

Second Quarter Highlights:

• The Company had five fewer sales days in the second quarter of fiscal year 2011 (63 sales days) compared with the second quarter of fiscal year 2010 (68 sales days)
• Consolidated net sales decline of 11.7%, with same day sales decline of 4.7%

• Physician Business net sales decline of 13.8%, with same-day sales decline of 1.2% excluding prior-year H1N1-related product sales
• Elder Care Business net sales decline of 6.6%, with same-day sales growth of 0.8%

• Sequential per-day revenue growth of 5.3% over fiscal 2011 first quarter

• Physician Business sequential per-day revenue growth of 6.6%
• Elder Care Business sequential per-day revenue growth of 2.2%

• Consolidated operating margin growth of 27 basis points to 7.1%

• Physician Business operating margin of 10.8%
• Elder Care Business operating margin of 5.8%

• Consolidated cash flow from operations of $11.6 million

JACKSONVILLE, Fla., October 28, 2010 (GLOBE NEWSWIRE) -- PSS World Medical, Inc. (Nasdaq:PSSI) announced today its results for the fiscal 2011 second quarter ended October 1, 2010.

Gary A. Corless, President and Chief Executive Officer, commented, "Our second quarter performance reflects the team's focused execution of our business strategies in a period of economic challenge. Throughout the last two years of slower economic activity, we have continued to invest in solutions-based programs focused on improving the clinical and financial success of caregivers, while adding new customers to counter lower overall healthcare utilization. We remain committed to achieving our goal of $1.27- $1.31 earnings per diluted share for fiscal year 2011."

David M. Bronson, Executive Vice President and Chief Financial Officer, commented, "Despite the triple headwinds of lower physician office utilization, five less selling days, and the comparative effect of last year's H1N1-related revenue, the Company is continuing to expand its profit margins and generate cash without reducing headcount or services. In fact, we have continued to invest in technology and infrastructure projects that will drive future profitability gains. Our strong cash position allowed for the repurchase of two million shares this past quarter, as well as funding some modest acquisitions."