Counsel Sells Stadtlanders To Bergen Brunswig

Counsel Corp. has completed the sale of its wholly-owned subsidiary, Stadtlander Drug Co., to Bergen Brunswig Corp. for approximately $400 million. The purchase price, includes the assumption of approximately $91 million in debt by Bergen and approximately 5.7 million Bergen shares at $24.8125 per share. The balance of the purchase price was paid in cash.

Counsel Corp. entered the specialty pharmacy market through its acquisition of Stadtlanders Pharmacy in June 1996. Over the past three years, the Company has diversified and grown its disease state portfolio in disease specific pharmaceutical care for transplant, HIV and serious mental illness patient populations. Stadtlanders has also become a leading provider of pharmaceutical care to the privatized corrections market, and ranks second in the infertility market. Stadtlanders' current annualized revenue run rate is approximately US$500 million.

Allan Silber, chairman and CEO of Counsel Corp., says the Company will continue to play a role in the pharmaceutical sector through its recent acquisitions, Faro Pharmaceuticals Inc. and Sage BioPharma. Counsel's efforts will be focused on co-market below threshold drugs that are non-strategic to major pharmaceutical companies.

For more information: Susan Feldman, senior VP of Corporate Communications, Counsel Corp., Exchange Tower, Ste. 1300, PO Box 435, 2 First Canadian Place, Toronto, Ontario M5X 1E3, Canada. Telephone: 416-866-3187. Fax: 416-866-3061.