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Florida and H. D. Smith Lead the Way to Safer Drugs

Leading Wholesaler To Launch State's First Drug Pedigree Tracking System in April, Months Ahead of July Deadline

POMPANO BEACH, FLORIDA (February 7, 2006) --- Florida residents will soon rest easy, assured their state's pharmaceutical drug supply will take a big leap forward with the upcoming deployment of a nationwide electronic tracking system adopted by H. D. Smith, one of the country's largest pharmaceutical distributors.

H. D. Smith said today the system will be fully implemented in April 2006, making its Pompano Beach distribution center the first warehouse in Florida to be in compliance with state's deadline for drug tracking, called "pedigree" regulations, which are slated to become active in July 2006. H. D. Smith has tapped Massachusetts-based SupplyScape Corporation as its electronic pedigree technology partner.

Last year, H. D. Smith successfully implemented a pilot project with Purdue Pharma LP to track each drug's distribution and pharmacy delivery. That success led to full-scale implementation of the e-pedigree system in Florida.

The Florida drug pedigree regulations were prompted by an alarming increase in the rate of counterfeit and tampered pharmaceutical drugs that were entering the American supply chain. In the 21st Century Health Care Terrorism report, Peter J. Pitts, a former FDA Associate Commissioner and member of the agency's Counterfeit Drug Task Force, said drug counterfeiting exceeds $32 billion worldwide each year and is growing approximately 16% annually.

A 2003 report requested by Governor Jeb Bush determined that "Pedigree papers, when verified through due diligence, are the cheapest, easiest and most effective way to prevent diverted or counterfeited drugs from entering the marketplace."

Currently, nearly a dozen states have adopted regulations that mirror those in Florida, and more states are following suit. To meet these drug safety requirements, national pharmaceutical distributor H. D. Smith is implementing the electronic pedigree system in all of its distribution centers.

"Beyond regulations and compliance, pedigree is the right thing to do to ensure patient safety," said Dale Smith, president and CEO, H. D. Smith. "The tools and technology are ready for every trading partner to deploy an e-pedigree system; there is no reason to delay. We're proud to be leading the way in Florida and nationwide."

On the SupplyScape platform, all of the prescription products carried by H. D. Smith will have pedigrees that certify distribution to retail pharmacies, hospitals, clinics and other dispensing locations in accordance with Florida requirements.

According to SupplyScape President Shabbir Dahod, once in place the system will have the ability to track all types of drug products.

"SupplyScape led the industry towards an open, interoperable standard for e-pedigrees, and this deployment is the first step which will be built upon year after year," said Dahod. "The industry is moving with unprecedented speed and unity toward securing the drug supply, and e-pedigree is the lynchpin making it possible."

About H. D. Smith

Headquartered in Springfield, Illinois, H. D. Smith is the largest privately-held national full-service wholesale distributor that provides a complete line of pharmaceuticals, OTCs, HBAs, surgical supplies, seasonal merchandise and a wide array of marketing programs to retail, hospital, and institutional pharmacies. The company has distribution facilities in California, Florida, Illinois, New Jersey and Texas that service major markets throughout the United States. Additional information about H. D. Smith can be found at www.hdsmith.com.

About SupplyScape

SupplyScape provides supply chain security software and expertise to safeguard the pharmaceutical supply. A leader in defining the open universal standards-based electronic pedigree solution for the pharmaceutical industry, SupplyScape provides electronic pedigree and drug identity authentication software and services. The company's executives enable pharmaceutical companies, wholesalers, distributors and pharmacies to derive sustainable business value from their investments in electronic pedigree and supply chain security. For more information, visit www.supplyscape.com.

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