News Release

ELMSFORD, N.Y.--(BUSINESS WIRE)-- BioScrip, Inc. (Nasdaq: BIOS), announced today that it will record a fourth quarter non-cash, after-tax charge of approximately $80.0 million for the impairment of goodwill and the write off of intangible assets in accordance with Statement of Financial Accounting Standards (“SFAS”) 142 "Goodwill and Other Intangible Assets," and SFAS 144 “Accounting for the Impairment or Disposal of Long Lived Assets.”The pre-tax charge totaled $94.0 million before recognizing a tax benefit of approximately $14 million in the fourth quarter of 2008.

This write off and impairment are the result of 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. Consequently, BioScrip will report a net loss for the fourth quarter and 2008. The charge is non-cash in nature and will not affect BioScrip's liquidity, cashflows from operating activities, debt covenants or its ability to borrow under its existing credit facility.

BioScrip's Chief Financial Officer, Stanley G. Rosenbaum, stated, "Despite the current economic environment, we remain optimistic about the growth potential of our specialty pharmacy business. Additionally, we reiterate our guidance of revenue growth, without CAP and United, in the range of 10-15%, gross profit margin in the range of 10.5-11%, and improved cash flows from operations for 2009.”

BioScrip’s management performed its required testing of goodwill using a discounted cash flow analysis supported by comparative market multiples to determine the fair value of each of its businesses as compared to their respective book values as of December 31, 2008.

BioScrip is expected to report its fourth quarter financial results on March 3, 2009.

About BioScrip, Inc.

BioScrip, Inc. (www.bioscrip.com) (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.

Source: BioScrip, Inc.

BioScrip, Inc.
Stanley G. Rosenbaum, 952-979-3768
EVP, Chief Financial Officer
srosenbaum@bioscrip.com
or
In-Site Communications
Lisa Wilson, 917-543-9932
lwilson@insitecony.com